Can you provide detailed explanations for the 16 unit closures in 2024 and the 10 franchisor-initiated terminations? What were the primary reasons for each?
#1
What is the current status of the 1 pending litigation case, and what is the nature of the dispute?
#2
Can you explain the 2 cases where Sharetea initiated legal action against other parties and their outcomes?
#3
Given the 10.4% exit rate in the past year, what specific support or operational changes has the franchisor implemented to improve unit retention?
#4
The franchise fee of $12,000 is significantly lower than typical competitors. What is included in the initial franchise fee, and are there additional startup costs not reflected in this amount?
#5
Why is the monthly technology fee only $50 when the typical range for this franchise type is $75-$300? What specific technology services and systems are included?
#6
Can you provide examples of the 25 termination causes listed in the franchise agreement and clarify which are considered curable versus non-curable?
#7
The 30-day cure period applies to only 3 types of curable defaults. What are the implications for franchisees if they fail to cure within this timeframe?
#8
How is the $1,200 monthly minimum royalty requirement calculated and enforced? What happens if a unit's actual sales fall below this threshold?
#9
The non-compete clause specifies 2 years and 3 miles. How is this enforced, and have there been cases where franchisees have attempted to open competing concepts within this radius after exit?
#10
Why is the initial contract term only 5 years when typical competitors offer 7.75-10.0 years? Does this shorter initial term affect your willingness to renew?
#11
What are the specific conditions for renewal beyond the basic requirement to pay the $10,000 renewal fee? Are current system standards and fees subject to significant change at renewal?
#12
Given that territory is protected but not exclusive, what encroachment protections exist if Sharetea opens additional units near your location?
#13
The 5% monthly interest rate (60% annually) on late fees is mentioned. Can you clarify under what circumstances late payments occur and whether any grace periods exist?
#14
Can you explain the liability and indemnification clause requiring unlimited personal guarantees? Are there any circumstances where this scope is limited?
#15
The system has declined from 159 units one year ago to 153 currently. What is the franchisor's growth strategy going forward, and are there plans to address the recent decline?
#16
Of the 3 cases initiated against Sharetea in the past 3 years, how many involved franchisees, and what were the primary claims?
#17
What is the average unit volume (AUV) or median sales data for Sharetea units, and how does this compare to other bubble tea franchises?
#18
Can you provide references from franchisees who have exited in the past 2 years and speak to their experience during the exit process?
#19
Has Sharetea made any changes to its operations, training, or support following the litigation cases, and what do these changes address?
#20