Ziggi's Coffee

Can you provide details on the 3 terminated units in 2023 and 3 in 2024—specifically what breaches or non-curable defaults led to these terminations?

What specific operational or financial issues prompted the 3 unit closures in 2023 and the 3 in 2024?

The termination rate of 3.0% is notably higher than typical for coffee franchises (0.0-0.8%). Is this rate increasing, stable, or declining? What are the primary causes?

With 8 unit transfers in 2024 alone, what factors are driving this elevated transfer activity compared to the typical rate of 0.0-6.9%?

The rapid 30.5% compound annual growth from 45 to 100 units in 3 years exceeds typical growth. Is this pace sustainable, and what quality control measures ensure system standards during this expansion?

The non-compete clause restricts franchisees from operating any business deriving more than 10% of gross receipts from similar products within 10 miles for 2 years. How is this clause enforced, and have there been disputes?

Why does the total potential contract term extend to 40 years (double the typical 20 years)? Under what conditions could a franchisee remain under agreement for the full 40-year term?

The advertising fund contribution of 1.0% is significantly below the typical 2.0-3.0% range. How is the advertising fund used, and what campaigns or promotions have recent franchisees experienced?

You require designated supplier purchases across 8 product categories and a minimum $7,500 inventory. What is the typical monthly cost of these required purchases, and how has this impacted unit profitability?

The franchise agreement lists 18 non-curable defaults that allow immediate termination without opportunity to cure. Can you identify the most commonly cited non-curable defaults that have led to terminations?

All disputes are resolved through binding arbitration in Denver, Colorado with a waiver of jury trial rights. Have franchisees raised concerns about this dispute resolution requirement, and what is the average cost of arbitration?

Personal guarantees are required from all owners, directors, officers, and spouses. Has the franchisor ever pursued personal guarantee claims against franchisees or their spouses?

Renewal conditions include only 5 items compared to the typical 7-9 items. What are these 5 renewal conditions, and how strictly are they enforced? What percentage of franchisees successfully renew?

The technology fee of $101 monthly is at the very low end of the typical range. What technology systems and support are included, and are there plans to increase this fee?

With no renewal fee specified, how does the franchisor monetize franchise renewals? Are there any hidden renewal costs beyond the standard ongoing fees?

The median gross sales of $733,663 suggests unit variability. What is the range of sales performance (25th to 75th percentile), and what factors most influence unit profitability?

Given the non-exclusive territory protection, how does the franchisor prevent encroachment within your protected area, and have you opened competing locations near existing franchisees?

The agreement specifies cure periods of 5 days for payment failures and 30 days for other breaches. Have franchisees reported difficulty meeting these cure periods, particularly the 5-day payment requirement?