Qdoba Mexican Eats

What are the specific details and current status of the 1 pending litigation case, and what does it involve?

Can you provide details on the 2 litigation cases initiated against the franchisor in the past 3 years—what were the claims and how were they resolved?

Why is the advertising fund rate set at 4.5%, which is 1.5 percentage points higher than the typical range for fast casual restaurants?

The initial contract term is only 10 years compared to 20-26 years typical for this category—what is the strategic reason for this shorter term?

What conditions must be met to renew the franchise agreement, and can you clarify the 8 specified renewal conditions mentioned in the legal terms?

How much will remodeling costs typically be, and who bears the cost of required restaurant remodeling at renewal?

The transfer fee is $5,000, significantly below the typical $8,750-$20,000 range—does this incentivize transfers, and does it affect franchisor oversight of new owners?

Of the 12-13 units closing annually, what percentage are attributed to unit performance versus franchisor decisions versus external factors?

What personal guarantee obligations does the franchisee agreement require, and are there any limits on the franchisor's right to enforce spousal guarantees?

How does the franchisor enforce encroachment protection given that territory exclusivity is not provided—what specific remedies are available?

What is included in the required restaurant remodeling at renewal, and are there approved equipment vendors or can franchisees choose their own contractors?

Are there any performance minimums (revenue, unit volume, customer count) that must be maintained to qualify for renewal?

What happens to existing lease obligations if the franchisor does not renew the franchise agreement—who remains responsible for rent?

Can you provide the names and claims of the 2 litigation cases initiated against the franchisor to understand the nature of disputes?

How many of the 9-13 annual closures were due to franchisee financial distress versus franchisee choice to exit?

The non-compete is 2 years/5 miles—does this apply post-termination only or also post-expiration, and what if a franchisee violates it?

What support and training are provided to help franchisees meet the 8 renewal conditions, particularly around remodeling and system compliance?

Are there any modifications available to the standard franchise agreement regarding renewal terms, personal guarantees, or territory protections?