StretchMed

Can you provide details on the 2 litigation cases filed within the past 3 years, including the nature of disputes, parties involved (since franchisor was neither plaintiff nor defendant), and outcomes?

Financial performance data shows average gross sales of $310,242, significantly below the typical range of $386,914-$796,352 for this category. What factors contribute to this variance, and what are realistic sales expectations for new franchisees?

Why is the transfer fee set at $24,750, which is approximately 44% higher than the typical range for this franchise category, and is this fee negotiable?

The non-compete restriction is limited to 8 miles, which is substantially shorter than the typical 10-25 mile range. How does this shorter radius protect franchisees from direct competition post-exit?

Your contract specifies 30 termination causes, nearly double the typical 15-21 found in comparable franchises. Can you explain which specific causes are most commonly invoked, and provide examples?

The renewal fee is $24,750, which equals 50% of the current franchise fee. Can you clarify whether this fee increases with inflation or franchisor fee adjustments at renewal?

During 2022-2023, 6 units ceased operations or closed (3 in 2022, 1 in 2023). Were these voluntary closures, franchisor-initiated, or due to specific market conditions, and have underlying issues been addressed?

Your system has grown 82.35% year-over-year with a 72.88% 3-year CAGR. Is this growth rate sustainable, and what is your projection for unit growth over the next 3-5 years?

The franchise requires exclusive purchases of 8 categories of items (stretch trainers, tables, uniforms, marketing materials) from franchisor or specified vendors. Can you provide a detailed cost breakdown of these mandatory purchases and whether pricing is competitively benchmarked?

What specific training and ongoing support justify the Support & Training score of 81, particularly given it falls below the typical range of 82-93 for this category?

The contract allows for a 72-hour cure period for health, safety, or sanitation violations versus 10-30 days for other defaults. What specific violations would trigger this shortened cure window, and what are examples of enforcement?

As a franchisee, what indemnification obligations would I personally guarantee, and are there caps or insurance requirements to manage liability exposure?

Can you clarify the 9 specified conditions required for renewal at years 10 and 15, and what percentage of franchisees have successfully renewed versus exited?

With exclusive territory protection, how does StretchMed define and enforce territory boundaries, and what happens if demographic changes or competitor activity make a territory less viable?

The median sales figure of $263,392 represents significant variance even within your current system. What explains the performance spread, and what support is provided to underperforming units?

Are there any pending or recent regulatory investigations, particularly related to health and safety standards for stretch services or franchisee compliance?

What is your process for approving or denying renewal applications, and have any franchisees been denied renewal in the past 5 years?

How much working capital should a new franchisee have beyond the initial investment to sustain operations during ramp-up, given the lower-than-typical sales figures reported?