Yoga Six

Of the 12 litigation cases filed over 3 years, what are the primary categories of claims (e.g., breach of contract, non-payment, operational disputes, employment-related)?

What is the status and nature of the 9 pending cases, and do any involve class actions or regulatory investigations?

Can you provide details on the franchisor's single plaintiff case—what was the claim and what was the outcome or current status?

The closure rate doubled from 6 units in 2022 to 20 units in 2024. What factors does the franchisor attribute to this increase, and what interventions are in place?

Of the 20 units closed in 2024, how many were proactively closed by franchisees vs. terminated by the franchisor for performance issues?

What percentage of closures involved units that failed to meet the $10,000 monthly gross sales requirement by their first anniversary?

The transfer rate is 9.9%, significantly above typical for fitness franchises. Are most transfers to existing franchisees expanding within the system, or to external parties?

How many of the current 192 units are within their initial 10-year term vs. renewal term, and what is the renewal rate for expiring franchises?

Can you provide the performance metrics (average unit volume and profitability) broken down by unit age to show how performance changes over a franchise lifecycle?

What specific renovations and modernizations are required for renewal, and what is the typical cost franchisees should expect?

Regarding the exclusive territory grant—have there been any disputes over territory encroachment or placement of new units, given the pending litigation?

The non-compete clause restricts franchisees from operating any fitness business within 10 miles for 2 years post-termination. Have former franchisees challenged this restriction, and is it currently enforceable in all states where you operate?

What is the franchisor's policy on waiving or reducing the $10,000 renewal fee for underperforming franchisees, or are renewals denied if sales targets aren't met?

Can you explain the scoring inconsistency—Territory scored 100/100 (above typical range) while Risk Factors scored 20/100 (below typical range)? What specific risks are present?

Of the 23 units transferred in 2023 and 19 in 2024, how many were transfers of control due to franchisee financial distress vs. planned business transitions?

What is the franchisor's track record of supporting struggling franchisees before termination—do you provide operational improvement plans or temporary fee relief?

How are the 11 cases initiated against the franchisor distributed across different franchisee claims (e.g., breach of support obligations, improper termination, non-compete overreach)?

Are there any pending regulatory investigations or complaints filed with state franchise authorities related to the litigation cases?

What changes to the franchise agreement, support model, or territory management does the franchisor recommend implementing based on the litigation and closure trends?

Can you provide a detailed breakdown of the 17 units that 'ceased other' in 2024—what circumstances led to their exit?