Paisano's Pizza

The Transfer Rate of 16.7% is significantly above typical for this category. What are the primary reasons franchisees are selling their units, and what are the exit terms and buyer profiles?

Six units were transferred in 2024 compared to one in 2023. Is this elevated transfer rate part of a continuing trend, and what factors are driving increased ownership changes?

The Ad Fund Rate of 1.0% is below the typical range of 1.5-3.0%. How is this lower advertising contribution allocated, and does it provide adequate marketing support compared to competitor franchises?

Your Transfer Fee of $5,000 is significantly below the typical range of $8,750-$20,000. Are there additional hidden costs or franchisor approval fees that apply when units change hands?

The non-compete clause specifies 3 years and 25 miles. Can you explain the rationale for these extended restrictions compared to the typical 2-year/5-20 mile range, and how aggressively are they enforced?

What was the single litigation case initiated against the franchisor about, how was it resolved, and did it result in any policy changes?

With a Renewal Fee of $10,000 (approximately 25% of the initial franchise fee), what renewal conditions or facility upgrades are required, and how frequently are renewal requests denied?

The Termination clause lists 20 non-curable defaults resulting in immediate termination. Can you provide examples of these non-curable defaults and how often franchisees are terminated under each category?

Personal guarantees are required from all principals and spouses. If a franchisee defaults, what recourse does the franchisor pursue against personal assets, and have there been cases where spouses were held liable?

Franchisees must purchase solely from approved suppliers in 8 specific categories. Can you provide the full list of approved suppliers and explain the selection/approval process?

The franchisor may determine maximum selling prices. How often are price controls implemented, how do they affect unit profitability, and do they vary by geography?

With 36 units unchanged over 3 years and a 0.0% net unit growth, what is the franchise development strategy, and are there growth targets for franchisees or the system?

Median Gross Sales of $1.33M and Average of $1.31M are very close. How many units fall significantly below these averages, and what support is provided to underperforming locations?

Can you provide the full Item 19 financial performance data, including breakdown by unit age, location type, and any performance metrics beyond gross sales?

The Post-Termination clause includes customer non-solicitation restrictions for 3 years/25 miles. How are these restrictions monitored, and have there been legal disputes over enforcement?

What Operational Control restrictions impact pricing flexibility, menu modifications, or product sourcing, and how frequently does the franchisor exercise control over unit decisions?

Are there any ongoing disputes or litigation pending from the 6 units transferred in 2024, or any disputes with the transferred units' new owners?