The transfer fee of $29,000 is 70% higher than the typical range for fitness franchises. How is this fee justified, and are there any circumstances where it can be reduced or waived?
#1
Given the above-average average gross sales of $888,225, what are the median and range of unit sales performance, and how many units achieve or exceed this figure?
#2
Your non-compete clause specifies only 1 year and 8 miles compared to the typical 2 years and 10-25 miles. Was this intentionally more franchisee-friendly, and does the franchisor enforce it actively?
#3
The system has grown 57.14% in the past year with zero unit exits. What is driving this rapid expansion, and do you have plans to slow growth to ensure quality control?
#4
Can you provide details on the five product categories where franchisor approval is required for suppliers, and what percentage of franchisees have requests denied?
#5
The franchise agreement includes an 18% annual interest rate on late payments. What is the average frequency of late payments among current franchisees, and has this been enforced?
#6
What are the specific minimum gross sales performance standards referenced in the agreement, and what happens if a franchisee falls below these targets?
#7
The agreement requires personal guarantees from all principal owners and potentially spouses. Are there any circumstances where spouses can be excluded from the guarantee?
#8
All disputes must be resolved through mandatory binding arbitration in the franchisor's headquarters county. How many franchisees have pursued arbitration, and what were the outcomes?
#9
Can you provide the actual Item 19 financial performance statement, including the number of units reporting, median sales figures, and expense breakdowns?
#10
The franchisor can set minimum and maximum prices for services. How frequently are these pricing parameters adjusted, and are there historical examples of significant price changes?
#11
With zero litigation cases to date, has the franchisor ever pursued claims against franchisees that were settled confidentially?
#12
The agreement allows mandatory participation in franchisor training programs. What is the frequency and cost of these programs, and are they included in ongoing fees or charged separately?
#13
Your total potential term of 25 years exceeds the typical range. What are the renewal fee amounts for each of the three 5-year renewal options?
#14
Of the 22 current units, how many were opened in 2024, and what is the average time-to-profitability for new units?
#15
The franchisor requires direct equipment purchases. What percentage of a franchisee's operating costs do strength training equipment and approved suppliers represent annually?
#16
Are there any currently open or recently closed litigation cases not included in the historical data, such as regulatory disputes or employee claims at franchised locations?
#17
How many franchisees have voluntarily exited the system, and what were their primary reasons for leaving?
#18