The franchise fee of $75,000 is 38% higher than the typical range for this category. What specific services, training, or initial support justify this premium pricing compared to competitors?
#1
The monthly technology fee of $861 is more than double the typical range. Can you itemize what services and software this fee covers, and are there options to use third-party alternatives?
#2
The ad fund contribution is 4.0%, significantly above the typical 1.0-2.5% range. How is this fund allocated, and what return on marketing investment can franchisees expect?
#3
You initiated 1 litigation case as plaintiff in the past 3 years. Can you provide details about this case, its outcome, and what circumstances led to the franchisor filing suit?
#4
The non-compete restriction extends 75 miles from any Relive location, which is 3 times broader than the typical range. How strictly is this enforced, and what specific business activities does it prohibit beyond anti-aging services?
#5
Transfer rate of 12.5% is nearly double the typical range. What are the primary reasons franchisees are transferring units, and what approval process or conditions apply to transfers?
#6
You provide an Item 19 financial disclosure, but specific sales and performance data are not included in this analysis. Can you provide the average unit volume (AUV), median gross sales, and number of units reporting for the past 3 years?
#7
What is the breakdown of the 11 units that joined in the first year—how many were new development vs. conversions—and what is the current retention rate for those original units?
#8
The system has grown from 11 to 25 units in 3 years with zero terminations. What performance metrics or operational issues trigger termination, and have any franchisees come close to termination without being terminated?
#9
Of the 3 units transferred over the past 3 years, how many were transferred to existing franchisees vs. new operators, and were any transfers triggered by franchisor concerns about the franchisee's performance?
#10
The non-compete covers 'businesses offering anti-aging options including medical spas and wellness centers.' How broadly does this restrict a former franchisee's ability to operate other health or beauty businesses?
#11
Renewal conditions require capital expenditures for renovation and modernization with no specified limits. What is the typical capital expenditure requirement at renewal, and do you provide financing or cost-sharing options?
#12
The agreement includes 16 non-curable defaults without opportunity to remedy. Can you provide examples of these non-curable defaults and the circumstances under which termination would occur immediately?
#13
Personal guarantees are required from all officers, directors, 10% owners, and their spouses. If the franchise fails, are spouse guarantees consistently enforced, and what is the typical exposure?
#14
Relive can establish minimum pricing that franchisees must charge customers. How frequently are minimum prices adjusted, and what flexibility do franchisees have to compete on price in their local markets?
#15
Franchisees must purchase from 6 categories of Relive-approved suppliers, including Relive or its affiliates. What percentage of total operational costs come from mandatory supplier relationships, and what profit margin does Relive earn from these sales?
#16
Disputes must be resolved through binding arbitration at Relive's principal office location rather than the franchisee's location. How have previous disputes been resolved, and what were the typical costs to franchisees?
#17
The 2-year non-compete is among the longest in the category. If a franchisee invests in a 10-year term, what options exist to negotiate a shorter post-term restriction period during renewal?
#18