Given the franchise fee of $60,000 is above the typical range for sports & recreation franchises, what specific value or services justify this higher initial investment compared to competitors?
#1
The transfer fee of $45,000 significantly exceeds typical ranges—can you provide the rationale for this fee and examples of recent transfers and their actual costs to franchisees?
#2
With average gross sales of $1,867,466 exceeding typical range, what is the break-even point for a new franchisee and what percentage of your current units achieve this performance level?
#3
How many of your 4 current units are reporting the gross sales figures in your Item 19, and how long have they been operating to ensure the data reflects mature units?
#4
Can you explain the 58.7% three-year compound annual growth rate—is this growth driven by existing franchisees expanding or entirely new unit openings, and what is your projected growth rate going forward?
#5
The non-compete clause covers 50 miles, which is double the typical range—what is the business rationale for this extended geographic restriction, and has it been enforced?
#6
You list 9 renewal conditions required for renewal—can you provide the complete list of these conditions and any historical examples of franchisees who failed to meet them?
#7
Given zero litigation cases in the franchise system's history, is this due to a very young system (only 4 units), or does this reflect positive franchisor-franchisee relationships and minimal disputes?
#8
What happens if a franchisee cannot meet the mandatory remodel requirement mentioned in your renewal conditions—is a waiver possible or is non-renewal automatic?
#9
The franchise fee has grown from what initial level to $60,000—if new franchisees sign after you, will they pay the same fee or will it increase further?
#10
Can you provide documentation of the approved suppliers you require franchisees to use and the pricing controls you've implemented—are these contracts negotiable?
#11
With only 1 unit existing 3 years ago, how were financial projections and performance data developed for your Item 19 disclosures?
#12
What specific operational support and training do franchisees receive during the initial term, and how does this justify your above-range franchise fee?
#13
Are personal guarantees from spouses enforced in the event of franchisee default, and have you pursued spouse liability in any dispute?
#14
If a franchisee decides not to renew after 10 years, what are the practical limitations imposed by the 2-year, 50-mile non-compete on their future business options in pickleball or related recreation?
#15
How many prospective franchisees have you recruited and declined in the past year, and what are the primary reasons for those rejections?
#16
What is your typical franchisee profile (prior business experience, capital availability, sports background) that has been successful in your system?
#17
Given your rapid growth, what systems do you have in place to ensure quality control and brand consistency across all locations?
#18