The technology fee of $500/month is above industry norms for this category—what specific technology services and support does this cover, and are there any price increase provisions?
#1
Your franchise fee of $60,000 is $5,000-$20,000 higher than typical for this category—what additional services, training, or benefits justify this premium?
#2
The non-compete radius of 60 miles is more than double the typical range—what is the rationale for this broader restriction, and how does it impact expansion opportunities in densely populated areas?
#3
Can you provide detail on the 5 renewal conditions referenced in the contract, and what percentage of franchisees have successfully renewed versus chosen not to renew?
#4
How do you enforce the exclusive vendor approval requirement for supplies and inventory, and what recourse do franchisees have if approved vendor pricing becomes uncompetitive?
#5
The franchisor retains control over both minimum and maximum prices franchisees can charge—what flexibility exists for franchisees to adjust pricing based on local market conditions?
#6
Your system grew 33.3% in the past year (from 6 to 8 units)—what drove this growth, and what is your growth target for the next 2-3 years?
#7
With zero litigation cases over 3 years, have there been any informal disputes or complaints from franchisees that did not reach litigation, and if so, how were they resolved?
#8
The transfer fee of $5,000 is below industry norms—what restrictions or requirements apply to franchisee transfers, and has this lower fee impacted transfer volume?
#9
Regarding the 5-business-day cure period for certain defaults: what specific circumstances would trigger immediate termination without a cure period?
#10
Can you clarify the scope of prohibited 'competing businesses' under the 24-month, 60-mile non-compete, and whether this includes any music education service or only direct competitors?
#11
The dispute resolution clause requires arbitration only for asset valuations but litigation for other disputes—which types of disputes have most frequently required litigation, and what were the outcomes?
#12
How many franchisees currently operate multiple units, and what support or fee adjustments, if any, apply to multi-unit franchisees?
#13
What is the average franchisee tenure, and do you have data on reasons why any franchisees have chosen not to renew at the end of their term?
#14
The franchise agreement provides for franchisor-initiated injunctive relief without mandatory arbitration—what circumstances would trigger this, and how frequently has this provision been invoked?
#15
Can you provide the Franchisee Information Document or Item 19 showing detailed financial performance broken down by franchisee unit age, location type, and any other relevant segments?
#16
What ongoing training, marketing support, and operational guidance is provided throughout the 10-year initial term beyond the initial launch period?
#17
Are there any required capital expenditures, facility upgrades, or technology refreshes that franchisees must undertake during their term, and if so, what are the estimated costs?
#18
How does Musicologie handle territory disputes if a franchisee believes another unit is encroaching, and what is your average response time to such claims?
#19