AmSpirit Business Connections

The franchise fee of $10,000 is significantly lower than typical for business services franchises ($31,125-$50,000). What is included in this initial fee, and are there additional required startup costs not reflected in the franchise fee?

Can you provide a breakdown of the 4 unit exits recorded between 2022-2024? Specifically, what were the reasons for the 2 closures in 2023 and the 1 closure in 2024?

The total potential contract term of 30 years (10 initial + 2×10 renewals) exceeds the typical range of 10-20 years. What are the conditions for renewal, and what fees apply at each renewal?

The non-compete restriction covers 100 miles, which is double the typical 10-50 mile range. How is this restriction enforced, and what constitutes a competing business under the agreement?

The transfer fee of $2,000 is substantially below the typical range of $5,250-$19,500. Are there conditions under which this fee could increase, and what is included in the transfer approval process?

The franchise agreement mentions 12 non-curable defaults that result in immediate termination. Can you provide the full list of these non-curable defaults and examples of how they have been applied?

What is the minimum number of chapters required by Schedule B, and are there penalties if a franchisee fails to establish or maintain this minimum?

Personal guarantees are required for corporate franchisees with unlimited liability. In the past 3 years, have any personal guarantees been enforced, and what were the circumstances?

Late payments bear 18% annual interest. Has this been applied to franchisees, and what is the typical payment terms requirement?

The agreement requires indemnification of AmSpirit for all claims. Can you provide clarification on the scope and any caps or limitations on this indemnification obligation?

With no territory exclusivity or encroachment protection, what prevents AmSpirit from opening competing locations or recruiting members from an existing franchisee's area?

Only 1 unit has been added in the past 3 years while 4 have exited. What is the franchisor's growth strategy, and what support is provided for franchisee recruitment and member acquisition?

The franchise agreement allows termination for 20 total defaults. How are defaults counted and tracked, and can a franchisee cure multiple defaults or does each default count separately?

What financial performance support or Item 19 data is available? The FDD does not include Item 19 disclosures—what sales or profitability information can be provided?

The renewal fee is $2,000. Are there any other fees or cost increases associated with renewal, or does the franchisee return to the same fee structure?

What specific training and ongoing support is provided to franchisees, given the 77/100 Support & Training score, and what is the frequency and format of this support?

The System Health score is 49/100. What operational or performance challenges is the system currently facing?

Can you explain the decline from 20 units (3 years ago) to the current 19 units? What was the primary driver of this contraction?

Are there any disputes or complaints filed against AmSpirit with state franchise regulators, the FTC, or Better Business Bureau, separate from formal litigation?

What happens to the franchisee's customer relationships and chapter memberships in the event of termination or non-renewal?