30 Minute Hit USA, LLC

Can you provide details on the 3 units that closed in 2024 and the 3 units that ceased operations—what were the primary reasons for these exits?

What is the breakdown of the 3 transfers in 2024—were these to existing franchisees or new owners, and how common are multi-unit transfers?

The royalty rate of 4.0% is significantly below the 6.0-7.5% typical range for fitness franchises. Has this rate been stable, or is it scheduled to increase?

The technology fee of $65/month is substantially lower than the typical $199-$716 range. What specific services and technology are included in this fee, and has the scope of services changed since the franchise launched?

With a 10.7% annual transfer rate, what is the average tenure of franchisees before they sell their units, and what are the primary reasons for transfers?

The franchise offers a 30-year total potential term (10 initial + 4×5 renewals). How many franchisees have successfully renewed their contracts, and what renewal rates have been observed?

The non-compete clause restricts competition for 2 years within 25 miles post-termination. How is compliance monitored, and have there been any disputes or enforcement actions related to this clause?

Given the 0.0% termination rate and 0.0% non-renewal rate, how is performance managed if franchisees underperform or violate system standards?

Can you explain the structure of required equipment and branded retail purchases from the franchisor or approved suppliers? What is the typical initial investment for these purchases, and are there annual compliance requirements?

The investment score of 84 is above typical range (73.0-77.0), suggesting favorable investment metrics. What are the primary cost drivers, and what is the average payback period franchisees have experienced?

With 21.1% turnover over 3 years, what percentage of new franchisees complete their first 5 years, and what support or metrics indicate franchisee satisfaction?

The personal guarantee requirement covers both monetary obligations and specific actions/restrictions. Can you clarify the scope of obligations franchisees are personally guaranteeing beyond the initial investment?

Are spouses required to sign the personal guarantee, and if so, what are the implications if a marriage ends during the franchise term?

How does the franchisor handle unit closures in exclusive territories—are they reopened, consolidated with neighboring territories, or left inactive?

Given no reported litigation in 3 years, are there any ongoing disputes or regulatory issues with franchisees that haven't resulted in formal litigation?

What financial performance data is available for franchisees? The franchise does not provide Item 19 financials—can you provide median or average unit volumes for mature locations?

The 4.0% royalty rate is favorable, but with ongoing technology fees and potential supply markups, what is the total effective cost of ownership as a percentage of revenue?

What specific restrictions apply to franchisees who renew versus those who exit—do renewal terms differ from initial terms in any material way?