What is the current status and progress of the one pending litigation case initiated by the franchisor, and what are the underlying claims?
#1
Why is the monthly technology fee of $1,000 significantly higher than the typical range of $199-$716.25 for fitness franchises, and what specific services and technology does this cover?
#2
Can you provide detailed justification for the transfer fee of $25,000, which exceeds the typical range for fitness franchises by approximately 45%?
#3
Why was the initial franchise term set at 5 years when the typical standard for fitness franchises is 10 years, and does this shorter term affect renewal conditions or franchisor support commitments?
#4
The non-compete radius of 6 miles is substantially narrower than the typical 10-25 mile range—what was the rationale for this shorter distance, and does it provide adequate protection for franchisees?
#5
Given that the franchise currently has 0 units, how long has True Movement been actively franchising, and what is the timeline for unit development?
#6
With 14 termination causes listed in the contract (below the typical 15-21 range), which specific causes are included, and what are the consequences and notice periods for each?
#7
The renewal conditions require refurbishing and remodeling 'as reasonably required by the Franchisor'—what specific standards or costs should a franchisee expect during renewal negotiations?
#8
Personal guarantees are required from all equity holders—are these guarantees limited to the initial franchise term, or do they extend through renewals and beyond the franchise relationship?
#9
Equipment and furnishings must be purchased exclusively from the franchisor or approved suppliers—what is the markup range on these products compared to market rates?
#10
The contract mandates binding arbitration in Wilmington, Delaware—what are the typical costs associated with this dispute resolution process, and are those costs borne by the franchisee?
#11
What encroachment protections are specifically guaranteed, and are there exceptions or circumstances where the franchisor can authorize competing units within the protected territory?
#12
Can you provide the specific conditions and financial requirements for exercising each of the two 5-year renewal options beyond the initial term?
#13
Since this is a fitness franchise with 0 current units, what is the franchisor's track record in other business ventures or franchise systems?
#14
Are there any performance benchmarks or unit profitability requirements tied to renewal eligibility?
#15
What happens to the non-compete obligation if a franchisee sells their unit but the buyer is not approved—does the original franchisee remain bound?
#16
How does the franchisor define 'similar businesses' in the non-compete clause to determine what constitutes a competing fitness and physical rehabilitation business?
#17