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Franchise Horror Stories

When one purchases a franchise it is because they want to be business owners and taught by professional business owners (franchisor) who have proven business models that they follow step-by-step. 

Franchisors interview potential franchisee's period.  They know whether that person has experience or not and/or can follow their business model.  The purpose again is to "learn how-to".

Alot goes on behind closed doors after you're into a franchise.  Often too late to get out because of the capital invested.  That is when you find out whether there is a proven business model in place in all areas, especially for marketing, and whether the projected gross revenue is based on actuals or some other calculations.  You also find out if you raise too many questions you are treated like nothing by the franchisor for raising those questions and that you are always to blame for your business not working. 

So to those who again blame the franchisee for their business failure - not every case is based on the franchisee's failure.  Once you become disappointed in your franchisor it is very hard to continue the relationship in a productive manner on either side.  If franchisee's were well versed on starting and operating their own businesses they wouldn't need a franchisor, especially one that is not well known like McDonalds, Burger King, Kentucky Fried Chicken, etc.

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Snap Fitness problems international

http://www.mouthshut.com/product-reviews/Snap_Fitness_-_Bangalore-925103239.html

PETER TAUNTON - SNAP FITNESS - HORROR STORY

PETER TAUNTON = Case # 24040055, Court File # K598001371, Disposition Date 3/18/1999, Minnesota Attorney General's Office St. Paul, Kaniyohi District Court, Theft-by Swindle-Artifice/Trick/Device or Other, Statute # 609.52.2.4., CONVICTED, Probation Sentence - 2 Years

Taunton dropped out of college when he was 20 to play professional racquetball along with his twin brother.

PETER'S QUOTES:
"Running these gyms is a breeze," Taunton tells prospective franchisees in a weekly conference call. "All you need is an Internet browser."

"Also, there are no long-term contracts binding members to the facility."

"Snap Fitness claims that the fitness industry is "recession proof"

“Minimally staffed fitness centers have been around in the hotel and resort communities for years [and] Snap Fitness has helped bring it into the mainstream,” he says. (Yes, but legally?)

"Franchisees benefit from the absentee ownership model, Taunton says, which allows one manager to man the location between 15 and 20 hours per week."

"Snap Fitness could realistically add another 100 locations in Minnesota since it can place its 2,700- to 3,200-square-foot clubs in communities with as few as 3,000 people."

Taunton said he’s found the typical Snap Fitness club can break even with as few as 220 to 250 members.

PETER'S FAN CLUB: By Guest2010-01-25 21:52 (Read the entire post using the date to find in the "Anytime Fitness or Snap Fitness" forum) Peter Taunton's Snap Fitness; "Beware. I know Peter Taunton , and I believe wholeheartedly that he is as shallow and dishonest as one can be. In my opinion, he is a con artist through and through and I think he is capable of screwing anyone who gets in the way of him making his almighty dollar; the dollar seems to be his god."

More Snap Fitness for sale - HORROR STORIES ABOUND!

Check out this link of Snaps for sale!

http://www.maincloud.com/news-Snap-Fitness

Territories available cheap! Original franchisee could not even open and are selling at a loss. Other franchisees are drowning and realizing its time to get out before its too late. DON'T BE THE NEXT VICTIM!

Response to post below

RE: Right...just like the (coporate arrogance alive and well)
We will see with the first unnecessary death (and lawsuit) that occurs in a 24 hour club breaking the law due to required staff, AED or CPR certified staff or tanning operators. Arrogance and ignorance will contribute to the limitations of this business model. You are a perfect example.

RESPONSE: any lawsuit won't affect us...we operate completely within the law :) As for the limitations of this business, I haven't seen any...we continue to climb in memberships and profits...and I know you are well aware of the lack of limits of the corporate success...what is it 5,000% growth!!

RE: Response to post below (corporate shill speaks again)

Readers move over to "Anytime Fitness or Snap Fitness" here on Bluemaumau to read about multiple lawsuits with corporate and Snap Fitness clubs for sale. This "corporate shill" wants you to believe this is a GREAT opportunity but in reality it is a HUGE and RISKY investment, tons of hard work and could easily turn out to be the worst 2-3 years of your life!!! BUYER BEWARE! (Anyone quoting the 5,000% growth of corporate fitness is corporate or a shill.)

RE: Response to post below (successful franchisee speaks again)

No corporate or shill here...just thought I'd throw that stat in for being called arrogant and ignorant.

Mark my words...there will be 4500-5000 24 hour fitness centers in the U.S. in 10 years...your blumaumau blog won't put a dent in that.

