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1-2-3 Fit in collections, collections, collections?

Posted Fri, 2009/03/13 - 23:33 by General Fran
You read it correctly! Collections x 3 (or more) We have spoken with numerous sources (including vendors themselves)that say this company is seriously delinquent on its bills. While we do not believe this should shock anybody close to the company, it is another reason to beware before going into business with these folks. Remember, these are the same guys who brought you Quiznos and now Smashburger. In light of what has been happening at corporate 1-2-3 Fit, it makes perfect sense. Several months ago, corporate began pushing all the vendors to deal directly with the franchise owners. This would be a logical move if you were corporate and were behind on payments and rather than risk the franchisees finding out by having services cut off, just let them deal directly with the vendors. Sounds plausible. We are looking further into this issue. Feel free to contact us with additional information and to share your experience on this issue. General Fran - Fighting the good fight!
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1-2-3 looking for an exit strategy? by General Fran
Submitted by General Fran on Fri, 2009/04/03 - 01:47.
In our latest research, we have been told that Brooksy Smith is trying to sell the 1-2-3 Fit franchise. We believe this is pretty likely, and are working to confirm or deny this latest information. March on!

Providing information and advice for over 20 years.

Providing information and advice for over 20 years.

Going once...going twice... by General Fran
Submitted by General Fran on Tue, 2009/04/14 - 01:41.
We have uncovered information that a company out of FL is considering purchasing the franchise. It is a company run by the former founder of a womans circuit franchise, (not Curves!). The company is in their investigative stages and doing their due diligence. We will keep you posted as we find out more. March on soldiers!

Providing information and advice for over 20 years.

Providing information and advice for over 20 years.

Re: Going once...going twice... by Guest
Submitted by Guest on Fri, 2009/04/17 - 21:47.
It's official , the corporation changed hands to diversified health and fitness.
What will happen to the exsisting zees by Barbara Jorgensen
Barbara Jorgensen's picture
Submitted by Barbara Jorgensen on Fri, 2009/04/17 - 23:06.
and all the zees who haven't gone bankrupt yet?
Exit Strategy by Inconfidence
Submitted by Inconfidence on Sun, 2009/04/05 - 09:06.
I have heard the same. In fact, I heard the sale was completed to a group in Florida. That either means the franchise owners in FL banded together to buy their own shrinking royalties OR a group that is purchasing a number of failing franchises out of FL is buying the obligations of F.O.s who remain in the system. I have researched a couple of would be purchases who may also want to attempt to try to brand outside of the U.S. This will be interesting for franchise owners stuck paying royalties on a failing system for the remainder of the term of the F.A.
Maybe Ray Wilson will buy it by Barbara Jorgensen
Barbara Jorgensen's picture
Submitted by Barbara Jorgensen on Fri, 2009/04/03 - 03:37.
He should of been the one running the show. The first generation believed he was going to be a part of it.  I know we would of never bought a fitness franchise with someone who only knows  how to sell sub shops.  Totally misleading. 
General Fran by Barbara Jorgensen
Barbara Jorgensen's picture
Submitted by Barbara Jorgensen on Sat, 2009/03/14 - 13:36.
Is 123 Fit on it's way out?  Are you posting these blogs to discourage many of the zee's with lawsuits against 123 Fit?  I wish I knew who you were.   
General Fran - Response by General Fran
Submitted by General Fran on Sat, 2009/03/14 - 16:15.
We are posting blogs to share information as we find it. We are not in the business of discouraging or encouraging lawsuits against anyone. We feel it is important to let people know what is going on. If we can get others to share their information and it is able to help others make the most informed decision possible, we have succeeded. As to your question of 1-2-3 Fit being on its way out? That is not for us to say. However, the trend for them does not look positive. Rather than growing the brand, it is shrinking. No clubs have opened, yet they continue to close locations. With extremely poor corporate support, the vast majority of clubs are stuggling. Only time will tell. General Fran - March on soldiers!

Providing information and advice for over 20 years.

Providing information and advice for over 20 years.

