Fitness Center Franchisor Deals with Credit Crunch

One2One and BodyScapes fitness centers is franchising much like the old IHOP model, in which the franchisor builds out the franchise and then sells it to a franchisee.

Under the new plan, Shapiro and his partners scout out locations and even sign leases. Once everything is in place, they search for a franchisee to come in and take over. The potential buyers will likely need to have their own funding. However, with a location secured, they might have an easier time getting a loan. This plan could be risky for Shapiro and his partners. They’re on the hook if they can’t find someone to take over. Shapiro isn’t worried, however. If that happens, Shapiro said they’ll just run the place themselves for a while. – Boston Herald