Men In Kilts

The average unit generates $185,097 in gross sales, significantly below the category average of $464,508-$1,660,695. What is the breakdown of sales by unit age and territory type, and how does this compare to franchisor projections provided to new franchisees?

Why did the franchisor terminate 5 units in 2023 compared to 1 in 2024? What were the primary reasons for these terminations, and what remediation steps has the franchisor implemented to prevent future terminations?

The monthly technology fee of $522 exceeds the typical range for this category. What specific services and software are included in this fee, and has it increased since the units in the Item 19 analysis were operating?

The franchise offers only a 7-year initial term with no specified renewal options, versus a typical 10-20 year total potential term. What is the franchisor's renewal policy, and under what circumstances would a unit not be renewed at the end of the initial 7-year term?

The non-compete restriction is 1 year with no specified geographic radius. How is this enforced, and are there any geographic limitations beyond the 1-year period if a franchisee exits in a densely populated area?

Transfer fees are $5,000, which is below the typical range. Does this lower fee reflect a franchisor preference for unit transfers, and what approval process is required before a transfer can occur?

The Item 19 data shows a median gross sales of $397,548 but an average of $185,097. Can you provide the actual distribution of unit sales performance (e.g., top 25%, bottom 25%, median) and identify which units are underperforming?

What percentage of the 43 current units have been owned for more than 3 years, and what is the average tenure of active franchisees? This will help assess whether recent growth masks underlying retention issues.

With zero litigation cases over 3 years, can you describe the franchisor's dispute resolution process and how many disputes or grievances have been resolved without formal litigation?

The liability and indemnification clause requires personal guarantees from all owners and confidentiality/non-compete agreements from spouses. How often has the franchisor enforced spousal non-compete agreements, and what remedies has it pursued?

Are the 2 units closed in 2022, 5 in 2023, and 3 in 2024 attributable to specific geographic regions, market conditions, or individual franchisee performance issues? Provide territory-level exit data if available.

Has the franchisor increased the technology fee of $522/month since Item 19 was prepared? If so, what was the prior fee and when did increases occur?

What training and support is provided in the initial 7-year term, and does the franchisor offer continued support beyond that term if renewal is declined or not offered?

Given the below-average gross sales, what is the average net profit (after all ongoing fees and royalties) for units in the top quartile, median, and bottom quartile of the system?

How does the franchisor define 'exclusive territory,' and what specific protections prevent encroachment by other Men In Kilts franchisees or company-owned locations within the designated area?

The termination rate is 2.3% annually. What are the most common reasons for franchisor-initiated terminations, and what is the remediation/cure period before termination occurs?

Are there any pending discussions or planned changes to the franchise agreement regarding term length, renewal options, or fee structure that prospective franchisees should be aware of?

What support does the franchisor provide for low-performing units (bottom quartile in sales), and at what sales threshold does the franchisor typically initiate performance improvement plans or termination?

With a 1-year non-compete and no mileage restriction, can you clarify the geographic scope of the non-compete and whether it applies only within the exclusive territory or extends beyond it?