The monthly technology fee of $1,000 is significantly higher than the typical range of $199-$716 for fitness franchises. What specific technology services and software platforms are included in this fee, and is it subject to annual increases?
#1
Your royalty rate of 8.0% exceeds the typical 6.0-7.5% range for fitness franchises. How does this compare to your direct competitors, and are there any circumstances under which the royalty rate could be reduced or waived?
#2
The franchise has grown from 3 to 10 units in one year (233% growth). What geographic markets are these units in, and what is the franchisor's growth strategy for unit expansion over the next 3-5 years?
#3
The system shows zero turnover, termination, and transfer rates. Can you provide the names and contact information for existing franchisees willing to discuss their experience with unit profitability and system support?
#4
Support and training scores 79/100, below the typical 82.0-93.0 range for fitness franchises. What specific training is provided at launch and ongoing, and how frequently can franchisees access support resources?
#5
The ad fund rate of 1.0% is below the typical 2.0% for fitness franchises. How is this lower advertising fund allocated, and are franchisees required to conduct independent local marketing at their own expense?
#6
The agreement includes 26 non-curable default events allowing immediate termination. Can you provide a list of these events and clarify which situations would trigger immediate termination without a cure period?
#7
Minimum royalty requirements begin in month 13 regardless of actual sales performance. What is the monthly minimum royalty amount, and what percentage of franchisees typically meet or exceed this threshold in their first 3 years?
#8
The total potential term of 30 years exceeds typical ranges. What conditions must be met to exercise the 2 renewal options, and can renewal terms be negotiated or are they fixed as stated?
#9
Late payments incur 1.5% monthly interest (18% annually). What is the grace period before interest accrues, and are there any alternative payment arrangements available for franchisees experiencing temporary cash flow issues?
#10
Personal guarantees are required from shareholders owning 5% or more, with spouses potentially required to sign. Under what circumstances would spouse guarantees be required, and are guarantees required to remain in effect throughout the entire franchise term?
#11
The franchisor requires purchases from 6 designated approved suppliers. Are these suppliers owned or affiliated with the franchisor, and what percentage of franchisee costs are sourced through these mandatory suppliers?
#12
With zero litigation history, how many franchisees have inquired about disputes or concerns over the past 3 years, and how were these resolved outside of formal litigation?
#13
The Item 19 financial data shows median gross sales of $707,286. What is the typical net profit margin after all fees (royalty, technology, ad fund) and what percentage of franchisees achieve profitability within 2 years?
#14
The non-compete is 2 years within 25 miles. Does this apply only to direct fitness competition or to all business activities, and are there any carve-outs for passive business investments?
#15
Transfer fees are $10,000 and renewal fees are also $10,000. If a franchisee wishes to transfer to an approved buyer, what franchisor approval criteria must the buyer meet, and what is the typical timeline for transfer approval?
#16
The franchise agreement provides only 5-day cure for payment defaults and 30-day cure for general defaults. Given the rapid system growth, what support is available if a franchisee faces unexpected operational challenges?
#17
The territory is protected but not exclusive—what does 'protected' mean operationally, and under what circumstances could the franchisor open a competing goGLOW location or allow another franchisee within your territory?
#18