Yi Fang Taiwan Fruit Tea

The franchise system lost 16 units (48.5%) in 2024 alone. What specific circumstances led to these terminations and closures, and were these franchisor-initiated or voluntary exits?

Of the 4 pending or resolved litigation cases against the franchisor, what were the primary claims and outcomes? Are any related to the 2024 unit closures?

The initial term is only 3 years with a 3-year renewal option, resulting in a maximum potential term of 3 years total. Why is the contract term significantly shorter than the typical 10-year initial term for coffee and bakery franchises?

Given the 48.5% termination rate in 2024, what protections do franchisees have against termination beyond the 60-day cure period for curable defaults?

The franchise agreement specifies 12 non-curable defaults resulting in immediate termination. What are these 12 defaults, and have they been the primary basis for 2024 terminations?

Personal guarantees are required from all owners with 20% or more equity. What specific liabilities are franchisees personally guaranteeing, and are there limits on franchisor claims?

All proprietary ingredients must be purchased from Inkism-Taiwan. What are the pricing terms and margins, and are there annual price increase limitations?

The royalty rate is 4.0%, below typical rates. Are there other mandatory fees or profit-sharing arrangements not reflected in the royalty rate?

Territory is protected but not exclusive. What is the policy on franchisor-owned units or multiple franchisees operating in the same territory?

What training and support are provided at the initial stage, and what ongoing support is available during the 3-year term? How does this compare to support provided by competing franchises?

The system grew from 13 to 35 units in 2 years (169% growth), then contracted to 33 units in 1 year. What was the franchisee recruitment strategy, and what were the unit economics during the rapid growth period?

The renewal fee is $10,000. If a franchisee wishes to renew after the initial 3-year term, what additional physical modifications or operational changes are required?

The non-compete clause is 1 year/25 miles. After the franchise relationship ends, what specific activities are restricted, and does this apply to franchisees who voluntarily exit?

Has the franchisor disclosed Item 19 (financial performance) to prospective franchisees, or are there alternative financial disclosures available showing typical unit revenues and profitability?

The 2024 terminations represent a 48.5% closure rate. Are there documented reasons provided to franchisees, and have any franchisees sued the franchisor related to these terminations?

The system has only 33 current units, making it very small. How long has the franchisor been operating, and what is the franchisor's track record with prior franchise systems?

The contract provides for 12 termination causes. Beyond non-curable defaults, what other termination triggers exist, and how easily could the franchisor terminate for business reasons?

Given the 4 litigation cases against the franchisor and the 48.5% termination rate, what are prospective franchisees saying about their experience in available reviews or testimonials?