Spavia International, LLC

The Franchise Fee of $59,500 is approximately 10-15% higher than the typical range for Health & Beauty franchises. What specific services, training, or assets does this higher fee include compared to competitors?

The monthly Technology Fee of $650 is significantly higher than the typical $165-$428 range. What technology systems and services are included, and are there any options to reduce or eliminate this fee?

Your Investment Costs score of 60 falls below the typical range for this category. Can you provide a detailed breakdown of total initial investment required, including working capital, to set realistic expectations?

Your Support & Training score of 75 is below the typical 81-96 range for Health & Beauty franchises. What specific support and training services are provided, and how do they compare to competitors in terms of duration and scope?

The Median Gross Sales of $1,049,180 and Bottom Quartile Sales of $719,479 are both significantly higher than typical for this category. Can you explain what factors drive this strong financial performance and whether these results are typical or outliers?

The Non-Compete radius of 40 miles is significantly broader than the typical 5.75-25 mile range. How is this 40-mile restriction enforced, and what specific activities are prohibited during the 2-year post-termination period?

The total potential contract term of 30 years (initial 10 + two 10-year renewals) is substantially longer than the typical 15.5-20 years. What are the specific renewal conditions, and are there any circumstances under which renewal might be denied?

Renewal Fee is $10,000 with 7 renewal conditions including complete remodeling and modernization. What is the estimated cost of complying with all modernization requirements before renewal, and are these costs in addition to the renewal fee?

Minimum performance requirements escalate from $20,000 monthly in year one to $30,000 monthly by year three. What happens if a franchisee fails to meet these minimums, and are there any grace periods or support provided to help achieve these targets?

Late fees are charged at 1.5% per month (18% annually) on overdue amounts. Under what circumstances would late fees apply, and can you provide examples of what triggers this penalty?

Personal guarantees are required from all owners and their spouses for all franchise agreement obligations. How broad is the indemnification scope, and what types of losses and claims are covered?

The franchisor controls 8 categories of suppliers including computer systems, signage, equipment, and services. Does the franchisor receive any rebates, commissions, or revenue sharing from these mandated suppliers, and if so, how are these amounts calculated?

The system has had zero closures, zero terminations, and zero non-renewals in the past 3 years. Can you identify any franchisees who have left the system and explain the reasons for their departure?

With 59 current units, what is the target growth rate for the franchise system, and what is your marketing strategy to attract new franchisees?

The Franchise Agreement requires exclusive territory with encroachment protection. How are territories defined (by geography, demographics, population, etc.), and what recourse do franchisees have if the franchisor encroaches on their territory?

Item 19 financial performance data is available. Can you clarify what percentage of the 59 units submitted this data, and whether the reported sales figures are gross revenue, net revenue, or EBITDA?

Your operational control includes reserving rights to modify operations and change business systems. What is the process and frequency of operational changes, and are franchisees required to bear the costs of implementing these changes?

Mandatory advertising is required beyond the 1.0% Ad Fund Rate. What is the required minimum monthly local advertising spend, and how is this spend monitored and verified?

Has the franchisor ever modified the franchise agreement terms (including fees, territory, or restrictions) for existing franchisees, and if so, what was the process for notification and renegotiation?

The 10-year initial term is longer than typical. What are the primary reasons for choosing this term length, and are shorter initial term options available for franchisees?