World of Sourdough

The franchise fee of $49,500 is approximately 24% higher than the typical range for fast casual restaurants. What specific additional services, training, or support justify this premium pricing compared to competitors?

Three litigation cases have been initiated against the franchisor in the past 3 years with 2 pending. What are the nature and status of these pending cases, and have any resulted in settlements or judgments against the franchisor?

The non-compete clause restricts former franchisees from competing for 2 years within 15 miles of any existing location. Given your 80-unit footprint, how would this restriction impact a franchisee's ability to operate a different concept after exit in most geographic markets?

You experienced 151.98% unit growth over 3 years (5 to 80 units). What percentage of this growth came from new franchisees versus acquisitions or conversions of existing units?

Eight units were transferred in 2024 (10.0% of the system). How many of these transfers were due to franchisee dissatisfaction versus organic ownership transitions, and what was the average time between unit opening and transfer?

Your franchise agreement requires personal guarantees from owners with 10% or greater interest and their spouses. Are there any circumstances under which this personal guarantee can be released or modified during the franchise term?

The agreement requires binding arbitration in Placer County, California and prohibits class action lawsuits. Has the franchisor pursued any arbitration claims against franchisees, and what was the outcome?

You have 6 types of curable defaults with a 30-day cure period for franchisees, while the franchisor receives a 60-day cure period. Can you provide examples of defaults the franchisor has cured under this clause and the timeline involved?

Renewal requires complete refurbishment, remodeling, and redecorating at franchisee expense. What is the estimated cost range for these renewal requirements, and can you provide examples of what this entails?

Franchisees must purchase all products from franchisor-approved suppliers across 8 different categories. What is the markup or profit margin the franchisor receives from supplier relationships, and are there alternative supplier options if a franchisee finds better pricing?

How many franchisees have elected not to renew at the end of their 10-year initial term, and what were the primary reasons cited for non-renewal?

The transfer fee is $10,000 and renewal fee is also $10,000. Are these fees refundable in any circumstances, and do they apply in addition to any other franchisor fees during renewal or transfer?

Item 19 financial performance data is available. Can you provide the median unit volume, average unit volume, and ranges for the past 2-3 years, broken down by unit age or geography if available?

What is the average franchisee investment required beyond the $49,500 franchise fee (equipment, buildout, working capital, etc.), and what percentage of franchisees achieve profitability within the first year?

The franchisor has encroachment protection but territories are not exclusive. How is encroachment defined, what triggers franchisor action, and have there been any disputes with franchisees regarding encroachment?

With 80 units and 26.98% growth last year, what are your projections for unit growth over the next 3-5 years, and how might rapid expansion affect franchisee unit economics?

Are there any material terms of the franchise agreement that have been modified or waived for any franchisees, and would those modifications be available to new franchisees?

What percentage of your current 80 units are profitable, and how many have underperformed below initial projections? What support does the franchisor provide to struggling locations?

The non-compete restricts competing concepts broadly. Can you define specifically what constitutes a competing business under your interpretation?

Given the 3 pending litigation cases, what is the nature of these disputes (franchisee-initiated, supplier-related, employee claims, etc.), and what is the expected timeline for resolution?