GYMGUYZ

Can you provide detailed breakdown of the 19 unit closures in 2024 - how many were voluntary closures versus franchisor terminations, and what were the primary reasons cited?

Why did terminations spike to 13 units in 2024 when there were zero terminations in 2022 and 2023? What specific contract violations or performance metrics trigger termination?

Given the low median gross sales of $130,644 compared to the category average of $575,000+, how do you define break-even performance and at what sales level do you typically initiate franchisee support or remediation?

Can you explain why the technology fee is significantly lower ($25/month) than the typical range ($199-$716/month) for fitness franchises, and are there any plans to adjust this fee?

What is the historical litigation profile beyond the past 3 years? Have there been any material lawsuits or disputes with franchisees that were resolved?

Of the 121 units operating 1 year ago, how many remain in operation today, and what percentage of the current 130 units are new openings versus existing units?

What specific renewal conditions must be met to qualify for the 2 renewal options, and what does the mandatory refurbishment requirement entail in terms of cost and timeline?

The franchise agreement requires binding arbitration in Suffolk County, New York. Have you experienced any disputes that went through arbitration, and what were the outcomes?

Can you provide the Item 19 financial performance statement showing sales data by unit age, territory type, and franchisee experience level?

Given the 10.0% termination rate, what support systems are in place in the first 2-3 years to help new franchisees reach profitability before potential termination?

Are there any encroachment concerns or examples where the franchisor has added competing units within existing franchisee territories?

What is the typical investment required beyond the $49,500 franchise fee (build-out, equipment, working capital), and how does this affect break-even timelines given the reported sales levels?

Can you detail the personal guarantee requirement and explain circumstances under which it has been enforced against franchisees or their spouses?

Why does the franchise require spouses to execute confidentiality and non-compete agreements even if they are not involved in the business?

What is the minimum liability insurance requirement of $1,000,000, and has the franchisor increased or adjusted this requirement since the franchise began?

How many of the closed units had insurance claims or disputes, and what role did insurance coverage play in franchise disputes?

For the transfer fee of $10,000 plus the renewal fee of $10,000, are these fees charged separately during renewal with transfer, and what approval conditions exist for transfers?

Can you provide examples of franchisees who have successfully renewed their franchises twice (reaching the 20-year potential term) and their current performance metrics?

Given the elevated turnover rate, what is your target unit count and timeline, and how does the current closure rate align with your system growth objectives?