Tee Box

The technology fee of $1,000 per month is significantly higher than the typical range for this franchise type. What specific technology services and platforms does this fee cover, and how is it justified relative to competitor offerings?

One unit was transferred in the past year, representing a 20% transfer rate. Can you provide details on why this transfer occurred and whether the incoming franchisee was approved by the franchisor?

The system has grown from 2 units to 5 units in 3 years (35.7% CAGR). What is the franchisor's growth strategy and target unit count for the next 3-5 years?

Average gross sales of $281,960 are below the typical range for this franchise category. Can you explain the variance between top-performing units and average performers, and what factors contribute to this spread?

The agreement requires a minimum of $100,000 in annual gross sales starting in year one. How many current franchisees are meeting this benchmark, and what support does the franchisor provide to units falling short?

Late payment penalties include $25 per day plus 18% annual interest. How frequently have franchisees incurred these penalties, and what is the franchisor's collection process?

The non-compete clause extends for 3 years and 25 miles from your territory or any other Tee Box location. Can you clarify how this applies if the franchisor opens a new location near your territory after you exit?

The renewal agreement contains only 4 conditions, which is below the typical range. What conditions must be met to renew, and can you provide examples of franchisees who were denied renewal?

The agreement requires 7-day-per-week, year-round operation at franchisor-designated hours. What flexibility exists for holidays, seasonal adjustments, or owner scheduling preferences?

Approximately 30 categories of products and services must be purchased from franchisor-designated suppliers. What is the franchisor's markup on these products, and can you provide a detailed list of required suppliers?

Personal guarantees are required from all individual owners and their spouses if married. Can you explain the circumstances under which personal guarantees have been called and the outcomes?

All disputes must be resolved through binding arbitration in Salt Lake County, Utah, with class action lawsuits and jury trials waived. What has been the average cost and duration of arbitrations filed by or against franchisees?

The system only has 5 current units. How does this small system size affect franchisor support, supply chain economies of scale, and your ability to network with other franchisees?

With no pending litigation and zero legal cases in the franchisor's history, how long has the franchise system been operating and when did the first franchisee open?

The transfer fee is $10,000, equal to the renewal fee. Can you clarify what is included in each fee and whether they can occur in the same year?

Can you provide the operating history and profitability of each of the 5 current units, including opening dates, current sales performance, and owner tenure?

The renewal process requires franchisees to be in good standing with no pending litigation. Has any franchisee been unable to renew on these grounds, and what constitutes 'good standing'?

Franchisees must indemnify the franchisor against all claims arising from their operations. Are there any limitations on this indemnification, and has the franchisor ever pursued indemnification claims?

With Item 19 financial data provided, can you explain why top quartile sales ($457,148) are significantly below the typical range for this franchise category, and whether this reflects market challenges or operational issues?