Special Strong

The termination rate of 10.0% is 5-6 times higher than the typical range for fitness franchises. Can you provide details on the specific violations or circumstances that led to the termination of the franchisee in 2023 and 2024?

Royalty rates at 8.0% exceed the typical range of 6.0-7.5% for fitness franchises. What specific services, technology, or support justify the higher royalty rate compared to competitors?

Average gross sales of $174,380 are less than half the typical range for fitness franchises. Are there specific market segments, unit types (e.g., co-branded locations), or business models that explain this lower revenue performance?

The transfer rate of 12.5% is more than double the typical range. What percentage of transfers involve existing franchisees acquiring additional units versus entirely new owners taking over locations?

Can you explain why the termination causes count of 13 is below the typical range of 15-21? Does this reflect a shorter franchise agreement, fewer specific breach categories, or a different approach to contract structure?

Have there been any disputes or arbitration cases involving current or former franchisees that were not formally litigated, given the mandatory arbitration clause in the franchise agreement?

What is the typical timeline and financial requirement for a franchisee to renew their franchise after the initial 10-year term?

Regarding the required purchases from franchisor or designated suppliers across 5 product/service categories, what is the estimated range of ongoing supply costs as a percentage of revenue?

Can you provide contact information for at least 5 franchisees who have exited the system in the past 2 years, particularly those who were terminated, and explain the franchise agreement's restrictions on discussions with departing franchisees?

The non-compete clause restricts former franchisees from operating health and fitness services within 20 miles for 2 years. Has the franchisor ever enforced this clause, and if so, what was the outcome?

What specific personal guarantee obligations do spouses and training attendees assume, and what circumstances would trigger franchisor enforcement against these individuals?

Given the small unit base (10 units), how does the franchisor ensure consistency and profitability across locations, and what support systems are in place for underperforming units?

What are the specific grounds under the 13 termination causes in the franchise agreement, and do any differ from standard fitness franchise termination provisions?

The encroachment protection clause covers territory protection. Have there been any disputes or franchisee complaints about encroachment within protected territories in the past 3 years?

Can you clarify the financial Item 19 performance data: Are all 10 current units included in the average sales figure of $174,380, and does this represent gross revenue or net profit?

What is the franchisor's policy for assisting or allowing franchisees to exit the system (e.g., facilitating sales, buybacks, or early termination) if they underperform financially?

The binding arbitration clause requires individual arbitration with class action waiver. Are franchisees required to cover arbitration costs, and what is the typical cost of arbitration proceedings in disputes between the franchisor and franchisees?

Has the franchisor ever amended the technology fee, royalty rate, or other ongoing fee structure since the franchise was first offered, and what is the process for future fee adjustments?

Regarding operational control and mandatory supplier relationships, what recourse do franchisees have if franchisor-designated suppliers fail to meet quality standards or if pricing becomes uncompetitive?

Can you provide historical data on franchisee profitability by unit age, location type, and market size to help prospective franchisees forecast realistic financial performance?