The franchise has remained at 1 unit for 3 years with no growth. What are the franchisor's expansion plans and growth targets for the next 5 years?
#1
Average Gross Sales of $244,587 is significantly below the typical range ($386,914-$796,352) for fitness franchises. Can you provide detailed Item 19 performance data broken down by unit opening date and location type?
#2
Your Franchise Fee of $35,000 is notably lower than the typical range ($40,000-$60,000). What is included in this fee, and are there any additional startup costs not reflected in the franchise fee?
#3
The Technology Fee of $100/month is substantially below the typical $199-$716/month range. What specific technology services and systems are included, and are there any additional technology or software costs?
#4
Transfer fees are $5,000, which is half the typical range. What approval process does the franchisor require for unit transfers, and what conditions might result in transfer denial?
#5
With binding arbitration required at the franchisor's headquarters location, what are the typical costs and timelines for dispute resolution in your experience?
#6
The agreement requires personal guarantees from all entity owners covering all obligations. Can you clarify which specific obligations are covered, and has the franchisor ever enforced these guarantees against franchisees?
#7
Late payment interest is set at 2.5% monthly (30% annually). How frequently do franchisees incur late payment fees, and what is the payment grace period before interest accrues?
#8
The franchise requires purchasing from 8 product categories only through franchisor-designated suppliers. Can you provide a list of approved suppliers and pricing comparisons with market alternatives?
#9
What specific support and training does the franchisor provide given the Support & Training score of 80/100 is below the typical range (82.0-93.0)? How many hours of initial training and ongoing support are included?
#10
The non-compete clause includes a 2-year/10-mile restriction. What activities are prohibited during this period, and have disputes arisen regarding non-compete enforcement?
#11
With the franchise at 1 unit, how is the corporate structure and support team funded? What minimum revenue thresholds must be met to sustain franchisor support?
#12
Can you explain the discrepancy between the Ongoing Fees score of 64/100 (above typical 62.0-63.0) and the relatively low disclosed fees? What ongoing fees are not captured in the royalty and technology fee structure?
#13
The Ad Fund Rate of 3.0% exceeds the typical 2.0% range. How is this fund managed, and can franchisees see detailed accounting of how their contributions are spent?
#14
What is the historical reason the franchise has not grown beyond 1 unit, and what internal or external factors have limited expansion?
#15
Are there any pending litigation matters not yet reflected in public records, or past disputes that were resolved through private settlement?
#16
The Investment Score of 84/100 is above typical (73.0-77.0), suggesting favorable investment terms. Can you detail the total investment required beyond the $35,000 franchise fee, including equipment, buildout, and working capital?
#17
With renewal options available, what is the process and cost for renewal, and has the current unit exercised any renewal options?
#18