Nan Xiang Express

Can you provide the Franchise Disclosure Document (Item 19) showing average unit volumes, sales data, and profitability metrics for franchisees?

What is the basis for the significantly lower advertising fund rate (1.0%) compared to industry standards (1.5-3.0%), and how is the advertising budget allocated?

The franchise has grown 150% in the past year from 4 to 10 units. What is the expected growth rate going forward, and are there plans for expansion into new markets?

Can you explain why the initial investment cost score (60/100) is below typical for this category (75/100)? What are the primary cost components?

The non-compete radius is 25 miles, above the typical range. What is the justification for this extended geographic restriction?

The franchise agreement lists 21 termination causes, exceeding the typical range of 15-20. Can you provide a breakdown of these causes and explain which are considered material breaches?

How many franchisees have been terminated or failed to renew since 2022, and what were the primary reasons?

Given the zero litigation history across 0-3 years, can you provide references from at least 5 current franchisees who can speak to their experience with the franchisor?

The renewal conditions require remodeling, refurbishment, and modernization. What are the typical costs and timeline for these requirements?

Can you clarify the 'prescribed or approved vendors' restriction across 5 categories? Do you have relationships with multiple vendors per category, or is there single-source sourcing?

What are the minimum price and maximum price controls the franchisor may set on products, and how frequently have these been adjusted?

The arbitration clause requires disputes to be resolved within 50 miles of your principal office in Saddle Brook, NJ. How does this impact franchisees located far from New Jersey?

What specific operational and financial performance metrics must franchisees meet to qualify for the one renewal option after the initial 10-year term?

Can you provide a detailed breakdown of all ongoing fees and costs beyond the 5.0% royalty and 1.0% ad fund?

Has the franchisor ever initiated legal action against franchisees for non-compliance or breach, and if so, what were the outcomes?

The personal guarantee requirement makes franchisee owners jointly and severally liable. Are there any limitations on this liability, and has it been enforced in practice?

With only 10 units currently operating, how many are company-owned versus franchisee-owned, and what are their respective sales performances?

What support and training is provided to franchisees, and how does this differ between opening and ongoing operations?

Are there any area developer or multi-unit franchisee opportunities, and what are the requirements and incentives for growth?

What happens to the non-compete restriction and territory protections if a franchisee chooses not to renew after the initial 10-year term?