Can you provide detailed information about the 26 termination causes listed in the franchise agreement and which specific defaults are non-curable versus curable with respective cure periods?
#1
Given the franchise fee is $35,000 with a renewal fee of $17,500 (50% of franchise fee), what are the 4 main conditions franchisees must meet to qualify for the single 10-year renewal option?
#2
Since the system only has 10 units established in 2024, what is the franchisor's unit growth projection for the next 3-5 years and what support mechanisms exist to help new franchisees succeed?
#3
The non-compete clause covers a 2-year / 10-mile radius following termination or expiration. Can you clarify the specific definition of 'competing businesses' and how the 30% menu similarity threshold is applied?
#4
All disputes must be resolved through binding arbitration in Atlanta, Georgia. What are the typical costs and timeline for arbitration, and can franchisees negotiate this clause or propose alternative dispute resolution methods?
#5
The franchise agreement requires purchasing operating assets from franchisor-designated or approved suppliers across 5 major categories. Can you provide the list of approved suppliers and the pricing structure or rebate arrangements for each category?
#6
What specific training and ongoing support is provided given the Support & Training score of 100/100, and how does this support adapt as the system scales beyond the current 10 units?
#7
The Ongoing Fees score of 60 falls slightly below the typical range. Can you explain what comprises the total ongoing costs beyond the 6% royalty, 3% ad fund, and $500 technology fee?
#8
With zero litigation cases in the past 3 years, can you describe any disputes, complaints, or issues that franchisees have raised that were resolved outside of formal litigation?
#9
What is the franchisor's policy on encroachment if units are established within the protected territory, and what remedies are available to existing franchisees?
#10
Since territory is protected but not exclusive, what specific obligations does the franchisor have to prevent or limit direct competition from company-owned locations or other franchisees?
#11
Can you clarify the operational control requirements across the 5 major purchasing categories—what flexibility exists for franchisees to negotiate volume discounts or alternative suppliers?
#12
The franchise agreement includes a jury trial waiver. Are there any exceptions to binding arbitration, such as for IP infringement claims or injunctive relief?
#13
What are the specific substantial compliance requirements that franchisees must meet to qualify for renewal, and how are these evaluated by the franchisor?
#14
How many of the current 10 units have been in operation for a full 12-month period, and what are the actual unit-level financial results (sales, profitability) for reporting units?
#15
Does the franchisor provide an Item 19 financial performance representation, and if not, why is this data not available despite the system being operational for over a year?
#16
What is the total investment range for opening a ROTI Modern Mediterranean location, including equipment, buildout, working capital, and all fees?
#17
The renewal fee equals 50% of the original franchise fee ($17,500). Are there additional conditions or property improvements required before renewal is granted?
#18