Seems another loser guy from

Seems another loser guy from the management masquerading as a zealot franchisee and wishing 10K in 10 years.Give us a break up.Dont insult our intelligence on this forum.

Maybe

Maybe there will be 4500-5000 clubs in 10 years..they will be the only ones left after 10,000 opened..the rest will be leading a staggering trail of shattered dreams and bankruptcy...Not very good odds in my book..STAY AWAY!

E-Mail to All States - 24 Hour Fitness Clubs - Brace Yourself

Former 24 Hour Club Franchisees: Feel free to copy, paste and send to your state legislators and management of health department and environmental department.

Dear State Legislator, Environmental or Health Department Supervisor,

It has come to the attention of thousands of legitimate nationwide health club owners and health club members that franchised 24 hours clubs are offering amenities and availability that are not consistent with state, county and city laws and regulations.

Please check your current state laws and regulations. We have already researched this extensively and know a high percentage of states are not properly enforcing their laws and regulations in regards to 24 hour clubs.

SEVERAL STATES REQUIRE AN AED AND/OR CERTIFIED CPR STAFF ON DUTY AT A HEALTH CLUB AT ALL TIMES.

NEARLY ALL STATES REQUIRE A TRAINED OPERATOR FOR TANNING AT HEALTH CLUBS AT ALL TIMES TANNING IS AVAILABLE AND BEING USED.

NUMEROUS STATES REQUIRE STAFFING AT ALL TIMES A HEALTH CLUB IS OPEN OR AVAILABLE.

The risk for a person to have an emergency medical condition during exercise is ten times higher for those with heart disease risk factors.

Here are a few scenarios that could easily occur in a 24 hour club. Who would be liable with the current laws and regulations on the books?

1. A 24 hour club member has a heart attack in the middle of the night with no one else around. There is an AED on the wall but no one to use it. If the law states there is always to be an employee on the premises at all times for a health club, who is liable?

2. A 24 hour club member has a heart attack in the middle of the night with no one else around. There is an AED on the wall but no one to use it. If the law states there is always to be an AED/CPR certified employee on staff at all times, who is liable?

3. A 24 hour club member has a heart attack in the middle of the night and the only other person in the club is tanning. There is an AED on the wall but no one to use it. If the law states there is always to be an employee on staff at all times while tanning is being operated, who is liable?

This not only puts the 24 hour clubs at risk for liability, but also the state, couty and city entities requiring and enforcing these laws and regulations.

I personally witnessed a club member death at a health club that was totally unnecessary. The person was provided with excellent emergency treatment but the club did not have an AED on site. The AED was used later on the way to the hospital and they were revived but too much time had passed without oxygen to their brain.

I encourage you to go to the website www.bluemaumau.com and to the "Anytime Fitness or Snap Fitness" forum to read the feedback from the community in regards to these issues. It would be prudent to address these before situations occur to solicit lawsuits.

THE 24 HOURS CLUBS HAVE ADOPTED AN UNFAIR ADVANTAGE OVER STAFFED CLUBS DUE TO THEIR CIRCUMVENTING LAWS AND REGULATIONS THAT SHOULD BE INFORCED FOR THE HEALTH AND SAFETY OF THE CONSUMERS.

I would only ask that you research this issue in regards to your state laws and regulations. Thank you for the courtesy.

Yours in health,

A Concerned Fitness Educator

PS. I am not a health club owner, investor, franchisee or employee. I am a concerned citizen who understands the risk of exercise, liability and cost of litigation.

response

Are you just some kind of Nazi then? Don't you think it's people freedom of choice to work out in the middle of the night if they want to? Many people who are overweight are embarrassed to go to a gym during regular hours when other people are there. Think about it! Or I suppose you'd rather they don't get a chance to work on their health on their own terms and make their own decisions...can you say socialism?

Seems like you are

Seems like you are cheerleader of the franchisor.Now we know your true colors.Anytime or Snap these are bad business models run by elite mafia and nothing else.All the franchisees are dancing on the deck of the titanic......

REPLY TO: response (corporate shill back at it)

The NAZIS, if there are any, would be the corporate entities who disregard the laws and offer to sell business models contrary to the laws. Too bad many of the franchisees did not get this memo or they may not have invested $250,000 in each location and $15,000 in each license. Freedom of choice for members has no bearing in this discussion. I suppose you also think people injured or killed driving Toyotas with accelerator issues had choices and should just suck it up and accept the outcome. The first unnecessary death in an unstaffed 24 hour club will change everything.

NICE TRY! BUYER BEWARE!

Right...just like the

Right...just like the hundreds of deaths across the country and over the years in regular staffed gyms have shut down those gyms...not!

