Why does the franchise system currently operate with only 1 unit, and what is the franchisor's growth strategy for expanding the system?
#1
Given the monthly technology fee of $600 is significantly above the industry average of $110-$408, what specific technology services and platforms are included in this fee?
#2
Can you provide a detailed breakdown of what the $600 monthly technology fee covers and whether franchisees can opt out or negotiate this cost?
#3
The franchise agreement identifies 13 non-curable defaults that result in immediate termination—can you provide the complete list and explain the reasoning behind each?
#4
With only 10 days to cure payment or reporting defaults versus 30 days for other defaults, how does this apply in practice, and are there any hardship exceptions?
#5
The renewal process requires 'unlimited remodeling expenditures to conform to current standards'—can you provide an estimate of typical remodeling costs at renewal and clarify what 'unlimited' means?
#6
How many franchisees have successfully renewed their agreements, and how many have chosen not to renew or failed to meet renewal conditions?
#7
The dispute resolution clause requires binding arbitration in Orange County, Florida—how do you justify requiring franchisees nationwide to arbitrate in a specific location?
#8
Can you explain the rationale for requiring unlimited personal guarantees from all principal owners and spouse guarantees as well?
#9
Which 5 product/service categories require approved suppliers, and does the franchisor receive rebates or revenue sharing from these approved suppliers?
#10
How are the minimum and maximum pricing set for approved suppliers, and can franchisees request exceptions or alternatives?
#11
The franchisee must indemnify the franchisor against 'all claims arising from' their operations—does this include claims resulting from franchisor-provided training, equipment, or systems?
#12
Given the system has only 1 unit, how many Sambazon locations have actually operated historically, and what caused all other units to exit the system?
#13
Has the franchisor ever used the 13 non-curable default provisions to terminate a franchisee agreement, and if so, under what circumstances?
#14
Are there any pending litigation cases or regulatory complaints against Sambazon that are not yet reflected in public records?
#15
How does the $1,129,240 median gross sales figure compare to franchisees' actual net profit after accounting for royalties, technology fees, and operating costs?
#16
Is the Item 19 financial performance data based on the 1 current operating unit, or does it represent historical data from multiple units?
#17
If territory is not exclusive, what encroachment protections exist, and has the franchisor opened competing locations within 5 miles of franchisees?
#18
Stores must operate 10 consecutive hours daily—is this a requirement in the franchise agreement, and are there penalties for failing to meet this operational standard?
#19
Given the very small system size, what level of support and resources can franchisees realistically expect from the franchisor for training, marketing, and ongoing operations?
#20