Wild Birds Unlimited

Your royalty rate of 4.0% is below the typical range for retail franchises (4.38-6.0%). What specific value or support does this lower rate reflect compared to industry peers?

The contract specifies only 10 termination causes, which is below the typical range of 14-19 for retail franchises. What are the specific grounds for termination, and how does the franchisor define 'cause' for early termination?

Can you provide examples of the 7 closures in 2022, 1 in 2023, and 6 in 2024? Were these franchisor-initiated terminations, franchisee voluntary closures, or other circumstances?

The franchise agreement requires purchasing inventory and supplies from the franchisor, its affiliates, or 14 designated suppliers. What percentage of revenue typically goes to these purchases, and are there volume discounts or pricing caps?

Can you clarify the renewal structure? The Franchise Disclosure Document indicates renewal options but does not specify the number of renewals available beyond the initial 10-year term.

All disputes must be submitted to binding arbitration in Indianapolis, Indiana. Have any disputes been arbitrated in the past 3 years, and what were the outcomes? What are the typical costs and timelines for arbitration?

With median gross sales of $773,456 and average gross sales of $858,133, what is the typical net profit margin after accounting for royalties, technology fees, and required inventory purchases?

How many franchisees transferred their units in each of the past 3 years (totaling approximately 55 transfers)? Were these transfers to new franchisees or back to the franchisor, and what criteria must transfer candidates meet?

The 3-year turnover rate of 4.3% is significantly lower than the typical retail franchise range of 5.33-17.68%. What does the franchisor attribute to this stability, and are there any franchisees with less than 3 years of operating history?

Can you provide the most recent Item 19 financial performance data? How many units reported results, and what is the range of performance (lowest to highest performing unit)?

The non-compete clause is 2 years and 10 miles. What happens if a franchisee violates this covenant, and have there been any enforcement actions?

Are there any circumstances under which the franchisor would waive or modify the exclusive territory protection or allow encroachment for new unit development?

The Support & Training score is 100/100, above the typical range. Can you detail the specific training program duration, ongoing support resources, and any associated costs beyond the technology fee?

What support and training are provided if a franchisee decides to transfer their unit? Are there transition services, and how are they funded?

Have there been any changes to the fee structure, supply chain requirements, or operational policies in the past 3 years? If so, how were franchisees notified and what was their ability to negotiate?

With a $20,000 transfer fee and 55 transfers over 3 years, how is this fee applied, and are there circumstances where it might be waived?

Are there any franchisees who have operated at a loss or required financial assistance from the franchisor? How transparent is the franchisor in discussing underperforming units?

The franchise agreement includes class action waivers and jury trial waivers. Can you explain the franchisor's reasoning for these provisions and provide examples of how disputes have been resolved under arbitration?

What are the minimum and maximum inventory requirements, and how frequently are these adjusted? Who bears the cost if inventory becomes obsolete or unsaleable?