Can you provide details about the 2 units that ceased operations in 2023? Were these closures due to franchisee financial difficulties, lease terminations, or other specific operational factors?
#1
What was the franchisor's role in initiating the litigation case where Manhattan Pizza was the plaintiff, and what was the outcome or current status?
#2
Regarding the litigation case where the franchisor was the defendant, what was the nature of the claim and how was it resolved?
#3
The franchise fee of $34,000 is lower than the category average. What justifies this lower fee, and does it reflect lower initial support or different market positioning?
#4
Your advertising fund rate of 1.0% is substantially lower than the category typical range of 1.5%-3.0%. How is the marketing and brand development funded, and what is the breakdown of marketing activities?
#5
Given the system's 3-year net decline of 2 units and -4.66% CAGR, what growth strategy is Manhattan Pizza implementing to expand or stabilize the system?
#6
Can you explain the performance gap between bottom quartile units ($1,268,084) and median units ($1,607,768)? What factors drive this variance?
#7
The non-compete clause is 1 year and 20 miles, shorter than the typical 2-year period for fast-casual restaurants. Why was this term selected, and are there any exemptions?
#8
What specific conditions must be satisfied to renew the franchise at the end of the 10-year initial term, beyond payment of the $10,000 renewal fee?
#9
Of the 8 renewal conditions referenced, which are most challenging for franchisees to satisfy, and what percentage of franchisees typically successfully renew?
#10
The agreement includes 15 non-curable defaults. Can you provide the complete list and explain the business rationale for each non-curable event?
#11
What is the 10-day cure period for insurance failures and payment defaults in practice? Are there documented cases of franchisees successfully curing these breaches?
#12
How does the unlimited personal guarantee provision impact spouses, and are there circumstances where this requirement can be modified?
#13
What support and training does Manhattan Pizza provide to new franchisees to achieve the reported median sales of $1,607,768?
#14
Are there any planned marketing initiatives or system-wide campaigns that would benefit franchisees beyond the current 1.0% advertising fund contribution?
#15
How many of the 3 total litigation cases involved current franchisees versus former franchisees or other third parties?
#16
What is the average unit volume (AUV) for the 13 current operating units, and how does this compare to the disclosed median gross sales figure?
#17
Given the protected territory and exclusive rights, what encroachment violations or disputes have occurred, if any, since the system inception?
#18