The monthly technology fee of $995 is significantly above the typical range of $165-$428 for similar franchises. What specific services and platforms does this fee cover, and are there itemized breakdowns available?
#1
Can you provide details on the 8 unit exits in 2021 (1 closed, 7 transferred, 1 ceased other)? Were any of these exits related to profitability issues, operational challenges, or personal reasons?
#2
Your agreement lists 26 termination causes, above the typical range. Can you clarify which 6 causes are most commonly cited in actual terminations, and how frequently are they enforced?
#3
The agreement requires 10 days to cure monetary defaults but includes 24 violations with no cure period. Can you provide examples of these immediate termination violations and how they've been applied historically?
#4
Non-compete restrictions extend to all other studio locations within a 15-mile radius. How many existing franchisees are currently operating within typical metropolitan areas, and how do these restrictions affect territorial expansion?
#5
The total potential term is 25 years (initial 10 + three 5-year renewals). What are the renewal criteria, and have franchisees faced difficulty renewing at the end of their initial terms?
#6
Personal guarantees are required from all owners and spouses. How is the spousal guarantee enforced, and are there any circumstances where it can be waived?
#7
The transfer rate of 6.5% is at the upper boundary for this type of franchise. Can you explain the reasons for unit transfers and whether the franchisor has any approval rights or fees beyond the standard terms?
#8
Financial data shows median gross sales of $602,016. Over what time period was this data collected, how many units reported this data, and what is the range of top and bottom performers?
#9
The system has been stable at 31-34 units over 3 years. What is the franchisor's growth strategy, and how many unit sales inquiries and signed agreements are currently in progress?
#10
The indemnification clause covers 'all losses and expenses' without limitation. Can you provide specific examples of expenses franchisees have been required to indemnify and the dollar amounts involved?
#11
With zero litigation cases in the system's history, what dispute resolution mechanisms are available to franchisees (arbitration, mediation, litigation), and are there any documented informal disputes?
#12
The support and training score is 100, above the typical range. What specific initial and ongoing training programs are included, and what are the time commitments and costs beyond the franchise fee?
#13
Can you provide contact information for at least 10 current and 5 former franchisees, including those who transferred or exited their units?
#14
The renewal fee is $5,000. Are there additional obligations, facility improvements, or equipment upgrades required at renewal, and do fees increase with subsequent renewals?
#15
Termination Clause specifies only 2 types of curable defaults. Which two default types allow for cure periods, and what percentage of actual terminations involve defaults that cannot be cured?
#16
The 2-year, 15-mile non-compete applies to any business deriving 20% of revenues from waxing services. How is this monitored and enforced post-termination, and have there been any legal disputes over this restriction?
#17
What happens to exclusive territory designation if a franchisee fails to meet performance benchmarks? Are there specific revenue or customer targets that could result in territory loss?
#18