MassageLuXe

What are the details and current status of the 4 pending litigation cases, and which parties initiated the 2 cases where the franchisor was plaintiff?

The ad fund rate of 3.5% is above typical for this category. How is this fund used, what is the process for fund allocation, and can franchisees request accounting or approve expenditures?

Why does the transfer fee of $21,250 exceed the typical range for health & beauty franchises, and is this fee negotiable or fixed?

The technology fee of $150/month is notably lower than the typical range. What services and software are included, and how often do these services change or increase in cost?

With 13 of 17 default provisions being non-curable, can you explain which defaults allow the 7 or 30-day cure period and which are immediately grounds for termination?

The non-compete clause restricts any business deriving more than 10% of gross revenue from massage services. How is this threshold monitored and enforced post-termination?

All disputes must be resolved through binding arbitration in St. Louis, Missouri. What are the typical arbitration costs, and has this clause resulted in disputes being difficult or expensive to resolve?

Can you provide the names and contact information for franchisees who have transferred their units in 2023 and 2024 so I can understand their reasons for selling?

The renewal fee equals 25% of the then-current franchise fee. If the franchise fee increases substantially over 10 years, could the renewal fee become prohibitively expensive for existing franchisees?

What are the 8 renewal conditions, and do any involve facility upgrades, retraining, or technology investments that could be costly?

The franchisor reserves the right to set prices for services. What constraints, if any, exist on price increases, and have there been significant price changes in recent years?

Personal guarantees are required from all entity owners and spouses without limitation. Has the franchisor pursued personal guarantees against franchisees or their spouses in any litigation cases?

Can you explain the single closure in 2022 and confirm whether it was voluntary or franchisor-initiated?

What percentage of the 16 unit transfers in 2023-2024 involved existing franchisees upgrading to larger locations versus selling their units entirely?

The financial performance score of 71/100 exceeds the typical range. Can you provide the specific metrics driving this high score and explain the Item 19 data in detail?

Investment costs score 60/100, below the typical range. What is the typical total investment required beyond the $42,500 franchise fee, including equipment, buildout, and working capital?

Are there any restrictions on franchisees' ability to operate multiple units, and what is the process and cost for expansion within the same territory?

The mediation and arbitration clause requires disputes to be handled outside of court. In the 4 pending cases, how many have proceeded through mediation versus arbitration?

What supplier discounts or rebates does the franchisor receive from designated suppliers, and are these rebates shared with franchisees or retained by the franchisor?

Can you provide historical data showing how many franchisees have not renewed at the end of their 10-year term, and what were their stated reasons?