Quickway Hibachi

The technology fee of $625 monthly is significantly above the typical range of $200-$500 for fast casual restaurants. What specific technology services and systems are included in this fee, and how is it justified relative to competitors?

Your royalty rate of 4.0% is below the typical 5.0-6.0% range. Can you explain the rationale for this lower rate and whether there are any conditions under which it could increase?

The ad fund rate of 1.0% is below the typical 1.5-3.0% range. How does the franchisor allocate this lower advertising budget, and what marketing support should franchisees expect?

The franchise fee of $50,000 exceeds the typical $35,000-$40,000 range. What additional services, training, or support justify this premium entry cost?

The system declined by 1 unit in the past year (-2.0% growth) after growing from 43 to 50 units in the prior 2 years. What factors contributed to this reversal, and what is the franchisor's strategy to restore growth?

Two units were closed in 2024 and 2023. Were these closures initiated by franchisees due to profitability concerns, or were there other contributing factors? Can you provide details on the unit closures?

System Health scores 45, below the typical 50.0-75.0 range. What specific operational or franchise support challenges is the franchisor addressing to improve system health?

The franchise agreement requires mandatory binding arbitration at the franchisor's headquarters in Reston, Virginia, with class action and jury trial waivers. How have past disputes been resolved, and what are typical costs and timelines for arbitration?

Personal guarantees are required from all owners with 10% or greater interest, and spouses must sign confidentiality and non-compete agreements. Can you clarify the circumstances under which these guarantees could be enforced, and what recourse franchisees have?

All furniture, fixtures, signs, and equipment must be purchased from franchisor-approved suppliers with fixed minimum prices. What is the cost impact of this requirement compared to open-market purchasing, and are there price adjustment mechanisms?

The non-compete clause restricts activity for 2 years within a 10-mile radius after termination. Are there any geographic or business-type exceptions, and has this been enforced in past disputes?

Required renovations and modernization are conditions for renewal. What are typical renovation costs, and how frequently should franchisees anticipate capital investments to maintain compliance?

With 14 non-curable defaults listed in the agreement (below the typical 15-23 range), what are the most common reasons for termination without a cure period, and how has this been applied historically?

The renewal fee is $10,000 per 5-year term. Are there any additional costs or conditions for renewal beyond the specified fee and required renovations?

You have 0 pending litigation cases. Have there been any informal disputes, complaints, or mediation attempts with franchisees that did not result in formal legal action?

Median gross sales are $1,250,603 with 49 units reporting. What percentage of franchisees are meeting this median sales threshold, and what is the typical sales range by unit age or location?

Given that the franchise fee of $50,000 is above typical and the royalty of 4.0% is below typical, how does the total cost of ownership compare to competitor fast casual chains?

Territory is protected but not exclusive. How does the franchisor prevent encroachment, and have there been instances where new units were opened near existing franchisees?

The Ongoing Fees score of 65 is above the typical 61.0-62.0% range. Beyond royalties, ad fund, and technology fees, are there any other recurring fees or mandatory purchases franchisees should anticipate?

What specific metrics or sales thresholds trigger the 7 conditions required for renewal, and what happens if a franchisee meets most but not all conditions?