You are living in a dream world...these thousands and thousands of 24 hour fitness centers are here to stay. Some will survive and some will not. Some will have member injuries and some will not.

I'll bet you anything in 10 years there will be more 24 hour fitness centers than there are today...a lot more.

You are fighting a losing battle.

RE: Right...just like the (coporate arrogance alive and well)

We will see with the first unnecessary death (and lawsuit) that occurs in a 24 hour club breaking the law due to required staff, AED or CPR certified staff or tanning operators. Arrogance and ignorance will contribute to the limitations of this business model. You are a perfect example.

BUYER BEWARE!

24 HOUR CLUBS, APRIL FOOLS! NO LETTER GOING OUT!

IT WILL BE AN EMAIL! After evaluatiing whether to send a letter to state departments versus an email, the email has been chosen as a safer and more effective alternative. With the potential for "sabotage" of a letter or envelope, this information will now be sent via email to each state's health and environmental department and to an influential person in the legislative branch. It could take a few days to collect all the correct email addresses and will be sent out in the next couple weeks. Advice to franchisees, GET IT RIGHT!

The email will contain the following:
1. Overview of state laws in regards to 24 hour club business models
2. Information outlining the higher risk of emergency medical situations during exercise
3. Account of a medical emergency with an "unnecessary" negative outcome
4. Medical emergency scenarios that could be played out in 24 hour clubs where club owners and management are disregarding the prevailing laws
5. Exposure to liability issues for all parties "joint liability", including the state, county or city if laws were not being enforced as written

SNAP FITNESS & ANYTIME FITNESS FRANCHISEES - BRACE YOURSELF

10 DAYS UNTIL THE LETTER IS RECEIVED BY ALL STATE GOVERNMENT ENTITIES. READ THE "24 HOUR CLUBS - BRACE YOURSELF" POST BELOW FOR THE DETAILS OF THIS LETTER OUTLINING 24 HOUR STAFFING, AED/CPR STAFF AND TANNING STAFF LAW AND REGULATION REQUIREMENTS.

I JUST HOPE ALL YOU FRANCHISEES DON'T OWN A 2007 - 2010 TOYOTA!

OMG what happened.. Did your

OMG what happened.. Did your little letter work???? aahahahaaa I might open up a McDonald's and you can come and work as my clown.

24 HOUR CLUBS.......IMPORTANT.........WHAT IS WORSE?

What is worse than buying a franchise license, opening a 24 hour club and finding out AFTER you are open you are BREAKING THE LAW? Can it happen? IT APPEARS IT HAS! Several states also require an AED Certified Employee on staff at all times!

WHICH STATES REQUIRE AN OPERATOR AT ALL TIMES TANNING IS BEING USED?

http://www.tanningtraining.com/reginfo/state.html
There are updates and additions to these within the states' statutes. Proposed regulations currently in process may not be listed.

Below are the states that absolutely REQUIRE OPERATOR when tanning is being used. Coming soon, AED/CPR staffing requirements for states!

California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, MINNESOTA, Mississippi, New Hampshire, New Jersey, New York, North Dakota, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Utah, Virginia, Washington and Wisconsin.

Peter Taunton with tips on "TOP SALES TECHNIQUES"

Great read for former, current and potential Snap Fitness franchisees.

http://www.hfpn.com/shop/article.aspx?atid=2184
Original article with excerpts below and COMMENTS SPECIFIC TO FRANCHISE SALES.

Showcase future results.

Typically people have very high expectations when they first join a gym. Whether it’s to lose weight, gain muscle or just feel better, they expect to get results. That means that we can’t just sell the immediate advantages of our product. We need to be able to showcase how we will continue to support our customer and build a long-term plan, as opposed to just giving them the tools. –Peter Taunton, owner, Snap Fitness
(Can't sell immediate advantages? Showcase how we will continue to support? Any franchisees out there now wondering where this support is he's talking about?)

Build trust.

One of the keys to being a successful sales person is trust. If you don’t have that trust with your salesperson, then you aren’t going to place as much stock into what they are telling you about the benefits of the product, regardless as to whether or not they are valid. –Peter Taunton, owner, Snap Fitness
(Kumbaya! Hand holding, "spiritual" references, etc. He's got this down pat!)

Demonstrate the value, in person.

Try to get the person to come in and see the product for themselves. If they can be in that setting and see that it is possible to achieve results, they’ll be far more likely to buy. Don’t divulge all of the details over the phone or email, because you want to be able to demonstrate the value of your product. By providing all of the facts, you don’t give the customer any reason to come in and learn more details. –Peter Taunton, owner, Snap Fitness
(Don't divulge all of the details? Demonstrate the value? By providing all the facts, you don't give the customer any reason to come in and learn more details? Did this happen to any franchisees???)

