The Vital Stretch

The system grew from 2 units to 6 units in one year (200% growth). What was the specific timeline and market conditions driving this rapid expansion, and do you project similar growth rates going forward?

Median gross sales of $75,595 and average sales of $348,936 are significantly below the typical range for fitness franchises. Can you explain the wide variance between median and average, and provide details on which units are performing at higher sales levels?

One unit closure occurred in 2023 with a notation of 'ceased other' rather than termination or voluntary exit. What were the circumstances surrounding this closure, and what support was provided to that franchisee?

The system is currently only 6 units with no litigation history. How many franchisees have you worked with long-term, and what percentage have completed at least one renewal term?

The renewal conditions require compliance with 9 specific conditions and bring premises to 'current image standards' with no cost cap mentioned. What are typical renovation costs required at renewal, and who bears this expense?

The franchise agreement includes a $500 monthly minimum royalty beginning in month 13. For a location with median sales of $75,595 annually, what percentage of gross revenue would this minimum represent in underperforming locations?

Late payments carry 18% annual interest. In the system's history, how many franchisees have incurred late payment penalties, and what was the average amount collected?

Personal guarantees are required from all shareholders, partners, or members, and spouses must execute non-compete agreements. How many franchisees have involved spouses, and have you enforced the spousal non-compete provisions?

All disputes must be resolved through binding arbitration in Norwalk, Connecticut with class action waivers. Has this provision been tested, and what disputes have been arbitrated under this clause?

The territory is exclusive, but encroachment protection is listed as 'false.' What does this mean practically—can the franchisor open competing locations near existing franchisees?

Franchisees must purchase from approved suppliers in 4 categories including management systems and equipment. Which suppliers are approved, what are typical costs, and what is the franchisor's financial relationship with these suppliers?

The top quartile sales of $101,063 are substantially lower than the bottom quartile typical range for this type of franchise ($193,912.5-$515,116.0). What operational or market factors explain this significant underperformance?

Item 19 (Financial Performance Representations) is included in the disclosure. Are the sales figures provided based on all franchisees or a subset, and what percentage of units met or exceeded the median sales figure?

The transfer fee is $10,000. In the early system history, how many transfer requests have been submitted, approved, or denied, and what criteria does the franchisor use to evaluate transfers?

Two renewal options provide a potential 20-year total term. What percentage of franchisees in the system are eligible for renewal in the next 2-3 years, and what percentage do you expect will renew versus exit?

The non-compete covers 'assisted stretching, personal training, infra-red sauna' and extends 2 years and 20 miles. Are there any carve-outs or exceptions for franchisees who comply with all obligations, and how has this been enforced?

Units reported zero terminations and zero non-renewals. Does this reflect the very early stage of the system (6 units), or do you have longer-standing franchisees? What is the oldest operating unit and when did it open?