McAlister's Deli

What were the circumstances of the 168 unit transfers in 2022? Were these related to a specific event, financing change, or portfolio restructuring?

Can you provide details on the 3 litigation cases filed in the past 3 years, including case types, outcomes, and the parties involved other than the franchisor?

Given your termination rate of 1.3% exceeds the typical range of 0.0-1.1%, what are the primary reasons franchisees are terminated, and how many resulted from compliance violations versus financial underperformance?

Why does the non-compete restriction limit you to only 1 year and 3 miles when the typical range for this franchise type is 2 years and 5-20 miles? What is the reasoning behind this narrower restriction?

What financial performance should a franchisee realistically expect compared to the median gross sales of $1,792,471 you report? What are the net profit margins for average and top-performing units?

The renewal conditions require you to meet 7 specified conditions at the franchisor's reasonable discretion. Can you provide the complete list of these conditions and clarify what 'reasonable discretion' means in practice?

Your required purchases include all proprietary ingredients and 8 categories of items from the franchisor or approved suppliers only. What are these 8 categories, and what percentage of operating costs do these purchases typically represent?

Can you explain the significant difference between the 20-year initial term and the 10-year typical term for this franchise category? Is this standard across all franchisees or negotiable?

What is included in the $351 monthly technology fee, and how is this fee adjusted annually? What technology systems are required and cannot be replaced with third-party alternatives?

With a renewal fee of $7,100 and your stringent renewal conditions, what percentage of franchisees successfully renew versus those who exit at the end of their initial term?

The agreement requires personal liability through a Guaranty of Payment and Performance. Are there any circumstances where this personal guarantee can be released or modified?

Can you provide the specific cure periods for each of the 8 curable defaults mentioned in the termination clause? Which defaults have the shortest cure periods and could result in rapid termination?

Why is arbitration required in the metropolitan area of the franchisor's principal place of business? What additional costs have franchisees incurred due to this geographic requirement?

Of the 7 closures in 2024, how many were franchisor-initiated terminations versus voluntary closures by franchisees? What were the primary failure factors?

Can franchisees negotiate any contract terms, such as the territory protection, renewal conditions, or required supplier purchases, or are all terms standardized?

Given your top quartile sales of $2,798,639 exceed typical ranges, what operational characteristics or market conditions allow these units to outperform? What markets show this higher performance?

What support and training does the franchisor provide to help franchisees achieve financial performance targets, and how frequently is this support available after the initial opening phase?

Are there any ongoing capital requirements or system-wide upgrades franchisees must fund beyond the $351 monthly technology fee and royalty/ad fund payments?

What is the franchise agreement's policy on territory encroachment, and how does the franchisor enforce its encroachment protection clause if violations occur?