The franchise fee of $75,000 is 36% above the typical range for similar franchises. What specific value, training, or support justifies this premium pricing compared to competitors?
#1
Transfer fees are $56,250, which is 3 times the typical range. Why are transfer fees equivalent to 75% of the initial franchise fee, and are these fees refundable or credited against renewal fees?
#2
Technology fees are only $100 monthly, significantly below the typical range of $156.50-$877.75. What technology systems and ongoing support are included at this rate, and how might fees change as the franchise grows?
#3
What were the specific circumstances of the 1 unit closure in 2023 and the 2 transfers in 2024? Were closures franchisor-initiated, voluntary, or due to underperformance?
#4
Average gross sales of $2.3M significantly exceed typical ranges. How many franchisees report these levels, and what is the median sales figure rather than the average?
#5
The Investment Costs score is 0, the lowest possible. Can you provide a complete breakdown of total investment required to open and operate a franchise unit for the first 12 months?
#6
What does the remarkably high Support & Training score of 100 include? Please specify the duration, frequency, and format of initial and ongoing training provided.
#7
Given the high transfer rate of 7.7%, what are the primary reasons franchisees are transferring ownership? Are these transfers to family members, third parties, or back to the franchisor?
#8
The renewal fee is stated as 75% of the then-current franchise fee. If the initial fee is $75,000 and inflation occurs, how high could the renewal fee potentially reach, and has this escalation occurred historically?
#9
All disputes must be resolved through mediation and arbitration in Kent County, Rhode Island. For franchisees outside Rhode Island, what are the practical costs and logistics of this requirement?
#10
Personal guarantees are required from all equity holders and spouses. Are there any circumstances under which personal guarantees can be waived or limited based on franchisee net worth or experience?
#11
The non-compete clause is 2 years / 20 miles. Does this restrict all types of entertainment venues or only family entertainment centers specifically, and how is this enforced?
#12
How many units reported financial data for the Item 19 disclosure, and what is the range of performance (median, 25th percentile, 75th percentile) rather than just the average?
#13
The termination rate is 0.0% with cure periods of 10-30 days for most defaults. In practice, how many franchisees have received termination notices or cure period notices, and what were the primary causes?
#14
What is the renewal non-renewal rate, and have any franchisees declined to renew at the end of their initial 10-year term? If so, what were their stated reasons?
#15
With 5 net new units added in the past year, what is the franchisor's growth strategy and expansion timeline? Are new territories still available in your target market?
#16
The franchise agreement mentions cure periods of 10-30 days. What specific breaches qualify for only 10 days versus 30 days, and can this be negotiated?
#17
Are there volume discounts, performance bonuses, or reduced fees for multi-unit franchisees? How does the fee structure change for area developers versus individual unit operators?
#18
What happens to the $56,250 transfer fee if the franchisor does not approve the proposed transferee? Is this fee refunded, held in escrow, or retained by the franchisor?
#19
How have average unit sales and profitability trended over the past 3 years for existing franchisees? Are newer units performing better or worse than established locations?
#20