SWTHZ

Can you provide details on the 2 litigation cases initiated against the franchisor and the nature of the pending case? What were the outcomes or expected resolutions?

The technology fee of $1,250 per month is significantly higher than the typical range for fitness franchises. What specific services and technology platforms does this fee cover, and how is it calculated or adjusted annually?

Your royalty rate of 8.0% and ad fund rate of 3.0% combined equal 11.0%, which is above typical for this category. Can you break down how these funds are allocated and provide examples of marketing campaigns or services funded by the ad fund?

The transfer fee of $22,500 equals 50% of the initial franchise fee. What does this transfer fee include, and are there circumstances where it could be negotiated or waived?

The system grew 164% in the past year (23 new units). What is driving this rapid growth, and do you have forecasts for the next 2-3 years?

Item 19 financial performance data is provided. Can you share the median and average unit volumes, along with the number and percentage of units that reported these figures?

What are the 8 specific conditions franchisees must meet to qualify for renewal? Are there renewal fee increases beyond the $22,500 stated, and can you provide an example of franchise costs over a 20-year period?

The franchise agreement contains 14 non-curable defaults. Can you list these and explain what constitutes each non-curable default that could result in immediate termination without opportunity to cure?

All disputes must be resolved through binding arbitration in Atlanta, Georgia. How often has arbitration been used, and what were the typical costs to franchisees for dispute resolution?

Personal guarantees are required from all owners with 10% or greater ownership. Does this guarantee remain in effect after franchise termination or expiration, and for how long?

You control 3 supplier categories through affiliated companies. What are these categories, what is the annual revenue impact on franchisees, and how are affiliated supplier prices set or approved?

Late payment interest is 2% per month (24% annually). What is the payment schedule, and how frequently do franchisees incur late fees?

With zero terminations and zero non-renewals to date, can you provide examples of how disagreements between franchisees and the franchisor have been resolved?

Are there minimum sales performance requirements or benchmarks that franchisees are expected to meet, even if they don't trigger termination?

How many of the current 37 units are company-owned versus franchisee-owned, and what percentage does each represent?

The system has grown from 12 to 37 units in 3 years. How many units were added through new franchise sales versus acquisitions or transfers, and how many franchisees from the original cohort remain active?

What is the average unit volume (AUV) by unit age? Provide data for units open 1 year, 2 years, 3 years, and longer to understand profitability trajectory.

The non-compete clause is 2 years and 10 miles. Has the franchisor enforced this clause against departing franchisees, and are there examples of litigation related to non-compete violations?

What ongoing training, support, and technology updates are included as part of the $1,250 monthly technology fee, and what are the costs if a franchisee chooses not to participate?

Can you provide references from at least 5-10 franchisees who have owned units for 2+ years, including contact information for independent verification of their experiences?