MELTwich

The franchise has only 1 operating unit as of 2024 and none existed in prior years. What is the timeline for opening additional units, and what is the franchisor's growth strategy?

Given the 25-mile non-compete radius is above typical for this category, how strictly does the franchisor enforce this restriction, and are there any documented disputes related to non-compete violations?

The franchise agreement lists 22 non-curable defaults allowing immediate termination. Can you provide examples of the most common non-curable defaults franchisees encounter in practice?

Why does the Risk Factors score of 80 exceed the typical range for this franchise type? What specific risk factors contribute to this elevated score?

The agreement requires a 5-day cure period for defaults. In practice, has any franchisee successfully cured a default within this timeframe, or have most terminations proceeded after the notice period?

Can you clarify the dispute resolution clause requiring individual arbitration in Delaware? What is the approximate cost and timeline for a typical arbitration case for a franchisee?

The franchise agreement requires purchasing all supplies from designated suppliers only. What is the markup or margin structure on franchisor-supplied items compared to market alternatives?

Personal guarantees and spousal guarantees are required. Are there any circumstances where these guarantees can be released or modified during the term?

What is the actual renewal fee calculation? The agreement states 50% of the then-current franchise fee ($15,000 currently), but how has this been applied in past renewals?

The 7 conditions for renewal are specified in the agreement. What are these conditions, and how frequently have franchisees failed to meet them?

There is 1 case on record in the company's history. What was the nature of this case, who initiated it, and what was the outcome?

Given the franchise agreement prohibits franchisor-initiated encroachment, how is this protection enforced if the territory is not exclusive?

The franchisor can set advertised and maximum prices. How often does the franchisor exercise this control, and do individual franchisees have input on pricing decisions?

What commercial general liability insurance limits are required under the agreement, and has the franchisor increased these requirements since the franchise launched?

Are there any instances where franchisees have challenged the termination causes list or negotiated a reduction from the standard 22 non-curable defaults?

With only 1 unit operating, what support and training infrastructure exists, and how will it scale as additional units are awarded?

Has the franchisor obtained Item 19 financial performance data from the current operating unit, and if so, is this available for prospective franchisees to review?

What is the franchisee's financial investment beyond the $30,000 franchise fee, and what are the typical startup costs for build-out and equipment?