BODYROK

The technology fee of $131/month is significantly lower than the category average of $199-$716. What specific technology services and software access does this fee cover, and are there circumstances where additional technology fees could be assessed?

Your royalty rate of 5.0% is below the typical 6.0-7.5% range for fitness franchises. Can you explain the reasoning for this competitive rate structure, and is it guaranteed to remain at this level throughout the franchise term?

The system has grown from 15 to 47 units in 3 years (46.3% CAGR), significantly exceeding typical growth rates. What are your expansion plans for the next 3 years, and how will you ensure existing franchisees maintain their competitive advantage?

Only 5 units out of 47 have undergone transfers in the past 3 years. What is your typical transfer approval process, and what factors could trigger a franchisor rejection of a unit transfer?

The initial contract term is 5 years, half the typical 10-year term for fitness franchises. Why did you choose a shorter initial term, and what are the renewal process details and any fee increases upon renewal?

The transfer fee is $5,000, significantly below typical fitness franchise transfer fees of $10,000-$17,139. Are there any additional costs, approval fees, or hidden charges associated with unit transfers not listed in the fee schedule?

You report zero litigation cases over 3 years. Can you provide references from current and former franchisees to verify this positive legal history, and describe any disputes that were resolved through binding arbitration?

Item 19 financial performance data is not disclosed. Will you provide unaudited or audited financial performance representations for units at different operational stages (1-year, 3-year, 5-year)?

The franchise agreement mandates binding arbitration in Houston, Texas, with JAMS, Inc. What are the estimated costs for arbitration, and why was Texas chosen as the dispute resolution location rather than the franchisee's home state?

The post-term non-compete restriction prohibits any fitness business offering Pilates classes within 25 miles for 2 years. How is this enforced, and have there been any disputes with former franchisees over non-compete violations?

Franchisees must purchase from 8 categories of designated or approved vendors only. Can you provide a complete list of approved vendors, the pricing terms compared to open-market alternatives, and the franchisor's financial relationships with these vendors?

The late payment policy includes 5% late charges plus 18% annual interest. How frequently do franchisees fall behind on payments, and have you ever suspended operations due to late fees?

Spouses must sign liability documents for all financial obligations despite having no ownership interest if a spouse owns 20% or more of the franchise. What specific liabilities are spouses personally liable for?

With 56.7% net unit growth in the past year, how are you managing quality control and brand consistency across such rapid expansion?

The renewal fee is $2,500. Are there any circumstances where renewal could be denied, and what happens to franchisees who want to exit after their initial 5-year term?

You have exclusive territory protection. What is the average territory size in square miles, and how do you determine territory boundaries for new unit development?

What percentage of your current 47 franchised units are currently profitable, and what is the average payback period for franchisees?

The franchise agreement allows immediate termination without cure for 19 specified defaults. Can you provide the complete list of these 19 defaults, and give examples of how these have been applied in practice?