Can you provide detailed financial performance data from Item 19, including median and average unit volumes, and clarify how many franchisees reported this data?
#1
The system has grown from 1 unit to 4 units in one year. What are the criteria and timeline for franchisee recruitment, and are there specific growth targets for the next 3-5 years?
#2
The non-compete restriction is 5 miles—significantly narrower than the typical 10-25 miles for fitness franchises. How does this limited radius protect existing franchisees from direct competition?
#3
With 13 listed non-curable default causes, what specific operational failures would trigger immediate termination without a cure period?
#4
The transfer fee of $17,777 is at the upper end of the typical range. Does this fee cover franchisor approval, due diligence, training for the new owner, or other specific services?
#5
All disputes must be resolved through binding arbitration in Carson City, Nevada. Why was this specific jurisdiction chosen, and what are the typical costs franchisees have incurred for arbitration cases (if any have occurred)?
#6
Personal guarantees and spousal co-signatures are required. Can you clarify the exact circumstances under which spousal signatures would be required, and what liability exposure this creates?
#7
Equipment must be purchased from franchisor-approved suppliers. Can you provide a list of approved vendors and clarify whether pricing is competitive or if minimum/maximum prices are set by the franchisor?
#8
The renewal process requires 8 specified conditions including renovations and modifications. What is the estimated cost and timeline for these renewal renovations, and how frequently are these requirements updated?
#9
Given the franchise is very early-stage (4 units), what support systems are currently in place for franchisees regarding studio operations, member acquisition, and retention?
#10
Can you provide the complete Item 19 disclosure statement, including average unit volumes, startup costs, and ongoing expense breakdowns from existing franchisees?
#11
What is the current status and detailed explanation of the 12 curable default categories—what cure periods apply to each, and have any franchisees required cure notices?
#12
Are there any disputes, complaints, or regulatory actions involving the franchisor or its franchisees that haven't resulted in formal litigation but may be under investigation?
#13
How long has the franchisor been operating company-owned locations, and what are their unit economics compared to franchised units?
#14
The technology fee of $275/month appears separate from the royalty. What specific technology systems does this cover, and are additional technology fees possible in the future?
#15
Can you provide references from all 4 current franchisees, and specifically clarify whether any of them have experienced disputes, performance issues, or considered exiting?
#16
What happens to franchisee obligations (personal guarantee, indemnification) if the franchisor is acquired, changes ownership, or files bankruptcy?
#17
The renewal fee is $7,777. Is this fee applied in addition to any required renovations and modifications, and can you provide an itemized breakdown of what this fee covers?
#18