Heights Wellness Retreat

What specifically triggered the 3 litigation cases in the past 3 years, and what were the outcomes or current status of each case?

Can you explain the unusually high transfer rate of 13.7% annually? Are these unit sales to new franchisees, and what percentage involve owners exiting the system versus transferring to new operators?

Why has the system declined by 7 units over 3 years despite what appears to be strong sales performance (median $935,940)? What factors are driving existing franchisees to transfer or exit?

The technology fee of $650 monthly is substantially above the typical range for this franchise type. What specific technology services and platforms are included, and is this fee fixed or subject to increases?

Your ad fund rate of 3.0% exceeds typical ranges. How is this fund allocated, what transparency exists for fund usage, and can franchisees audit or challenge how their contributions are spent?

Can you clarify what the 25 termination causes referenced in the agreement include? Which causes are non-curable and trigger immediate termination?

The renewal conditions mention a 25% renewal fee of the then-current franchise fee. Can you provide examples of how renewal fees have changed at existing locations over the past 10 years?

What are the specific health, safety, and sanitation law violations referenced in the termination clause that allow only 3 days to cure? How does the franchisor determine compliance?

Given that the franchisor initiated 1 litigation case, what was the nature of that case and which franchisee or unit was involved?

The bottom quartile franchisees are generating nearly $700,000 in gross sales. What do the top quartile units generate, and what is the primary driver of the sales performance differential?

Your agreement requires purchasing all products, services, equipment, and software from designated or approved suppliers. Can you provide a list of required suppliers and detail the pricing terms, volume discounts, and cost markup percentages?

The non-compete clause restricts activity within 15 miles of any franchised business for 2 years post-termination. How many active franchisees are currently within 15 miles of each other, and how does the franchisor handle potential conflicts?

Can you provide the specific Item 19 financial performance data showing sales ranges for top, median, and bottom quartile performers, and how many units reported data for the most recent disclosure year?

What support and training services justify the 100/100 score for Support & Training? Can you detail the initial training duration, ongoing training frequency, and dedicated support resources available to franchisees?

Two franchisors initiated actions against the franchisor resulted in the past 3 years. Were any of these cases related to franchise agreement disputes, support/service failures, or other operational issues?

The agreement includes personal guarantees from all direct and indirect owners and requires spouse liability. Can you clarify what spouse liability documentation is required and whether spouses can be held personally accountable post-termination?

What is the basis for having 25 termination causes when typical franchises in this category have 15-21 causes? Are most of these related to performance metrics, compliance, or franchisor discretion?

Can you provide detail on the 3 'Ceased Other' exits documented in 2023 and 2024? What circumstances led to these exits?

The operational control clause allows the franchisor to set minimum and maximum prices for products/services. How much pricing authority do franchisees retain, and are there examples of franchisor price mandates?

Given the high transfer rate of 14 units in 2024, what is the average tenure of franchisees who transferred out, and did they report reasons for transferring or exiting the system?