The franchise fee of $50,000 is 25% above the typical range for F&B franchises. What specific value or services justify this premium pricing?
#1
The monthly technology fee of $400 exceeds typical rates by $100-$325. Can you provide a detailed breakdown of what technology services and systems this fee covers?
#2
The transfer fee of $25,000 is 43% above the typical range. Under what circumstances is this fee charged, and is it negotiable or fixed?
#3
Two units closed in 2024 (12.5% exit rate), which is above the typical range. Can you provide specific reasons for these closures and whether they were underperforming locations?
#4
System Health scored 35 out of 100, significantly below the typical 50-75 range. What specific operational or financial challenges is the system currently facing?
#5
The non-compete restriction extends 25 miles, exceeding the typical 5-23.75 mile range. How is this geographic radius defined, and what types of food businesses are prohibited?
#6
Can you provide detailed information about the 11 renewal conditions required to renew the franchise agreement?
#7
The renewal fee is stated as 15% of the then-current franchise fee. How is the 'then-current' fee determined, and have there been significant increases in past renewals?
#8
The agreement specifies 14 non-curable defaults. Can you provide the complete list and clarify which defaults would trigger immediate termination?
#9
Payment defaults require cure within 5 days versus 30 days for other curable defaults. How often has the franchisor enforced this accelerated cure period?
#10
All equipment and supplies must be purchased from franchisor-approved suppliers with potential franchisor control over pricing. How many approved suppliers currently exist for key products, and what is the average price variance versus open market alternatives?
#11
Has the franchisor provided Item 19 financial performance data to franchisees? If not, what profitability or revenue data can be shared with prospective franchisees?
#12
The system currently has only 16 units. What is the franchisor's growth strategy, and how long have these current units been operational?
#13
Support & Training scored 100 out of 100, the maximum score. Can you detail the specific training programs, ongoing support, and staff resources provided to franchisees?
#14
Are there any disputes or disagreements with current franchisees regarding territory, encroachment, or operational control that are not reflected in formal litigation?
#15
What percentage of the current 16 units are located in their original markets versus new expansion areas?
#16
Can you provide contact information for franchisees who opened units in 2022-2023 to discuss their experiences and performance to date?
#17
The Investment Cost score is 51 out of 100, below the typical 75.0 range. What unforeseen costs or capital requirements should new franchisees anticipate beyond the stated fees?
#18
Are there minimum sales thresholds or performance standards in the franchise agreement, and what happens if a franchisee fails to meet these benchmarks?
#19