The franchise fee of $79,500 is 43% higher than the typical range for sports & recreation franchises ($39,500-$55,000). What specific inclusions or advantages justify this premium pricing?
#1
The transfer fee of $39,750 is more than double the typical range ($8,937.50-$18,437.50). How does this fee compare to the franchise fee itself, and what services are included in the transfer process?
#2
Given the Investment Costs score of 18/100 (well below the typical 75/100), what are the total startup costs beyond the franchise fee, and how are these costs allocated?
#3
The system has only 14 units total. How long has the franchise been operational, and what growth targets does the franchisor project for the next 3-5 years?
#4
No litigation has been filed in 3 years, but can you provide the complete litigation history since the franchise was established?
#5
What are the specific conditions under the renewal requirements that franchisees must meet to renew their agreement, beyond the 180-day notice requirement?
#6
The non-compete clause restricts activity for 2 years within 25 miles post-termination. If a location closes voluntarily, does this same restriction apply?
#7
All disputes are subject to binding arbitration in Bergen County, New Jersey. Will the franchisor cover arbitration costs, and who bears these expenses in the event of a dispute?
#8
Personal guarantees are required from all owners and spouses. Are there circumstances where this requirement can be waived or modified?
#9
Median gross sales are $966,828 and average sales are $1,154,619. How many units reported this data, what is the sales range across reporting units, and what year does this data cover?
#10
The Support & Training score is 95/100, notably above the typical 79-93 range. What specific training and ongoing support does the franchisor provide, and how frequently is support available?
#11
The Territory score is 100/100, indicating full exclusivity protection. Can you provide specific examples of how encroachment has been prevented or enforced for existing franchisees?
#12
Of the 2 units added in the past year, were these new franchises or transferred units, and what was the performance of these new locations in their first year?
#13
The franchise has operated at 12 units for 2 years (2022-2023) before growing to 14. What changed to drive the growth in 2024, and were there any franchisee departures not reflected in the exit data?
#14
Item 19 financial data is provided. Are there any material restrictions on how franchisees can use or disclose this information?
#15
The renewal fee of $19,875 appears to be 25% of the original franchise fee. Is this standard for both the first and second renewals, and does it increase if renewed after expiration?
#16
What happens to franchisee operations if renewal negotiations stall during the 180-day notice period?
#17
The class action waiver is included in dispute resolution terms. Have there been any multi-unit disputes or industry-wide issues that would have triggered class action considerations?
#18
How many franchisees are currently operating at the median sales level of $966,828, and how many are above or below this threshold?
#19