AKT Franchise

Franchise agreement

Franchisee agrees to record all of its receipts, expenses, invoices, member lists, class and employee schedules and other business information promptly in the computer system and use the software that Franchisor specifies or otherwise approves.

Item 11

The system is designed to enable us to have immediate, independent access to the information monitored by the system, and there is no contractual limitation on our independent access or use of the information we obtain.

Franchise agreement

Franchisor, or an affiliate of Franchisor, may be

Franchise agreement

Franchisor may change this list from time to time, and upon notification to Franchisee, Franchisee shall only purchase fitness equipment, dance equipment/accessories, products or services from approved suppliers as specified on the changed list.

Item 8

As our fiscal year ended December 31, 2021, we derived $1,418,903 on account of our System franchisees’ required purchases, or 60% of our total revenue we generated over our past fiscal year amounting to $2,375,741.

Item 8

We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers’ dealings with us, you, or other Franchised Businesses in the System, such as rebates, commissions or other forms of compensation.

Item 8

We estimate that your required purchases, purchases from Approved Suppliers and purchases that must meet our specifications in total will be about 70% - 95% of your total purchases to establish the Studio and about 15% - 50% of your purchases to continue the operation of the Studio.

Item 8

You must pay our then-current supplier or non-approved product evaluation fee when submitting your request, as well as cover our costs incurred in evaluating your request.

Item 8

If you wish to undertake either of these actions, you must request and obtain our approval in writing before using or offering the non-approved product or service in connection with your Franchised Business or purchasing from a non-approved supplier.

Item 11

You must operate your computer system in compliance with certain security standards specified by us, which may be modified at our discretion from time to time.

Franchise agreement

Franchisor may choose, in its sole discretion, to evaluate the Studio for compliance with the System Standards using various methods (including, but not limited to, inspections, field service visits, surveillance camera monitoring, member comments/surveys, and secret shopper reports.)

Franchise agreement

Franchisee acknowledges that Franchisor may from time to time revise its Systems as well as the contents of the Manual, and Franchisee agrees to comply with each new or changed standard and specification upon notice from Franchisor.

Item 12

You will operate the Studio at a specific location approved by us (referred to as your “Authorized Location”).

Franchise agreement

Franchisee must spend a minimum of Fifteen Thousand Dollars ($15,000) (the “Initial Marketing Spend”) in connection with the pre-opening sales and marketing activities set forth in connection with (i) Franchisee’s approved Opening Support Program, and (ii) other marketing and promotional activities that Franchisor…

Item 11

you must expend at least $1,500 per month on marketing and advertising materials that we approve in connection with the promotion of your Studio within your Designated Territory

Franchise agreement

If one or more Co-Ops (local, regional and/or national) are formed covering Franchisee’s area, then Franchisee must join and actively participate.

Franchise agreement

Franchisee agrees that: (i) all exercise equipment must be purchased exclusively from approved suppliers and must be maintained according to manufacturer or Franchisor specifications, as applicable;

Item 8

The component parts of the Audio Visual Equipment and Computer System must be purchased from our approved supplier/vendor, except for third-party software which must be licensed directly from a designated vendor.

Franchise agreement

Franchisee is required to use only the POS system provided by the designated supplier and will pay the designated provider directly for all fees associated with the use of the designated provider’s software.

Item 6

All fees owed and any other amounts designated by us must be received or credited to our account by pre-authorized bank debit by 5:00 p.m. on or before the applicable due date.

Item 15

Your Franchised Business must, at all times, be managed by and staffed with at least one (1) individual who has successfully completed the Owner/Operator Module or, if appropriate, the Designated Manager Module, of our Initial Training Program.

Franchise agreement

Franchisee is required to use only the POS system provided by the designated supplier and will pay the designated provider directly for all fees associated with the use of the designated provider’s software.

Item 11

The system is designed to enable us to have immediate, independent access to the information monitored by the system, and there is no contractual limitation on our independent access or use of the information we obtain.

Franchise agreement

Franchisee is required to use only the POS system provided by the designated supplier and will pay the designated provider directly for all fees associated with the use of the designated provider’s software.

Item 11

We reserve the right to charge you our then-current Training Fee in connection with such Remedial Training (Franchise Agreement, Section 6.3).