FIT4MOM

The system has declined by 26 units over 3 years. What is management's explanation for the negative unit growth, and what specific initiatives are in place to reverse this trend?

With a 1-year turnover rate of 11.4% (above the typical 0-9.9% range), what are the primary reasons franchisees cite for closure or departure?

The transfer rate of 20.0% is notably high compared to the typical 0-5.93% range. Are these transfers reflective of successful unit economics, or are franchisees exiting by selling to others who may also struggle?

Support and training scores are 69, significantly below the typical 82-93 range for fitness franchises. What specific training is provided at launch, and what ongoing support resources are available?

Can you provide detailed Item 19 financial performance data, including median/average gross sales and number of units reporting? The disclosure document does not currently include this information.

Contract terms are compressed to 3-year initial and renewal periods, below the typical 10-year initial terms. Why are renewal terms so short, and what are the renewal conditions franchisees must meet?

The renewal fee is stated as 6% of the initial franchise fee. For a franchisee who invests $7,495 initially, would the renewal fee be approximately $450? Is this a one-time renewal fee, or is it charged for each renewal period?

Two litigation cases have been filed against the franchisor historically. What were the nature and outcomes of these cases, and have they been resolved?

The non-compete clause restricts activity for 2 years within 10 miles. How strictly does the franchisor enforce this, and are there documented instances of enforcement actions?

Franchise fee of $7,495 is substantially lower than competitor averages ($40,000-$60,000). What is included in this fee versus what must be purchased separately (equipment, inventory, software licenses)?

With exclusive territory protection scoring 100, what is the specific territory definition (radius, demographics, member cap, revenue cap)? Are territories protected if a franchisee underperforms?

Can you provide a breakdown of the 88 total exits (2022-2024) by specific reason? How many were voluntary closures versus franchisor-initiated terminations versus transfers?

The termination rate of 2.7% is above typical. What are the most common reasons the franchisor terminates franchise agreements?

What is the basis for the $10,000 minimum gross sales renewal requirement mentioned in the renewal conditions? How many franchisees have failed to meet this threshold?

Dispute resolution requires binding arbitration in San Diego, California. What is the estimated cost for arbitration, and has the franchisor arbitrated cases against franchisees?

The franchise agreement requires personal guarantees from all principal owners. Are these guarantees indefinite, or are they limited by term or amount?

Technology fee is $199 monthly. What specific technology services does this cover, and has this fee increased since the franchise began?

Are there any known market saturation issues in particular territories? If so, how does the franchisor manage or prevent encroachment despite exclusive territory language?

What percentage of current franchisees have been with FIT4MOM for more than 5 years? What does this suggest about long-term viability for unit owners?