FYZICAL

What are the specific allegations in the 3 pending litigation cases filed against the franchisor, and what is the expected timeline for resolution?

Why has the termination rate of 6.0% more than tripled the typical range for this category, and what are the primary reasons franchisees are being terminated?

The technology fee of $500/month exceeds typical fees by $73-$335/month. What specific technology and services does this fee cover, and are there options to reduce or eliminate this cost?

Can you provide the detailed breakdown of the 86 units closed over 3 years, specifying which were franchisor terminations versus voluntary closures and the stated reasons for each?

The closure rate increased to 36 units in 2024 compared to 21-29 in prior years. What operational or market changes contributed to this spike?

What specific non-curable default provisions in the franchise agreement can result in immediate termination without a cure period?

How are the 2 consecutive renewal options enforced? If I fail to meet one of the 8 renewal conditions, what happens to my ability to renew or transfer the franchise?

The successor franchise fee upon renewal is 10% of the then-current initial franchise fee. What is the current trajectory of initial franchise fees, and could this renewal fee become prohibitively expensive?

Given the personal guarantee requirement and spouse consent clause for binding marital property, how has this affected franchisees who have experienced business difficulties or sought to exit?

What supplier designation or approval requirements exist, and are there documented instances where franchisor-designated suppliers have charged premium prices relative to competitive alternatives?

Can you clarify the relationship between the 6.0% termination rate and the current unit count, and explain whether terminated franchisees have pursued legal action (which may explain the pending litigation)?

What training and ongoing support is provided to franchisees, particularly given the relatively high termination rate?

Are there any restrictions on the sale or transfer of the franchise beyond the standard transfer fee and approval process?

What are the median and average unit volumes (AUV) for franchisees at different tenure levels (year 1, year 3, year 5), and how do they compare to the overall system average of $670,103?

How many of the 3 pending litigation cases involve franchisee complaints, and what remedies are being sought?

Given the 30-year potential term, what is the franchisor's policy on updating technology, training, and operational standards during the renewal periods to ensure franchisees remain competitive?

What percentage of current franchisees have achieved the median gross sales of $507,907, and what percentage fall below this threshold?

Can you provide historical data on franchisee profitability after expenses, including the impact of the $500 monthly technology fee?

What is the rationale for the unusually long 30-year total potential term, and how does this compare to competitor franchise agreements in the fitness and wellness space?

What specific encroachment protections exist within the exclusive territory, and how has the franchisor enforced these protections against unauthorized system competition?