What is the expected timeline for franchise fee recovery given the 5.0% royalty rate and 3.0% ad fund rate combined?
#1
Why is the initial term limited to 7 years when the typical range for fitness franchises is 10 years, and what happens if the franchisor chooses not to renew?
#2
Can you provide details on the 6 renewal conditions that must be met? How strictly are these enforced in practice?
#3
Given that territory is protected but not exclusive, what specific protections prevent franchisor from opening competing company-owned or franchised EMS locations within the 20-mile territory?
#4
The franchise fee is $24,900 compared to a typical range of $40,000-$60,000. What is included in the initial support, training, and equipment bundle at this lower price point?
#5
How many EMS To You franchisees currently operate and how long have they been in operation? Can you provide contact information for existing franchisees?
#6
What financial performance data does the franchisor have available, and why is Item 19 not provided in the disclosure document?
#7
Given the strong Investment Costs score (92/100) combined with below-average Support & Training (76) and Contract Terms (51) scores, what specific training and ongoing support is included during the 7-year initial term?
#8
The non-compete clause is 2 years / 20 miles. If the franchise is terminated early for a curable default with a 30-day cure period, do the post-term restrictions still apply in full?
#9
Can you explain why the franchise agreement requires 19 non-curable defaults while allowing only 4 curable defaults with cure periods?
#10
The dispute resolution clause mandates binding arbitration in Denver, Colorado with class action prohibited. What happens if a franchisee needs to dispute a franchisor decision while operating outside Colorado?
#11
Why do entity franchisees require personal guarantees from owners for the full contract term including renewals? Can these guarantees be limited in scope?
#12
What is the renewal fee of $4,000 and what does it cover? Is this amount typical or does it increase based on inflation or system changes?
#13
Since the system has only 1 current unit, what is the franchisor's growth strategy and timeline for expanding the network?
#14
The transfer fee is $4,000, significantly below the typical range. Are there restrictions on who can assume a franchise if a franchisee transfers their rights?
#15
What specific equipment, technology, and initial inventory are provided as part of the $24,900 franchise fee?
#16
How does the franchisor calculate royalties and ad fund contributions—on gross revenue or net revenue after refunds and cancellations?
#17
Given zero litigation history, does this reflect a very new franchise system or an established system with strong relationships? How long has EMS To You been franchising?
#18