Nature's Table Café

What were the primary reasons for the 6 unit closures in 2022 and the overall decline from 58 to 53 units over three years? Were these driven by franchisee profitability issues, market conditions, or other factors?

Given the System Health score of 31 (significantly below the typical range of 50-75), what specific operational or support challenges has the franchisor identified, and what remediation steps are underway?

Can you provide detailed financial performance data for current franchisees, including average unit volumes, operating margins, and payback periods? Why is Item 19 financial performance disclosure not available?

The 11.3% annual exit rate is more than double the typical rate for quick service restaurants (0.05-6.55%). Are there geographic concentrations of closures, or is the decline spread across the system?

Why is the advertising fund contribution only 1.0% when the typical range for your category is 2.0-4.0%? How is the marketing program funded, and what specific marketing activities does this support?

The non-compete radius of 3 miles is below the typical 5.0-10.0 mile range. Was this narrower radius intentional, and how does it protect existing franchisees from direct competition post-exit?

You offer only 1 renewal option (10 years) for a total 20-year potential term. What happens if a franchisee reaches the end of the renewal period? Are there circumstances where further renewals might be negotiated?

The transfer fee is $10,000 with no renewal fee. Has the franchisor considered other cost structures to encourage unit renewals and reduce the exit rate?

With zero franchisor-initiated terminations recorded, what are the specific non-curable defaults outlined in the franchise agreement that could trigger termination? Can you provide examples?

Personal guarantees are required from principals and spouses for all agreement obligations. Under what circumstances would the franchisor enforce these guarantees, and have there been any enforcement actions?

The franchisee must obtain products from franchisor-approved suppliers. What is the approval process, and does the franchisor have any financial interest in the suppliers or receive rebates from them?

You maintain operational control including written approval of suppliers and advice on maximum prices. How prescriptive is the franchisor in day-to-day operations, and where can franchisees exercise discretion?

The post-term non-compete extends to 'any business like' the franchise. How broadly has this been interpreted, and have there been any disputes over what constitutes a competing business within the 3-mile radius?

Of the 3 units transferred in the past year, did the original franchisees exit profitably, and what is the typical time frame for selling a Nature's Table franchise?

What is the investment required beyond the $30,000 franchise fee, including real estate, equipment, inventory, and working capital? What is the typical build-out timeline?

Can you explain the difference between closures and 'ceased other' in your reporting? Of the 12 'ceased other' units over three years, what do these represent?

What is the average tenure of current franchisees? Are newer units (0-3 years) showing higher or lower exit rates than established units?

The franchisor must provide written advice on supplier selection and maximum prices. What happens if a franchisee disagrees with the franchisor's supplier recommendations or price guidance?

Are there any pending disputes, complaints filed with state regulators, or litigation in preliminary stages not yet reflected in the 0 cases reported?

What support and training does the 100/100 Support & Training score reflect, and how frequently does the franchisor provide operational guidance to franchisees?