Can you provide details on the single unit that closed in 2024? What were the stated reasons for closure, and was there any operational or financial distress involved?
#1
The 1-year turnover rate of 14.3% is significantly above the typical range for fitness franchises. What steps is the franchisor taking to improve unit retention and address this trend?
#2
Item 19 financial disclosure shows bottom quartile sales of $517,660, which exceeds typical ranges. Can you clarify which units are included in this data and whether these represent newly opened locations or mature units?
#3
The contract specifies 25 termination causes—well above the typical range of 15-21. Can you provide a detailed list of these causes and clarify which are curable versus non-curable defaults?
#4
How many of the 25 termination causes qualify as non-curable defaults allowing immediate termination without a cure opportunity? What are the most commonly cited reasons for termination in practice?
#5
The renewal conditions list contains 10 requirements (above the typical 7-9). What capital expenditures or facility upgrades are typically required at renewal, and how does the franchisor determine these?
#6
Technology fees are $150/month, which is below the typical range. Are there additional technology requirements, mandatory software subscriptions, or digital platform fees not captured in this figure?
#7
With a 2-year non-compete within 25 miles and restrictions on soliciting studio members, how does the franchisor enforce these post-termination? Have there been any disputes regarding non-compete enforcement?
#8
The personal guarantee requirement extends to immediate family members and household members. Has this ever been enforced against non-owner household members, and what does the franchisor consider 'household members'?
#9
The franchisor designates suppliers for 8 product categories and reserves pricing control. Which categories are these, and how much flexibility do franchisees have to negotiate pricing or source alternatives?
#10
Can you clarify the difference between the 1-unit closure and the 1-unit 'cease other' event recorded in 2024? What constitutes a 'cease other' exit event?
#11
The franchise shows only 7 current units. How long has the franchise system been operating, and what is the target growth rate for new unit openings?
#12
Are there any territorial disputes or encroachment concerns among existing franchisees, given that territory is protected but not exclusive?
#13
What is the average time to profitability for new Training Mate franchisees, and does the Item 19 disclosure break down financial performance by unit age?
#14
The renewal fee is $10,000. Beyond this fee, what are the typical capital expenditure requirements to renew a franchise agreement, and are these amounts predetermined or subject to franchisor discretion?
#15
Have any franchisees failed to meet renewal conditions or lost renewal eligibility? If so, what were the primary reasons?
#16
The 5-day cure period for payment defaults is relatively short. Has this been enforced strictly, and have any franchisees been terminated during the cure period?
#17
How does the franchisor calculate or define 'capital expenditures deemed necessary by the franchisor' at renewal? Is there a formal capital planning process disclosed to franchisees?
#18
Can you provide historical litigation or dispute data beyond the formal cases tracked—such as arbitration claims, settlement agreements, or regulatory complaints filed with state franchising authorities?
#19
Given the 20-year total potential term, what percentage of original franchisees have successfully renewed at least once, and what are the primary reasons franchisees have not renewed?
#20