The transfer fee of $27,000 exceeds the typical range for this franchise type. What justifies this fee, and is it negotiable for franchisees seeking to transfer their unit?
#1
Support & Training scores 83, below the typical range of 88-100 for coffee franchises. What specific training and ongoing support gaps exist, and how will they be addressed?
#2
The franchise does not provide Item 19 financial performance data. Can you provide average unit volumes, profit margins, or other financial metrics for existing franchisees?
#3
How many of the current 25 units are company-owned versus franchisee-owned, and what is the breakdown by location type (retail, kiosk, etc.)?
#4
What is the average time to profitability for new Matto Espresso franchisees, and what percentage achieve profitability within the first 2 years of operation?
#5
Can you provide details on the recent unit growth from 20 to 25 units? Were these new franchise sales, company-opened locations, or existing locations that expanded?
#6
The agreement specifies that all food products must be purchased from the franchisor's affiliate. What is the markup on these products compared to third-party suppliers?
#7
Late payment interest is set at 18% per annum. Under what circumstances have late payments occurred with existing franchisees, and how frequently are enforcement actions taken?
#8
The termination clause allows only 5 days to cure non-payments. What constitutes non-payment, and are partial payments or payment plans considered acceptable cures?
#9
Franchisees must purchase equipment and materials only from franchisor-designated vendors. Can you provide a list of approved vendors and typical cost ranges for initial equipment?
#10
The personal guarantee requires spouses of married principals to sign. How is this enforced if a franchisee becomes divorced, and does the guarantee remain in effect?
#11
With zero litigation cases reported, what disputes or complaints have been resolved informally with franchisees, and are there any pending issues not reflected in formal litigation?
#12
The renewal fee is $18,000 for a 10-year renewal after the initial 10-year term. Are there any conditions under which renewal might be denied, and what percentage of franchisees renew their agreements?
#13
What are the specific performance expectations for a Matto Espresso location, given that no minimum sales or performance requirements are specified in the agreement?
#14
Can you explain how the Customer Non-Solicitation restriction for 2 years within 25 miles is enforced and monitored after a franchisee's departure?
#15
Are there any territorial disputes among the current 25 franchisees, and how does the franchisor handle requests for location changes or territory modifications?
#16
The technology fee is $150 per month. What systems and support does this cover, and are there additional technology or software costs beyond this fee?
#17
What is included in the initial franchise fee of $36,000, and what are the estimated costs for pre-opening inventory, working capital, and build-out?
#18