What vendors? by Barbara Jorgensen
Barbara Jorgensen's picture
Submitted by Barbara Jorgensen on Sun, 2009/03/15 - 01:11.
This is not Q where they sell food. They took away the water cooler. Your story doesn't make sense. I know they are behind on their rent at the old corporate office. Be specific.
What vendors? - Response by General Fran
Submitted by General Fran on Sun, 2009/03/15 - 14:39.
Please don't insult us. We know it is not Q where they sell food, and we don't deal in "stories." We wouldn't report it if we couldn't back it up. 1-2-3 Fit has used many vendors such as Premiere Eurocase (for furniture and fixtures), PC Music (for their music), iGo Figure (member software, later replaced with MBO), Hoggan Health (equipment), LifeFitness (equipment), SPRI (equipment), Cube Visual (graphic art)among others. FYI - a vendor does not have to deal in food products, but can be any business which sells products to another. General Fran - Fighting the good fight!!!

Providing information and advice for over 20 years.

Providing information and advice for over 20 years.

Are you saying most of the zees were by Barbara Jorgensen
Barbara Jorgensen's picture
Submitted by Barbara Jorgensen on Sun, 2009/03/15 - 17:58.

paying monthly for everything in the club?  All seperate accounts?  We were one of the first generation and many people used SBA loans for all this.  Did corporate have seperate accounts for everything?  The clubs deal with them.  If anything the corporation would be getting kickbacks from these vendors.  We paid monthly. 

I'm not trying to insult you.  I am trying to get the truth.

Are you saying they had the same bills we had and haven't been paying them?  I apologize if I sound insulting.  I am not trying to be.  

Are you saying most of the zees were - Response by General Fran
Submitted by General Fran on Sun, 2009/03/15 - 19:23.
We are saying that corporate would charge a franchisee for the furniture, fixtures, equipment etc... (at a markup) then arrange to pay the different vendors a pre-negotiated lower price to execute delivery. In some instances, the vendors would ship out items and bill 1-2-3 Fit corporate. It is during some of these instances where 1-2-3 Fit fell into collections. Not only is 1-2-3 Fit hurtings its own franchisees, it is also hurting some of the companies who went into business with them as vendors hoping to see it grow, only to find out they too would become a victim. A sad fact of reality. By the way, how do you know they are behind in rent on their old corporate location? We would love to have this verified. General Fran - Fighting the good fight

Providing information and advice for over 20 years.

Providing information and advice for over 20 years.

One of the former zees walked by the old coporate by Barbara Jorgensen
Barbara Jorgensen's picture
Submitted by Barbara Jorgensen on Sun, 2009/03/15 - 22:53.
headquarters and a note was in the front saying they were $36,000 behind rent.  This was at least four months ago.  Everyone can see it.  Who knows they might of caught up on it.  I doubt it.  If they are behind on everything else. 
Re: Are you saying by Guest
Submitted by Guest on Sun, 2009/03/15 - 22:10.
I have no sympathy for many, possibly most, suppliers to franchisors when the franchisor fails due to their scam running it's due course. Franchisees complain to everyone when things are going bad in a bad system. Can't help themselves. Franchisees tell suppliers that the franchisor is a fraud. Franchisors tell suppliers that the franchisees create their own problems because "they won't move forward and follow the system." It's about greed. Some suppliers, admittedly few, time the end of their involvement with a failing franchisor early enough. Others lose $millions. In one sense I think it is a positive for future franchisees. Rogue systems have a 'used by date'. Nothing like curtailing a franchisors ability to access credit to have him reconsider his business plan. Look at Midas Australia; it was a critical ingredient to their collapse.
General Fran is Warning about 1,2,3 FIT which is good by Guest
Submitted by Guest on Sun, 2009/03/15 - 15:12.
And, these warnings should be heeded. Isn't it shocking that, under current law, franchisors who are about to go bust can continue to sell franchises to unsuspecting franchisee prospects who have no idea that this would be permitted under law. If General Fran were really "totally" fighting the good fight, however, wouldn't they try to disclose that franchisees are treated merely as expendable resources under public policy and the law, and that they are generally "dead in the water" no matter what, after they sign a franchise agreement. If General Fran doesn't push litigation, they, of course, know that the deck is stacked against the franchisee in arbitration and the courts, and they are being honorable, aren't they. Sean Kelly of Franchise Pick also does not push ligigation to franchisees who vent on his Unhappy Franchise Site. Carol Carol
General Fran is Warning about 1,2,3 FIT which is good - Response by General Fran
Submitted by General Fran on Mon, 2009/03/16 - 22:28.
We will always fight for what is right and just, and also dissiminate information as it comes our way! General Fran - Fighting the good fight!

Providing information and advice for over 20 years.

Providing information and advice for over 20 years.