Can you explain the 2 unit closures that occurred in 2024 and what factors led to those exits?
#1
What support or interventions does the franchisor provide to struggling units before closure becomes necessary?
#2
Given the exit rate of 8.7% exceeds the typical range for casual dining franchises, what is the franchisor's assessment of unit performance and system stability?
#3
The territory is non-exclusive with no encroachment protection. Can the franchisor or other franchisees open new Tio Juan's locations within my territory?
#4
With a transfer rate of 8.0% (above typical range), what is the process for transferring a franchise, and are there restrictions on who can purchase a transferred unit?
#5
The territory score of 50 is below typical range. What specifically defines your territory, and what recourse do you have if the franchisor allows encroachment?
#6
Can you provide the contact information for current and former franchisees, particularly those who closed units or transferred their franchises in the past 3 years?
#7
What are the specific financial performance expectations, and how does the $2,112,667 median gross sales figure translate to net operating income for a typical unit?
#8
The Personal Guarantee clause requires all equity holders with 5% or more interest to personally guarantee all obligations. How does this impact my personal liability if the franchise fails?
#9
What are the 5 categories of supplier restrictions, and which suppliers (if any) are franchisor-owned or affiliated? What is the markup structure for required purchases?
#10
Can you provide specific details on the franchisor's Item 19 disclosures, including average unit volumes by franchisee tenure and location type?
#11
Are there any pending disputes with current franchisees or suppliers that are not yet reflected in official litigation records?
#12
What training and ongoing support does the franchisor provide, given the Support & Training score of 100/100?
#13
How does the franchisor determine when to require adherence to 'suggested' operational standards, and what happens if a franchisee does not comply?
#14
With net unit growth of -8.0% over the past year, what is the franchisor's growth strategy and timeline for system expansion?
#15
What are the specific renewal fees and requirements at the end of the initial 10-year term?
#16
Can you explain why the System Health score of 15/100 is significantly below the typical range for casual dining franchises?
#17
Are there any franchisees currently operating at a loss, and what is the average break-even timeline for new units?
#18
What protections exist if the franchisor modifies operational requirements, supplier mandates, or other terms after I sign the franchise agreement?
#19
How are advertising fund contributions used, and can franchisees access detailed accounting of ad fund expenditures?
#20