What is the nature of the pending litigation case initiated against the franchisor, and what is the expected timeline for resolution?
#1
Can you provide a detailed breakdown of the $1,212 monthly technology fee and explain how this compares to industry standards for similar fast-casual restaurant franchises?
#2
The franchise currently has 0 operating units. What is the timeline for unit development, and how many franchisees have signed agreements but not yet opened?
#3
Given that territory is non-exclusive with no encroachment protection, what prevents the franchisor from opening company-owned locations or approving franchisees in the same geographic area?
#4
Can you provide historical examples of how renewal conditions and termination causes have been applied to existing franchisees?
#5
What specific support and training are provided relative to the Support & Training score of 87, which falls below the typical range of 90-100 for this category?
#6
The renewal fee is $20,000 (50% of the current franchise fee). Will this renewal fee cap at the current amount, or could it increase based on future fee changes?
#7
What are the 15 curable defaults versus the 20 non-curable defaults outlined in the termination clause, and can you provide examples of how disputes have been resolved?
#8
Since all disputes must be resolved through mandatory binding arbitration in Dover, Delaware, what is the typical cost and timeline for arbitration based on past cases?
#9
What are the specific requirements franchisees must complete to renew their agreement after the initial 10-year term?
#10
Can you provide information on franchisees who have attempted to renew their agreements and whether all renewal conditions were successfully met?
#11
The franchisor may stipulate minimum, maximum, or exact prices for franchisees to charge customers. How often has this pricing control been exercised, and in what categories?
#12
Are there designated suppliers for furniture, fixtures, equipment, and signage, and what is the pricing markup or margin structure for these required purchases?
#13
How is the non-compete clause enforced post-termination or non-renewal, and are there any legal precedents from past cases?
#14
What recourse do franchisees have if they believe the franchisor has breached the agreement or violated franchise laws?
#15
Can you explain the cross-default provisions that apply to other agreements with the franchisor and provide examples of how they have been triggered?
#16
As a personal guarantor under the agreement, what specific liabilities and indemnification obligations would I assume as a franchisee shareholder?
#17
Has the franchisor ever terminated a franchisee agreement, and if so, what were the primary reasons and outcomes?
#18
Given the franchise is currently at 0 operating units, what is the franchisor's track record with other restaurant concepts or brands?
#19