The Bar Method

The system declined from 79 units three years ago to 73 currently. Can you explain the primary factors that contributed to the closure of 6 units, particularly the 17 closures in 2021?

What specific circumstances led to the 3 litigation cases filed against the franchisor, and how were these cases resolved or what is their current status?

Median gross sales of $352,656 is below the typical range for fitness franchises. How does this figure compare to break-even point, and what percentage of franchisees achieve above-median sales performance?

The initial term is only 6 years compared to the typical 10 years for fitness franchises. What is the rationale for this shorter term, and how does it affect long-term franchisee planning?

Can you provide detailed information about the 17 units that closed in 2021? Were these primarily market-driven closures or related to franchisee performance issues?

The non-compete radius is 5 miles, which is significantly narrower than the typical 10-25 miles. How does this limited non-compete protection affect franchisee territories post-exit?

With a total potential term of only 11 years versus the typical 15-20 years, how does this impact franchisee ability to recoup initial investment and build equity?

The transfer fee of $7,500 is below typical market rates. Are there any restrictions or conditions on unit transfers that might make this fee artificially low?

Regarding the termination clause with immediate termination for 17 non-curable defaults: what constitutes a 'default' under your agreement, and how frequently do franchisees encounter termination proceedings?

The agreement requires personal guarantees from all owners with spouse guarantees for financial obligations. Can you explain the typical scope of financial exposure under these guarantees?

Can you provide the specific list of approved suppliers across the 8 supplier restriction categories, and what flexibility exists if a franchisee identifies a lower-cost alternative?

Are there any ongoing concerns or patterns related to the 3 litigation cases against the franchisor, and have operational changes been implemented to prevent future disputes?

What percentage of franchisees achieved sales above the median of $352,656 in the most recent reporting year, and what variables correlate with above-median performance?

Given the declining unit count, what growth strategy is the franchisor implementing to reverse the negative 3-year CAGR of -2.6%?

With renewal conditions count of only 4 versus the typical 7-9, what renewal requirements or conditions can franchisees expect, and are these open to negotiation?

How many of the 6 unit net losses in the past 3 years were attributed to non-renewal versus closure, and what is the franchisee satisfaction level among renewals?

The Ongoing Fees score of 64 is slightly above the typical range. Can you itemize all ongoing fees beyond the 6% royalty and 2% ad fund to ensure full cost transparency?