Can you provide details on the 3 units that closed in 2024, including their closure reasons, how long they operated, and any commonalities in location or performance metrics?
#1
The franchise fee of $39,950 is below the typical range for fitness franchises—what is included in this fee compared to competitors, and are there additional required upfront investments not reflected in this figure?
#2
Your royalty rate of 8.0% exceeds the typical 6.0-7.5% range for fitness franchises—how does this rate compare to your primary competitors, and is there any path to rate reduction based on performance?
#3
The bottom quartile sales figure of $64,207 is substantially below the typical range—what factors contributed to this performance, and what support does the franchisor provide to underperforming units?
#4
Your non-compete clause specifies only 5 miles, compared to the typical 10-25 mile range—how does this protect franchisees from market saturation, and has the franchisor opened locations within 5 miles of existing units?
#5
Can you explain the wide variance in top quartile ($2.8M) versus bottom quartile ($64K) sales—what are the key performance drivers that distinguish successful from struggling locations?
#6
The agreement identifies 25 termination causes, above the typical range of 15-21—can you provide the complete list and clarify which are considered curable versus non-curable defaults?
#7
Your mandatory minimum revenue requirements are $150,000 year one, $200,000 year two, and $300,000 thereafter—what percentage of franchisees meet these targets, and what consequences apply if units fall short?
#8
The dispute resolution clause requires arbitration in Ada County, Idaho—are there circumstances under which franchisees can pursue litigation in their home state, and what are the typical costs and timelines for arbitration?
#9
Your renewal fee is $20,000 with renovation requirements—on average, how much do franchisees spend on renovations during renewal, and is there flexibility in timing or scope of required updates?
#10
Support and Training scores 79/100, below the typical 82-93 range for fitness franchises—what specific training and ongoing support does the franchisor provide, and how does this compare to competitors?
#11
Territory scores 60/100, significantly below the typical 75-85 range—what specific territory protections or encroachment prevention measures are in place, and have there been disputes over territory violations?
#12
Can you detail which equipment, furniture, fixtures, signage, and supplies must be purchased from franchisor-approved vendors, and what percentage of annual operating costs do these restricted purchases represent?
#13
Personal guarantees are required from all 10%+ owners with potential spouse co-signature—how often does the franchisor actually enforce personal guarantees, and in what scenarios?
#14
What is the historical renewal rate for franchisees reaching the end of their initial 10-year term, and what are the most common reasons franchisees choose not to renew?
#15
Late payment interest is charged at 1.5% monthly—how frequently are late payments assessed, and are there grace periods or payment plan options available?
#16
Item 19 financial performance data shows significant reporting—how many franchisees reported data and over what time period, and are there performance breakdowns by geography or unit age?
#17
The system grew from 11 to 25 units over 3 years while experiencing increased turnover in 2024—what is your target unit growth and how will the franchisor support sustainable expansion versus unit churn?
#18
Given the 8.0% royalty rate plus 2.0% ad fund and $447 technology fee, what is the typical total monthly payment for a unit with $300,000 in annual revenue?
#19
Can you provide references from franchisees who closed in 2024 as well as from top-performing units, so prospective franchisees can understand success factors and closure risks?
#20