Meet Fresh

Given the royalty rate of 10.0% is above the typical 5.0-6.0% range for food and beverage franchises, how does this rate compare to your direct competitors, and what specific services and support justify this higher rate?

Can you provide details about the 4 units that closed in 2022 and the 6 units that closed in 2023? What were the primary reasons for closure, and were any related to operational or support issues?

Your transfer fee of $3,000 is significantly below the industry typical range of $7,500-$17,500. Why is the transfer fee set so low, and are there any additional costs associated with unit transfers that franchisees should be aware of?

The franchise fee of $20,000 is below the typical range of $30,000-$40,000. Does this lower fee reflect lower initial training, site selection support, or other reduced services compared to competitors?

What is included in your 'Support & Training' that scores at 100/100? Can you detail the specific training programs, ongoing support, and resources provided during the initial term and after opening?

Your territory policy is non-exclusive with no encroachment protection. Under what circumstances could the franchisor open another Meet Fresh location within a franchisee's market area?

The 3-year turnover rate of 17.9% exceeds the industry typical range. Can you explain what factors are contributing to this higher-than-typical rate, and what specific changes are being made to improve unit retention?

With 16 non-curable defaults in the franchise agreement that result in automatic termination, can you provide specific examples of non-curable defaults and explain the circumstances under which franchisees might risk losing their franchise?

The cure period for termination ranges from 5 to 30 days depending on the default. For critical operational defaults (such as food safety violations), is the 5-day cure period realistic for franchisees to remedy serious issues?

Item 19 (financial performance representations) is not provided. Will you provide updated financial performance data from a representative sample of franchisees, including gross sales, operating expenses, and net profit?

What is the renewal fee structure beyond the stated $5,000? Are there any additional costs or requirements to renew the franchise agreement at the end of the initial 10-year term?

The 2-year, 10-mile non-compete clause applies post-termination. How strictly is this enforced, and have there been any disputes or litigation regarding former franchisees opening competing concepts within the restricted area?

Given the net unit growth of only 3 units in the past year (and negative 3-year CAGR of -0.86%), what is your growth strategy for expanding the system, and what metrics indicate the franchise is gaining franchisee interest?

Are there any pending litigation cases, regulatory investigations, or complaints that are not yet reflected in the 3-year litigation data, even if no formal cases have been filed?

Can you clarify the difference between the 'Closed' and 'Ceased Other' categories in your unit history? What specific circumstances fall under 'Ceased Other'?

What specific performance metrics or benchmarks must franchisees achieve to avoid termination for non-curable defaults related to sales, customer satisfaction, or operational standards?

Is the franchisor required to provide written notice of termination intent before the automatic termination of a non-curable default takes effect, or does termination become effective immediately?

What ongoing royalty costs (beyond the 10.0% royalty) are franchisees responsible for, such as marketing fund contributions, technology platform fees, or other monthly/annual charges not disclosed in the FDD summary?