The Halal Guys

What specific circumstances led to the 12 unit closures in 2024, and were there common operational or market factors contributing to these exits?

How does the franchisor support existing franchisees given the declining unit base and high closure rate—what specific initiatives are in place to improve unit retention?

Can you provide details on the 2 pending litigation cases filed against the franchisor, including the nature of disputes and expected resolution timelines?

The franchise fee of $45,000 is 20% above the category average—what specific services, training, or support justify this premium compared to competitors?

The transfer fee of $22,500 is 50% above the typical range for this category—is this fee negotiable, and what does it cover in terms of franchisor involvement in unit transfers?

Given the high turnover rate of 14.1%, what are the primary reasons franchisees cite for closure, and what financial performance benchmarks do successful units achieve?

The non-compete clause extends 20 miles, which is double the typical range—how aggressively does the franchisor enforce this restriction, and are there any carve-outs for food service experience?

The agreement lists 35 termination causes, significantly above the typical 15-20—can you identify which causes are non-curable and most frequently cited in closures?

What has been the trajectory of same-unit sales growth for units open more than 2 years, and how does this compare to the national quick service restaurant average?

The system declined from 93 to 85 units over the past year—what is the franchisor's growth strategy to reverse this trend, and what are realistic unit growth projections for the next 3 years?

Can you provide the financial performance Item 19 or alternative disclosure showing average unit volumes, profitability, and return on investment for typical franchisees?

The renewal fee of $22,500 matches the transfer fee—are both fees required if a franchisee renews their existing location, or is this an either/or scenario?

What is the average payback period for franchisees, and what percentage of franchisees achieve positive cash flow in years 1-2 of operation?

Given the 2-year non-compete for 20 miles, what happens if a franchisee wants to relocate their unit within the system—are they subject to a new non-compete territory?

The litigation shows 3 cases with 2 pending—what are the legal claims involved (e.g., breach of contract, royalty disputes, operational issues), and could any judgments impact franchisee obligations?

How many of the 8 unit transfers in 2023 and 7 transfers in 2024 involved franchisees selling to third parties versus sales back to the franchisor?

The agreement includes 5% or greater ownership personal guarantees—are smaller ownership stakes (under 5%) exempt from personal liability, and how is beneficial ownership determined?

Supplier approval and approved products appear to be franchisor-controlled—can you clarify the approval process, typical approval timelines, and grounds for denial of non-approved suppliers?

What specific system health challenges does the score of 19/100 reflect, and what corrective actions is the franchisor implementing to address operational or support deficiencies?