Melt n Dip

The franchise fee of $50,000 is above the typical range for this category. How does this higher fee compare to your actual startup costs, and what additional value or services justify this premium?

Your system grew 37.5% in the past year and 40.1% over 3 years. What is driving this accelerated growth, and do you have sufficient support infrastructure to maintain this pace?

You have zero reported litigation cases across 3 years and no pending cases. Can you explain your litigation history prior to the past 3 years, and have there been any disputes resolved through arbitration that don't appear in formal case filings?

Your agreement includes 19 non-curable defaults and 7 curable defaults with cure periods as short as 5 days. Can you provide specific examples of which breaches are non-curable, and how often have franchisees been terminated for these violations?

The non-compete radius of 25 miles is above the typical range. How aggressively has the franchisor enforced this restriction, and have there been any legal challenges to its scope?

Your renewal conditions require complete remodeling and renovation to renew, with a $10,000 renewal fee. What is the estimated cost of a full remodel, and what percentage of franchisees have successfully renewed their contracts?

With zero terminations and zero non-renewals reported, have any franchisees exited the system for reasons other than these categories (e.g., voluntary closure, sale outside the system)?

All disputes require binding individual arbitration with a class action waiver. Have any arbitration proceedings occurred, and what were the outcomes?

Your franchisees must provide joint and several personal guarantees on all franchise obligations. What percentage of franchisee entities are single-owner versus multi-owner, and how has this been enforced?

Item 19 (financial performance data) is not provided. Can you provide historical financial performance data from existing franchisees, including average unit volumes, profit margins, and payback periods?

You show 11 current units growing from 4 units 3 years ago. How many of these units are company-owned versus franchised, and what percentage of growth is organic versus multi-unit development agreements?

The transfer fee is $7,500. Under what circumstances is a transfer approved, and have there been any transfer requests denied by the franchisor?

Your agreement includes cross-default provisions in the termination clause. If a franchisee breaches one obligation, does this automatically trigger defaults on other obligations, or is cure permitted for related breaches?

Post-term restrictions prohibit working within 25 miles for 2 years. How is compliance monitored, and have you taken legal action against former franchisees who violated this restriction?

Your system is young with only 3 years of exit data showing zero closures. What is your franchisee satisfaction rate, and do you have longer historical data on unit retention from earlier system years?

The renewal fee is $10,000 plus full remodeling costs. How many current franchisees are approaching their first renewal in the next 2-3 years, and what is their projected renewal rate?

Your dispute resolution clause mandates American Arbitration Association proceedings. What are the typical costs and timelines for arbitration disputes at the AAA level?

Support and training scored 90/100. What specific ongoing training, technology support, and operational guidance does the franchisor provide, and how does this compare to competitors?

With such rapid unit growth, how do you ensure quality control and brand consistency across new locations, and what quality standards are in place if growth continues at 40%+ annually?