Gold's Gym Facility

Given the significant gap between Item 19 sales data ($1.8M-$2.0M median/average) and typical Fitness & Wellness franchises, can you explain what factors drive this exceptional sales performance and whether these figures are representative of newly established vs. mature locations?

The system has declined from 221 to 211 units over 3 years despite strong individual unit sales. What specific factors are driving non-renewals (1.9% rate) and voluntary closures, and are there particular geographic markets or unit types experiencing higher exit rates?

Can you clarify why the Investment Costs score is 1/100, significantly below the category norm of 73-77? What initial investment and financing requirements should prospective franchisees anticipate?

The Risk Factors score of 46 is below the typical range of 58-80. What specific operational or market risks does the franchisor identify as most significant for new franchisees?

With a non-compete radius of only 5 miles versus the typical 10-25 miles, how does the franchisor address encroachment risk if a departing franchisee opens a competing fitness facility within that 5-mile zone?

The franchise agreement contains 6 renewal conditions versus the typical 7-9. Can you provide details on all 6 renewal conditions and explain which, if any, have historically caused franchisees to not renew their agreements?

Given the 17 non-curable defaults listed in the termination clause, can you provide the complete list of these non-curable defaults and explain the business rationale for making them non-curable rather than subject to cure periods?

With only 2 of 19 defaults being curable, and a 30-day cure period for other defaults, how many terminations in the past 3 years resulted from payment defaults versus non-payment defaults, and what was the average time-to-termination?

The dispute resolution clause mandates binding arbitration within 50 miles of Dallas, Texas headquarters. What is the average cost of such arbitration claims, and how many franchisee disputes have been arbitrated in the past 5 years?

Can you explain the operational control requirement to purchase from 8 designated product/service categories? What percentage of franchisee revenue typically comes from these required purchases, and how are supplier prices determined and adjusted?

The unlimited personal guarantee requirement for owners with 20%+ ownership appears to extend liability beyond the franchise entity. In what situations has the franchisor enforced personal guarantees against individual franchisees?

Given the strong individual unit sales metrics but declining system-wide unit count, what percentage of closures in 2022-2024 were due to voluntary decisions versus franchisor action or economic factors?

Can you provide the 2024 renewal fee amount and explain how it's calculated relative to the $40,000 initial franchise fee? Will the fee structure change materially for franchisees renewing in 2032-2034?

With a 2-year non-compete and only 5-mile radius, what happens if a franchisee cannot secure suitable real estate within the non-compete zone during the 2-year restriction period?

The transfer fee is $10,000. Are there any franchisor approval conditions for transfers beyond the fee, and can you explain transfer denial criteria or franchise buyback options?

What support or notice does the franchisor provide to franchisees facing declining sales trends or performance metrics that might indicate non-renewal risk?

Can you clarify the liability indemnification clause requirements? Must franchisees carry specific insurance limits, and what does the indemnification actually cover versus the franchise fee and royalties?

Given the 10-year initial term, what happens to facility improvements or leasehold improvements if the franchisee does not renew at the end of year 10?