MGallery Hotel Collection

The transfer fee of $75,000 significantly exceeds typical transfer fees in the hospitality category. What services and support does the franchisor provide to facilitate franchise transfers, and is this fee negotiable?

Why does the advertising fund rate of 1.5% fall below the typical range of 2.25-3.5% for hospitality franchises? How is the reduced advertising fund allocated across marketing channels and brand development?

The Investment Costs score of 0 is notably below the typical range. Can you provide a detailed breakdown of all initial investment costs, including real estate, construction, technology, and working capital requirements?

Given the high Risk Factors score of 80, what specific operational or financial risks does the franchisor identify as most significant for MGallery franchisees?

The system currently has only 2 units. How long has MGallery been operating with franchised locations, and what explains the extremely limited unit base relative to other hotel brands in this category?

With zero litigation in the franchisor's history, can you provide references from both current and former franchisees regarding their experiences with the franchisor's support, dispute resolution, and contract enforcement?

The non-compete clause contains 0 years and 0 miles of protection. If you exit the franchise or it is terminated, what prevents you from opening a competing hotel immediately in the same location?

The termination clause identifies 15 non-curable defaults. Can you provide a complete list of these non-curable defaults and clarify whether any are subjective (such as failure to maintain brand standards)?

Personal guarantees are required with indemnification covering all losses from ownership, construction, renovation, and operations. What is the scope of personal liability if the franchised unit faces lawsuits or environmental issues?

Franchisees must purchase from franchisor-approved suppliers in 6 categories. Can you provide the list of approved suppliers, typical markups, and whether alternative suppliers can be approved upon request?

The franchisor reserves the right to establish pricing requirements and mandate vendor relationships. How much discretion do franchisees have in setting room rates, and are there any caps on price controls?

What is the renewal fee of $37,500 based on, and does it increase with inflation or franchise system changes over the initial 20-year term?

Given the 30-year total potential franchise term, how does MGallery handle property ownership transitions, refinancing, or encumbrances that may extend beyond the initial 20-year term?

The system shows a 25.99% 3-year CAGR with growth from 1 to 2 units. What are the franchisor's expansion plans for the next 3-5 years, and what are realistic growth expectations for franchisees?

With zero territorial exclusivity, can the franchisor award another franchise in your exact location or market? What protection exists against direct brand competition within a defined radius?

How does MGallery's operational control over supplier relationships, pricing, and marketing affect franchisees' ability to operate independently and adapt to local market conditions?

Are there any Item 19 financial disclosures available from franchisees, or can the franchisor provide average unit volumes, profit margins, or return-on-investment data for existing units?

What specific support, training, and ongoing assistance does the $75,000 franchise fee cover, and what are the costs for additional training, technology, or marketing support beyond the initial investment?