Which Wich Franchise

Financial Health Notes

Which Wich Franchise, Inc. appears to be financially stable, with its auditors confirming that the financial statements are presented fairly and raising no concerns about the company's ability to continue as a going concern. However, there are several financial aspects that potential franchisees should consider. A significant portion of Which Wich Franchise, Inc.'s assets are receivables from affiliated companies, totaling over $3.1 million in 2024. These amounts are unsecured, do not bear interest, and are due on demand, which could present a risk if the affiliates encounter financial difficulties. Additionally, the company pays substantial management fees to an affiliate, Sinelli Concepts International, Inc., which exceeded $4.5 million in 2024, and the FDD notes that these transactions might have different financial outcomes if they were with unrelated third parties. Perhaps the most significant concern for prospective franchisees is the continuous decline in the number of Which Wich franchised outlets over the past three years. The system started 2022 with 262 outlets, but this number decreased to 220 by the end of 2022, then to 187 by the end of 2023, and further to 150 by the end of 2024. This consistent and notable shrinkage of the franchise system, with a net decrease of 42, 33, and 37 outlets in 2022, 2023, and 2024 respectively, indicates a high turnover rate and a shrinking brand footprint, which is flagged in the state-specific addenda as a higher risk investment.

Ongoing Support

After opening, Which Wich Franchise, Inc. provides ongoing consultation and advice, which can include information on new product development, instruction on store operation and management, and financial and accounting advice through various means such as store visits, meetings, seminars, or electronic materials. Franchisees are required to attend additional courses, seminars, and training programs, potentially including the annual Which Wich Franchise Meeting, for which a tuition fee may be charged. Franchisees must also participate in a mandatory customer online ordering program and pay associated costs. If requested or deemed necessary, Which Wich Franchise, Inc. may provide on-site remedial training for an additional fee. The company also administers the Brand Development Fund and may form franchisee advertising associations that franchisees must participate in, contributing to dues and fees. Which Wich Franchise, Inc. may also establish and maintain an intranet system for communication and resource dissemination, for which a monthly fee may apply.

Territory Size Requirements

Which Wich Franchise, Inc. does not grant franchisees an exclusive territory. For a single store, the franchisee operates from an approved, site-specific location, and no territorial rights are granted. For multi-unit development agreements, franchisees may be granted 'limited territorial protection' which is also site-specific and expires once the store opens for business. The franchisor retains the right to develop company-owned or other franchised stores (including those under different names or marks) in any location, even near a franchisee's store. This includes developing in 'Captive Markets' (such as malls, airports, hospitals, universities, stadiums, etc.) regardless of proximity or whether these are within a protected development area. Which Wich Franchise, Inc. does not define territories by specific geographic measurements, population counts, or other measurable criteria; the protection is site-specific and temporary.