Given the $415 monthly technology fee is 38% above the typical range for this category, what specific technology systems and tools are included, and how is the fee calculated or adjusted annually?
#1
Your median and average gross sales significantly exceed industry norms ($1,511,290 vs. typical $463,309-$811,216). How many units reported this financial data, and what is the range of performance across your current 16 units?
#2
The franchise agreement allows the franchisor to establish performance standards and modify operating procedures at will. What specific controls has the franchisor implemented, and have any operational changes been mandated in the past 24 months?
#3
Your transfer fee of $22,500 is 29% above the typical range. What is included in this fee, and is it refundable or applied toward franchise renewal?
#4
The non-compete restriction extends 50 miles for 3 years post-termination. How has this been enforced in practice, and are there any recent cases or disputes regarding franchisees operating competing concepts within this radius?
#5
Binding individual arbitration is required for all disputes in your franchisor's principal office location. Where is the franchisor's principal office located, and what is the typical cost and timeline for arbitration cases?
#6
The franchise fee of $45,000 exceeds the typical range by $5,000-$15,000. What specifically justifies this premium compared to competing concepts in the crepe/waffle category?
#7
With zero terminations, non-renewals, or transfers reported over 3 years, what is your policy regarding underperforming units, and have you exercised any termination rights?
#8
The franchise agreement specifies 11 non-curable default events including failure to purchase premises. If a franchisee loses their lease through circumstances beyond their control, can this trigger non-curable default?
#9
Your Item 19 financial performance data shows bottom quartile units still averaging $1,115,002 in gross sales. What is the operating expense profile for a typical unit, and what is the average net profit for bottom quartile performers?
#10
Franchisees must purchase all products and beverages from franchisor-approved suppliers in prescribed quantities and formats. Does the franchisor have a financial interest in these suppliers, and what is the typical markup or margin the franchisor receives?
#11
With 3 renewal options totaling 25 years of potential contract duration, what are the specific renewal conditions you must meet, and have any franchisees been denied renewal?
#12
The advertising fund rate of 1.0% is the lowest in your category. How is the fund allocated, and can franchisees opt out of the advertising fund or propose local marketing alternatives?
#13
Your support and training score is 100, the highest in the category. What specific training and ongoing support are included with the franchise, and what is the cost of additional training beyond initial setup?
#14
Principal owners must provide personal and unconditional guarantees for all franchise obligations. Does this personal guarantee extend to franchisor-breaches of the franchise agreement, or only to franchisee obligations?
#15
The termination clause provides 10 days to cure payment defaults and 30 days for other violations. Are there any grace periods or notice requirements before these cure periods begin, and can the franchisor waive these cure periods?
#16
With perfect unit retention (zero closures/terminations), can you provide references from franchisees who have been in the system for at least 3 years, including their actual operating results?
#17
The franchise agreement allows the franchisor to modify menu items, recipes, and pricing recommendations. What input do franchisees have in these decisions, and have controversial menu changes caused franchisee dissatisfaction?
#18
Franchisees must indemnify the franchisor for all obligations, damages, and claims related to franchise operations. Are there any circumstances where the franchisor's indemnification is limited, and has this clause been invoked in disputes?
#19
Given your significant sales overperformance, what geographic markets, real estate types, or operational models drive the highest-performing units, and how replicable is this performance in other locations?
#20