Kahala Coffee Traders

Of the 25 total litigation cases on record, what are the primary categories of claims (e.g., breach of contract, non-payment, intellectual property, employment-related), and how many remain unresolved?

What were the specific reasons for the 2 closures in 2022, and what circumstances led to the 1 closure and 1 transfer in 2024?

Can you provide details on the 10 cases where the franchisor initiated legal action against franchisees—specifically the outcomes and whether these related to payment defaults, contract violations, or other issues?

Why does the ad fund rate of 4.0% exceed the typical category range of 2.0%-3.0%, and how is this fund specifically allocated and reported to franchisees?

The franchise fee of $30,000 is notably lower than the typical range of $35,000-$45,000. Are there any initial service limitations or cost-sharing arrangements that reflect this lower fee?

Given that 15 cases name the franchisor as defendant, what are the primary allegations against the franchisor, and have any resulted in judgments or settlements that affected franchisees?

With only 5 current units and a non-exclusive territory policy, how does the franchisor protect existing franchisees from internal competition, and can the franchisor place new franchises within 10 miles of existing units?

The renewal term offers only 1 option for 5 years with no further renewal rights. What happens to franchisees at the end of the 15-year potential term, and are there any contractual paths to extension?

The termination clause contains 15 non-curable defaults with some having cure periods of less than 24 hours. Can you clarify which violations are non-curable and provide examples of the most commonly cited defaults in the 10 cases initiated by the franchisor?

The transfer fee of $7,500 is below the typical range. Are there any additional fees, approval delays, or training requirements associated with unit transfers that franchisees should expect?

How many of the 10 cases filed in the past 3 years are still pending or ongoing, and what is the timeline for resolution of each?

The monthly technology fee of $75 is significantly lower than the typical range ($102.75-$499.75). What specific technology services and support are included, and are there plans to increase this fee in the future?

Can you provide the Item 19 financial performance statement if available, or explain why this information is not disclosed to prospective franchisees?

Given the 2-year, 10-mile non-compete clause, what specific restrictions apply post-exit, and has the franchisor enforced this clause in the 2 closures and 1 transfer that occurred?

What support, training, and marketing assistance is provided during the initial 10-year term, and does renewal trigger any changes to these support levels?

The system grew from 3 units to 5 units over 3 years while experiencing 2 closures. What is the franchisor's growth strategy, and how many franchises are currently being recruited?

Among the 15 cases where the franchisor was defendant, how many involved claims of breach of the franchise agreement by the franchisor, and what were the outcomes?

Are there any franchise units currently in default or under review for potential termination, and how transparent is the franchisor in communicating system health to prospective franchisees?

The renewal conditions require 120 days' notice and a meeting of 9 conditions. What is the franchisor's typical renewal approval rate, and have any renewals been denied or only approved with significant modifications?