The technology fee of $150/month is significantly below the typical range of $200-$500 for fast casual restaurants—what services and systems are included in this fee, and are there additional technology costs not listed separately?
#1
Your Contract Terms score of 70 is above typical for this category—can you explain which specific contract provisions are more franchisor-favorable than industry standard, particularly regarding the 17 non-curable defaults that allow immediate termination?
#2
The Ongoing Fees score of 60 is below typical—what specific ongoing cost obligations exist beyond royalty (6%), ad fund (2%), and technology fee ($150) that may not be fully reflected in the baseline fee structure?
#3
Your net unit growth of 43.75% in the past year significantly exceeds the typical 0-22% range—what is driving this rapid expansion, and what percentage of growth is from new franchisees versus existing unit growth?
#4
Can you provide the specific reasons for the 2 units that closed or ceased operations in 2022, and confirm whether these were voluntary closures or franchisor-initiated actions?
#5
The non-compete clause restricts activity within 10 miles for 2 years post-exit—how strictly does the franchisor enforce this, and are there any documented disputes or exceptions?
#6
What are the mandatory refurbishment requirements at renewal (mentioned in renewal conditions), and can you provide estimated costs for these equipment and systems upgrades?
#7
You require personal guarantees on a joint and several basis from designated principals—how many principals typically need to guarantee, and are there scenarios where this requirement can be waived or limited?
#8
All disputes require mandatory binding arbitration with class action and jury trial waivers—what is the typical cost and timeline for arbitration under your standard dispute resolution process?
#9
Can you clarify which supplier categories have approved-supplier restrictions, whether franchisees can request approval of alternative suppliers, and what the approval process and timeline looks like?
#10
The franchisor retains the right to establish maximum, minimum, or other pricing controls—has this been exercised, and if so, what categories of products or services have had prices controlled?
#11
Of the 23 current units, how many are company-owned versus franchisee-owned, and what is the financial performance comparison between these two groups?
#12
What specific training and support programs are included to achieve your Support & Training score of 100/100, and how many hours of initial and ongoing training are provided annually?
#13
Can you provide a breakdown of the 9 curable defaults with 5-day cure periods—which operational or financial failures qualify as curable versus the 17 non-curable defaults?
#14
Median gross sales of approximately $1 million—what is the typical net profit margin after all fees, costs, and expenses for an average franchisee location?
#15
You have 3 renewal options for 5 years each—what percentage of franchisees successfully renew, and what is the primary reason for non-renewals when they occur?
#16
The franchise fee is $40,000—does this include site selection assistance, pre-opening construction oversight, initial inventory, or other startup services, or are these additional costs?
#17
With a 10-year initial term and the ability to renew 3 times for a potential 25-year total term, how many of your original franchisees from the early years are still operating?
#18
Territory is protected but not exclusive—what prevents the franchisor from opening company-owned or other franchisee locations within the protected territory?
#19
Given zero litigation over 3 years, have there been any disputes resolved through arbitration, mediation, or settlement that would not appear in litigation records?
#20