Given the franchise fee of $60,000 is above the typical range for sports and recreation franchises, what specific value and support justify this premium pricing compared to competitors?
#1
The transfer fee of $30,000 significantly exceeds the typical range of $8,937.50-$18,437.50 for this category. What does this fee cover and can it be negotiated?
#2
With only 1 unit existing one year ago and 11 units today, what is the franchisor's track record prior to this rapid expansion, and are there any units from earlier periods that have closed or transferred?
#3
The average gross sales of $1,584,287 per unit exceeds the typical range. How many units are included in this financial data, and are these figures audited or unverified estimates?
#4
What specific factors contributed to the 1000% unit growth in the past year, and is this growth rate expected to continue or stabilize?
#5
The personal guarantee requirement and spouse consent clause create significant personal liability. What circumstances would trigger enforcement of these guarantees?
#6
The binding arbitration requirement with class action waiver in Clark County, Nevada means disputes cannot be resolved in your local courts. Why was Nevada selected as the arbitration venue?
#7
Since the territory is protected but not exclusive, can the franchisor open competing Ace Pickleball Club locations or approve non-Ace competitors within your territory?
#8
The non-compete clause extends 2 years and 15 miles post-termination. How does this apply if the franchisor terminates the agreement versus if you choose not to renew?
#9
With zero litigation cases to date, has the franchisor received any complaints, regulatory inquiries, or disputes that did not result in formal legal action?
#10
The technology fee of $750 is listed separately from royalties. Can you provide a detailed breakdown of what technology services and systems this covers?
#11
What are the specific circumstances under which the franchisor would terminate a franchise agreement, and what notice period and cure rights are provided?
#12
Given the rapid expansion from 1 to 11 units, what quality control and training measures ensure consistent operations and brand standards across all locations?
#13
The renewal fee is $15,000. If you choose to renew, are there any restrictions on renovations, facility upgrades, or operational changes required at that time?
#14
How is the protected territory defined—by geography, population radius, or revenue threshold—and what recourse do you have if the franchisor breaches this protection?
#15
The agreement requires indemnification for damages from franchisee operations. What specific scenarios or liability caps apply to this indemnification obligation?
#16
With a 10-year initial term, what flexibility exists to exit early if the location underperforms, and what are the financial penalties for early termination?
#17