Given the monthly technology fee of $1,074 is significantly higher than the typical range for fitness franchises ($199-$716), what specific technology platforms and services are included, and is this fee subject to annual increases?
#1
Can you provide details on the 4 current franchisees including their operational status, tenure, and geographic locations to understand the stability of this early-stage system?
#2
The non-compete restriction extends 50 miles, double the typical range for fitness franchises. What is the rationale for this extended geographic radius, and how is it enforced?
#3
With only 4 units in the system, how does Hydralive provide support comparable to the 96/100 support & training score, and what is the franchisee-to-support-staff ratio?
#4
The ad fund rate is 1.0% versus 2.0% typical for fitness franchises. How is the lower ad fund allocation used, and are there co-op marketing requirements beyond this fee?
#5
Item 19 shows average gross sales of $557,169, but what is the median sales figure, profitability after all fees, and how many units are reflected in these figures?
#6
Can you clarify the 4 curable and 15 non-curable defaults mentioned in the termination clause, with specific examples of violations that result in immediate termination?
#7
The personal guarantee and spousal consent requirements are noted as standard. Are there any conditions under which these can be waived, particularly for multi-unit operators?
#8
Mandatory binding arbitration at franchisor headquarters in Birmingham, Alabama is required—what are typical dispute resolution costs, and can franchisees appeal arbitration decisions?
#9
With zero litigation cases on record, can you provide context on whether this reflects a young system, strong franchisee relationships, or limited historical data available?
#10
The renewal fee is listed as $0—is this accurate, and if so, what are the conditions for renewal compared to franchises charging renewal fees?
#11
What is the franchisee approval process, training duration, and ongoing support structure given the small current system size?
#12
Are there minimum revenue thresholds or performance standards that trigger termination rights, and how are these measured?
#13
The 2-year non-compete and customer/employee non-solicitation restrictions survive termination—can a franchisee operate a competing fitness business after 2 years within the 50-mile radius?
#14
Given net unit growth is 0 over 3 years, what is the franchisor's unit growth strategy and timeline for expansion?
#15
Are there any undisclosed litigation matters, regulatory complaints, or settlement agreements not reflected in the formal case count?
#16
For the exclusive territory provision, what are the precise geographic boundaries, and how are territory boundaries adjusted if nearby franchisees expand?
#17
What percentage of the $49,500 franchise fee covers initial inventory, training, technology setup, and other specific costs?
#18
Can you provide the Franchise Disclosure Document (Item 20) detailing all financial obligations not captured in the stated fees and rates?
#19
With 0% turnover over 3 years, have any franchisees expressed concerns about profitability, operational challenges, or franchisor support that may not have resulted in formal exits?
#20