MILIO'S Sandwiches

Can you provide details about the single unit closure in 2024, including the reason (business failure, relocation, ownership change) and timeframe?

The system has experienced a 5.26% unit decline in the past year. What is the franchisor's strategy to achieve net unit growth, and what are the growth targets for the next 3 years?

Sales performance across all quartiles falls 20–40% below comparable quick service restaurant franchises. Can you explain what factors contribute to this sales gap and what support is provided to improve unit economics?

The non-compete clause is only 1 year and 5 miles, below the industry standard of 2 years. What protections exist if a franchisee leaves and opens a competing sandwich shop within 1 year and 5 miles of their former location?

System Health scores 22/100, significantly below typical range (50–75/100). What specific challenges is the system facing, and how is the franchisor addressing them?

What percentage of current franchisees have renewed their initial 10-year term? Are there any franchisees in their renewal terms, or are most still in initial terms?

Can you provide the breakdown of the 2 transfer requests in 2023–2024? Were these transfers approved, and are there policies limiting transfer frequency or requiring franchisor approval?

The franchise fee is $15,000, substantially below the typical $25,000–$37,500. Is this an introductory rate with plans to increase, or is it permanent? Have there been recent changes to this fee?

What is included in the $300 monthly technology fee, and are there any other hidden monthly fees or equipment requirements not listed in the Franchise Disclosure Document?

Of the units currently reporting sales data, how many franchisees achieve the median gross sales of $617,793, and how many fall below? What is the closure rate for units performing below the bottom quartile?

What are the typical startup costs beyond the $15,000 franchise fee, and what is the average time to break-even for a new unit given the current sales performance metrics?

The dispute resolution clause requires binding arbitration in Fitchburg, Wisconsin. Have any franchisees raised concerns about the cost or inconvenience of this clause, and are there any pending disputes?

Personal guarantees and spousal guarantees are required. In the 2 transfer cases, were spouses required to execute new guarantees, or were they released from the original obligations?

Can you provide the actual Item 19 financial performance data, including the number of units reporting, average costs of goods sold, labor costs, and operating expenses by category?

Are there any territorial encroachment issues, such as franchisor-approved locations or non-franchised company locations within 5 miles of existing franchisees?

What performance standards or sales thresholds must franchisees meet to avoid non-renewal? Are any current franchisees at risk of non-renewal based on sales performance?

The transfer fee is $7,500. Does this fee apply to all transfers including spousal inheritance or death, or only to third-party sales?

What is the renewal fee, if any, for franchisees exercising their 5-year renewal options? Is this disclosed, and how does it compare to the initial franchise fee?

Given the stagnant unit count over 3 years, are you actively recruiting new franchisees, or is the system focusing on improving existing unit performance before expansion?

Can you explain the significant gap between the median sales ($617,793) and top quartile sales ($790,955)? What differentiates top performers, and is this gap due to location, management, or other factors?