The Cocky Rooster

What is the rationale for a technology fee of $500/month, which is 67-567% higher than the typical range of $75-$300/month for food and beverage franchises?

Why is the ad fund rate set at 1.0% when the typical range for this category is 1.5-3.0%? Does this cover adequate national or regional marketing?

How do the reported gross sales of $1,717,537 compare to unit profitability after accounting for the 5% royalty, 1% ad fund, and $500/month technology fee?

With only 2 units in the system, what is the basis for the financial performance data reported in Item 19, and how representative is this of expected franchisee performance?

The transfer fee of $24,750 exceeds typical ranges by 41-230%. What specific services or evaluations does this fee cover?

The franchise fee of $49,500 is 24-65% higher than typical for this category. What additional value or support justifies this premium pricing?

The contract lists 22 termination causes, exceeding the typical range of 15-20. Can you provide a detailed list of these causes and clarify which are most commonly invoked?

Given that the system has maintained exactly 2 units for 3 years with zero growth, what is the franchisor's growth strategy and unit development pipeline?

What specific circumstances or violations would trigger each of the 22 termination causes, and are any related to financial performance thresholds?

The renewal conditions require paying the greater of 25% of the then-current initial franchise fee or $10,000. If the franchise fee increases significantly, could renewal costs become prohibitive?

You require unlimited personal guarantees from owners with 20%+ ownership. How many franchisees currently have spousal guarantees, and what circumstances would trigger enforcement?

All disputes must be resolved through binding arbitration in the franchisor's home office county/city. What are the average costs and timeframes for arbitration disputes in this jurisdiction?

Can you provide details on any disputes, complaints, or regulatory issues involving these 2 operating units or any predecessors not reflected in litigation data?

The contract requires exclusive sourcing from franchisor-approved suppliers and allows the franchisor to set maximum and minimum selling prices. How much pricing flexibility do franchisees have in their local markets?

What is the remodeling investment required to renew a franchise, and how frequently does the franchisor mandate remodeling during the 10-year term?

Given the very small system size (2 units), what franchisor support infrastructure exists for training, operations, marketing, and real estate selection?

What percentage of the royalty or technology fee revenue is allocated to franchisee support versus franchisor overhead?

Have either of the 2 current franchisees requested transfers, expressed dissatisfaction, or discussed non-renewal intentions?

What is the average unit volume for comparable quick-service or casual dining concepts, and how does the reported $1.7M+ sales figure compare?