Project Function

The royalty rate of 15% is significantly higher than the typical range of 6.0-7.5% for fitness franchises. What specific services, support, or benefits justify this higher royalty rate?

Your technology fee of $100 monthly is substantially lower than the typical range of $199-$716. What technology systems and digital tools are included in this fee, and are there additional technology costs not listed?

The transfer fee of $30,000 exceeds typical range by approximately 75%. How does this fee compare to the initial franchise fee of $40,000, and what is included in the transfer process that justifies this cost?

With only 1 unit currently operating, how long has the franchise system been actively franchising, and what is your growth trajectory for the next 3-5 years?

The non-compete restriction of 1 year / 10 miles is shorter than the typical 2 years for fitness franchises. Why did you choose a shorter non-compete period, and how does this protect the franchisor's interests?

Can you provide examples of franchisees who have successfully renewed their agreements, and what percentage of franchisees have renewed since the system's inception?

The franchise agreement requires binding arbitration with waived jury trial rights. Under what circumstances would a franchisee dispute be most likely to arise, and what is the typical cost and timeline for arbitration?

What are the 13 non-curable defaults listed in the franchise agreement, and how frequently have any of these defaults occurred among your existing or former franchisees?

The post-term non-compete restricts franchisees from operating strength/fitness training services for 18 months within 10 miles. How is compliance monitored, and have there been any violations?

Personal guaranties are required from all principal owners, and spouses may be required to guarantee. What percentage of franchisees are required to obtain spouse guaranties, and under what specific conditions?

What are the 7 renewal conditions franchisees must satisfy, and have any franchisees failed to meet these conditions in the past?

The renewal fee equals 10% of the then-current initial franchise fee. If the initial franchise fee increases to $50,000, would the renewal fee be $5,000, and how frequently do you adjust the initial franchise fee?

You maintain control through 4 categories of supplier restrictions. Can you detail which suppliers are approved, what percentage of operating costs typically goes to approved suppliers, and are there volume discounts available?

Cure periods range from 3 days for health code violations to 30 days for other defaults. How do you define and enforce health code violations, and what appeals process exists if a franchisee disputes the violation?

With zero litigation cases to date, is this because the system is very new, or have there been disputes resolved outside of formal litigation that we should understand?

What does 'operational control' entail beyond supplier restrictions, including pricing, staffing, scheduling, and facility modifications?

Can you provide the Item 19 financial performance data or explain why it is not being disclosed, and what average unit volumes are franchisees achieving?

What training and ongoing support does the Support & Training score of 95 (above typical range) represent, and how many hours of initial training and ongoing support are provided annually?