Pokeworks

The agreement lists 31 termination causes compared to the typical 15-23 for this franchise type. Can you provide a detailed breakdown of which causes are non-curable versus curable and what cure periods apply?

Your 3-year turnover rate of 17.2% exceeds the category average. What factors do you attribute to the unit closures in 2022, 2023, and 2024, and what steps are being taken to improve retention?

The total potential 40-year term is significantly longer than the typical 20-26 years in your category. What is the rationale for this extended term, and how does it affect long-term unit economics?

Can you explain the distinction between the 4 units that 'ceased other' in both 2022 and 2024 versus the 3 that closed in 2023? Are these voluntary closures or franchisor-directed?

What specific performance metrics or sales thresholds trigger the various termination causes in your franchise agreement?

Given the 2-year/10-mile non-compete and the requirement for personal guarantees from 5%+ owners and their spouses, how strictly is this enforced, and are there any documented cases of enforcement?

All disputes are subject to mandatory arbitration in Los Angeles. What are the typical costs and timelines franchisees should expect if a dispute arises?

The franchise agreement includes waiver of class action participation and jury trials. Have any franchisees requested modifications to this dispute resolution clause?

With a 6.0% royalty rate and 1.5% ad fund, plus $300 monthly technology fee, how do these ongoing fees compare to your direct competitors in the fast casual restaurant segment?

Can you provide the number of units that have exercised renewal options in the past, and what percentage of franchisees choose to renew versus exit at term end?

Item 19 shows median gross sales of $834,650 versus average of $978,600. What explains this gap, and what percentage of franchisees fall below the median?

How many franchisees have been required to cure defaults in the past 3 years, and what were the most common curable defaults?

Are there any geographic patterns to the closures—did units close in specific regions, or was it evenly distributed across your territory?

What support or operational changes have been implemented since 2022 to address the closure pattern?

The transfer fee is $20,000 while the renewal fee is $12,500. Are there any other hidden fees or charges franchisees should anticipate during renewal or transfer processes?

Can you clarify what 'ceased other' means in your unit history data, and does it include any franchisor-directed closures for cause?

With zero terminations in 3 years but 28 non-curable defaults identified in the agreement, what is the franchisor's actual enforcement approach to breaches?

How has the exclusive territory protection been applied in practice, and have there been any disputes over encroachment or territory definition?