UFC GYM

The system has declined from 85 units to 69 units over 3 years with termination rates of 12.2% annually. What specific operational or financial metrics trigger franchisor terminations, and how do these align with the 80% minimum gross revenue requirement?

Nine units were terminated in each of 2023 and 2024. What were the primary reasons for these terminations, and were franchisees provided the stated 30-day cure period before termination?

With 3 litigation cases where the franchisor was defendant and 1 where it was plaintiff, what were the nature and outcomes of these disputes, and are any settlements still pending resolution?

Median gross sales of $3.6M are significantly higher than typical fitness franchises. Can you provide a breakdown of which units achieve these sales levels and what percentage of franchisees fall below the 80% minimum revenue threshold?

The non-compete clause of 1 year and 5 miles is substantially shorter than typical fitness franchises. What is the franchisor's enforcement strategy if former franchisees open competing facilities within this radius?

The franchise agreement lists 26 termination causes, including 11 non-curable defaults. Which non-curable defaults are most commonly cited in actual terminations over the past 3 years?

Your technology fee of $184 monthly is below industry range. What specific technology services and systems are included, and what is the franchisor's roadmap for technology enhancements?

With a franchise fee of $30,000 significantly below typical range, what does this fee cover versus what is included in the equipment and buildout costs? What is the total average initial investment?

The termination clause requires minimum gross revenues of at least 80% of the designated average annually. How is the 'designated average' calculated, and can franchisees dispute this figure if they believe it is unrealistic for their market?

Three cases initiated against the franchisor in 3 years: Can you disclose the case names, jurisdictions, claim types, and current status of these lawsuits?

The late payment terms specify $250 late charge plus 18% annual interest. How frequently do franchisees incur late payment penalties, and what is the franchisor's collection policy?

Personal guarantees are required from all 20%+ owners covering all franchise agreement provisions. Does this guarantee survive termination of the franchise agreement, and for how long?

You list encroachment protection as true. Specifically, how many additional units can be opened within the protected territory, and under what conditions does the franchisor allow encroachment?

With 9 unit closures in 2023 and 9 in 2024, what support or intervention programs does the franchisor offer to struggling franchisees before termination becomes necessary?

The renewal fee is 50% of the then-current initial franchise fee. If franchise fees increase significantly, could renewal costs become prohibitively expensive for existing franchisees?

Of the 69 current units, how many are company-operated versus franchisee-operated, and what are the average unit volumes (AUVs) for each category?

The franchise agreement grants the franchisor rights to establish minimum pricing, controls on discounting, and sourcing requirements. How restrictive are these controls on franchisee pricing and promotional autonomy?

What is the average time frame between franchisee default notice and actual termination, and how many franchisees have successfully cured defaults versus been terminated?

Item 19 financial performance data is available. How many of the 69 current units are included in this data, and does it include all costs and expenses to derive net profit figures?

With equipment and supplies required exclusively from franchisor-approved sources, what is the typical markup or cost differential compared to non-approved vendors, and how are approved vendors selected?