Michael – To answer your questions:

1. Our Item 19 is actually pretty simple and we’d be happy to supply you with supporting data.

2. Our franchisees love the sliding scale royalty. Especially the bigger franchisees. The percentage drops as their sales grow.

The advertising requirement you mentioned is actually the most one franchisee can pay into our National Ad Fund. Franchisees contribute 2% of their gross but never more than $10K.

We actually do have a National Resource Center that sells uniforms, printed materials and some cleaning supplies to our franchisees.

I hope that helps. Thanks!
Sorry, forgot to add great post! Can’t wait to see your next post!

Michael – To answer your questions:

1. Our Item 19 is actually pretty simple and we’d be happy to supply you with supporting data.

2. Our franchisees love the sliding scale royalty. Especially the bigger franchisees. The percentage drops as their sales grow.

The advertising requirement you mentioned is actually the most one franchisee can pay into our National Ad Fund. Franchisees contribute 2% of their gross but never more than $10K.

We actually do have a National Resource Center that sells uniforms, printed materials and some cleaning supplies to our franchisees.

I hope that helps. Thanks!

I looked at their FDD, and two things stood out.

1. There is a reasonable item 19, in terms of gross sales disclosure. But the back up would have to be reviewed.

2. Sliding royalty structure – the higher the gross, the lower the royalty.

Some odd things.

1. Advertising capped at 10k per store.
2. Franchisor makes no money on supplies, but makes revenue on franchise sales and services. Worth looking into more.