Pizza Ranch

Your royalty rate of 3.5% is significantly lower than the 5.0-6.0% typical for QSR franchises—what operational efficiencies or business model differences enable this lower rate?

The termination rate of 2.8% exceeds typical ranges—what are the primary reasons franchisees are being terminated, and what percentage involve non-compliance versus performance issues?

Can you provide specific details on the 12 units that were terminated between 2022-2024, including which franchise locations and circumstances that led to termination?

Your renewal conditions count of 6 is below the typical 7-9 range—what renewal conditions are you enforcing, and what factors could result in renewal denial?

The Investment Score of 0/100 is significantly below the typical 69-78 range—why is investment performance information not being scored, and what disclosure limitations exist?

What specific support and training do you provide to help franchisees reach or exceed the reported median gross sales of $1,058,267?

How many of the 218 current units are owned by single-unit franchisees versus multi-unit operators, and do multi-unit operators have lower termination rates?

Can you detail the 2-year, 10-mile non-compete clause and how aggressively you enforce it? Have any franchisees challenged this restriction?

What are the renewal fee requirements ($2,500 mentioned) and what additional investments might be required to renew a franchise after 10 years?

The system shows 0% non-renewal rate—does this mean all franchisees who reach renewal choose to renew, or does the data exclude franchisees who chose not to renew?

Of the 6 units that closed in 2024, how many were franchisee-initiated closures versus franchisor-enforced closures, and what were the primary failure reasons?

What are the specific performance metrics and thresholds that trigger contract termination or non-renewal decisions?

Can you explain the personal guarantee requirement for 'all indebtedness of any kind' and provide examples of situations where this has been enforced?

How does the indemnification clause protect the franchisor, and are there caps or limitations on franchisee liability for franchisor-related legal judgments?

Item 19 reports median sales of $1,058,267—what percentage of current units fall below this median, and what is the bottom quartile performance level?

The territory is exclusive—how do you define territory boundaries, and what protections exist against encroachment by new franchisees or company-owned locations?

Have there been any territorial disputes between existing franchisees and new location placements in the past 3 years?

What is the average franchisee tenure in the system, and among the 211 units operating 3 years ago, how many are still operating today?

Can you provide a breakdown of the 13 units transferred in 2022 and 12 units transferred in 2024—were these voluntary sales or franchisor-approved transfers due to financial distress?

What is your policy on transfer approval, and are there circumstances where you would deny a franchisee's request to sell their franchise?