Stretch Zone

Of the 99 units transferred in 2024, how many were sold to existing franchisees versus new franchise buyers, and what percentage represent multi-unit conversions versus single-unit transactions?

Given the 26.3% annual transfer rate, what is the franchisor's policy on approving unit sales to new franchisees, and what are the most common reasons owners cite for transferring their units?

Can you provide specific details on the 1 litigation case initiated against the franchisor, including the case type, resolution status, and any financial settlements or judgments?

The franchise reports median gross sales of $307,794, which is below the typical range for fitness franchises. What percentage of franchisees achieve the stated minimum performance standard of $240,000 in annual gross revenues?

How does the franchisor support franchisees in achieving profitability, given that reported average gross sales of $328,042 appear modest for a service-based fitness concept? What are typical operating expenses as a percentage of gross sales?

The non-compete clause restricts franchisees from competing within 50 miles of any franchise unit for 2 years post-termination. Is this distance measured as straight-line radius or driving distance, and how is compliance monitored?

Why does the franchise agreement specify 23 separate termination cause categories compared to the typical 15-21 for similar franchises? Can you provide the complete list and explain which causes most frequently trigger terminations?

The contract offers only a 10-year total potential term with no specified renewal options. What is the franchisor's typical renewal rate for franchises reaching term end, and are renewal terms negotiable?

Can you clarify the $100 late charge plus 18% annual interest on overdue franchise payments? What payment issues have triggered these charges in the past 3 years, and how many franchisees have been subject to these penalties?

The agreement requires purchases from authorized suppliers across 8 product categories. Which categories generate the highest volume of franchisee spending, and what margins or rebate arrangements exist?

How many franchisees currently operate multiple units within the system, and what multi-unit discounts or incentives are available?

Given the 35.1% 3-year CAGR in unit growth, what was the franchisee recruitment strategy, and what percentage of new franchisees in the past 2 years have prior fitness industry experience?

The territory is protected but not exclusive. How does the franchisor define territory boundaries, and under what circumstances might additional units be opened within an existing franchisee's protected area?

What is the historical pattern of franchise fee increases since the system's inception, and has the $59,500 current fee changed in the past 3 years?

The $375 monthly technology fee appears separate from the 7% royalty. What specific technology platforms and services does this fee include, and are franchisees contractually required to use the franchisor's systems versus approved alternatives?

Can you provide 3-year trend data on average unit volumes (AUVs) and profitability metrics (EBITDA or net income) broken down by franchisee cohort year to show performance differences across vintages?

Personal guarantees are required from owners holding 20%+ interest with spouse guaranties. Has the franchisor taken action against personal guarantees in any of the past litigation or termination cases?

What cure periods exist for the 23 different termination causes, and does the franchisor provide written notice and opportunity to cure for all causes or only some?

The dispute resolution requires mandatory mediation before binding arbitration. Have franchisees successfully resolved disputes through mediation without proceeding to arbitration, and what are typical dispute timelines and costs?

Why has the system experienced significant growth (153 to 377 units) while maintaining high transfer rates? What data supports whether transferred units maintain similar performance levels to franchisees who retain their original units?