GLO Tanning

Investment costs score 53, significantly below the typical range of 73-77 for fitness & wellness franchises. Can you provide a detailed breakdown of initial investment costs beyond the $45,000 franchise fee to clarify what accounts for this lower-than-typical investment score?

Your bottom quartile sales of $542,051 exceed the typical range for this category. How many locations fall into this bottom quartile, and what factors do you attribute to their higher-than-expected performance?

The total potential contract term is 10 years, below the typical 15-20 year range. What is the rationale for the shorter initial term and total potential term compared to industry standards?

Your non-compete restriction is 2 years / 5 miles, narrower than the typical 10-25 mile radius. Has this shorter restriction resulted in any issues with former franchisees opening competing facilities nearby?

The agreement lists 23 termination causes, above the typical 15-21 range. Can you specify the most frequently cited termination causes and provide examples of circumstances that have triggered termination?

The ad fund rate is 3.0%, above the typical 2.0% for this category. What specific marketing and advertising activities does this fund support, and how are funds allocated across franchisees?

Despite zero litigation cases over 3 years, the dispute resolution clause mandates binding arbitration in Oklahoma City with waived class actions and jury trial rights. Why are these restrictions necessary given the litigation-free history?

The franchise agreement requires personal guarantees from all owners with 5% or greater interest and their spouses. Can you explain the conditions under which these guarantees might be called and provide information on any guarantees that have been enforced?

You have 6 renewal conditions, below the typical 7-9. What are these renewal conditions, and are there any non-financial performance metrics that could prevent renewal?

Franchisees must purchase from approved suppliers across 7 mandatory categories. How many suppliers are approved for each category, and can franchisees request approval of alternative suppliers?

Your system grew from 40 units to 82 units in 3 years with zero terminations. What percentage of growth came from new franchise sales versus transfers, and how many franchise applications were rejected during this period?

The renewal fee is $10,000 and transfer fee is $10,000. Are renewal terms and conditions renegotiable, or do franchisees accept the same terms they originally signed?

Can you provide the Item 19 financial performance data showing the number of units reporting, the year of data, and whether results are audited or company-prepared?

Given the 23 termination causes in the agreement, can you provide a summary of which causes are non-curable versus curable with specific cure periods?

The financial performance shows median gross sales of $726,118. What percentage of the system reported this data, and does this figure include or exclude tanning service revenues and retail product sales separately?

The technology fee is $250 monthly. What technology systems does this cover, and are franchisees locked into GLO Tanning's specified software or do they have options?

You require exclusive territory with encroachment protection. How is territory size determined, and are there any circumstances under which the franchisor has added locations within existing franchisee territories?

Post-term restrictions prohibit competing tanning salons for 2 years within 5 miles plus any other GLO Tanning location. How is 'any other GLO Tanning location' defined—does this include locations not yet opened but planned?

Can you explain why System Health scored 80 (above the typical 50-75 range) while Investment Costs scored 53 (below typical 73-77)? What factors drove these outlier scores?

Support & Training scored 81, slightly below the typical 82-93 range. What specific training and ongoing support is provided to franchisees, and what are the costs beyond the $250 monthly technology fee?