The franchise has only 1 unit currently. What is the franchisor's growth strategy and timeline for unit expansion?
#1
Why does Support & Training score 80, which is below the typical range of 90.0-100.0 for fast casual restaurants? What specific training and ongoing support gaps exist?
#2
The non-compete radius of 25 miles is larger than typical for this category. What is the business justification for this extended geographic restriction?
#3
The franchise fee of $40,000 and investment score of 78 are above typical ranges. What is included in the total startup investment, and are there any hidden costs not listed in the FDD?
#4
Given the Personal Guarantee requirement extending to spouses, how has this clause affected franchisee recruitment and what are the implications if a franchisee defaults?
#5
Can you provide references from the current unit owner regarding their experience with unit profitability, franchisor support, and actual operational challenges?
#6
The post-term non-compete restricts operation within 25 miles for 24 months. How is 'competitive business' defined, and have there been any disputes over the scope of this restriction?
#7
All disputes require mediation followed by binding arbitration in Los Angeles County, California. What are the typical costs and timelines for this dispute resolution process?
#8
What financial performance metrics (average unit sales, profitability, break-even timeline) are available from the existing unit to evaluate franchise viability?
#9
The franchise has zero litigation history. Is this because the system is brand new, or are there informal dispute resolution practices that prevent formal litigation?
#10
The transfer fee is $10,000 with a renewal fee of $1,000. Are there any other transition costs or requirements when renewing or transferring a franchise?
#11
What operational challenges has the current unit owner faced in terms of supply chain, vendor relationships, or regulatory compliance specific to Wagyu Street?
#12
The indemnification clause covers all losses and expenses. What specific scenarios have resulted in indemnification claims in similar franchise systems?
#13
How will the franchisor enforce non-compete agreements, and what legal support is available to franchisees who may be impacted by competing units?
#14
What is the current unit's sales performance, customer acquisition cost, and average transaction value compared to projections in your Item 19 or business plan?
#15
Are there any planned changes to the franchise model, menu, or operational requirements that could impact existing or new franchisees?
#16
How does the franchisor select territories and what factors determine whether a territory receives exclusive protection?
#17
What happens to the 2-year, 25-mile non-compete if a franchisee sells the unit to a third party—does the new owner assume the same restrictions?
#18
Given the early-stage nature of this franchise, how is quality control currently managed, and what support systems are in place as the system scales?
#19
The required spouse guarantee is unusual—what is the rationale, and are there any exemptions or alternatives available?
#20