RockBox Fitness

What specific factors contributed to the sharp increase in unit closures in 2024, where 26 units closed or ceased operations compared to 5 in 2023?

The pending litigation case currently in progress—what is the nature of this case, and has the franchisor disclosed the potential financial or operational impact?

Given that System Health scores only 3/100 compared to the typical range of 50-75, what specific systemic issues does this reflect and what remediation efforts are underway?

Average and median gross sales are substantially below category norms. Can the franchisor provide detailed profitability data showing operating margins and net income for units by age and location?

Of the 13 units that closed in 2024, how many were owner-initiated exits versus units the franchisor declined to renew or helped exit?

The high transfer rate of 18.0% (compared to typical 0.0-5.93%)—does the franchisor facilitate transfers or do most transfers require franchisor approval, and what are the typical terms?

What specific required purchases from approved suppliers in the 10 categories (equipment, apparel, flooring, computer systems, etc.) are mandatory, and what is the typical annual cost for a franchisee?

The franchisor scores 41/100 on Risk Factors, significantly below the typical 58-80 range. What are the primary risk factors driving this low score?

Has the franchisor implemented any changes to unit support, training, or business model following the elevated turnover in 2024, and if so, what are the measurable outcomes?

Can you provide the renewal fee of $10,000—is this in addition to any renovation or facility upgrades required to meet 'maintenance and updating' standards at renewal?

Given the Investment Score of 68 falls below the typical 73-77 range, what is the median payback period for franchisees, and what percentage of open units are profitable?

For the pending litigation case, what is the jurisdictional location, and is this a single franchisee dispute or a class action involving multiple franchisees?

The non-compete clause is 2 years and 15 miles—if a franchisee sells their unit and wants to open a competing fitness studio after 2 years, would the 15-mile radius apply from their original location or the buyer's location?

Regarding personal guarantees and spousal liability clauses, if a franchisee personally guarantees the $59,900 franchise fee and the business closes, can the franchisor pursue personal assets beyond the initial investment?

What is the typical initial ramp-up period before units achieve the median gross sales of $324,164, and how many units failed to reach profitability within 3 years?

The franchisor has discretionary pricing power over approved supplier purchases—are there annual price increase caps, or can the franchisor pass through unlimited cost increases to franchisees?

Of the 61 units operating 1 year ago, what is the status breakdown: how many transferred, how many closed voluntarily, how many were the franchisor's decision to discontinue, and how many remain operational?

Are there specific demographic markets or geographies where RockBox units are performing closer to category averages versus the below-average $324,164 median shown system-wide?

Given that 9 units transferred in 2022, 13 in 2023, and 11 in 2024, what is driving the high transfer activity—is it natural business succession or distressed sales?