Oxygen Yoga & Fitness

Given the 100% net unit growth in the past year (from 1 to 2 units), what are the franchisor's growth projections for the next 3-5 years, and how many new units are currently in development?

The royalty rate of 8.5% is higher than the typical range of 6.0%-7.5% for fitness franchises. Can you provide a detailed breakdown of what this royalty covers and how it compares to competitor offerings?

The transfer fee of $20,000 exceeds typical ranges. Under what circumstances would a franchisee need to pay this fee, and are there any conditions under which it could be waived or reduced?

Of the 27 termination causes in the agreement, only 4 are curable with specified cure periods. Can you provide the complete list of non-curable defaults and explain the reasoning behind each?

The dispute resolution clause requires binding arbitration in Vancouver, British Columbia. Will the franchisor cover any portion of arbitration costs, and what is the typical cost and timeline for dispute resolution?

Personal guarantees are required from all owners and may include spouse guarantees. Under what circumstances would a spouse be required to guarantee the agreement, and what are the implications?

The $2 million general liability insurance requirement is mandatory. Is this amount fixed or could it increase, and who determines the required coverage limits?

How many franchisees are currently operating in the system, and what is the franchisee retention rate beyond the first 5 years?

The agreement includes mandatory suppliers for 5 categories of products and services. Can you provide the list of these categories and identify the approved suppliers?

What specific remodeling or equipment upgrades are required at renewal, and what is the estimated cost for compliance with renewal conditions?

Since only 2 units currently exist, what support systems and training infrastructure are in place to support future franchisees, and how will these scale?

Can you provide references from the single current franchisee regarding their experience with the franchisor, unit profitability, and actual ongoing costs?

The technology fee of $250 per month is listed as a separate charge. What technology platforms and services does this cover, and can it increase over time?

What is included in the ad fund, and how is it allocated between national marketing, regional promotions, and local franchisee support?

The franchise agreement has a 10-year initial term. Is there any flexibility on term length for early franchisees, or are all franchisees locked into the same 10-year commitment?

Operating hours, days of operation, and pricing are controlled by the franchisor. How much flexibility do franchisees have to adjust these based on local market conditions?

Given the early stage of the system (only 2 units), what is the franchisor's contingency plan if the system does not achieve projected growth targets?

The renewal fee is $10,000. What happens if a franchisee does not meet the 8 specified renewal conditions, and can these conditions be negotiated?