Given the franchise fee of $49,500 is above typical for this category, what specific services, training, or support justify this premium pricing compared to competitors?
#1
Can you explain the 16.7% turnover rate over the past year, particularly the circumstances around the 2 unit terminations in 2022 and the 2 closures/ceased operations across 2022-2023?
#2
What specific operational or financial challenges led to the system contracting from 7 units three years ago to 6 units currently, despite zero franchisor-initiated terminations?
#3
The Ad Fund Rate is 4.0%, above the typical 1.5-3.0% range for this category. How is this fund allocated, and can you provide specific marketing results or ROI data for franchisees?
#4
Why is the transfer fee set at $4,000 when the typical range for this franchise type is $8,750-$20,000, and are there any conditions or restrictions on transfers that might explain this lower fee?
#5
The non-compete clause specifies only 1 year and 10 miles versus the typical 2-year standard. How does this shorter restriction protect the franchisor and other franchisees from direct competition?
#6
Can you provide the specific details and outcomes of the transfers that occurred in 2022 and 2023, including whether they were to new franchisees or existing franchise operators?
#7
What are the 4 renewal conditions referenced in the contract, and how frequently do existing franchisees successfully renew their agreements?
#8
Given the Risk Factors score of 55 (below the typical 64.0-80.0 range), what specific risk mitigation strategies does the franchisor employ, and are there material risks not reflected in this score?
#9
The franchise fee is $49,500 but falls in the upper range for the category. What is included in initial training, site selection, opening support, and how long does the ramp-up period typically last?
#10
Can you explain the 1-year and 10-mile non-compete restriction in detail, including whether it applies only to fast-casual restaurants or to all food service establishments?
#11
The dispute resolution clause requires mandatory mediation in Sarasota County, Florida followed by binding arbitration. How are costs allocated between parties, and what happens if the franchisee is located outside Florida?
#12
The liability clause requires joint and several personal guarantees including spouse guarantees for indirect and contingent liabilities. Can you clarify the scope of 'contingent liabilities' and provide examples?
#13
Why does the Ongoing Fees score of 60 fall below the typical 61.0-62.0 range? Are there additional fees not captured in the royalty, ad fund, and technology fee structure?
#14
Can you provide unredacted Item 19 financial performance data for company-owned units and franchisee units, or explain why this is not available?
#15
Of the 3 total units that exited in 2022-2023, were any forced closures due to performance issues, health code violations, or lease terminations, and how common are such issues?
#16
The renewal fee is stated as 10% of the then-current franchise fee. If fees increase significantly, could renewal costs become prohibitive for existing franchisees?
#17
The franchisor can require exclusive purchasing from itself, affiliates, or approved suppliers. How does this pricing compare to market rates, and are there any pricing caps or competitive bidding requirements?
#18
Given the territorial exclusivity and encroachment protection, what happens if a new Mahana Fresh location opens within 10 miles of an existing franchisee's territory?
#19
What is the typical payback period for franchisees, and at what revenue level do most franchisees achieve profitability?
#20