Hi-Five Sports Club / Hi-Five Sports Zone

Can you provide details about the 2 units closed and 2 units terminated in 2024, including the specific reasons cited for each exit?

The system declined from 17 to 12 units over 3 years with a particularly severe closure event in 2022. What operational or market changes triggered the 2022 closures and terminations?

What support and training improvements have been made to address the 14.3% termination rate, which is significantly above the typical 0% for this franchise category?

Given the 16.7% turnover rate in the past year, what is the current status of the remaining 12 units and have any additional closures or terminations occurred in 2025?

The franchise fee of $15,900 is substantially lower than the category average of $39,500-$55,000. Does this lower fee correlate with reduced support, training, or ongoing services compared to competitors?

Can you explain the technical justification for the $155 monthly technology fee and what specific systems or services it covers?

What are the specific financial performance metrics (average and median sales) for franchises that completed the 2024 fiscal year, and are these figures verified by Item 19?

The bottom quartile performing units are generating $54,435 in sales, well below the category average. What assistance does the franchisor provide to underperforming locations?

With a 3-year CAGR of -10.96%, how does the franchisor project future growth, and what is the rationale for new franchisee recruitment given the system contraction?

The renewal clause requires facility upgrades to current system standards. Can you provide a detailed estimate of typical upgrade costs franchisees face during renewal negotiations?

The dispute resolution clause mandates arbitration in Palm Beach County, Florida. What is the cost structure for arbitration, and how frequently have disputes required resolution under this mechanism?

Personal guarantees are required from guarantors and spouses under certain conditions. Under what specific circumstances would the franchisor require a spouse guarantee?

Have any franchisees experienced system terminations due to failure to meet the 7 renewal conditions, and what guidance does the franchisor provide to prevent non-renewal?

Given the 14.3% termination rate and exclusive territory protection, what specific performance metrics or milestones determine whether a franchisee is at risk of termination?

The transfer fee is $10,000. Is this fee applied regardless of transfer circumstances, and can transfers be denied by the franchisor?

Item 19 financial data is available. Can you provide certified sales figures from operating units with at least 12 months of operation, broken down by unit opening date?

What is included in the ongoing 8.5% royalty versus the $155 technology fee, and are there any other recurring fees not listed (e.g., insurance, marketing, equipment)?

How many of the 3 terminations in 2022 and 1 in 2023 were due to franchisee breach versus franchisor-initiated decisions?

The system health score is 0/100, well below the typical 50-75 range. What specific operational or financial metrics led to this score, and what corrective actions are planned?

Are there any pending or recently resolved disputes, complaints filed with state franchise regulatory agencies, or FTC inquiries that are not reflected in the litigation data?