The Baked Bear

The technology fee of $595/month is nearly double the typical range for this franchise type. Can you provide a detailed breakdown of what services and technology this fee covers, and whether this is negotiable?

You reported 4 unit exits in 2023 (3 closures and 1 transfer) compared to 2 exits in 2024. What specific factors contributed to the 2023 closures, and what operational or market changes have led to the improvement?

The initial franchise term of 5 years is shorter than the typical 7.75-10 year range. What is your rationale for this shorter initial term, and how does this affect franchisee planning and investment recovery?

Financial performance shows median gross sales of $838,468, which exceeds typical benchmarks. Can you identify which locations are achieving above-median sales and what factors differentiate their performance?

The franchise agreement includes 13 non-curable defaults allowing immediate termination. Can you provide specific examples of what constitutes a non-curable default, and what protections exist for franchisees facing technical violations?

The post-termination non-compete is 2 years within a 5-mile radius. Has this restriction been enforced against any former franchisees, and are there provisions for negotiating this radius in certain markets?

You require purchasing from approved suppliers in 8 product categories. What percentage of these suppliers are affiliated with the franchisor or its principals, and what cost advantage or disadvantage exists compared to independent sourcing?

Item 19 financial data shows a bottom quartile of $533,865. What is the survival rate for units in this bottom quartile, and what support or corrective measures does the franchisor provide to underperforming locations?

The transfer fee is $17,500, which is 50% of the initial franchise fee. Can you explain the rationale for this fee and whether it applies to all transfers regardless of circumstances?

Your dispute resolution clause mandates binding arbitration with waiver of jury trial rights. In the past 3 years with 0 litigation cases, have there been any disputes resolved through arbitration or mediation that are not captured in litigation statistics?

The renewal fee is $1,000 for options extending the term to 10 and 15 years. Are there any changes to royalty rates, territory terms, or other material conditions upon renewal?

You require personal guarantees from all owners with 10%+ interest and their spouses. Are there circumstances under which this guarantee can be released or reduced, such as after a certain number of years of successful operation?

The franchise agreement permits you to modify approved supplier lists. What advance notice is provided before changes, and do franchisees have any input or appeal process for new supplier requirements?

Units have grown 25% in 1 year (from 24 to 30). What is your target unit growth rate, and what geographic markets are you prioritizing for expansion?

The system includes only 30 units currently. How does unit density and market saturation affect franchisee profitability, and what is your encroachment policy in relation to new franchise openings?

Termination causes (13 listed) fall below the typical range of 15-20. Can you provide the complete list of all termination causes and cure periods?

The Termination Causes Count of 13 is below typical range. Does this more limited list of termination triggers provide meaningful protections to franchisees, or could it indicate gaps in operational controls?

Score on Contract Terms (58) is below the typical range (60-65). Which specific contract provisions are most favorable to the franchisor, and which terms would be most important to negotiate with legal counsel?