Can you provide detailed information about the 2 units closed and 1 unit terminated in 2022, including the specific reasons and circumstances surrounding these exits?
#1
The Ad Fund Rate of 1.0% is significantly below the typical 2.0% for fitness franchises. How does this lower rate impact marketing support and reach compared to industry competitors?
#2
With 999 renewal options at 10 years each totaling 10,000 years of potential term, what are the actual practical renewal expectations and renewal rate statistics for existing franchisees?
#3
The Support & Training score of 78 falls below the typical range of 82-93. What specific training and ongoing support programs are included, and how do they compare to other fitness franchises?
#4
Can you explain the discrepancy between the Contract Terms score of 70 (above typical) and the high number of non-curable defaults (15) that result in immediate termination?
#5
What is the average unit economics and profitability for franchisees operating in different markets, given that Item 19 data is available?
#6
The franchise has grown from 8 to 16 units in three years. What is the breakdown of this growth—new franchisees, corporate locations, or acquisitions—and what is the projected growth trajectory?
#7
Given the 15 non-curable defaults in the termination clause, can you provide specific examples of what constitutes a non-curable default and how franchisees can avoid triggering immediate termination?
#8
The Technology Fee is $300 monthly. What specific technology platforms and tools are included, and are there additional technology costs or upgrades beyond this base fee?
#9
With binding arbitration required in the Chicago, Illinois metropolitan area, what would be the estimated costs for a franchisee outside this region who needs to dispute a contractual issue with the franchisor?
#10
The transfer fee is $5,000, significantly below the typical $10,000-$17,138.50 range. What does this fee cover, and are there additional approval requirements or conditions for transferring a franchise?
#11
Can you provide references or contact information for the 3 units that exited in 2022, and what were the specific terms under which they departed?
#12
The personal guarantee requirement means all owners of entity franchisees are personally liable for all obligations. Can this personal guarantee be limited in scope or duration through negotiation?
#13
What is the historical relationship between the franchise fee discount ($30,000 vs. typical $40,000-$60,000) and franchisee success rates or satisfaction levels?
#14
Given the zero termination and non-renewal rates, how many franchisees have requested early termination or opted not to renew, and what were their reasons?
#15
The non-compete clause is 2 years / 10 miles. After a franchisee exits, are there any restrictions on using their membership lists, client relationships, or operating model in a competing fitness business?
#16
Can you clarify whether the 10-day cure period for monetary defaults applies to all payment types, including royalties, ad fund contributions, and technology fees?
#17
What percentage of current franchisees opened within the last year, and what are the retention rates for franchises in their first, second, and third years of operation?
#18
The renewal fee is $2,000. What is included in renewal, and are there any material changes to fees, terms, or operational requirements upon renewal?
#19
Given that Support & Training scores below typical range, what specific resources are available to franchisees post-opening, and how frequently does corporate provide ongoing coaching or performance management?
#20