La Rosa Chicken & Grill

The system declined by 1 unit over 3 years (14 to 13 units). What specific factors contributed to the closure of 1 unit in 2022 and 2 units in 2023, and what actions have been taken to stabilize the franchise?

Your Financial Performance score (62/100) exceeds the typical category range. Can you provide detailed explanations for the median gross sales of $1,363,574 and clarify what percentage of franchise units reported these numbers?

The non-compete restriction extends 25 miles, which exceeds the typical range of 5-20 miles for this category. What is the rationale for this extended geographic restriction, and how strictly is it enforced?

Given that 2 units were terminated in 2023, what were the primary reasons for these terminations, and what specific performance or compliance issues led to them?

The post-term non-compete clause restricts any restaurant offering rotisserie chicken, fried chicken, or grilled chicken items. How broad is this definition in practice, and have there been disputes over what constitutes a competing menu?

Transfer agreements require franchisor consent subject to 11 specified conditions and include a right of first refusal. Can you provide the complete list of these 11 conditions and explain typical scenarios where transfer requests have been denied?

The renewal fee is set at the greater of 25% of the then-current initial franchise fee or $7,500. Can you provide historical examples of what renewal fees have actually been charged, and what the projected renewal fee would be in Year 10?

All disputes are subject to binding arbitration in Monmouth County, New Jersey, with waivers for class action suits and jury trials. Have there been any arbitration proceedings, and if so, what were the outcomes and costs involved?

Personal guarantees and joint/several liability are required from all owners and spouses. Can you clarify whether this applies equally to all ownership structures, including corporate entities or LLCs with multiple members?

The franchise features protected but non-exclusive territory with encroachment protection. Can you define what constitutes encroachment, and have there been any disputes or complaints about encroachment from the franchisor or other franchisees?

With zero litigation cases historically, can you explain what mechanisms exist to resolve franchisee complaints, and are there any informal dispute resolution efforts that might not appear in formal litigation records?

The Investment score of 80/100 exceeds the typical category range of 73.0-77.25. What does this score reflect, and are there additional investment requirements beyond the stated $35,000 franchise fee?

Unit count remained stable at 13 units in 2023 and 2024 after decline. What is the franchisor's growth strategy, and are there any near-term plans to expand or franchises in development?

Can you provide a breakdown of the median gross sales of $1,363,574 by unit age, location type (urban vs. suburban), and operating format to assess consistency across the system?

The franchise requires mediation before arbitration. How long is the typical mediation process, what are the associated costs, and what percentage of disputes proceed to arbitration after failed mediation?

With the indemnification clause requiring franchisees to defend and hold harmless the franchisor, can you provide examples of claims that have been indemnified and typical legal costs franchisees have incurred?

The transfer fee is $17,500. Has this fee been increased since the franchise inception, and what circumstances trigger the franchisor's exercise of right of first refusal?

Renewal is subject to 8 specified conditions. Can you list these conditions and clarify whether failure to meet any single condition would result in non-renewal?

What training and ongoing support are provided during the initial 10-year term and how does support change during the renewal period?

Can you provide contact information for current and former franchisees (particularly those who closed or were terminated in 2022-2023) so I can conduct independent reference checks?