This business model works only for owner-operators. Even then your are looking at 24-36 months to break even. Current managements practices look ore like preying than running business.

Nothing.....

NexGen Fitness told me total investment was $350K with 10% down and easy SBA financing. Reality was $650K+ and 20% down. I took a 401K loan to pay $54,900 in upfront fees and personally negotiated a written refund clause as protection. After 18 months, 6+ bank denials, and actually getting SBA approved, the loan fell through due to circumstances entirely beyond my control. The CEO refused to honor the refund clause he signed — first saying "We don't do refunds," then claiming an old approval email voided my rights, then offering to extend my franchise agreement indefinitely with no timeline. I rejected it. He and his attorney are now non-responsive to my lawyer. The existing owners who gave me glowing references during due diligence had nothing good to say a year later. I am not the only franchisee in a legal dispute with this company. Based on my personal experience, I would not recommend this franchise to anyone.

Be more honest about what they are doing. Tell the Franchisees about existing lawsuits against the that is being sued by existing owners.