Given the system has only 2 current units and 100% unit growth in the past year, how many additional franchise agreements have been signed but units not yet opened?
#1
Can you provide detailed financial performance data for both current operating units, including their individual sales figures and profitability metrics?
#2
The average gross sales figure of $2,963,621 significantly exceeds the fast casual category average. Is this based on both current units, or does it reflect projections? Please clarify the basis for this calculation.
#3
With only 2 units in operation, what specific market validation or operational history supports the franchise model's viability at scale?
#4
The non-compete radius of 25 miles is broader than typical for this category. How was this distance determined, and what geographic overlap exists with your current and planned unit locations?
#5
The total potential contract term of 30 years exceeds the category typical range. What is the rationale for the extended term structure, and are renewal conditions the same as initial term conditions?
#6
Why are there only 5 renewal conditions when the category typical is 6.0-9.0? What conditions are required to renew, and are any conditions discretionary?
#7
The renewal fee is $20,000 (50% of the initial franchise fee). Does this include mandatory remodeling costs, or are remodeling expenses additional and separate?
#8
Can you explain why the Investment Costs category score of 69 falls below the typical range? What specific costs contribute to this below-average score?
#9
The agreement requires exclusive purchases from franchisor or designated suppliers across 5 product categories. What markup or margin does the franchisor retain on these purchases?
#10
How are disputes typically resolved in practice? Are mediation and arbitration requirements in Pasadena, California feasible for franchisees operating in other regions?
#11
The agreement lists 20 non-curable defaults including abandonment and felony conviction. Can you provide the complete list of non-curable defaults and clarify what constitutes 'abandonment'?
#12
Personal guarantees are required from all owners and their spouses. Are there any circumstances where guarantees can be released during the contract term?
#13
With no litigation history (0 cases total), have there been any disputes, complaints, or regulatory issues that did not result in formal litigation?
#14
What is the specific timeline and process for the mandatory 10-day cure period for non-payment of fees, and what are the consequences if payment is not received within that window?
#15
The territory is protected but not exclusive. What does 'protected' specifically mean in terms of franchisor rights to open competing units?
#16
Can you provide a detailed breakdown of all required initial investments, including real estate, equipment, working capital, and training costs, to validate the below-range Investment Costs score?
#17