The technology fee of $724 monthly exceeds the typical range for fitness franchises. What specific services and software are included in this fee, and is it subject to increase during the contract term?
#1
Your ad fund contribution is 1.0%, significantly lower than the 2.0% typical for fitness franchises. How is the reduced fund allocated, and does this impact the quality or frequency of national marketing support compared to competitors?
#2
Two litigation cases are currently pending against or by the franchisor, exceeding the typical range. Can you provide details about the nature of these cases, the parties involved, and expected resolution timelines?
#3
The system grew 325% in the past year (from 4 to 17 units). What is driving this rapid expansion, and what is your growth projection for the next 3 years?
#4
Can you explain the discrepancy between the very recent founding (1 unit in 2022) and the franchise system's establishment date? How long has OHM Fitness operated company-owned locations before franchising?
#5
Zero units have terminated, been closed, or failed to renew in the system's history. Can you provide names and contact information for several franchisees across different opening years for independent reference checks?
#6
The termination clause permits closure with only 5 days' notice for 19 non-curable defaults. Beyond the listed defaults, what other actions could trigger immediate termination without a cure period?
#7
The renewal conditions require remodeling to then-current standards, but no specific renewal fee is stated. What should a franchisee budget for remodeling costs, and how are renewal terms negotiated?
#8
You restrict CRM software to your own approved system and serve as the sole supplier. Can you provide the annual cost of this software and the contract terms, including any price escalation clauses?
#9
Investment costs score 71, below the typical 73.0-77.0 range. Does the disclosed initial investment match actual franchisee experiences, and what hidden costs have franchisees reported?
#10
The post-termination non-compete is 2 years within 20 miles. How is distance measured (radius from studio address, territory boundaries, etc.), and has this restriction been enforced against former franchisees?
#11
Personal guarantees are required from all owners and spouses for all payment obligations. What recourse do you have if a franchisee defaults, and have personal guarantees been enforced in any disputes?
#12
The franchise agreement allows only 1 renewal option (total 20-year term). What happens after year 20—can franchisees renegotiate, or must they exit the system?
#13
You require approval for materials, vendors, and suppliers in 8 categories. What is the approval process timeline, and what percentage of franchisee requests have been denied in the past 2 years?
#14
Can you provide Item 19 (financial performance representations) or alternative financial data showing average unit volumes, operating costs, and profitability for franchisees by tenure?
#15