Can you explain the specific services and technology platforms covered by the $100/month technology fee, and why it is significantly lower than industry standards for this category?
#1
What justifies the $30,000 transfer fee, which is 50% higher than the typical range for fast casual restaurants, and is this fee negotiable under any circumstances?
#2
The ad fund rate of 4.0% exceeds typical rates—how is this fund specifically allocated across marketing channels, and what audit rights do franchisees have?
#3
With only 1 unit currently operating, what is the franchisor's growth strategy and timeline to expand the system, and what support will you receive during the startup phase?
#4
The franchise agreement requires purchasing from designated suppliers—can you provide a list of approved suppliers and typical cost comparisons versus open-market alternatives?
#5
What are the 23 non-curable defaults listed in the agreement, and under what circumstances could a franchisee face immediate termination without a cure period?
#6
The non-compete clause covers 'any restaurant or eatery business in any capacity' for 2 years within 10 miles—can you clarify whether this includes ownership, management, consulting, or investment roles?
#7
All disputes require binding arbitration in Philadelphia County—what is the typical cost of arbitration, and why was this specific location chosen?
#8
Personal guarantees are required from all principals and their spouses—what specific circumstances would trigger enforcement against spouses, and can this be negotiated?
#9
The renewal fee is 25% of the then-current initial franchise fee—if the initial fee increases, what caps or limitations exist on renewal fee growth?
#10
What are the 7 specified conditions that franchisees must meet to renew their agreements, and how strictly are these enforced?
#11
Given the system has remained at 1 unit for 3 years with no growth, what communication or performance accountability exists between you and the franchisor?
#12
Can you provide the Item 19 financial statement showing the $1,881,946 average gross sales, and clarify how many units this represents and their operating tenure?
#13
What training and ongoing support are provided, and how is this delivered given the limited system size?
#14
Are there any existing or former franchisees you can reference, and what were their reasons for any exits or transfers?
#15
Does the franchisor have the right to set maximum prices for products and services, and if so, how does this affect pricing flexibility and profit margins?
#16
How frequently can the franchisor modify operational requirements, purchasing specifications, or menu offerings, and what notice period must be provided?
#17
The renewal fee of approximately $10,000 is separate from the transfer fee—would both fees apply if you transferred the unit to another party during the term?
#18
What happens if you choose not to renew after the initial 10-year term, and are there any wind-down obligations or inventory buyback guarantees?
#19