What specific factors drove the increase in unit closures from 0 in 2022 to 5 total closures in 2023-2024, and are any closures related to market conditions or operational issues?
#1
Can you provide details on the 1 franchisee termination in 2022 and 1 in 2023? What defaults led to termination and could these issues affect new franchisees?
#2
Why do median and average gross sales ($990,527 and $1,068,405) fall significantly below the typical range for casual dining franchises, and what factors explain this performance gap?
#3
What are the 9 renewal conditions required to renew the franchise agreement, and how frequently do franchisees meet all conditions to successfully renew?
#4
The franchise includes only 3 curable default types with limited cure periods (5 days for payment, 30 days for others). Can you provide examples of the 20 non-curable defaults that could lead to immediate termination?
#5
Given that all disputes require mediation and binding arbitration in Okaloosa County, Florida, what are typical costs and timelines for dispute resolution, and how many disputes have occurred in the past 3 years?
#6
As a franchisee, what personal guarantee obligations would I have beyond the franchise investment, and are there any caps on indemnification liability?
#7
The franchise requires capital expenditures for any facility upgrades needed at renewal. What is the average capital expenditure franchisees should budget for a 10-year renewal?
#8
Can you explain why the Ongoing Fees score of 60 falls below the typical 62.0 benchmark, and are there any hidden or variable fees not listed in the fee structure?
#9
What support and training does the franchisor provide to help franchisees achieve sales performance closer to the category median of $1.1-2.6 million?
#10
Has the franchisor terminated any franchisees for non-payment or breach in the past 3 years, and if so, how many and on what grounds?
#11
The 10-mile non-compete extends 2 years post-exit. Have any former franchisees challenged this restriction, and would I be restricted from opening any food service business or just sushi restaurants?
#12
What is the breakdown of the 2023-2024 transfers (7 total)? Were these all franchisee-initiated sales, and did the franchisor have right of first refusal on any of these transfers?
#13
Given the 9 renewal conditions, can you provide a sample list and clarify which conditions are discretionary versus non-negotiable?
#14
The $18,000 renewal fee equals 50% of the original franchise fee. Is this fee refundable if I choose not to renew, and are there any additional fees assessed during the renewal process?
#15
What percentage of franchisees in the system have successfully renewed their contracts, and how many have chosen not to renew after their initial 10-year term?
#16
Can you provide a 3-year breakdown of which franchisees transferred units and to whom (new franchisees, existing franchisees, or third parties)? Were any transfers denied by the franchisor?
#17
The dispute resolution clause requires proceedings in Okaloosa County, Florida. If I operate in a different state, would I be required to travel to Florida for mediation and arbitration?
#18