Can you provide details on the 2 units that closed in 2024 and the 2 units that ceased operations? What were the specific circumstances and reasons for these exits?
#1
Your transfer fee of $25,000 is substantially higher than the typical range of $5,500-$15,000 for this franchise category. What are the justifications for this premium transfer fee, and what services or support does it include?
#2
Your transfer rate of 6.1% is above the typical range. Can you explain why ownership changes are occurring at this higher rate? Are there specific demographic or financial factors driving transfers?
#3
The total potential contract term of 30 years is above the typical 10-20 year range. What is the rationale for offering such an extended potential commitment, and what incentives apply for renewals?
#4
Your Item 19 financial data shows average gross sales of $1,076,085. How many units reported this data, and what was the median unit volume breakdown by years in operation?
#5
Can you clarify the minimum annual royalty structure? How does the progression from $10,000 in year 1 to $30,000 in year 5 apply if unit revenue is below these thresholds?
#6
The franchise agreement requires purchases only from the franchisor, affiliates, or designated suppliers. Can you provide documentation of approved suppliers, pricing structures, and the approval process for new suppliers?
#7
Your non-compete clause extends 25 miles from any UWRG territory. In my specific territory, how many other UWRG locations exist within this radius, and could this significantly limit future business opportunities if I exit?
#8
Personal guarantees are required from all owners with 10% or more beneficial interest. Are there any circumstances under which personal guarantees can be waived or modified?
#9
Late payment penalties are 18% annual interest or the maximum legal rate. Has the franchisor charged these penalties in the past 3 years, and if so, how frequently and for what amounts?
#10
Disputes must be arbitrated in Ormond Beach, Florida, with all claims limited to actual damages and attorney fees excluded. Can these arbitration provisions be negotiated, and what has been the franchisor's track record in disputes with franchisees?
#11
The Investment Cost score of 62 is below the typical range of 73-77 for this category. Can you break down the total initial investment required, including franchise fee, equipment, inventory, working capital, and training costs?
#12
Can you provide references from franchisees who transferred their units in the past 2 years? What were their experiences with the transfer process and the $25,000 transfer fee?
#13
What specific operational controls does the franchisor exercise over pricing, service delivery, and employee management? Are there minimum service standards that could result in immediate termination?
#14
The franchise has 16 non-curable defaults that allow immediate termination. Can you provide the full list and clarify which behaviors or performance metrics trigger this provision?
#15
Are there any escrow requirements for royalty payments, insurance deposits, or marketing fund contributions?
#16
What is the franchisee's right to challenge franchisor-mandated price increases from approved suppliers, and is there a dispute resolution mechanism for unreasonable pricing?
#17
Can you provide historical data on how many franchisees have failed to achieve the median gross sales of $929,844, and at what point in their tenure?
#18
The renewal fee is $5,000. What conditions must be met to qualify for renewal at the end of the initial 10-year term?
#19
Given the 2-year post-termination non-solicitation of customers and employees, how strictly does the franchisor enforce this provision, and have there been any litigation cases related to this clause?
#20