Restore Hyper Wellness

What specific circumstances led to the 2 pending litigation cases against the franchisor, and what is the timeline for resolution?

Can you explain the significant increase in unit closures from 0 in 2022 to 19 in 2023 to 29 in 2024, and what factors contributed to this trend?

Of the 29 units that closed in 2024, how many were performing below the bottom quartile sales figure of $554,427, and were any owners provided exit counseling or assistance?

Given the 13.1% 1-year turnover rate exceeds the typical range for wellness franchises, what retention strategies are in place to address this issue?

The minimum monthly royalty is $3,500 regardless of sales performance—how many units in 2023-2024 were unable to meet this threshold and subsequently closed?

Can you provide itemized details on the 2 pending litigation cases, including the nature of claims, parties involved, and expected resolution dates?

What support programs or operational changes has the franchisor implemented in response to the elevated closure rates in 2023-2024?

Why does the system's average gross sales of $911,516 significantly exceed the typical range for fitness franchises, and how representative is this of typical franchisee performance?

The non-compete radius of 5 miles is substantially narrower than the typical 10-25 miles—what geographic expansion restrictions apply to terminated or closed franchisees?

How is the $3,500 minimum monthly royalty adjusted or waived for underperforming locations, and what process exists for franchisees facing consistent losses?

What are the specific 7 renewal conditions referenced in the renewal clause, and how frequently do franchisees fail to meet these conditions?

Has the franchisor conducted exit interviews with the 29 owners who closed in 2024 to identify systemic issues versus unit-specific problems?

The binding arbitration clause requires disputes be resolved in Texas—what percentage of franchisees are located outside Texas, and what are the practical cost implications?

Given the 2 pending cases and elevated turnover, what insurance or indemnification requirements protect franchisees from franchisor-related claims?

Why does System Health score 37, well below the typical range of 50-75? What specific operational metrics are driving this low score?

Can you clarify which equipment has exclusive supplier requirements, what alternatives exist, and what are typical markup costs on required purchases?

Of the 221 current units, how many are in their initial 10-year term versus renewal periods, and what is the renewal rate (percentage that renew versus exit)?

What remedies are available if the franchisor fails to maintain the promised support and training services scored at 100/100?