The transfer fee of $31,875 is significantly above the typical range for this franchise type. What justifies this elevated transfer fee compared to competitors, and are there circumstances under which it could be waived or reduced?
#1
The technology fee of $889 per month is at the high end of the typical range. What specific technology services and systems does this fee cover, and how is it evaluated for cost competitiveness?
#2
The franchise agreement specifies 25 termination cause provisions, exceeding the typical range. Can you provide a detailed explanation of these 25 causes, and which are most commonly cited in practice?
#3
Given the 5-day cure period for payment defaults and up to 30-day cure for other monetary defaults, what happens if a franchisee is unable to cure within these timeframes? Are extensions or payment plans available?
#4
The post-term non-compete restricts any sports instruction business within 25 miles for 2 years. How strictly is this enforced, and are there any documented cases of enforcement or franchisees challenging this restriction?
#5
The franchise has only 3 units and has shown zero growth over 3 years. What are the expansion goals and timeline for growing the system, and how does this impact franchisee territory protection?
#6
Can you clarify whether the 'protected but not exclusive' territory designation means other SixFour3 franchisees could operate within my territory under certain conditions?
#7
The median gross sales of $445,463 and average of $694,384 show significant variation. What factors explain this range, and what percentage of units fall within each performance bracket?
#8
With no litigation history in 3 years, how is dispute resolution actually handled in practice? Have any disputes been resolved through binding arbitration, and what were the typical outcomes?
#9
The renewal fee is $7,500, and renewal requires completion of 7 specified conditions including remodeling and repairs. What is the estimated total cost for completing renewal requirements, and is this in addition to the $7,500 fee?
#10
Given the potential 20-year commitment (10 initial + 2 renewals of 5 years each), what recourse do franchisees have if system performance declines or franchisor support diminishes after the initial term?
#11
The personal guarantee required from both franchisee and spouse covers all monetary obligations and non-competition covenants. What specific scenarios could trigger enforcement against personal assets?
#12
Can you provide historical data on how many units have actually renewed versus exited when their initial 10-year term concluded, if any terms have expired?
#13
The indemnification clause requires franchisees to hold the franchisor harmless. What types of claims have this indemnification been applied to, and are there any exclusions for franchisor negligence or misconduct?
#14
The binding arbitration clause waives class action and jury trial rights. Are there any exceptions to this arbitration requirement, and what is the typical cost and timeline for arbitration proceedings?
#15
What percentage of current franchisees have completed renewal requirements and renewed their agreements, and what is the typical cost breakdown for completing the 7 renewal conditions?
#16
The Item 19 financial data shows reporting units but no count is provided. How many of the 3 total units submitted financial data for this Item 19, and can franchisees see individual unit performance or only aggregated data?
#17
Territory is 'protected' but the specific geographic boundaries are not detailed. Can you provide a detailed description of what defines my territory and what actions would constitute encroachment by another SixFour3 franchisee?
#18