Due Diligence Questions

15 questions tailored to The Sensory Club, Inc.'s 2025 FDD data. 1 are flagged as high priority based on disclosures in the document.

How to use this checklist

Use these questions during your discovery day, franchisee validation calls, and attorney review. Questions marked High Priority are tied to specific disclosures in the 2025 FDD and should not be skipped. Print or copy this list before any franchisor meeting.

Financial

Investment, earnings, fees, and break-even analysis

3 questions
  1. What is the average time to profitability for a new The Sensory Club, Inc. location, based on franchisees who opened in the last three years?

  2. Since Item 19 financial performance is not disclosed in the 2025 FDD, can you share average unit revenue figures from existing franchisees — and can you connect me with three to five current owners to verify those numbers?

    High Priority
  3. The royalty rate is 5% of gross sales or $200 minimum monthly. Is that applied to gross revenue or net revenue, and are there any volume tiers that reduce the rate over time?

Legal

Agreement terms, litigation, renewal, and exit

3 questions
  1. The franchise agreement is 5 years. What are the conditions under which you can terminate the agreement early, and what recourse does the franchisee have?

  2. What restrictions does the franchise agreement place on selling or transferring my franchise — including the right of first refusal and any transfer approval process?

  3. There is a $3K renewal fee at the end of the term. What conditions must be met to qualify for renewal, and can the franchisor require a location upgrade as a condition?

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Talk to Current Franchisees

Item 20 of the FDD lists current and former franchisees with contact information. Calling at least five to ten owners is the single most valuable step in franchise due diligence — more informative than any disclosure document.

Ask them: Are you hitting the numbers you expected? Would you do it again? What does the franchisor do well, and where do you wish you had more support?

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Data shown is extracted from the 2025 Franchise Disclosure Document filed with state regulators. Fees, investment ranges, and other terms may have changed since this filing. Always request the current FDD directly from the franchisor before making any investment decisions. This information is not financial, legal, or investment advice. Full disclaimer.