Formal Petition Regarding Product Quality, Pricing, Franchise Fees, Delivery Schedules, Minimum Order Requirements, and New Branch Approvals

We, the undersigned franchisees of Papa Burger, respectfully submit this petition to formally raise our collective concerns regarding several operational and financial issues that are affecting our businesses, profitability, customer satisfaction, and ability to operate our franchises effectively.

1. Inconsistent Product Quality

Franchisees have observed inconsistencies in the quality, taste, size, appearance, and/or preparation performance of certain products and supplies.

We respectfully request clear and consistent product quality standards, proper quality control, and a clear process for reporting and resolving issues involving defective, damaged, or substandard products.

2. Price Increases Without Prior Consultation

Franchisees are concerned about instances of significant or repeated increases in the prices of products, ingredients, and/or supplies without adequate prior consultation or meaningful communication with franchisees.

We respectfully request:

• Advance notice of planned price increases.
• Clear communication regarding affected products and effective dates.
• A reasonable explanation or basis for substantial increases.
• Consultation before significant changes that materially affect operating costs.
• Sufficient time for franchisees to adjust their pricing and financial projections.

3. Franchise and Other Fees

Franchisees request greater transparency regarding franchise-related fees, additional charges, and other costs imposed on franchisees, including the purpose and basis of such charges and the services or benefits provided in return.

We further request prior notice and consultation before significant changes to fees or charges.

4. Delivery Schedules and Supply Reliability

Franchisees have experienced concerns regarding delivery schedules, delays, limited delivery schedules, and difficulties obtaining supplies when needed.

We respectfully request a clear and reliable delivery schedule, advance notice of delays or changes, and reasonable contingency procedures when supplies cannot be delivered as scheduled.

5. Minimum Order Requirements

Franchisees are concerned about minimum order requirements despite differences in branch sales volume, location, storage capacity, and customer demand.

We respectfully request consideration of a more flexible minimum order policy based on actual branch sales and demand, particularly for smaller-volume and newly established branches.

6. Guidelines and Transparency for Approval of New Franchise Branches

Franchisees are also requesting clear and transparent guidelines regarding the approval of new franchise applicants and the establishment of new branches within the vicinity of existing Papa Burger branches.

Existing franchisees invest significant capital, time, and resources in establishing their branches and developing their respective markets. The approval of another branch within an unnecessarily close distance may result in market cannibalization, reduced sales, increased competition between franchisees under the same brand, and difficulty recovering the original investment.

We respectfully request that Papa Burger establish and disclose clear guidelines covering:

• Minimum distance or protected territory between existing and proposed new branches.
• Criteria used in determining whether a proposed location is sufficiently distant from an existing franchise.
• A transparent process for evaluating the potential impact of a new branch on existing franchisees.
• Consideration of existing franchisees’ sales territory and customer base when approving new locations.
• Prior notification to affected franchisees when a new branch is being considered within or near their established market area.
• An opportunity for affected franchisees to raise concerns or provide relevant business information before approval.
• Clear rules on exceptions to the minimum-distance or territory policy.
• Consistent application of the same location-approval standards to all franchisees and applicants.

We believe that establishing reasonable territorial guidelines will help protect existing franchise investments while allowing the Papa Burger brand to expand in a sustainable and organized manner.

7. Request for Transparency, Consultation, and Resolution

We are raising these concerns in good faith and with the objective of improving the franchise system and maintaining a sustainable relationship between the franchisor and franchisees.

We respectfully request a formal dialogue between Papa Burger management/franchisor representatives and the concerned franchisees to discuss these matters and establish clear policies, concrete corrective actions, and reasonable implementation timelines.

Our objective is to promote a franchise system where franchisees receive consistent products and support, operating costs and price changes are communicated transparently, supplies are delivered reliably, minimum orders are reasonable, and existing franchise investments are given appropriate consideration when new branches are approved.

We respectfully request that the concerns raised in this petition be formally acknowledged, reviewed, and addressed.

Signed by the concerned franchisees.