Can you provide the franchisee names and contact information for the 5 current units so I can conduct independent reference calls?
#1
Why is the technology fee of $90 monthly significantly lower than the industry typical range of $110-$408? What specific technology services and systems does this cover?
#2
The ad fund rate of 1.0% is below industry typical rates of 2.0-4.0%. How is the national advertising budget allocated and what marketing support can franchisees expect?
#3
Given the zero unit exits since at least 2022, how long has Nashville Coop been operating? How many units have opened and closed in the franchisor's complete history?
#4
The contract includes only 14 termination cause categories versus the typical 15-20 for QSR franchises. What specific breaches are NOT included as termination causes, and why were certain typical causes excluded?
#5
With only 5 renewal conditions specified against the typical 7-9, what flexibility exists regarding required remodeling, equipment upgrades, or compliance standards at renewal?
#6
The franchisor retains control over pricing and requires purchases from designated suppliers with limited alternatives. What percentage of COGS typically comes from mandatory supplier purchases versus approved competitive sources?
#7
All disputes must be resolved through binding arbitration in Nashville, Tennessee with class action waivers. How many arbitration disputes has the franchisor resolved in the past 5 years, and what were the primary issues?
#8
Entity franchisees must provide unlimited personal guarantees from all owners. Can you clarify what specific liabilities this covers beyond franchise agreement obligations (e.g., real estate leases, equipment loans)?
#9
The franchise has maintained exactly 5 units for at least 3 years. What is the franchisor's growth strategy, and why has the system not expanded despite reported zero exits?
#10
Can you provide unredacted copies of Item 19 or financial performance disclosures from existing franchisees? The FDD indicates no Item 19 is provided - why not?
#11
What is the actual total investment required to open a unit (franchise fee, buildout, equipment, working capital)? Are there any financing or SBA loan programs the franchisor recommends or partners with?
#12
The renewal fee is listed as $0. Are there any other fees associated with renewal, such as relocation, remodeling, or facility upgrade costs?
#13
How much discretion does each franchisee have over menu items, pricing, and daily operations given the franchisor's stated control over pricing and mandatory supplier relationships?
#14
Has the franchisor ever terminated a franchisee agreement, or have all units remained continuously operational? If terminations have occurred, what were the primary causes?
#15
What specific termination causes are curable (the FDD mentions only 2 categories are curable)? What are the non-curable defaults that could result in immediate termination?
#16
The territory is exclusive, but can the franchisor open competing locations in a different banner or brand within the same geographic area?
#17
Are there any pending or anticipated legal disputes, regulatory investigations, or FTC complaints against Nashville Coop or its leadership team?
#18
What support and training does Nashville Coop provide at opening and ongoing? Are there any fees for additional training, retraining, or new manager certification?
#19
Can you explain why the Risk Factors score (80) and Territory score (100) significantly exceed typical ranges, and Investment Costs score (83) is above the typical range?
#20