Vertica Fitness

The technology fee of $1,075 per month significantly exceeds typical fitness franchise fees—what specific services and systems does this cover, and how is it calculated or adjusted annually?

Your royalty rate of 8.25% is above the typical 6.0-7.5% range for fitness franchises—what is the rationale for this higher rate, and are there any performance-based adjustments or discounts available?

With an advertising fund rate of only 1.0% (below the typical 2.0%), how does the franchisor fund national or regional marketing, and what specific marketing support do franchisees receive?

Average gross sales of $348,538 fall notably below category benchmarks—what are the factors contributing to this lower performance, and what is the revenue trajectory for newer versus established units?

Your initial contract term is 10 years versus the typical 15-20 years for fitness franchises—what was the reasoning for the shorter term, and what renewal options (if any) are available at the end of the initial term?

With zero litigation cases in 3 years despite rapid growth, what specific dispute resolution mechanisms or franchisee support programs have contributed to this absence of conflicts?

The transfer fee of $5,000 is significantly lower than typical ($10,000-17,138)—what services or reviews are included in this fee, and are there conditions that could increase the transfer cost?

You mention termination causes count of 11—what are these specific grounds for termination, and how do they compare to standard fitness franchise agreements?

Renewal conditions are listed as only 4 items versus the typical 7-9—what conditions must franchisees meet to renew their contract at the end of the 10-year initial term?

The 2-year/25-mile non-compete is enforced post-termination—has the franchisor ever enforced this clause, and what activities specifically does it prohibit (e.g., membership-based fitness, pole fitness instruction)?

Item 19 financial performance data is included—how many franchisees reported these sales figures, and what is the range of performance across your current 7 units?

Given the 51.8% 3-year CAGR, how many of your current 7 units have been operating for at least 3 years, and what is the average unit volume (AUV) for mature versus newer locations?

The franchisor controls supplier selection across 8 categories—are franchisees required to use franchisor-approved vendors at franchisor pricing, or do they negotiate directly with approved vendors?

Binding arbitration is required for residents of Illinois, Maryland, and Washington—what percentage of current franchisees are located in these states, and have any arbitration claims been filed or resolved?

Personal guarantees with joint and several liability (including spouses) are required—are there any circumstances where this requirement can be waived or modified, such as for LLC structures?

With zero terminations or non-renewals, what is the franchisor's process for underperforming units, and are there remediation programs before termination is considered?

The franchise fee of $59,950 is required upfront—what is included in this fee (training, equipment, initial inventory, technology setup), and are there any financing options available?

Bottom quartile units are generating only $78,153 annually—what support or interventions does the franchisor provide to units performing below expectations?

Renewal fee of $5,000 is charged at the end of the 10-year term—are any of the original franchise services (training, setup, support) repeated during renewal, or is this primarily an administrative fee?

The exclusive territory protection includes encroachment prevention—how does the franchisor define the protected territory boundaries, and what remedies are available if encroachment occurs?