Can you explain the reasons behind the system contraction from 78 units (3 years ago) to 74 units currently? Were specific locations underperforming or market-driven?
#1
What is driving the unusually high 'Ceased Other' category (3-7 units annually) compared to formal closures or transfers? How does the franchisor track these exits?
#2
Given the declining unit count and below-average System Health score of 37, what specific support or operational changes has the franchisor implemented to stabilize the system?
#3
The Territory score of 50 is significantly below the category typical range of 75.0-88.75. Can you detail what encroachment protections and exclusivity terms franchisees can realistically expect?
#4
With only 4 renewal conditions compared to a typical 6-9, which key renewal requirements are missing or simplified? Could this make renewals easier or harder to obtain?
#5
The total potential term of 30 years exceeds the typical 20-26 year range. What conditions or franchisor changes would trigger non-renewal at the end of the initial 10-year term?
#6
The renewal fee is $5,000. Are there additional fees, renegotiation of royalties, or required capital improvements associated with renewal?
#7
Can you provide examples of recent franchisees who did not renew their agreements? What were their circumstances and stated reasons?
#8
The franchise fee of $40,000 scores above the typical range (78 vs. 73.0-77.25) while being in the mid-range absolutely. How does MOOYAH justify this entry investment relative to peers?
#9
Describe the designated vendor requirements for the 8 categories mentioned (food, paper products, supplies, etc.). What pricing authority does the franchisor have, and are volume rebates shared with franchisees?
#10
The agreement requires written approval for all suppliers. How long is the typical approval timeline, and what are the grounds for denial?
#11
Personal guarantees are required from all owners with potential spouse guarantees. Under what circumstances would a spouse guarantee be enforced?
#12
All disputes must be resolved through binding arbitration within 50 miles of the franchisor's principal place. What are the estimated costs and timeline for a typical arbitration case?
#13
The termination clause includes only 4 curable defaults with 22 non-curable defaults causing immediate termination. Can you provide specific examples of the 22 non-curable defaults?
#14
With a 5-day minimum cure period for some defaults, how much notice does the franchisor typically provide before declaring default?
#15
Can you clarify the operational control requirements? What specific franchisor approval is needed for daily operations, menu changes, or staffing decisions?
#16
Are there any pending or recent disputes with franchisees that haven't yet reached litigation but may be under discussion or mediation?
#17
What percentage of franchisees completed their full initial 10-year term versus exiting early? Of those who exited early, how many did so due to franchisor termination versus voluntary closure or transfer?
#18
Given the above-average Investment Costs score and below-average Ongoing Fees score, are there significant hidden costs or capital requirements beyond the disclosed fees?
#19
Can you provide a detailed P&L statement for an average-performing location in a mid-size market to verify the $1,056,153 median gross sales claim?
#20