Club Pilates

Can you provide a detailed breakdown of the 12 pending litigation cases, including the nature of each dispute, parties involved, and current status?

What are the specific reasons for the 4 terminations in 2024, and were these franchisor-initiated or resulted from franchisee breach?

The franchise fee of $65,000 is above industry average for fitness franchises. What additional services, training, or support justify this premium pricing?

How does Club Pilates calculate and enforce the $25,000 monthly gross sales requirement by the first anniversary, and what happens if this threshold is not met?

Given the royalty rate of 8.0% (above typical 6.0-7.5%), how does this compare to competitors, and is there a tiered structure based on unit age or performance?

Can you explain the circumstances of the 2 franchisor-initiated litigation cases and the current status of those disputes?

What specific approval or designation process does Club Pilates use for the 6 supplier categories mentioned, and are there opportunities to source from alternative vendors?

The pending 1.5% monthly late fee (18% annually) is substantial. Under what circumstances have these fees been assessed, and are there payment plan options available?

Are there any restrictions on the types of locations (commercial vs. lifestyle centers) or minimum square footage requirements, and how does location selection impact unit performance?

Of the 59 units transferred in 2024, how many were transferred to existing franchisees expanding their portfolio versus new franchisee owners?

What renewal compliance conditions are most frequently cited as barriers to renewal, and can you provide examples of franchisees denied renewal in the past 3 years?

How are encroachment disputes handled when a new unit is opened within the 10-mile territory radius, and what remedies are available to existing franchisees?

The Financial Performance section shows high average sales ($984,270), but what percentage of units achieve or exceed this benchmark, and what is the bottom 25% performance range?

Can you provide the unit count breakdown by: (1) franchisee-owned, (2) franchisor-owned, and (3) multi-unit operators?

What specific support or intervention occurred in 2023-2024 that contributed to the acceleration in unit growth from 115 units (2022-2023) to 161 units (2023-2024)?

Are there any class action lawsuits among the 12 pending cases, and what is the potential financial or operational impact to the system?

How does the arbitration requirement with JAMS mediation affect franchisees' ability to pursue disputes, and what are typical costs and timelines for resolution?

The personal guarantee requirement includes spouses for 10%+ owners. Are there circumstances where this requirement has been waived, or is it non-negotiable?

What is the typical time to profitability for new Club Pilates units, and what percentage of franchisees achieve ROI within the 10-year initial term?