Fitness Machine Technicians FMT

Of the 5 litigation cases where the franchisor was named defendant, what were the nature and outcomes of these disputes, and were they settled or litigated to conclusion?

The transfer rate of 10.6% is significantly above typical for this category. What percentage of these 14 transfers in 2024 were driven by franchisee-initiated sales versus franchisor-facilitated transactions?

Can you explain the 17 unit closures and cessations that occurred in 2022, and what specific operational or market factors contributed to this decline?

Why is the total potential contract term of 30 years substantially longer than the industry typical range? What is the rationale for offering two 10-year renewal options?

The minimum monthly royalty of $500 applies beginning month 13 regardless of sales performance. How many franchisees have been charged this minimum royalty, and what percentage of franchisees reach this threshold annually?

Given the required personal guarantees from majority owners and spouses, what recourse have franchisors pursued against personal guarantees in past disputes or defaults?

Can you provide details on the 7 units that ceased operations in 2022 outside of formal closures or terminations? Were these voluntary exits or franchisor-assisted closures?

The dispute resolution clause mandates binding arbitration in Charlotte, North Carolina with waiver of jury trials and class actions. Have any franchisees requested alternative dispute resolution venues or provisions?

What specific products, supplies, and materials must be purchased exclusively from the franchisor or approved suppliers, and what are the average markups on these items?

The 18% per annum late payment interest plus $100 late fees applies to royalty payments. How frequently are late payment penalties assessed, and what is the typical frequency of late payments across the system?

With zero terminations in the past year, what are the typical reasons for non-renewal of franchises at the end of their term?

The average gross sales of $466,910 is based on how many units, and what is the sales range between top and bottom performing franchisees?

Has the franchisor ever enforced the 2-year/20-mile non-compete clause post-termination, and if so, what were the circumstances and outcomes?

Given the high transfer rate, what is the average tenure of transferred units before sale, and do transferred units typically perform better or worse than the system average?

Can you provide a breakdown of the 5 litigation cases by year, type (e.g., breach of contract, trademark, financial disputes), and settlement amounts if applicable?

The technology fee of $100 monthly is in addition to royalties. What specific technology, software, or systems does this fee cover, and has it increased since inception?

What percentage of franchisees have successfully renewed their contracts through the first renewal option, and what factors influence renewal decisions?

The $3,500 renewal fee applies at contract renewal. Are there any other renegotiation opportunities for contract terms or royalty rates during the renewal process?