Upgrade Labs

The franchise fee of $65,000 and transfer fee of $50,000 are both above market rates for fitness franchises. What specific value or services justify these premium fees compared to comparable franchises?

Two units have exited in the past year out of a small base of 7 total units, creating a 14.3% exit rate. Can you provide detailed information about why these units closed and whether there were underlying business performance or support issues?

Support & Training scores at 70, significantly below the typical range of 82-93 for fitness franchises. What specific training and ongoing support does Upgrade Labs provide, and how does it compare to competitor offerings?

The 3-year CAGR of 51.8% is above typical ranges, yet the system remains very small with only 7 units. What is the franchisor's growth strategy, and what historical factors explain the rapid unit growth from 2 to 7 units?

The agreement allows the franchisor to set 'reasonable restrictions' on maximum service pricing. How have these pricing restrictions been applied historically, and can you provide examples of approved pricing ranges?

What are the 16 non-curable defaults listed in sections 19.1 and 19.2 of the agreement, and under what circumstances might a franchisee face termination with minimal cure opportunity?

The renewal condition requires 'right to remain in location' as one of 9 conditions. If your current lease expires before renewal, what happens to your franchise agreement and the $35,000 renewal fee?

Personal guarantees are required from owners and spouses. Has the franchisor ever enforced personal guarantees against franchisee principals, and under what circumstances?

The non-compete restriction extends 2 years and 25 miles from your franchised location 'and any other Upgrade Labs Center.' If new Upgrade Labs locations open near your territory, how does this affect your non-compete obligations?

Can you provide the historical unit locations and closure dates for the 2 units that exited in 2024 to understand whether specific markets or operational models are underperforming?

Investment Costs score at 49, significantly below the typical 73-77 range. Beyond the franchise fee, what is the estimated total investment required including build-out, equipment, and working capital?

Have any franchisees requested modifications to the franchise agreement terms, particularly regarding the transfer fee, renewal conditions, or non-compete restrictions, and were any modifications granted?

The franchise agreement references 'approved suppliers' and 'designated suppliers' for products and services. What percentage of your operating costs are locked into franchisor-approved vendors, and what are typical markups or commissions involved?

Franchisees must defend and indemnify the franchisor under the liability clause. Can you provide examples of claims where franchisees were required to indemnify the franchisor and the costs involved?

What specific operational data or financial metrics does Upgrade Labs track for franchisees, and would a franchisee have access to benchmark their performance against other Upgrade Labs locations?

The franchise does not provide an Item 19 financial performance representation. Can you provide referrals to current and former franchisees who can discuss realistic revenue, profit margins, and payback periods?

Contract Terms score at 70, above the typical range for fitness franchises. What specific contract provisions give Upgrade Labs greater operational control compared to standard fitness franchises?

Termination rate is 0.0% despite the 16 non-curable defaults listed. Does this mean non-curable defaults are rarely triggered in practice, or has the franchisor chosen not to terminate franchisees even when defaults occur?

The renewal fee is $35,000 and requires renovation or facility updates as a condition. What specific renovation or update investments are typically required at renewal, and has any franchisee contested these requirements?

Given the 25-year total potential contract term, what happens to intellectual property, client lists, and goodwill developed by the franchisee after the contract terminates?