What are the specific nature and status of the 6 pending litigation cases against the franchisor, and what is the timeline for resolution?
#1
Can you provide details on the 27 termination causes listed in the franchise agreement and clarify which are considered curable versus non-curable defaults?
#2
The monthly technology fee of $850 is above typical for fitness franchises. What specific services and platforms are included, and is this fee subject to increase?
#3
Why does the franchise fee of $65,000 exceed typical industry range for fitness franchises, and what additional value or services justify this premium?
#4
The royalty rate of 8.0% is above the typical 6.0-7.5% range. How does this rate compare to other pilates or fitness franchises you're aware of?
#5
Given that all disputes must be resolved through binding arbitration in Newport Beach, California, what are the estimated costs franchisees have incurred for dispute resolution?
#6
Can you explain the requirement for personal guarantees from all owners and their spouses, and are there circumstances where this requirement can be waived?
#7
The renewal fee is described as 25% of the then-current franchise fee. If the franchise fee increases, what protections exist for franchisees renewing at higher costs?
#8
What specific refurbishment requirements and costs are mandated as conditions for renewal of the franchise agreement?
#9
The minimum performance standard requires $30,000 in average monthly gross sales. What percentage of current franchisees achieve this threshold, and what happens if a franchisee falls below it?
#10
The late payment interest rate of 18% annually compounded daily is significantly higher than typical commercial rates. Is this rate negotiable or standardized across all franchisees?
#11
How many of the 6 pending litigation cases involve franchisee disputes versus other types of claims (e.g., employment, trademark, supplier)?
#12
Can you provide historical data on why previous litigation cases were filed against the franchisor and their outcomes?
#13
What is the franchisor's policy on supplier approvals, and can franchisees request approval of alternative suppliers not on the approved list?
#14
How are advertising cooperative contributions calculated, and what approval authority do franchisees have over advertising fund usage?
#15
Given the territory is protected but not exclusive, what specific encroachment protection measures exist if the franchisor opens a company-owned location nearby?
#16
What training and ongoing support justify the Support & Training score of 98/100, and how does this compare to pre-franchise and ongoing support commitments?
#17
Can you clarify why the Risk Factors score of 48/100 falls below the typical range, and what specific risk areas this reflects?
#18
Over the 3-year period with zero exits, have any franchisees requested early termination or expressed interest in selling, and how were these situations handled?
#19
What is the franchisor's average response time to franchisee support requests, and what support channels are available outside standard business hours?
#20