Vicious Biscuit

The non-compete radius of 3 miles is significantly narrower than typical for fast casual restaurants (5-20 miles). How does this limited radius protect existing franchisees from direct competition, and are there any undisclosed agreements regarding market density?

Your franchise has grown 50% in the past year (from 4 to 6 units) and 44.2% over 3 years, well above typical category growth. What is your unit acquisition and site selection strategy going forward, and how do you plan to avoid market saturation or franchisee cannibalization?

Gross sales of $1.96 million exceed the typical range for fast casual restaurants. What specific operating practices or menu items drive this above-average performance, and are these results representative of all 6 current units or concentrated in a few locations?

Your renewal conditions total 10 items, above the typical 6-9 range. Please provide a complete list of all renewal conditions and explain which conditions could be most difficult or costly for franchisees to satisfy.

Termination causes total 13, which is below the typical 15-23 range. Which default categories are non-curable, and what is the process for cure if a curable default is identified?

The single litigation case filed in the past 3 years involved neither the franchisor as plaintiff nor defendant. What was the nature of this case, which parties were involved, and has it been resolved?

With zero unit exits over 3 years and a system of only 6 units, how do you source information about franchisee satisfaction, profitability concerns, or operational challenges? Do franchisees have a formal forum to communicate issues?

Item 19 shows $1.96 million in gross sales, but how many of the 6 current units reported this data, and what was the performance range (highest to lowest)? How long did it take reporting units to reach this sales level?

The franchise fee is $40,000 with renewal fees at $20,000 (or 50% of then-current initial fee). If the initial franchise fee increases significantly at renewal, could the renewal fee cap at 50% of the new fee create renewal affordability issues?

Your agreement requires all products to be purchased only from franchisor-approved suppliers, with franchisor ability to set price restrictions. How many approved suppliers currently exist for key product categories, and what is the franchisee's process for requesting new supplier approval?

The renewal conditions and operational control clauses are scored as franchisor-favorable. Can you provide sample language from your renewal conditions and explain how franchisees have successfully renewed their agreements in the past?

Personal guarantees are required from all undersigned parties. Does this extend beyond the primary franchisee owner to additional investors or family members, and are there any circumstances where personal guarantees can be released?

Your indemnification clause covers 'any and all expenses.' Are there any caps or limitations on indemnification amounts, and does this extend to franchisor negligence or willful misconduct?

With only 6 current units, how has your support and training system (scored 100/100) been implemented and scaled? What specific support resources are available to franchisees, and how do you plan to maintain service quality if expansion accelerates?

The Investment Cost score of 66 is below the typical range of 73-77.25. Beyond the visible fees, what are the typical total initial investment requirements (including equipment, buildout, working capital) and financing options available?

Your Territory score of 60 is significantly below the typical 75-88.75 range. Beyond protected but non-exclusive territory with encroachment protection, what other territorial rights or operational autonomy do franchisees receive?

The franchise agreement allows the franchisor to modify supplier requirements and pricing restrictions. What notice and grace period do franchisees receive if suppliers or acceptable price ranges change substantially?

Are there any undisclosed agreements, side letters, or verbal understandings with existing franchisees that differ from the standard Franchise Disclosure Document? If so, would these be available to new franchisees?