The monthly technology fee of $750 is 2.5 to 10 times higher than typical for food and beverage franchises. What specific technology services and platforms are included in this fee, and how is it justified relative to competitor offerings?
#1
Given the transfer rate of 12.5% (1 of 8 units transferred in one year), what circumstances led to the 2023 transfer? Was this a voluntary sale, franchisor-directed transfer, or exit by the franchisee?
#2
The 3-year CAGR of 16.96% exceeds typical ranges. Does this growth reflect new unit openings, acquisitions of existing businesses, or conversions of other concepts? What is the sustainability outlook for this growth rate?
#3
The agreement lists 25 termination causes, above the typical 15-20 range. Can you provide the complete list of termination triggers and clarify which are franchisor-initiated versus automatic based on performance metrics?
#4
The non-compete radius of 25 miles is at the upper end of the range. How is the 25-mile radius calculated and enforced post-exit? Are there geographic exceptions or modifications available during negotiations?
#5
Item 19 financial performance data is not provided. Can you explain why audited or verified financial performance information is not available, and would you be willing to provide reference franchisee contact information for revenue verification?
#6
The Support & Training score of 81 falls below the typical range of 83.75-99.0. What specific gaps or limitations exist in franchisor training and support that account for this below-average score?
#7
The Investment score of 73 is below the typical 75.0 benchmark. What hidden costs or ongoing investment requirements exist beyond the listed franchise fee, royalties, and technology fees?
#8
Describe the dispute resolution process requiring non-binding mediation in Los Angeles County followed by binding arbitration. What are the expected costs and timeframes for dispute resolution under this structure?
#9
Personal guarantees are required from all owners and spouses with joint and several liability. Can franchisees negotiate this requirement, and under what circumstances would the franchisor release guarantees prior to contract expiration?
#10
The exclusive supply purchase requirement covers multiple product categories. Which specific product categories are required to be purchased exclusively from franchisor-designated suppliers, and what is the markup structure?
#11
With only 8 current units in the system, how many of the original franchisees from the inception remain in the system? What is the average tenure of current franchisees?
#12
The renewal fee is $7,500 with 8 specified renewal conditions. If a franchisee meets the renewal fee and standard operational requirements, can renewal be denied? What flexibility exists in renewal negotiations?
#13
No litigation appears in public records over 3 years. Are there any ongoing disputes, complaints with regulators, or settlement agreements not reflected in this litigation data?
#14
The territory is described as protected but not exclusive. What specific protections exist against franchisor encroachment, and can the franchisor open company-owned locations or license non-franchised operators in your territory?
#15
Given the high technology fee of $750 monthly ($9,000 annually), what is the total estimated investment to open a Junbi franchise including real estate, equipment, inventory, and initial operating capital?
#16
Are there any volume-based discounts, rebates, or revenue-sharing arrangements available for franchisees that would reduce the effective technology fee or royalty rate with performance metrics?
#17