barre3

The franchise agreement requires a 2-year non-compete within 25 miles of the franchisee's territory and any franchisor-owned locations. How many franchisor-owned locations currently exist, and are there plans to expand franchisor ownership that could limit franchisee post-exit opportunities?

All disputes must be arbitrated in Portland, Oregon on an individual basis with no class action or jury trial rights. What is the average cost and duration of arbitration cases, and are there examples of disputes between the franchisor and franchisees in the past 3 years?

The franchise requires minimum performance of 50% of system average gross revenue ($207,000 based on current system average) by the second full year. What happens if a franchisee falls below this threshold, and how many franchisees currently fall below this standard?

Late payments incur 12% annual interest charges. Can you provide examples of when this has been applied and clarify what constitutes a 'late' payment (e.g., 1 day, 10 days, 30 days)?

Personal guarantees are required from all officers, directors, partners, shareholders, or members, with spouses also required to guarantee regardless of ownership interest. Can the franchisor release the spouse guarantee if the spouse is not involved in business operations?

Franchisees must purchase fixtures, equipment, and supplies from 5 categories of mandatory or approved suppliers only. Which suppliers are mandatory versus approved, and what percentage markup does the franchisor receive from these suppliers?

The franchisor can set both minimum and maximum resale prices. In practice, how restrictive are these price controls, and have any franchisees challenged this policy?

Renewal requires meeting 8 specified renewal conditions. What are these conditions, and what percentage of franchisees fail to meet them at renewal time?

The system closed 7-8 units in 2022-2023 but only 1 in 2024. What drove the significant improvement in unit retention, and were any operational or support changes implemented?

Of the 25-unit net growth in the past year, how many were new franchise openings versus transferred/reopened units? What is the success rate of newly opened units in their first 2 years?

The transfer fee is $16,500 and renewal fee is $12,500. Are these fees refundable or non-refundable, and are there circumstances where they could be waived?

Item 19 is available showing average gross sales of $414,000. Does this data include all units or only those reporting, and what is the median sales figure (which typically differs from average)?

The franchise claims encroachment protection despite non-exclusive territory. What specific protections exist, and how are disputes over encroachment resolved?

Support & Training scores 99/100, significantly above the typical range. What specific training and ongoing support services are included, and are there additional fees for services beyond the initial training?

System Health scores 85/100, above the typical range. What metrics comprise this score, and how does barre3's system health compare to other fitness franchise competitors?

With 0 terminations across the 3-year period, does the franchisor have clear documentation of performance standards and violation procedures that would justify termination if needed?

Are there any pending disputes, investigations by state regulators, or complaints filed with the FTC that are not reflected in the litigation data showing only 1 total case?

The renewal fee of $12,500 equals 25% of the current $50,000 franchise fee. Will this fee increase with inflation or based on any other factors, and how is this communicated to franchisees renewing after 10 years?