The technology fee of $1,120 monthly is significantly higher than typical for this category. What specific technology services and platforms does this fee cover, and are there detailed breakdowns available?
#1
Your transfer fee of $30,000 is substantially above industry norms. What justifies this premium transfer cost, and are there circumstances where it may be reduced or waived?
#2
Given the franchise fee of $60,000 is above typical range, what is included in this fee and how does it compare to specific competitors in the pickleball franchise space?
#3
The system grew from 1 unit in 2022 to 24 units in 2024 with zero exits reported. How many of these units are currently operational versus recently opened, and what is the occupancy or revenue status of newer locations?
#4
With no litigation in the franchisor's history and no Item 19 financial disclosures provided, what financial performance data can you share from existing franchisees to validate unit economics?
#5
The dispute resolution clause requires binding arbitration in Salt Lake City with waivers of class action and jury rights. Are there alternative dispute resolution options available, or is this mandatory for all franchise agreements?
#6
Regarding the personal guarantee requirement and indemnification clause, what specific claims or scenarios have franchisees been asked to indemnify the franchisor for in the past?
#7
The renewal conditions require executing a general release. What claims does this general release cover, and does it prevent franchisees from pursuing legitimate disputes?
#8
You require purchases from designated or authorized suppliers across 10 product/service categories. What percentage of a typical franchisee's operating costs go to mandated supplier purchases, and are competitive alternatives allowed?
#9
The franchisor retains rights to set minimum resale prices. How frequently are these prices adjusted, and are franchisees consulted before changes are implemented?
#10
Operating hours are mandated by the franchisor. What flexibility exists for franchisees to adjust hours based on local market conditions or seasonal demand?
#11
With only 24 total units system-wide, how much support and training infrastructure exists, and are there minimum staffing levels at corporate to service unit growth?
#12
What is the average unit volume (AUV) or typical revenue range for units in operation for 1+ years, and how many units have been in operation for at least 3 years?
#13
The Investment Cost score is 21, well below the typical range. What is the total initial investment required beyond the franchise fee to open and operate a location?
#14
Financial Performance score is 40, below the typical range. What percentage of franchisees are profitable, and what is the typical payback period on initial investment?
#15
Have any franchisees requested territory adjustments or experienced encroachment issues despite the exclusive territory clause, and how have these been resolved?
#16
What happens to a franchisee's territory if they elect not to renew after the initial 10-year term but want to remain a customer of the franchisor?
#17
Given the rapid unit growth, are there specific geographic regions targeted for expansion, and could this impact existing franchisee territories?
#18
The renewal fee is $10,000. What are the specific 5 renewal conditions you mentioned, and what happens if a franchisee cannot meet one of them?
#19
With a 2-year, 25-mile non-compete, what restrictions apply to franchisee-owned assets or customer lists after the relationship ends?
#20