DivaDance

The royalty rate of 10.0% is notably higher than the typical 6.0%-7.5% range for fitness franchises—how does this higher rate compare to your actual costs of delivering franchisor services, and what specific services justify this premium?

Median gross sales of $110,282 annually are substantially below category norms of $363,278-$729,612. What is driving this significant performance gap, and are there specific unit models or demographics where sales approach category averages?

The transfer rate of 15.2% is 2.5 times higher than the typical range. Can you provide specific reasons for these transfers—are franchisees exiting the business, selling to external buyers, or moving to different territories within the system?

Your termination rate of 2.4% exceeds the typical 0.0%-1.68% range. How many of these terminations were franchisor-initiated versus franchisee-initiated non-renewals, and what were the primary causes?

The franchise fee is $36,000, which is below the $40,000-$60,000 typical range. Is this a recent pricing decision, and do you plan to adjust it as the system matures?

With only a 5-year initial term (vs. typical 10 years) and 10-year maximum potential (vs. typical 15-20 years), what protections does the franchisor have to recoup training and support investments before a franchisee exits or non-renews?

Can you explain the 7 unit transfers in 2024 specifically—were these sales to third parties, internal promotions, or system consolidations, and what was the average time franchisees operated before transferring?

Item 19 financial data shows units currently operating. How many of these 46 units have been operating for the full term since franchise inception, and what is the average unit maturity within the system?

The non-compete clause requires 2 years and 25 miles post-termination. Has this restriction been enforced, and have any departed franchisees opened competing fitness businesses within the protected radius?

What happens to franchisees during the renewal decision period? The agreement requires 10 compliance conditions for renewal at $5,000—can you provide examples of franchisees who were denied renewal and the specific reasons?

With a $150 non-compliance fee plus 18% annual interest for late royalty payments, how many franchisees have incurred these penalty fees in the past 2 years?

The agreement includes personal guarantees from owners and spouses, plus indemnification of the franchisor. Have any franchisees been pursued on personal guarantees after franchise termination or closure?

Can you provide the complete unit history by year showing openings, closures, terminations, and transfers separately? The data shows only 3 years—do you have longer historical data available?

Are the 46 current units all actively operating, or does this count include recently transferred or transitioned units? What is the actual operational unit count?

The $375 monthly technology fee is mandatory for all franchisees. What specific technology services are included, and can franchisees opt out or use alternative systems?

Your support and training score is 94/100, which is above the typical range. Can you detail the specific training provided pre-opening and ongoing support mechanisms available to franchisees?

All disputes require binding arbitration in Travis County, Texas, with class action and jury trial waivers. Has any franchisee attempted to challenge this clause or pursue disputes outside arbitration?

Given the 15.2% annual transfer rate, what is the average holding period for franchisees before they transfer or exit, and how many franchisees have operated successfully for 10+ years?

The system grew from 29 to 46 units in 3 years, but sales performance is well below category norms. Are you targeting a different market segment (boutique fitness, budget operations, specific demographics) than typical fitness franchises?

Can you provide references from at least 5 franchisees who have transferred or exited in the past 2 years to discuss their reasons and financial outcomes?