Steak Escape Sandwich Grill

The system has declined from 33 units 3 years ago to 23 units today, representing a 30% contraction. What specific factors drove these closures and what is the franchisor's plan to stabilize or grow the system?

With a 14.8% closure rate in the past year alone, what are the primary reasons franchisees are closing their locations? Are there specific geographic regions or demographics where closures are concentrated?

The termination rate of 3.7% is significantly above the typical range of 0.0-1.03%. Can you provide details on why units were terminated and whether these were primarily operational or financial performance issues?

Litigation data shows 1 case initiated by the franchisor. What was the nature of this case, who was the defendant, and what was the outcome or current status?

Why is the advertising fund rate 1.5%, substantially below the typical 2.0-4.0% range for this category? How are marketing and brand building funded relative to comparable franchises?

The technology fee of $100 monthly is below typical ranges. What specific technology services and systems are included in this fee, and have there been increases or planned increases to this fee?

Your contract provides a 10-year maximum potential term, significantly shorter than the typical 20.0-30.0 years. How does this shorter term impact long-term investment viability and ability to recover franchisee investments?

The non-compete radius is only 3 miles, below the typical 5.0-10.0 miles. How does this narrower restriction protect franchisees from competitive encroachment by the franchisor or other franchisees?

Territory is non-exclusive with no encroachment protection. Can the franchisor open company-owned or franchised locations near an existing unit, and have any franchisees raised concerns about this?

Renewal option terms show 'N/A' while initial term is specified as 10 years. What are the actual renewal terms—can a franchisee renew, at what cost, and for how long?

What is the average unit volume or median gross sales for operating Steak Escape locations? Why is Item 19 financial performance data not provided in the franchise disclosure document?

With a transfer rate of 7.4%, well above the typical 0.0-7.03% range, what is driving franchisees to exit through transfers rather than operating their units long-term?

The franchisor requires personal guarantees from the franchisee's spouse and all individuals owning interest in the business, with broad indemnification obligations. Can you explain the scope of these personal liabilities in detail?

The agreement requires mandatory binding arbitration on an individual basis, prohibiting class-wide proceedings. What types of disputes have arisen between the franchisor and franchisees that might have been subject to this clause?

Given the 3.7% termination rate and 3.7% non-renewal rate, how many franchisees chose not to renew their agreements in the past 3 years, and what were their stated reasons?

Cure periods are 10 days for payment defaults and 30 days for operational defaults. Have franchisees been terminated under these provisions, and what specific operational defaults have led to termination?

The System Health score of 0 is substantially below the typical 50.0-75.0 range. What specific factors resulted in this score, and what corrective actions is the franchisor taking?

Territory score is 35, significantly below the typical 50.0-75.0 range. Given the non-exclusive territory and lack of encroachment protections, how does the franchisor prevent market saturation and protect franchisee profitability?

Contract Terms score is 55, below the typical 60.0-65.0 range. Are there specific contract provisions that franchisee advocates have flagged as problematic or heavily franchisor-favorable?

What support and training does the franchisor provide to franchisees, given the System Health score of 0? How many hours of training are provided before opening, and what ongoing operational support is available?