Pepper Lunch

The franchise fee of $50,000 and transfer fee of $25,000 both exceed typical ranges for this category. What justifies these higher fees compared to competitor fast casual concepts?

Can you provide details on the circumstances surrounding the 1 closure and 1 ceased operation in 2024? Were these voluntary exits or franchisor-directed, and what were the contributing factors?

Your non-compete radius of 3 miles is significantly narrower than the typical 5-20 mile range. How does this protect franchisees from competitive encroachment, and has the shorter radius created conflicts between locations?

With 10 renewal conditions listed in Section 3.3, what are the specific requirements for mandatory remodeling and modernization? What are typical costs associated with meeting renewal conditions?

The agreement lists 17 grounds for immediate termination without opportunity to cure. Can you clarify which of these are most commonly encountered, and do you provide any support to help franchisees avoid these triggers?

Your top quartile locations generated $2,967,475 in gross sales. What are the key differentiators between top performers and average units, and what support do you provide to help franchisees reach this level?

The agreement requires joint and several personal guarantees from all owners. Will you discuss the scope of personal liability, and has this requirement been enforced in previous disputes or closures?

How many hours per day and days per week are franchisees required to operate? Are there flexibility options for seasonal variations or local market conditions?

You require all Pepper Lunch branded and approved products to be purchased from designated suppliers. What percentage of costs does this represent, and how frequently are supplier prices adjusted?

With only 8 current units across your franchise system, what is your growth strategy for the next 3-5 years? How does this affect territory protection and franchisee profitability?

The 1-year net unit growth of 33.3% significantly exceeds typical ranges. Is this growth rate sustainable, and what factors are driving this expansion?

Can you provide the Item 19 disclosure statement showing the median and average sales broken down by unit age and location type? How does your average of $1,417,186 compare to your franchisees' actual performance?

What happens if a franchisee cannot meet the mandatory remodeling requirements for renewal? Are there financing options or alternatives to meet this condition?

The agreement requires 10+ hours daily, 7-day operation. What staffing models do franchisees typically employ, and what are realistic labor costs for this operating schedule?

Have any franchisees requested territory boundary modifications due to the narrow 3-mile non-compete, and how have these requests been handled?

What is the typical timeline and approval process for transferring a franchise unit, and are there any restrictions on buyer qualifications beyond the standard approval process?

You mention encroachment protection in the territory agreement. Has this protection been tested or enforced, and are there examples of how it has benefited franchisees?

What ongoing training and support do you provide beyond the initial launch? Are there additional costs for advanced training, menu updates, or operational guidance?