The franchise fee of $30,000 is $5,000-$10,000 below the typical range for fast casual restaurants. What specific services and support does this lower fee exclude compared to competitors?
#1
The ad fund rate of 3.5% exceeds the typical range of 1.5-3.0%. How are these additional advertising funds allocated, and what measurable results or ROI metrics are provided to franchisees?
#2
The transfer fee of $30,000 is 50-243% higher than the typical range of $8,750-$20,000. What justifies this premium transfer fee, and are there circumstances where it could be waived or reduced?
#3
Why does the system provide no exclusive territory and no encroachment protection? Can the franchisor open additional Mr. Goodcents units within your defined service area?
#4
Your transfer rate of 6.1% is above the typical 0.0-5.73% range. What are the primary reasons franchisees are transferring ownership, and does this indicate dissatisfaction or simply normal business transitions?
#5
Average gross sales of $763,863 are significantly below the typical range of $932,006-$1,901,495. What is driving below-average sales performance, and what benchmarks should a new franchisee expect in their first 3-5 years?
#6
The 2020 unit history shows 9 closures out of 63 total units (14.3%) with an additional 6 units ceasing for other reasons. What specific events or conditions led to these closures, and have corrective actions been implemented?
#7
Personal guarantees from franchisees and spouses cover all obligations to the franchisor and its affiliates. What are the limits of personal liability, and can you provide examples of situations where personal assets have been pursued?
#8
Late royalty payments incur a 10% late fee plus 1.5% monthly interest (18% annually). What is the historical rate of late payments among franchisees, and how strictly is this enforced?
#9
The agreement includes cure periods of 10 days for payment defaults and 30 days for operational defaults. How often are franchisees placed in default, and what is the typical path from default notice to termination?
#10
Participation in designated advertising cooperatives is mandatory with no minimum performance standards or quotas. Can you detail what these cooperatives are, their costs, and how they operate?
#11
Why was the system at exactly 63 units for 3 consecutive years (2019-2021) before growing to 66 units in 2022? Does this reflect a period of stagnation or strategic stabilization?
#12
The renewal fee is $15,000 (50% of current franchise fee) and requires substantial compliance plus 8 renewal conditions. What typically causes franchisees to decline renewal, and how many renewals occur versus non-renewals?
#13
What support and training is provided given the Support & Training score of 100/100? Can you detail the duration, content, and ongoing support for new franchisees?
#14
The non-compete clause restricts activity for 2 years within 15 miles. Has the franchisor enforced this clause, and are there examples of legal disputes over this restriction?
#15
With zero terminations in the past year but 9 closures in 2020, what changed in the system to improve performance and reduce franchise failures?
#16
Can you provide Item 19 financial performance statements broken down by unit age, location type, and region to assess whether sales vary significantly by market?
#17
The Territory score of 50 is well below the typical range of 75.0-88.75. Beyond lack of exclusivity, what other territory-related protections or policies are missing?
#18
What is the franchisor's historical response to disputes with franchisees given zero litigation cases on record? Do most disputes resolve through arbitration or other mechanisms?
#19
Are there any pending regulatory investigations, franchise registration issues, or complaints filed with state franchise regulatory agencies that would not appear in civil litigation records?
#20