F45 Training

What specific issues led to the 13 litigation cases filed against F45 Training over the past 3 years, and what are the outcomes or settlement statuses of the 6 pending cases?

Can you provide details on the 11 cases where F45 Training was named as defendant—were these primarily franchisee disputes, employment claims, or other types of legal actions?

The system lost 4.8% of units (38 units) in the past year after gaining units from 2022 to 2023. What factors contributed to this contraction, and does management expect this trend to continue or stabilize?

Franchisor-initiated terminations increased from 3 in 2022 to 46 in 2024. What specific operational or financial defaults are driving this increase in terminations?

The Item 19 financial performance data shows median gross sales of $407,220. What percentage of the current 753 units reported these figures, and are sales figures trending upward or downward across the system?

Given the 5.8% termination rate and 6.6% transfer rate, what support systems are in place to help franchisees meet the 70% gross sales threshold requirement relative to comparable locations?

The non-compete clause restricts operations within 5 miles for 2 years. How does this compare to other fitness franchises, and would F45 Training consider negotiating a wider radius given the typical range is 10-25 miles?

Territory protection is offered but is not exclusive. Can you clarify how many competing F45 Training units currently operate within 5 miles of a prospective location, and does the franchisor have a saturation policy?

Renewal requires 9 specified conditions including mandatory remodeling. What is the typical cost and timeline for remodeling to maintain a franchise, and can you provide examples of remodeling requirements from recent renewals?

The renewal fee is $5,000 or 10% of average gross sales, whichever is greater. For a location with average sales of $407,220, what would the estimated renewal fee be, and are payment plans available?

The franchise agreement requires personal guarantees from designated principals and spouses. Can you clarify the full extent of personal liability exposure and whether this applies to all franchise obligations including debt?

Franchisees must maintain gross sales at 70% of comparable location averages or face potential consequences. What specific actions does the franchisor take if this threshold is not met, and over what time period is underperformance evaluated?

Interest accrues at 18% per annum on unpaid obligations. Under what circumstances would a franchisee incur this interest, and are there any dispute resolution or negotiation procedures before this rate is applied?

Cure periods range from 24 hours for trademark misuse to 30 days for other defaults. Can you provide the full list of 10 curable defaults and 11 non-curable defaults so franchisees understand immediate termination triggers?

The agreement requires purchasing from franchisor-approved suppliers only. What is the franchisor's markup or profit from supplier relationships, and how are approved suppliers selected and retained?

Post-term restrictions prohibit competing fitness businesses including yoga, pilates, crossfit, and boxing within 5 miles for 2 years. How has this clause been enforced in past litigation, and are there any carve-outs for existing customer relationships?

The potential contract term extends to 30 years (initial 10 + 2 x 10 renewals). What percentage of franchisees have successfully renewed their agreements, and what were the common reasons for non-renewal or termination?

In 2024, 72 units were closed, 46 were terminated, and 52 were transferred. Of the transferred units, how many were transfers to existing franchisees versus sales to new franchisees, and what was the franchisor approval process for these transfers?

Support and training scored 83/100, the highest category score. What specific training and ongoing support programs are included in the franchise package, and are there additional costs for advanced training or certification?

System Health scored only 38/100, significantly below the typical range. What is the franchisor's turnaround plan to address system stability and unit retention?