The Investment Costs score is 42/100, significantly below the typical 73-77 range for fast casual restaurants. What specific investment components drive this lower score, and how does total initial investment compare to competitor franchises?
#1
Your ad fund rate of 1.0% is below the typical 1.5-3.0% range. How is the marketing budget allocation determined, and what marketing support and national advertising initiatives are included at this rate?
#2
Your technology fee of $100/month is below typical range. What specific technology systems, POS integration, and digital platforms are covered by this fee, and are there any additional technology costs not included?
#3
Financial performance shows average gross sales of $3.24 million and median of $3.01 million, significantly above typical fast casual ranges. What is the units reporting percentage for Item 19, and how many locations achieved these sales figures?
#4
Your system achieved 31.5% unit growth year-over-year, above the typical range. What are the primary drivers of this growth, and what percentage came from new franchise sales versus company-owned unit expansion?
#5
With zero litigation cases over 3 years despite 121 units, what disputes or complaints have been handled outside formal litigation, and what are your most common franchisee concerns?
#6
The agreement includes 24 termination causes, above the typical range of 15-23. Can you provide a breakdown of the most frequently cited termination causes in practice, and how many terminations have actually occurred?
#7
Only 3 renewal conditions are specified versus a typical 6-9. What happens at the 10-year renewal point—are franchise fees, royalty rates, or system requirements adjusted, and under what circumstances would renewal be denied?
#8
The total potential term is 30 years across 3 terms. Are the renewal terms automatic at the current rates, or does the franchisor have discretion to modify terms at each renewal?
#9
The non-compete is 2 years/5 miles. After franchise termination or expiration, can former franchisees operate a competing quick-service restaurant outside the 5-mile radius after 2 years?
#10
Personal guarantees are required from all owners, with spouses guaranteeing only if they have ownership interest. What specific obligations are covered by the personal guarantee beyond the franchise agreement terms?
#11
The franchisor maintains authority to set maximum and minimum prices and can require purchases from approved suppliers in 10 categories. How frequently are pricing requirements updated, and what is the approval process for alternative suppliers?
#12
Zero terminations and zero transfers have occurred in the 3-year history. Can you explain the reasons some franchisees may have exited informally, or is the zero figure accurate?
#13
With 29 new units added in one year, what is the sales pipeline for the next 2-3 years, and are there geographic markets where you're focusing expansion?
#14
The technology fee is $100/month while typical fast casual restaurants pay $200-500/month. Does this cover all software licensing, updates, and customer support, or are there separate charges for POS systems, online ordering, or customer data analytics?
#15
Item 19 financial data is provided. How was the reporting sample selected, what was the time period, and does it include company-operated locations or franchisee locations only?
#16
Your litigation history is clean with zero cases. Have there been any regulatory investigations, health code violations, or franchisee complaints filed with the FTC or state franchise regulators?
#17
The renewal fee is $5,000 and transfer fee is $10,000. Are these the only renewal and transfer costs, or are there additional franchisor fees, legal review fees, or training fees required at renewal or transfer?
#18
With encroachment protection and exclusive territory, what is the franchisor's specific policy on density, and how close can new units be located to existing franchised locations?
#19
The termination clause allows 6 curable defaults with cure periods from 5 to 60 days. If a franchisee fails to cure a payment default within 5 days, can the franchisor terminate immediately or must notice be provided first?
#20