Burn Boot Camp

The technology fee of $860 monthly is significantly higher than the typical range for fitness franchises. What specific services and software are included, and are there opportunities to reduce costs after the initial term?

Your contract contains 30 termination causes, which is higher than the typical 15-21 for this category. Can you provide a detailed breakdown of these causes and explain which are considered curable versus non-curable?

The initial term of 5 years is shorter than the typical 10-year term for fitness franchises. What is the rationale for this shorter term, and how does this affect franchisees' ability to recoup their investment?

Transfer rates are 6.3% annually, above the typical range. Are you aware of specific reasons why franchisees are transferring units at higher rates than comparable fitness franchises?

Your renewal conditions count of 10 is above typical. Can you clarify what specific conditions franchisees must meet to renew, and are any conditions prohibitively expensive or operationally burdensome?

One litigation case exists on record with the franchisor as defendant. What was the nature of this case, has it been resolved, and what were the outcomes or settlements?

The franchise agreement requires joint and several personal guarantees from all owners and spouses. How strictly is this enforced, and have there been situations where personal assets were pursued?

Can you explain the escalation of termination rates from 1.7% to verify this reflects franchisor-initiated terminations for cause rather than voluntary exits?

The agreement restricts purchases of exercise equipment, computers, software, signage, and uniforms to franchisor-approved suppliers. What is the markup on these items compared to market rates, and are there approved vendors besides the franchisor?

With a 5-year initial term, how do franchisees typically perform during years 4-5, and what percentage successfully renew versus seek alternatives?

The Support & Training score of 100 is above typical. What specific training and ongoing support does Burn Boot Camp provide, and how frequently are franchisees expected to return for additional training?

Can you provide a detailed breakdown of the 16 units closed in 2023 and 8 units closed in 2024—specifically how many were voluntary closures versus franchisor-initiated terminations?

What is the typical payback period for a franchisee at median gross sales of $638,290, accounting for all ongoing fees including the $860 technology fee?

Are there any disputes or complaints regarding the supplier restrictions, and have franchisees successfully challenged the franchisor's approved vendor list?

The renewal fee is $10,000 only for the second renewal term. Why does the first renewal (after 5 years) not include a renewal fee, and what are the financial terms for the first renewal?

How is the non-compete clause of 2 years / 10 miles enforced if a franchisee exits, and have there been any litigation disputes over non-compete violations?

What financial performance benchmarks must franchisees achieve to qualify for renewal, and what happens if a franchisee's sales fall below certain thresholds during the initial term?

Can you provide the most recent Item 19 disclosure and specify how many franchise units (and what percentage) reported the median and average gross sales figures cited?

Given the protected but non-exclusive territory, how does the franchisor handle situations where multiple Burn Boot Camp locations compete within the same geographic area?