Tiger Sugar

The franchise fee of $85,000 is significantly higher than the typical range of $35,000-$45,000 for coffee and bakery franchises. What specific services, training, or resources justify this premium pricing?

Seven units closed in 2024, resulting in an 11.1% exit rate well above the typical 0.0-8.23% range. Can you provide detailed information about why these 7 units closed, including whether any were due to underperformance, territory saturation, or other operational issues?

The transfer fee of $42,500 is more than double the typical range of $8,750-$20,000. How is this fee calculated, and what services or approvals are included in this transfer process?

Only 1 renewal option for 5 years is available, limiting the total potential term to 10 years compared to the typical 20-year potential. What happens to a franchisee's business after the initial 5-year term and renewal option expire?

The initial term is 5 years versus the typical 10-year initial term. What was the rationale for the shorter initial commitment period, and does this affect unit economics or franchisor support commitments?

One litigation case was initiated against the franchisor in the past 3 years. Can you provide details about the nature of this case, when it was filed, and its current status or resolution?

The renewal fee is stated as 50% of the franchised store's average monthly gross revenues during months 25-48 of the initial term. How is this renewal amount calculated if a store's revenue varies significantly year-to-year, and can you provide examples of typical renewal fees?

The royalty rate of 7.0% is above the typical 5.0-6.0% range. Combined with the 1.0% advertising fund, what is the total ongoing fee burden, and how does this compare to other similar franchise systems?

The advertising fund rate of 1.0% is below the typical 2.0-3.0% range. How is the marketing budget allocated, and what specific marketing support or campaigns are franchisees receiving for this contribution?

Renewal is contingent on 10 specified conditions. What are these conditions, how often are they enforced, and what percentage of franchisees successfully renew their agreements at the end of the initial term?

The system shows 3 years of unit history with growth to 65 units followed by contraction to 63 units. Beyond the 7 documented closures in 2024, what other metrics indicate system health—such as average unit volume trends or unit economics?

Personal guarantees are required with no monetary cap, and franchisees must indemnify the franchisor against all claims. Can you clarify the scope of personal liability exposure and whether there are any caps or limitations on indemnification obligations in practice?

All disputes must be resolved through binding arbitration located within 5 miles of the franchisor's principal place of business, and class action lawsuits are restricted. How does this impact a franchisee's ability to resolve disputes cost-effectively, particularly for franchisees located far from the franchisor's office?

All equipment, fixtures, supplies, and products must be purchased from franchisor-designated suppliers. What pricing controls does the franchisor apply, and can franchisees negotiate pricing or source alternative suppliers?

The franchisor may establish specific prices for menu items. How much operational control does a franchisee have over pricing decisions, and are there restrictions on promotional pricing or discounts?

Territory is exclusive with encroachment protection. How is the territory defined (by geography, population, or sales potential), and what specific protections prevent the franchisor from opening competing units nearby?

The non-compete clause restricts activity for 2 years with no specified mileage radius. What specific activities are restricted, and does the franchisor enforce this restriction against all departing franchisees?

With only 1 transfer documented over the past year and 7 closures, what percentage of units typically transfer ownership versus close permanently, and what support does the franchisor provide in facilitating unit sales?

Financial performance data (Item 19) is not provided. Are Item 19 earnings claims available, and if not, what is the rationale? Can you provide average unit volumes, operating costs, or profitability benchmarks for established units?

The system has grown from 46 to 63 units over 3 years while contracting by 2 units in the most recent year. What is the franchisor's growth strategy, and what are the realistic expansion targets for the next 3-5 years given recent contraction?