The franchise fee of $125,000 significantly exceeds the typical range for this category. What specific assets, training, or support justify this premium pricing compared to competitors?
#1
With only 2 units currently operating and 0 units in the prior 3 years, how long has this regional developer agreement been active, and what is the timeline for unit development?
#2
The contract specifies 22 termination causes, above the typical range. Can you provide a complete list of these causes and clarify which are franchisor-initiated versus franchisee-caused?
#3
The non-compete radius of 2 miles is significantly below the typical 10-50 mile range. Does this limitation allow multiple Port of Subs units to operate in close proximity, and what is the franchisor's encroachment policy?
#4
The transfer fee of $25,000 exceeds typical ranges. Is this fee required in addition to the renewal fee of $10,000, and are there circumstances where it can be waived or reduced?
#5
Financial Item 19 (earnings claims) is not provided. Can the franchisor provide actual financial performance data, unit economics, or average gross sales for the 2 existing units?
#6
The renewal conditions count of 9 exceeds typical levels. What are these 9 specific conditions, and how frequently do regional developers fail to meet them?
#7
Given the binding individual arbitration clause with waived class action rights, what dispute resolution costs or arbitration fees should a prospective franchisee anticipate?
#8
The franchise requires personal guarantees covering all monetary obligations on a joint and several basis. Can spouses be released from the guarantee, and are there conditions under which personal guarantees can be limited?
#9
With royalty rate listed as N/A, how is the franchisor compensated for ongoing support and services beyond the initial $125,000 franchise fee and $250 technology fee?
#10
The contract includes spouse and immediate family liability provisions. What specific circumstances trigger spousal/family member obligations, and how are these enforced?
#11
What specific training and support does the Support & Training score of 95 reflect, and how does it translate to practical assistance for a regional developer managing multiple franchised units?
#12
The Risk Factors score of 80 exceeds typical ranges. What are the primary risk factors identified, and how do they compare to other regional developer opportunities in the category?
#13
Since this appears to be a very new system with minimal unit history, what evidence of franchisor financial stability and operational viability can be provided?
#14
The renewal fee is calculated as $10,000 per franchised Port of Subs unit. If a regional developer grows to 10 units, would the renewal fee be $100,000, and is this negotiable?
#15
What is included in the technology fee of $250, and is this a one-time cost or recurring annual charge?
#16
Can the franchisor provide references from the existing 2 regional developers, including detailed information about their operational experience and satisfaction?
#17