OH K-DOG & EGG TOAST

What specific operational or financial challenges led to the 3 unit closures in 2023, and are there common factors among closed locations?

Given the 15.4% transfer rate above typical ranges, what support does the franchisor provide to franchisees considering exit or transfer options?

The system grew from 12 to 27 units between 2021-2022 but has remained flat at 26 units since. What growth strategy is planned going forward, and what prevents the system from returning to expansion mode?

Why is the franchise fee $30,000 when the typical range for fast casual restaurants is $35,000-$40,000, and does this lower fee reflect lower support or operational costs?

The royalty rate of 4.0% is below the typical 5.0-6.0% range. Does this lower rate correspond to reduced franchisor support, marketing, or technology services?

The advertising fund contribution of 1.0% is at the low end of the typical 1.5-3.0% range. How is this fund utilized, and has it been sufficient to build brand awareness given recent unit turnover?

The System Health score is 35, significantly below the typical 50.0-75.0 range. What specific areas of system health are deficient, and what remediation efforts are underway?

Territory is non-exclusive with no encroachment protection. Has the franchisor opened company-operated or franchised locations that compete with existing franchisees, and if so, how is this managed?

The non-compete radius of 25 miles exceeds the typical 5.0-20.0 mile range. What is the rationale for this expanded radius, and how is it enforced post-exit?

Support and Training score is 87, below the typical 90.0-100.0 range. What training does the franchisor provide at franchise launch and ongoing, and how does this compare to competitors?

The franchise agreement requires mandatory binding arbitration and waives jury trial and class action rights. Have any disputes been arbitrated, and what was the outcome?

Personal guarantees are required for all amounts owed under the development agreement. Are there any circumstances under which personal guarantees can be released or modified?

Franchisees must purchase from franchisor-approved or designated suppliers across 11 product categories. Can you provide the list of approved suppliers and typical costs compared to open market alternatives?

The franchisor reserves the right to establish maximum, minimum, or other pricing requirements for approved suppliers. Have supplier prices been adjusted in the past 3 years, and if so, by what percentage?

With a termination rate of 0.0%, how many franchisees have been unable to meet renewal conditions in the past 3 years, and what are the typical deficiencies?

The renewal fee is 50% of the then-current initial franchise fee. If the initial fee were to increase to $40,000, would renewal fees for existing franchisees also increase proportionally?

Risk Factors score is 63, below the typical 64.0-80.0 range. What are the primary operational or market risks the franchisor has identified, and how are these being mitigated?

Territory score is 50, significantly below the typical 75.0-88.75 range. Beyond non-exclusive territory and lack of encroachment protection, what other territory-related policies concern the franchisor assessment?

Item 19 financial performance data is not provided. Can the franchisor provide sales, cost, and profitability data for operating franchisees to support unit economics claims?

Of the 4 units that transferred in 2023, were these transfers approved by the franchisor under existing transfer terms, or were there disputes about transfer eligibility or fees?