BODY20

The 8 pending litigation cases against the franchisor represent a 4x increase above the typical range for this category. What are the primary legal claims in these cases, and have any resulted in judgments or settlements?

Unit closures increased from 4 in 2023 to 8 in 2024. What percentage of 2024 closures were franchisor-initiated terminations versus voluntary unit closures, and what were the stated reasons?

The technology fee of $1,060 monthly is 48% above the category median. Can you provide an itemized breakdown of what services and software this fee covers?

Termination rate of 3.2% is double the typical category range. How many of the 2024 terminated units (2 units) resulted from breach of contract versus non-renewal or other causes?

The franchise fee of $65,000 exceeds the typical range by $5,000-$25,000. Does this fee include equipment, initial inventory, training, or other tangible items, or is it purely the franchise license fee?

Royalty rate of 8.0% is above category norms. Are there volume-based royalty reductions, or does the 8% apply uniformly across all gross revenue regardless of unit sales volume?

With 62 current units but only partial year data for 2024, how many units are projected to be in the system by end of 2024, and what is the franchise recruitment target for 2025?

The non-compete clause is 2 years and 10 miles. If you sell your unit or it's terminated, are you restricted from opening a competing fitness concept anywhere, or only within the 10-mile radius?

The contract identifies 24 non-curable defaults triggering immediate termination. Can you provide the specific list of these 24 defaults so I can assess operational risk?

Gross sales data shows median revenue of $459,727 and top quartile of $586,907. What is the range for the bottom quartile, and what percentage of units operate below breakeven based on Item 19 data?

The franchise fee includes a $16,250 transfer fee and $16,250 renewal fee. If a unit closes and is transferred to a new franchisee, would both fees apply, or are they mutually exclusive?

All disputes require binding arbitration at AAA offices. Which AAA regional office would disputes for my location be directed to, and what are the average costs and timelines for AAA arbitration in that jurisdiction?

Personal guarantees require all franchise owners and spouses to assume unlimited liability. If the business fails, to what extent can the franchisor pursue personal assets of the spouse who is not actively involved in operations?

The agreement specifies 9 conditions for renewal, including a successor fee of 25% of the original franchise fee ($16,250). Are there operational performance standards I must meet to qualify for renewal, or is it automatic upon payment?

The 60.48% 3-year growth rate is impressive, but what percentage of this growth came from new unit sales versus acquisitions or conversions of existing gyms? How many units have been acquired or converted?

Late payment interest is 18% per annum. If I'm 30 days late on a $50,000 quarterly payment, what is the total amount owed including principal, interest, and any penalty fees?

Territory is protected but not exclusive. Does protected territory mean no other BODY20 franchisees can be assigned within that territory, or only that franchisor-operated units won't compete with you?

The termination causes document lists 27 possible defaults. Beyond payment and non-performance, what operational standards (e.g., member satisfaction metrics, class scheduling) are performance requirements?

In the past 3 years, how many franchisees successfully renewed their agreements versus how many declined renewal or failed renewal conditions? What is the voluntary non-renewal rate?

With 8 pending litigation cases all against the franchisor, have any of these cases resulted in injunctions, preliminary restraining orders, or restrictions on franchisor operations? Are any cases class actions involving multiple franchisees?