The monthly technology fee of $750 is significantly higher than the typical range ($90-$500) for casual dining franchises. What specific systems and services are included in this fee, and how is it justified relative to competitors?
#1
Can you provide a detailed breakdown of what the average gross sales of $1,310,193 represents in terms of unit profitability after all operating expenses and ongoing fees?
#2
The non-compete restriction of 25 miles is double the typical range for casual dining (7.5-15 miles). What is the rationale for this extended geographic protection, and has it been enforced?
#3
Given the system has only 4 units with zero turnover over 3 years, what is the franchisor's expansion strategy and growth targets for the next 3-5 years?
#4
All 4 units have remained open with zero closures or transfers. Can you identify the location of each unit and confirm their current operational status?
#5
The transfer restrictions require franchisor consent and grant right of first refusal with 30 days notice. Under what circumstances would the franchisor deny a transfer request?
#6
Renewal requires satisfaction of 7 conditions including 180 days of no violations. What constitutes a 'violation' and what is the franchisor's track record of approving renewals?
#7
Personal guarantees are required from each owner and their spouse with joint and several liability. Can you clarify the scope of personal liability if the franchise fails?
#8
All disputes must proceed through non-binding mediation then binding arbitration with class action and jury trial waivers. Has the franchisor ever initiated arbitration against a franchisee?
#9
What support, training, and marketing assistance does the franchisor provide to justify the 6% royalty and 2% ad fund contributions?
#10
Are there any signed franchise agreements with current franchisees that you can reference to understand actual terms and how disputes have been resolved?
#11
Has the franchisor ever enforced the 2-year/25-mile non-compete clause against any former franchisees, and if so, what were the outcomes?
#12
Given the very small system size (4 units), what financial performance data is available for units at different maturity stages (startup vs. established)?
#13
Are there any pending franchise applications or signed agreements for new locations that could indicate near-term growth?
#14
What is the franchisor's policy on unit relocation or expansion, and does the exclusive territory allow for multiple franchises within the same territory?
#15
Can you provide contact information for the 4 current franchisees so I can conduct independent reference checks regarding operational support and financial performance?
#16
What are the specific renewal conditions beyond compliance and no-violation requirements, and how has the franchisor handled franchisees who fail to meet renewal conditions?
#17
The franchise fee is $36,000. Does this include initial training, site selection assistance, pre-opening marketing, and opening inventory, or are these additional costs?
#18
Are there any undisclosed transfer fees, renewal fees, or other fees that may apply during the franchise relationship?
#19
What recourse do franchisees have if the franchisor enforces the non-compete clause too broadly or in bad faith?
#20