Sedona Taphouse

Given the franchise has only 17 total units, how long has this franchise system been operating, and when were the majority of these units established?

The zero turnover and closure rate over 3 years is unusual for casual dining franchises. Can you provide detailed exit history for the first few units franchised, including any units that may have closed before 2022?

The agreement lists 24 termination causes compared to the typical 15-20 for this category. Can you explain which specific causes are most commonly enforced and provide examples of terminations in the past 5 years?

Why is the non-compete radius only 5 miles when the casual dining category typically uses 7.5-15 miles? What protection does this provide against direct competition?

The franchise agreement requires mandatory binding arbitration with individual-only disputes (no class actions). How many disputes have been arbitrated in the past 3 years, and what were the general outcomes?

Personal guarantees are required from all owners with 10% or more equity, and spousal guarantees may be required at franchisor discretion. Under what circumstances would spousal guarantees be required?

The agreement allows the franchisor to control pricing of specific goods and services despite requiring designated suppliers in 15+ categories. Can you provide examples of how pricing control has been applied?

What is the current financial performance of the 17 operating units, and why does the franchise not provide Item 19 financial performance disclosures?

Of the 1 net unit added in the past year, was this a new franchise opened or an existing location that was transferred or acquired?

The renewal fee is $8,750 (25% of the then-current franchise fee). If initial franchise fees increase substantially, how much could the renewal fee be at your first renewal opportunity?

The agreement requires 12-month advance notice for renewal and specifies 8 renewal conditions. What percentage of franchisees have successfully renewed or are currently in renewal negotiations?

The 5-day cure period for payment defaults is very short. What payment systems and schedules are in place to help franchisees meet this obligation?

There are 20 non-curable default events versus only 4 curable defaults. Can you provide the complete list of non-curable defaults and explain the rationale for designating them as non-curable?

The Investment Costs score is 45/100 (below the typical 73-77 range). Can you provide a complete breakdown of total investment required including build-out, equipment, working capital, and all fees?

The Financial Performance score is 40/100. What are the primary reasons the system does not provide Item 19 financial performance data, and would management shares such data confidentially during discovery?

How are the 15+ designated supplier categories monitored for compliance, and what rebates or volume discounts do franchisees typically receive from these suppliers?

The territory is exclusive with encroachment protection, but what specific remedies exist if the franchisor encroaches with company-owned or other franchised locations?

Risk Factors score is 80/100 (above typical 61-78.5 range). What are the primary operational, market, or financial risks identified in the franchise disclosure that contribute to this higher risk score?