Mr. Charlie's Told Me So

Can you provide detailed information about the pending litigation case—what are the specific claims and what is the expected timeline for resolution?

What is the justification for the $1,000 monthly technology fee, which is 2.5 times higher than the typical range for Quick Service Restaurants? What specific technology and services are included?

Given the system has only 2 units currently, how representative are the financial performance figures (average gross sales of $1,349,698) of typical unit performance? What is the sales range between your two units?

Can you explain why the bottom quartile sales figure ($1,178,180) is nearly 50% higher than typical for this franchise category? Does this reflect actual unit performance or adjustments made for Item 19 reporting?

The franchise agreement includes 17 categories of non-curable defaults versus only 4 curable defaults. Can you provide specific examples of what constitutes a non-curable default and under what circumstances you would terminate a franchise?

Your franchise agreement requires source-restricted purchases from approved suppliers for 95-100% of operating costs. How does this pricing compare to market rates, and what recourse do franchisees have if supplier costs become uncompetitive?

What is your plan for system growth given you've added only 1 net unit in the past 3 years? Are you actively recruiting new franchisees, and if so, what is your target growth rate?

Can you clarify the circumstances that led to your system growing from 1 to 2 units, and why there have been no exits despite the ongoing litigation case?

The franchise agreement requires personal guarantees from franchisees and their spouses. What happens to the spouse's personal liability if they divorce or legally separate during the franchise term?

Can you provide an itemized breakdown of the $1,000 monthly technology fee? What components are included, and are there any volume discounts or reductions as the system grows?

Given that territory is protected but not exclusive, what specific encroachment protections are in place? How would you handle a situation where a new franchise location cannibalized existing unit sales?

What is the renewal fee of $17,500 for, and does this grant renewal on the same terms as the original agreement, or are material terms subject to renegotiation?

Can you provide the financial performance data separately for each of your 2 current units? Are both units meeting or exceeding the average gross sales figure of $1,349,698?

The termination clause includes a 10-day cure period for payment defaults but 30 days for other breaches. What categories of violations have only 10-day cure periods, and have you ever exercised immediate termination without a cure period?

How does the indemnification clause work in practice? Can you provide an example of a situation where you've invoked indemnification against a franchisee?

What support and training are included to justify the 100/100 score in this category? Can you provide details on initial training duration, ongoing support, and marketing assistance?

Are there any other franchise systems or brands operated by your corporate entity, and if so, do they share suppliers or operational requirements with Mr. Charlie's?

What is your policy on franchisee advertising and marketing requirements beyond the 2% ad fund contribution? Are there minimum local marketing spend requirements?

Can you explain why your system has experienced zero turnover when the Quick Service Restaurant category average is 0.05-6.55%? Is this attributable to strong franchisee satisfaction, a very short operating history, or other factors?

Given the high operational control (95-100% source-restricted purchases), how much discretion do franchisees have in menu offerings, pricing, or local marketing decisions?