The franchise fee of $20,000 is significantly below the typical range of $39,500-$55,000 for this category. What is included in this lower initial investment, and are there additional required investments not reflected in this fee?
#1
What was the specific reason for the 1 unit closure and 1 termination that occurred in 2023, and what conditions led to the termination?
#2
The franchise does not disclose Item 19 (financial performance data). Can the franchisor provide audited financial statements, unit-level profitability data, or average unit volumes for existing locations?
#3
Territory is listed as 'protected' but not 'exclusive.' What specific protections exist, and can the franchisor open additional units or allow other franchisees within the same market area?
#4
Renewal requires meeting 9 conditions, which exceeds the typical range of 6-8. Can you detail each of these 9 renewal conditions and explain what 'completion of maintenance updates' specifically entails?
#5
The total potential contract term is 15 years (10-year initial plus one 5-year renewal), which is shorter than the typical 20-year potential. What is the rationale for this shorter term, and what are the prospects for additional renewal options?
#6
The agreement requires a 2-year non-compete within a 200-kilometer radius and prohibits 'any hockey player development business.' How is this defined, and could it prevent you from working in related sports or recreational activities?
#7
Late payments incur $100 per occurrence per day plus 2% monthly interest (26.82% annually). Can you clarify what constitutes a 'late payment occurrence' and whether this applies to all fee categories?
#8
The agreement specifies 18 non-curable defaults allowing immediate termination. Can you provide a complete list of these defaults and clarify which breaches are most frequently cited?
#9
Minimum annual performance levels are required to maintain franchised business and territory rights. What are these specific performance thresholds, and what happens if a unit falls below them?
#10
All disputes must be resolved through binding arbitration in Ottawa, Ontario, with no jury trial or class action rights. Are there any exceptions to this arbitration requirement, and what are the typical costs of arbitration cases?
#11
The franchisor must approve all suppliers across 5 categories and may specify maximum or minimum prices. Which supplier categories are covered, and can you provide examples of pricing constraints imposed?
#12
A personal guarantee is required from the principal with 'unlimited scope.' Does this guarantee survive after franchise termination or expiration, and are there any circumstances under which it can be released?
#13
The encroachment protection clause is mentioned but territory is not exclusive. Have there been any disputes or concerns from franchisees regarding encroachment, and how are encroachment complaints handled?
#14
The system grew from 23 to 27 units over 3 years (17.4% growth). What is the franchisor's target for unit growth, and what expansion plans exist for the next 3-5 years?
#15
With zero litigation cases reported, are there any unresolved disputes currently being handled outside the legal system or through informal resolution?
#16
The renewal fee is $10,000. Are there additional costs associated with renewal beyond this fee, such as required facility upgrades or equipment updates?
#17
What support and training are provided to franchisees, and are there ongoing training requirements or additional fees for specialized training programs?
#18
Can you provide references from franchisees who have renewed their agreements or from those who chose not to renew, including their reasons?
#19
What are the royalty fee payment terms (monthly, quarterly, annual), and how are royalties calculated if a location operates seasonally?
#20