Modo Yoga

Given the unit count has declined from 10 to 8 over 3 years, what specific factors does the franchisor attribute to these closures and what support or remediation strategies are being implemented to stabilize the system?

The 12.5% annual turnover rate exceeds typical ranges—can you provide details on the reasons for the 2 unit closures in 2022, 1 in 2023, and 1 in 2024, and specify which were voluntary exits versus franchisor-initiated terminations?

Your Financial Performance score is exceptionally high (90/100) with average unit sales of $1.97 million, but System Health is critically low (7/100). What operational or structural challenges are driving this disconnect?

The royalty rate of 4.5% is 1.5-3 percentage points below typical fitness franchises (6.0-7.5%). How does this lower royalty correlate with the support services you provide, and is there a risk that franchisor revenue limitations could affect support quality?

The technology fee of $750/month is at the upper end of typical ranges. What specific technology systems and services does this fee cover, and has this fee increased since the franchise began?

Your renewal conditions require 11 specified conditions versus the typical 7-9. Can you provide the complete list of renewal conditions and clarify which ones might be difficult or costly for franchisees to meet?

The Territory Score of 60 is significantly below the typical range of 75.0-85.0. While territory is protected, it is not exclusive—can you clarify the exact geographic radius and explain what encroachment scenarios could occur?

With zero litigation cases over 3 years, have there been any disputes with franchisees that were resolved through mediation or arbitration (outside formal litigation), and if so, what were the primary issues?

Your Support & Training score is 100/100, above typical ranges. What specific training programs, ongoing support, and coaching services are included, and how are these delivered given the system's small size (8 units)?

The non-renewal rate is 11.1% (1 unit in 2024). What factors led to this non-renewal, and did the franchisee indicate plans to continue operating independently or exit the industry?

Can you provide audited financial statements or Item 19 performance data showing revenue, expenses, and net profit breakdowns for units at different maturity levels (year 1, 3, 5, etc.)?

Given the decline from 10 to 8 units, what is the franchisor's growth strategy and timeline to expand the system, and what expansion targets have been set for the next 3-5 years?

The franchise agreement specifies cure periods as short as 1 calendar day for trademark violations and 14 days for general non-compliance. Under what circumstances has the franchisor enforced these cure periods, and have any franchisees been terminated for failure to cure?

All disputes proceed to binding arbitration in New York with class action waived. Given the small system size, how practical is New York arbitration for a franchisee located outside that state, and what are typical dispute resolution costs?

The agreement requires personal guarantees from all owners and spouses and mandates indemnification of the franchisor. Can you clarify the specific liability exposure and whether franchisor errors or misconduct are covered under the indemnification clause?

Supply procurement must occur through franchisor-designated suppliers. What is the pricing structure for required supplies, and can franchisees request approval of alternative suppliers if pricing is more favorable?

Why is the initial 10-year term longer than typical for fitness franchises, and are there any negotiation opportunities to reduce this term or include an early opt-out clause?

The transfer fee is $10,000, which may deter sales. Has the franchisor experienced difficulty with franchisee exits due to this fee, and is there flexibility in waiving or reducing this fee under certain circumstances?

With the Investment Score at 67 (below typical 73.0-77.0), what is the total cash required to open a unit including all fees, build-out, equipment, and working capital, and how does this compare to your initial franchise fee disclosures?