Los Campeones

Given the shorter 5-year initial term compared to the typical 10-year term for fitness franchises, what is the franchisor's rationale for this shorter contract period, and how does this affect long-term planning?

Why does Los Campeones charge no technology fee and no advertising fund contribution when the typical fitness franchise charges $199-$716 monthly and 2.0% for advertising? What technology and marketing support is included in the base royalty?

The non-compete radius of 8 miles is narrower than typical (10-25 miles). Can you clarify what protections exist to prevent franchisor-approved locations from cannibalizing existing franchisee territories within this 8-mile radius?

Transfer fee of $5,000 is significantly below industry standard ($10,000-$17,138.50). Does this lower fee structure indicate easier transfers, and what approval conditions must be met for a unit transfer?

Average unit volumes of $1,000,000 substantially exceed typical fitness franchise volumes ($386,914-$796,352). What are the key factors driving this above-average performance, and is this performance representative across all unit sizes and markets?

With zero litigation cases in the system's history, can you provide details on how many franchisees have been with the system since its inception and whether there have been any informal disputes or complaints resolved outside of litigation?

The franchise agreement requires personal guarantees from all principal owners and potentially their spouses. Under what circumstances would the franchisor enforce these personal guarantees, and are there any limitations or waivers available?

Renewal requires $15,000 in renewal fees plus capital expenditures for remodeling. Can you provide typical remodeling costs and explain what specific upgrades are mandated to qualify for renewal?

The franchisor controls purchasing of products and services with approval rights and price-setting authority. Can you detail which specific products/services are mandated purchases, what the average annual purchasing costs are, and whether competitive bids are permitted?

Since the total potential term is 10 years (5 initial + 5 renewal), what happens if a franchisee wants to continue operating beyond 10 years? Are there options for additional renewals?

The $1,000,000 per occurrence insurance requirement is substantial. Can you confirm whether this is standard liability insurance or if it includes specific coverages (e.g., equipment, members' injuries), and who is named as additional insured?

With 14 current units growing from 7 units 3 years ago, what is the franchisor's target unit growth rate, and what support mechanisms exist to ensure new franchisees achieve the reported average unit volumes of $1,000,000?

Are there any geographic restrictions on where new franchises can be opened, and how does the franchisor determine territory boundaries for exclusive rights?

What specific operational controls does the franchisor exercise regarding staffing, pricing strategies, membership packages, and class schedules beyond the purchase restrictions mentioned?

Can you explain the specific 7 conditions required for renewal eligibility and whether any franchisees have been denied renewal due to non-compliance with these conditions?

The Support & Training score of 81 is slightly below the typical range (82-93). What specific training is provided at unit opening, and what ongoing training and support are available annually to franchisees?

With zero terminations and zero non-renewals historically, are there any franchisees currently operating with performance issues or in breach of agreement terms?

How are disputes between the franchisor and franchisees typically resolved, and does the franchise agreement require binding arbitration or allow for litigation?