Degree Wellness

The initial term is 10 years compared to the typical 15-20 year range for fitness franchises. What is the rationale for the shorter contract duration, and does this affect long-term investment recovery planning?

Advertising fund is 1.0%, below the typical 2.0% for fitness franchises. How is the lower advertising contribution allocated, and does this impact the scope of national or regional marketing campaigns?

The system doubled from 2 to 4 units in one year (100% growth). What is the projected unit growth for the next 3-5 years, and what factors are driving this expansion?

All 4 current units have remained active with zero terminations or non-renewals. Can you provide specific performance metrics (sales, member retention, profitability) for these 4 units to verify sustainability?

The agreement requires binding arbitration in Duvall County, Florida. Do you have a dispute resolution process that occurs before arbitration, and what is the average cost and timeline of arbitration cases under your franchise agreements?

Personal guarantees are required with unlimited scope, and spouses may be required to guarantee. Under what circumstances would spouse guarantees be demanded, and are there any limitations on the franchisor's enforcement?

Renewal requires 8 conditions including refurbishment and redecoration. What is the estimated cost of required refurbishment at renewal, and are there financing options available?

The renewal fee is $10,000. Beyond renewal, what other fees would be due in years 11-20 of operation, and how frequently does the franchisor reassess fee structures?

With only 4 operating units, how much operational data and support infrastructure is in place? What happens to franchisee support if the system experiences significant growth or contraction?

The franchise has zero litigation history. Are there any unresolved disputes, complaints filed with state agencies, or regulatory investigations pending?

Item 19 reports median and average gross sales of $610,397. Over what time period were these results achieved, how many of the 4 current units contributed to this figure, and what is the range of performance among units?

Termination causes number 12 compared to the typical 15-21. What are the primary grounds for franchisor termination, and which violations have resulted in past terminations (if any)?

Territory is exclusive. How are territory boundaries defined (geographic area, member radius, demographic specifics), and what protections prevent the franchisor from modifying territory boundaries during the term?

Contract Terms score of 55 is below typical range. Are there any unusual restrictive covenants regarding location changes, business operations, or post-franchise activities?

Transfer fee is $10,000. Does this fee apply to all transfer scenarios, and are there restrictions on who the franchisor will approve as a successor franchisee?

Financial Performance score of 67 is above typical range for fitness franchises. What specific factors contribute to this elevated score, and are results driven by unit profitability or unit growth alone?

Support & Training score of 97 is above typical range. What specific training programs, ongoing support, and technology resources are included in the initial and ongoing relationship?

What is the franchise system's definition of 'Unit' for reporting purposes, and does it include all revenue-generating locations or only flagship locations?