Can you provide detailed Item 19 financial performance data, including median sales figures and the number of units that reported financials, to validate the $1,009,263 average gross sales figure?
#1
The technology fee of $750 monthly is notably higher than the typical $200-$500 range for fast casual restaurants. What specific services and technology platforms are included in this fee, and is there flexibility to reduce it if certain services aren't utilized?
#2
Your 3-year compound annual growth rate of 25.99% significantly exceeds the typical range. Can you detail the expansion plan for the next 3-5 years, including target markets and projected unit count?
#3
The non-compete clause specifies a 25-mile radius, which exceeds the typical 5-20 mile range. What was the rationale for this broader restriction, and is there any negotiability based on territory characteristics?
#4
Given that you currently operate only 4 units, how long has the franchise been operating and what are the criteria and timeline for franchisees to achieve profitability?
#5
Can you provide a detailed breakdown of the average gross sales of $1,009,263 by unit age and location type to help prospective franchisees understand performance variations?
#6
The renewal conditions include 8 specified requirements for renewal. Can you detail all 8 conditions and clarify whether any could result in renewal denial for franchisees in substantial compliance?
#7
No transfer fees are listed in the disclosure. Are there any restrictions on who can purchase a transferred unit, or does the franchisor have right of first refusal?
#8
With zero litigation cases over 3 years, can you speak to what dispute resolution mechanisms have been effective, and have there been any informal disputes or concerns raised by franchisees?
#9
What is the financial requirement to renew the franchise for the second 10-year term, and are there minimum performance thresholds that must be met?
#10
Can you provide references from all 4 current franchisees, including the original unit that has been operating the longest?
#11
The personal guarantee requires both the franchisee owner and spouse to sign. How is this enforced if the spouse is not involved in operations, and has it been invoked in any disputes?
#12
Disputes are resolved through binding arbitration in Passaic County, New Jersey. What are the estimated costs for arbitration, and can franchisees opt for arbitration in their home state?
#13
Can you clarify whether the initial investment of $35,000 is the total franchise fee, or if there are additional upfront costs such as real estate deposits, equipment, or working capital not included in the FDD?
#14
What support and training are provided beyond the initial opening, and what ongoing operational guidance is available given the current small size of the system?
#15
Has any franchisee exited or attempted to exit during the system's history, and if so, what were the circumstances and resolutions?
#16
Given the aggressive non-compete radius of 25 miles, how do you define the designated territory boundary, and what happens if a franchisee wishes to relocate within or outside their territory?
#17
Are there performance quotas or minimum sales thresholds that franchisees must meet to maintain compliance and remain eligible for renewal?
#18
What happens to a franchisee's operation if the franchisor itself closes or is sold during the franchise term?
#19