The financial performance data shows median gross sales of $69,840, which is significantly below the typical range of $217,409-$904,622 for similar franchises. What factors contribute to this lower sales performance, and how has this trended over the past 3 years?
#1
Unit closures increased substantially from 4 in 2022 to 13 in 2024. Can you provide specific reasons for the closures in 2024 and identify any geographic or operational patterns?
#2
The average gross sales of $174,883 falls well below the typical range of $302,574-$1,104,127. What is the breakdown between high-performing and underperforming units, and what support differentiates successful franchisees?
#3
Your Contract Terms score of 55 falls below the typical range of 58-65. Which contract provisions most disadvantage franchisees, and are there opportunities to negotiate these terms?
#4
The Ongoing Fees score of 57 is at the lower end of the typical range. Beyond the 10% royalty and $360 technology fee, what additional fees or costs do franchisees typically incur during operations?
#5
Non-renewal rate is 6.0% annually. How many franchisees chose not to renew their agreements in the past 2 years, and what were their primary reasons for non-renewal?
#6
Territory is protected but not exclusive. How does the franchisor manage franchisee encroachment concerns, and are there documented cases of territory conflicts?
#7
The termination clause allows 10 days to cure payment defaults and 30 days for other breaches, with 15 non-curable defaults listed. Can you provide examples of situations where franchisees were terminated for non-curable defaults?
#8
Personal guarantees are required with unlimited scope. Are there any circumstances under which personal guarantees can be limited or released?
#9
Franchisees must use approved suppliers for 5 categories and the franchisor may designate prices. Can you clarify the pricing mechanism and whether franchisees can request alternative suppliers?
#10
Post-term non-compete is 2 years within 25 miles. Have there been any disputes regarding non-compete enforceability, and how have they been resolved?
#11
The bottom quartile sales are $12,987, suggesting some units perform extremely poorly. What is the typical timeline for units to reach profitability, and what support is provided to struggling franchisees?
#12
Disputes are resolved in Pinellas County, Florida state or federal courts, and class action and jury trial waivers are included. Has this dispute resolution structure impacted franchisee accessibility to legal remedies?
#13
The system has had 0 litigation cases over 3 years. Are there any disputes currently being handled informally or through settlement, and can you provide references from existing franchisees who have had disputes?
#14
Top quartile sales of $439,983 fall below the typical range of $558,693-$1,349,850. What characteristics define your top-performing franchisees, and how replicable is their model?
#15
Transfer fee and renewal fee are both $5,250. In the past year, only 2 units transferred. Why is the transfer rate so low, and what barriers might franchisees face when attempting to sell their units?
#16
The 10-year initial term with 10-year total potential term provides no renewal options beyond the initial term. Are there any negotiations possible to secure multiple renewal periods or extended terms?
#17
Investment Costs score 78, above the typical range of 75. Are there any upfront costs beyond the stated $47,500 franchise fee that prospective franchisees should budget for?
#18