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)?
#1
What is the status and nature of the 9 pending cases, and do any involve class actions or regulatory investigations?
#2
Can you provide details on the franchisor's single plaintiff case—what was the claim and what was the outcome or current status?
#3
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?
#4
Of the 20 units closed in 2024, how many were proactively closed by franchisees vs. terminated by the franchisor for performance issues?
#5
What percentage of closures involved units that failed to meet the $10,000 monthly gross sales requirement by their first anniversary?
#6
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?
#7
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?
#8
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?
#9
What specific renovations and modernizations are required for renewal, and what is the typical cost franchisees should expect?
#10
Regarding the exclusive territory grant—have there been any disputes over territory encroachment or placement of new units, given the pending litigation?
#11
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?
#12
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?
#13
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?
#14
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?
#15
What is the franchisor's track record of supporting struggling franchisees before termination—do you provide operational improvement plans or temporary fee relief?
#16
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)?
#17
Are there any pending regulatory investigations or complaints filed with state franchise authorities related to the litigation cases?
#18
What changes to the franchise agreement, support model, or territory management does the franchisor recommend implementing based on the litigation and closure trends?
#19
Can you provide a detailed breakdown of the 17 units that 'ceased other' in 2024—what circumstances led to their exit?
#20