Can the franchisor provide a detailed breakdown of the 107 unit closures in 2023 by closure type (voluntary closure, non-renewal, termination, transfer)?
#1
What specific operational or market conditions contributed to the sharp decline in closures from 107 in 2023 to 26 in 2024?
#2
The 39.0% 1-year turnover rate is 4.5 times higher than the typical range for casual dining. How does the franchisor explain this outlier, and what strategies are in place to reduce future turnover?
#3
What are the details of the 2 litigation cases initiated against the franchisor? Were these cases settled, dismissed, or decided, and what were the outcomes?
#4
Given the unusually short 3-year initial term and 6-year total potential term, how does the franchisor justify these terms compared to the 10-15 year initial terms standard in casual dining?
#5
The franchise fee of $3,750 is 92% below the typical range of $30,000-$50,000. What is included in this fee, and does the franchisor offer any discounted or introductory pricing?
#6
Can the franchisor provide Item 19 financial performance data, including median and average unit volumes for operating units?
#7
The territory policy is non-exclusive with no encroachment protection. Can the franchisor guarantee exclusive use of a specific geographic area, or are multiple franchises permitted within the same location?
#8
Nine renewal conditions apply for the 3-year renewal term. Can the franchisor provide a detailed list of these conditions and the percentage of franchisees who have successfully renewed their agreements?
#9
The transfer fee of $1,500 is significantly below the typical $5,000-$18,000 range. What processes and approvals are required for unit transfers, and are there any restrictions on transferability?
#10
How many of the current 742 units are company-owned versus franchised, and what is the franchisor's expansion strategy for the next 3-5 years?
#11
Five core product categories must be purchased from franchisor-designated suppliers. Can the franchisor provide data on product cost markups or price comparisons to open market alternatives?
#12
What is the required technology fee monthly amount of $51 applied for, and are there alternative reporting or management systems available?
#13
The non-compete clause is 2 years / 15 miles. How is this enforced, and has the franchisor litigated any non-compete violations in recent years?
#14
Can the franchisor provide average unit economics for a typical franchise location, including startup costs, payback period, and profitability timelines?
#15
What support and training does the franchisor provide given the Support & Training score of 74 is below the typical range of 90.0-100.0 for casual dining franchises?
#16
The risk factors score of 18 is substantially below the typical range of 61.0-78.5. What specific risk mitigation strategies does the franchisor employ, and what are the primary operational risks franchisees should understand?
#17
How many franchisees have successfully completed their initial 3-year term and either renewed or exited, and what percentage elected not to renew?
#18
Are there any pending legal disputes, regulatory investigations, or operational challenges the franchisor is currently addressing that prospective franchisees should know about?
#19