Can the franchisor provide detailed explanations for the 12 unit closures in 2024, including whether they were due to franchisee financial distress, market conditions, or performance issues?
#1
What specific financial or operational factors contributed to the sharp increase in closures from 1 per year (2022-2023) to 12 in 2024?
#2
Given the system lost 70 units (12.7%) in the past year, what is the franchisor's growth strategy to return to positive unit growth?
#3
How does the 10-year total potential contract term compare to competitor offerings, and what is the franchisor's rationale for not offering renewal options?
#4
The contract contains only 6 renewal conditions compared to the typical 7-8 for this category—which conditions are missing, and how might this affect renewal negotiations?
#5
With 12 termination causes listed versus the typical 15-20, which termination provisions has the franchisor excluded, and does this limit franchisee protection?
#6
The System Health score of 28 is significantly below the typical range of 35.0-65.5—what specific operational or support issues does the franchisor acknowledge?
#7
Can the franchisor provide Item 19 financial performance data, including average unit volumes, unit economics, and break-even timelines for franchisees?
#8
What is included in the 8 categories of supplier restrictions for pizza dough, sauce, and proprietary ingredients, and are there alternative suppliers or price negotiations available?
#9
How are the renewal fee ($9,000) and transfer fee ($9,000) calculated, and are these fees negotiable based on franchisee performance or tenure?
#10
The non-compete clause restricts competition for 2 years within 10 miles—are there any circumstances under which this can be reduced or modified?
#11
Since territory is protected but not exclusive, what specific encroachment protections exist, and has the franchisor opened new units that compete with existing franchisees?
#12
Personal guarantees are required from all 10%+ owners with joint and several liability—can this be limited to individual ownership stakes rather than joint liability?
#13
The indemnification scope covers all damages—are there any caps on the franchisor's indemnification obligations or exclusions for franchisor negligence?
#14
Among the 482 current units, how many are company-owned versus franchised, and what percentage of closures in 2024 were company-owned versus franchised units?
#15
What support and training is provided beyond the initial period, and how does this align with the Support & Training score of 95/100?
#16
The Contract Terms score of 55 is below typical range—what specific contractual provisions are franchisor-favorable, and are any negotiable?
#17
Has the franchisor's royalty rate (5.0%) or ad fund rate (2.5%) increased in recent years, or are these locked in for the full 10-year term?
#18
What is the average time to profitability for new MOD Pizza franchises based on recent unit openings, and what is the typical cash flow in year 1-3?
#19
The Investment Cost score of 69 is below the typical range of 73.0-77.0—what components of the initial investment are highest, and are there opportunities to reduce them?
#20