Z!Eats (Zoup!)

The system has contracted 43% from 63 to 36 units over 3 years with a -17.0% CAGR. What is the franchisor's strategic plan to stabilize or grow the system?

Given a 32.0% turnover rate in the past year, which is 3.2x above the typical range, what specific factors contributed to these exits and what has changed operationally?

The technology fee of $1,000/month is 2-5x higher than typical for fast casual restaurants. What specific services and technology platforms does this cover, and is it optional or mandatory?

Median unit sales of $519,156 are 34% below the category typical range. Are these profitable locations, and what is the franchisor's definition of a successful unit?

The transfer fee of $26,250 is 31% above the typical range. Can you provide the specific justification for this amount and whether it is refundable or applied to fees?

With 25 termination causes in the agreement, which significantly exceeds the typical range of 15-23, which causes are most commonly cited in actual terminations?

The initial term is only 10 years with no renewal options disclosed. If a franchisee successfully operates for 10 years, what happens at term end—automatic renewal, renegotiation, or closure?

Item 19 shows gross sales data, but can you provide additional profitability data (net income, operating margins, or return on investment) for units operating 2+ years?

Between 2023 and 2024, 27 units exited through closures, transfers, or non-renewals versus only 4 franchisor terminations. What was the economic environment or operational issue driving these voluntary exits?

The non-compete clause is 2 years / 10 miles. Are there documented cases where franchisees have violated this, and what enforcement actions has the franchisor taken?

With 0 litigation cases reported, has the franchisor settled disputes outside of court, and if so, what were the typical issues and settlement ranges?

The renewal fee is $17,500 for a 10-year renewal. Are renewal terms renegotiable (fees, royalties, territory), or are they locked to current franchise agreement terms?

Territory is described as protected but non-exclusive. Can the franchisor open additional Z!Eats units or competing banner brands within my territory?

Support & Training score is 98/100 while System Health is 0/100. What specific training and ongoing support is provided, especially given the high unit attrition rate?

The binding arbitration clause with class action waiver prevents collective litigation. Are there documented disputes that individual franchisees have faced, and what was the outcome?

Personal guarantees are required from principals and spouses covering all obligations unconditionally. Has the franchisor pursued personal guarantees against franchisees in default?

Given the high turnover, are there specific operating challenges (food costs, labor, real estate, competition) that the franchisor has identified and is actively addressing?

What percentage of the 36 current units are company-owned, franchisee-owned, or area franchisees, and how do their performance metrics differ?

The System Health score is 0/100, the lowest in the category. What does the franchisor attribute this score to, and what improvements are planned?

Can you provide contact information for at least 10 current and 10 recently-exited franchisees so I can discuss profitability, support quality, and reasons for exit?