Nathan's Famous

Can you provide details on the 1 historical litigation case, including the nature of the dispute, parties involved, and resolution?

What specific defaults trigger immediate termination without a cure period, and how do these 13 non-curable defaults compare to typical QSR franchises?

The termination rate of 4.0% is significantly above the typical range for QSR franchises (0.0-1.03%). What are the primary reasons franchisees are being terminated?

Why has the system maintained flat unit growth at 75 units for the past 3 years despite 16 total terminations and 2 transfers? What is the franchisee recruitment and approval process?

Can you explain the declining closure trend from 8 units closed in 2023 to 3 in 2025? What changed in the franchise system or support during this period?

The total potential contract term of 15 years is below the industry typical range of 20-30 years. Is there flexibility to extend the contract beyond the single 5-year renewal option?

What are the 10 specific renewal conditions required to maintain the franchise agreement, and how many franchisees failed to meet renewal requirements in the past 3 years?

The non-compete radius of 3 miles is below the typical 5-10 mile range. How does this protect existing franchisees from competition within their territory?

Why is the transfer fee of $4,500 substantially lower than the industry typical range of $5,000-$15,000? Does the lower fee reflect any restrictions on who can acquire transferred units?

The franchise requires personal guarantees from all shareholders and indirect partners. Can you provide examples of how personal indemnification has been enforced in past disputes?

All products must be purchased from franchisor-approved suppliers. What is the range of approved suppliers per product category, and what are typical price markups or procurement advantages?

Mandatory remodeling is a renewal condition. What is the estimated cost and timeline for remodeling, and what happens if a franchisee cannot afford the remodeling requirement?

How does Nathan's Famous support franchisees in securing financing for the initial $30,000 franchise fee and typical build-out costs?

Are there any Item 19 financial performance disclosures available, and if not, can you provide average unit volumes (AUV) or gross sales data for operating locations?

Of the 13 termination causes in the franchise agreement, which 3 are most frequently cited in actual terminations over the past 3 years?

What is the average tenure of franchisees who have been terminated versus those who have voluntarily transferred or renewed?

The 0-30 day cure period varies by default type. Can you clarify which defaults allow 30 days, which allow shorter periods, and which allow zero days?

How are franchisees notified of needed corrections, and what documentation must they provide to demonstrate compliance during the cure period?

What training and operational support is included in the initial franchise fee versus what incurs ongoing costs?

Can you provide names and contact information for at least 10 current franchisees and 5 franchisees who have exited in the past 3 years for independent reference checks?