I LOVE KICKBOXING

The franchise fee of 24,900 is substantially lower than the typical range of 40,000-60,000 for fitness franchises. What is the justification for this pricing, and are there any additional startup costs or required purchases not reflected in this figure?

Unit count has declined from 84 to 30 units in 3 years (64.3% turnover). Can you provide details on the primary reasons for these closures and terminations, and whether these were operator-initiated exits or franchisor-initiated terminations?

In 2023 alone, 24 franchisees were terminated and 21 units were closed. What specific performance metrics or standards triggered these terminations, and how are these standards communicated to franchisees upfront?

There are 3 litigation cases filed within 3 years with 1 currently pending. Can you provide details on the nature of these cases, their outcomes, and the pending case status and likely timeline?

You initiated 1 lawsuit against a franchisee during this period. What were the circumstances and ultimate outcome of this case, and does it represent a common dispute pattern?

The termination rate of 25.0% is far above the typical range of 0.0-1.68% for fitness franchises. What are the main categories of defaults that lead to termination, and what cure periods are actually provided in practice?

The contract includes 10 renewal conditions, above the typical range of 7-9. Can you specify what these conditions are, how frequently franchisees fail to meet them, and whether the 25% renewal fee (6,225 on a 24,900 initial fee) is a significant barrier to renewal?

The non-compete clause restricts franchisees for 2 years and 10 miles post-termination. Given the high termination rate, how realistic is it for terminated operators to comply with this restriction, and have there been disputes over non-compete enforcement?

You currently serve as the sole approved supplier for gloves, hand wraps, print materials, apparel, and furniture. Can you disclose the markup or pricing on these required purchases, and what percentage of franchisee revenue typically comes from these mandatory vendor relationships?

The transfer fee is 5,000, which is below typical market range. Are there additional unstated costs associated with approving transfers, and how many transfer applications have been denied in the past 3 years?

Support and training score of 81 is below the typical range of 82.0-93.0 for fitness franchises. What specific training and ongoing support gaps might this reflect, and how are these addressed for new franchisees?

Territory is marked as non-exclusive despite having protected status and encroachment protection. Can you clarify the practical difference, and how many other I Love Kickboxing locations could potentially operate within a franchisee's protected area?

The transfer fee of 5,000 is below the typical range of 10,000-17,138.5. Is this a recent reduction, and if so, what prompted the change in fee structure?

With only 1.9% transfer rate and 1.9% non-renewal rate but 25.0% termination rate, the data suggests most exits are franchisor-initiated. What specific metrics are used to determine franchise viability, and at what point does the franchisor intervene?

Item 19 (financial performance data) is not included in the franchise disclosure. Will you provide comparable sales data for current franchisees, and if not, why is this data withheld from prospective franchisees?

The pending litigation case represents 33% of all cases currently active. What is the status, nature, and potential financial exposure of this pending case?

Can you provide a detailed breakdown of the 23 unit closures in 2024—were these voluntary closures by struggling operators, franchisor-initiated closures, or a mix of both?

Given the 44.2% 1-year turnover rate, what is the average franchisee tenure in the system, and what percentage of franchisees successfully operate beyond 5 years?

The liability and indemnification clause requires personal guarantees from all equity holders and spousal guarantees regardless of ownership interest. How many franchisees have faced personal liability claims, and what is the typical exposure?

Can you provide contact information for at least 10 current franchisees and 10 former franchisees (from both voluntary exits and terminations) so I can conduct independent reference checks on system performance and support quality?