Max's Restaurant Cuisine of the Philippines

The transfer fee of $25,000 significantly exceeds the typical range of $5,000-$18,000 for casual dining franchises. What justifies this premium transfer fee, and is it negotiable?

With an initial term of only 5 years compared to the typical 10.0-15.0 year range, what is the franchisor's strategy for ensuring unit stability and long-term franchisee investment?

The non-compete clause restricts franchisees to only 5 miles compared to the typical 7.5-15.0 mile range. How does this protect franchisees from encroachment, particularly given that territory is not exclusive?

Your ad fund rate is 0.5%, well below the typical 1.0-3.0% for casual dining. How do you fund adequate marketing support for franchisees with such a low contribution?

Two units closed or ceased operations in 2024. Can you provide details on the reasons for these closures and whether any operational or support issues contributed?

What specific support and training does the franchisor provide to help franchisees succeed, given the Support & Training score of 90/100?

The dispute resolution clause requires binding arbitration with no class-wide actions. How have franchisees experienced this process, and are there any pending or historical disputes in arbitration?

Personal guarantees are required from all partners, shareholders, officers, and directors. How does the franchisor enforce these guarantees, and what recourse do franchisees have if they believe enforcement is unfair?

With a Financial Performance score of 40/100 and no Item 19 disclosure, what financial benchmarks or performance data can you provide to help franchisees evaluate unit profitability?

The System Health score is 35/100. What specific challenges or systemic issues does this reflect, and what corrective actions is the franchisor implementing?

Net unit growth has been 0 over the past year. Are you pursuing expansion, and if so, what markets or unit types are you targeting?

Can you provide a breakdown of the 2 unit closures in 2024 by location, tenure, and owner circumstances (e.g., retirement, relocation, financial distress)?

What percentage of franchisees have renewed their contracts at the end of their initial 5-year term, and what have been the main reasons franchisees choose not to renew?

With no exclusive territory and no encroachment protection, how are franchisees protected from the franchisor opening competing units in their area?

The non-renewal rate is 8.3%. Is this rate improving, worsening, or stable over the past 3 years, and what is driving franchisee non-renewals?

How has the franchise system performed relative to independent Philippine restaurants in the same markets, and what competitive advantages does the Max's brand provide?

What technology systems and support are provided to franchisees, given that no technology fee is charged?

Can you clarify whether the 5-mile non-compete radius applies geographically, by brand, or both, and how disputes over non-compete violations are resolved?