BFT

What are the specific reasons for the 12 pending litigation cases? How many involve current vs. former franchisees, and what are the primary dispute categories?

The franchisor initiated 2 cases against third parties—what were the nature and outcomes of these disputes, and do they relate to franchisee disputes?

Of the 10 cases initiated against the franchisor, how many resulted from franchisee claims, and what were the primary allegations (non-compliance, breach, misrepresentation, etc.)?

Given the 4.1% termination rate in 2024, what specific defaults or performance failures led to the 2 terminations, and were cure periods offered?

Why did 5 units transfer in 2023 but zero units transferred in 2024? Are transfers becoming restricted or are franchisees retaining units?

The system grew from 2 units 3 years ago to 49 units—can you detail the recruitment timeline and explain how the franchisor scaled so rapidly?

Gross sales average $360,918 but the financial performance category received a score of 54/100. What percentage of operating units meet the minimum performance requirements of $15,000 (Year 1) and $20,000 (Year 2)?

What percentage of franchisees achieved the median sales figure of $329,200, and how many units have failed to meet minimum performance thresholds?

The non-compete clause restricts fitness or exercise businesses for 2 years within 10 miles of any BFT Studio in the system—how many studios are currently operating, and could this radius limit franchisee post-exit options?

What is the financial exposure for franchisees who violate the non-compete, and has the franchisor pursued enforcement actions against departing franchisees?

The renewal fee is $10,000 and requires execution of the then-current franchise agreement—what material changes have been made to the agreement since 2014, and could renewal terms be substantially modified?

Are there any pending class action lawsuits or regulatory investigations at the state or federal level involving BFT franchisees or operations?

Of the 4 units that closed in 2024, were they closed due to poor performance, franchisor directive, or other factors? Were franchisees offered buyback options or assistance?

The technology fee is $715/month—what specific services and technology are included, and can franchisees negotiate or opt out of this fee?

What is the average unit volume (AUV) excluding the top quartile performers, and how many units are currently operating below break-even?

The mandatory arbitration clause applies to disputes within 50 miles of Irvine, California—where are most BFT Studios located, and what is the typical cost of arbitration in the system?

Personal guarantees are required from all owners with 10%+ ownership and their spouses—can you clarify the extent of personal liability and whether limitations exist?

The franchisor can designate suppliers for 10+ categories—which suppliers are mandatory, and can franchisees negotiate pricing or use alternative suppliers?

The franchise agreement includes broad indemnification provisions—are there any carve-outs or limitations on franchisor liability for negligence or franchisor breaches?

Can you provide references from at least 10 current BFT franchisees, including some who joined in the rapid growth phase (2022-2024) and some who have exited in 2024?