YGF (YANGGUOFU)

What specific business model and market focus led to launching only 7 units in 2024, and what is the projected growth plan for the next 2-3 years?

Why is the royalty rate set at 3.0%, which is significantly lower than the 5.0-6.0% typical for Food & Beverage franchises, and what is the rationale for this pricing structure?

Why is the franchise fee $20,000, substantially below the typical $30,000-$40,000 range for this category, and does this reflect lower support or a market penetration strategy?

The agreement lists 27 termination causes compared to a typical range of 15-20. Can you provide a detailed breakdown of these termination causes and clarify which are considered 'curable' with cure periods and which are non-curable?

The agreement specifies only 10-30 day cure periods for certain defaults. What specific defaults fall into each timeframe, and are there defaults with no cure period allowed?

Can you clarify the mandatory binding arbitration requirement and class action waiver, and what recourse exists if a franchisee disputes a franchisor decision on matters like equipment supplier approval?

The non-exclusive territory with no encroachment protection is unusual. Will the franchisor commit to territorial exclusivity, or can additional units be opened near existing franchisees?

Why are renewal conditions limited to 6 items when the typical range is 7-9? What are these 6 specific conditions, and how is 'full compliance' defined and verified?

The 5-year initial term is shorter than the typical 7.75-10.0 years. How does this shorter term affect unit economics, and what happens if a franchisee invests in long-term improvements during the initial term?

With a total potential term of only 10 years versus the typical 15-20 years, how does this impact long-term unit valuation and the ability to build equity in the business?

The franchisor can determine maximum prices for fixtures and equipment purchased from approved suppliers. What are the maximum price parameters, and how frequently are these prices reviewed or adjusted?

Item 19 financial performance data is not provided. Will the franchisor provide earnings claims or financial performance data from the 7 existing units, and what are average unit volumes and profit margins?

All 7 units were added in 2024. Can you provide details on the opening dates, current operational status, and any challenges encountered during the launch phase?

Are there any pending disputes, complaints, or regulatory issues involving the 7 current units that are not yet reflected in formal litigation?

What support, training, and operational guidance are provided given the Support & Training score of 81, which falls slightly below the typical 83.75-99.0 range?

Can you specify what 'approval to their continuing satisfaction' means for supplier selection, how often suppliers are evaluated, and what grounds exist for removing an approved supplier?

If a franchisee needs to renew after the initial 5-year term, what is the renewal fee structure, and does the franchisor have the right to increase royalties or other fees upon renewal?

Does the franchise agreement specify what happens to non-renewed units—can the franchisor take over and operate them, franchise them to another party, or sell the location?

Given the recent system launch, what is the franchisor's track record in other markets or with other franchise concepts, and how long has the franchisor been in business?