The transfer fee of $5,000 is significantly lower than the typical range of $10,000-$17,138.50 for fitness franchises. Are there additional costs or conditions associated with unit transfers that are not reflected in this stated fee?
#1
Your total potential contract term of 10 years is notably shorter than the typical 15-20 years for fitness franchises. What is the renewal process after year 10, and what are the terms and conditions for contract extension?
#2
The non-compete radius of 5 miles is below the typical 10-25 mile range. What protections exist to prevent franchisor-approved locations from being established in close proximity to existing units?
#3
Your average gross sales of $873,845 exceeds the typical range for fitness franchises. Can you provide a breakdown of how many units achieved this average, and what percentage of units fall into each sales quartile?
#4
The franchise agreement specifies 10 non-curable defaults. Can you clarify what these 10 non-curable defaults are beyond failure to develop, and provide examples of how they have been applied in practice?
#5
The dispute resolution clause requires binding arbitration in Cuyahoga County, Ohio. Why was this specific jurisdiction chosen, and are there any circumstances under which disputes could be resolved in a franchisee's home state?
#6
With only 4 current units and a system that began in 2022, what marketing and expansion strategies are in place to grow the franchise system, and are there any expansion targets or timelines?
#7
Can you provide detailed financial information for each of the 4 current units, including individual sales figures, profitability, and operational costs to verify the reported averages?
#8
The Contract Terms score of 55 falls below the typical range. Which specific contract terms contribute to this lower score, and are any of these terms negotiable?
#9
Your Investment score of 67 is below the typical range of 73-77. Beyond the stated fees, what are the total estimated startup costs including equipment, build-out, and working capital needed to open a MaxStrength Fitness location?
#10
With a 30-day cure period for non-payment defaults, what specific actions trigger the cure period clock, and what happens if a franchisee makes partial payments during this window?
#11
The franchise agreement includes waiver of jury trial rights and class action participation. Have any franchisees requested modifications to these dispute resolution terms, and is the franchisor open to negotiating these clauses?
#12
Given that the system has zero litigation cases to date, can you explain your legal strategy and any anticipated disputes or claims that led to the inclusion of stringent termination and dispute resolution clauses?
#13
What ongoing support, training, and marketing assistance does MaxStrength Fitness provide to justify the 7% royalty rate compared to competitors in the fitness franchise space?
#14
The system shows 100% unit retention with no terminations or non-renewals. What factors do you believe contribute to this perfect retention rate, and are there any units struggling that may be at risk?
#15
Can you provide the Item 19 financial performance document showing the median and mean sales figures, number of units reporting, and any performance guarantees or disclaimers?
#16