The franchise fee of $34,950 is below the category average. What is included in this fee, and are there any additional startup costs not listed in the fee breakdown?
#1
Unit growth has been 49.6% over 3 years, but the 1-year exit rate is 8.0%. What is the average age of units that have closed, and do closures concentrate among newer franchisees?
#2
Seven units closed in 2024. Can you provide details on why these units closed—were they underperforming locations, owner transitions, or other circumstances?
#3
The transfer fee of $5,000 is substantially lower than the category typical range. What restrictions or conditions apply to franchise transfers, and does the franchisor have approval rights?
#4
Support & Training scores 82, below the typical category range of 88.0-100.0. What specific training and ongoing support does the franchisor provide, and how do these compare to competitors?
#5
The agreement specifies 25 termination causes, above the typical range of 14-23. Can you list the most common reasons for termination and provide examples of how disputes are typically resolved?
#6
Renewal requires upgrading all systems and equipment to current standards at franchisee expense. What is the estimated cost for a typical renewal-term equipment upgrade?
#7
The mandatory binding arbitration clause waives class action participation. How many disputes have been arbitrated in the past 3 years, and what were the typical outcomes?
#8
Post-term non-compete applies within 25 miles for 2 years. How is 'similar products' defined in the agreement, and has this restriction been enforced against former franchisees?
#9
Net unit growth was 21 in the past year (from 66 to 87 units). How many of these 21 new units are from new franchisees versus existing franchisees opening additional locations?
#10
No financial performance data (Item 19) is provided. Can the franchisor share anonymized financial performance data for units in your target market, including revenue, expenses, and profitability ranges?
#11
The territorial protection is exclusive, but what defines the territory boundaries—geographic radius, population density, trade area, or another method?
#12
The renewal fee is $5,000. Are there additional costs beyond the renewal fee to renew your franchise agreement?
#13
Personal guarantees are required from all owners. If ownership changes or a co-owner exits, must the personal guarantee be updated or reaffirmed?
#14
The technology fee is $129 per month. What systems are included, and can franchisees opt for alternative POS or accounting software?
#15
Two units transferred in 2024. Were these transfers approved by the franchisor, and did the franchisor exercise any right of first refusal on these transfers?
#16
With 0% termination rate and 0% non-renewal rate historically, are there any franchisees currently in default or receiving cure notices that might signal upcoming terminations?
#17
The indemnification clause requires franchisees to indemnify the franchisor for all losses from business operations. How broad is this clause, and does it include franchisor negligence or breach?
#18
Curable defaults allow 10-30 days to cure depending on type. Can you provide examples of defaults in each timeframe category and clarify what constitutes material versus minor breaches?
#19
The system grew from 26 to 87 units in 3 years. What is the franchise's long-term growth target, and what percentage of growth comes from franchisee recruitment versus system acquisitions?
#20