Don’t sell false pretenses.

Make sure that your customer sees the advantages of your product and how it can help them to reach their goals, but don’t set unrealistic expectations simply for the purpose of closing the sale. Promise what you know you can deliver. –Peter Taunton, owner, Snap Fitness
(Don't set unrealistic expectations "SIMPLY FOR THE PURPOSE OF CLOSING THE SALE". Possible examples: "Absentee ownership, only a manager needed for 15-20 hours a week, 220 members to break even, 1900 stores, no contract memberships, works in a variety of markets, recession proof, clubs work in communities with as few as 3,000 people and guaranteeing 40 percent of a franchisee’s bank loan to put some of our skin in the game." I wonder if the LEGAL REQUIREMENTS FOR TANNING STAFF, AED/CPR CERTIFIED EMPLOYEES AND 24/7 STAFFING are being given the attention, definition and clarification they deserve? Peter, please grace us with strategies of how you and others at corporate "overcome objections" for staffing issues in your next interview. This way franchisees can use these same techniques with potential member objections. Obviously they have worked extremely well for you!)

Snap Fitness - Horror Stories for Potential Franchisees

For up to date information and straight talk from numerous current and former owners and employees of Snap Fitness, go to "Anytime Fitness or Snap Fitness" forum right here on Blue MauMau. You will need to sift through the "propoganda" being posted by Snap Fitness corporation and their representatives but it will be well worth the effort.

Self seving Anytime Blog

Nice effort on the mud- slinging tactics Anytime Fitness or should I say "Guest"... I get it now, by dedicating someone to fuel this propaganda you just might keep your prospects distrated from looking at your model in detail…

Bottom line, Snap Fitness beats Anytime Fitness in every category…Don't think so? Snap Fitness has over 1100 open locations and has never had a law suit filed by one of its franchisee's.

Hmmm, something’s not adding up Anytime…

DOES SNAP BEAT ANYTIME WITH LAWSUITS

THESE ARE THE PENDING LEGAL ISSUES SNAP HAS HAD WITH DISGRUNTLED FRANCHISEES!

Michael Fields v. Snap Fitness, Inc., in the Superior Court of the State of California, County of Santa
Clara (Case Number: 1-09-CV-132226). In January 2009, our former franchisee filed suit against us
claiming that he had rescinded his franchise agreement and demanding return of his initial franchise fee.
Our motion to compel arbitration pursuant to the terms of the Franchise Agreement was granted on April
7, 2009. We filed a motion to set an arbitration completion date and as of the date of this Disclosure
Document have not received an arbitration request from the franchisee.
Meredith Tuntland v. Snap Fitness, Inc., American Arbitration Association, Case No. 65 114 Y 00088 10,
Minneapolis, MN. On February 9, 2010, Meredith Tuntland, a franchisee, filed a demand for arbitration
(“Demand”) against us seeking damages of $514,244 and other unspecified relief. In the Demand, Ms.
Tuntland alleges claims for fraudulent misrepresentation, breach of contract, interference with contractual
and prospective contractual relations, fraud, and violation of the Minnesota Franchises Act, all in
connection with a dispute over the designated area of a franchise she purchased from previous owners.
We deny the allegations and intend to vigorously defend against them. As of the date of this Disclosure
Document, the American Arbitration Association has not yet appointed a panel of arbitrators, or taken any
other substantive action with respect to the Demand.

SNAP FITNESS LAWSUITS - GREAT POST!

THERE WILL BE MANY MORE IN THE NEAR FUTURE! ALI, YOU AND YOUR TEAM READY FOR THIS BARRAGE?

Not Self Serving

I don't think you get it..the thread is heavily against Snap because as former franchisees that is the company we have experience with. Anytime Fitness will be in the same boat as Snap when the states realize they have been operating unstaffed 24/7 in violation of state laws and regulations.

24 HOUR CLUBS - BRACE YOURSELF

A letter is being drafted and will be sent to all state governments with excerpts from Blue Mau Mau forums as well as additional information beneficial to evaluate possible violations occurring in their state. Based on the feedback posted here and at other websites from both franchisors and franchisees, it appears the health and environmental departments are not aware of these circumstances. This will allow each state to deal with the situation according to their own laws, regulations and statutes.

The purpose for announcing this is to allow franchisees lead time to get everything in order in case the states decide to begin placing fines on clubs in violation. I do not believe the franchisees are to blame in all cases, but given the circumstances, they will be the ones who are penalized for it.

The letters are scheduled to be mailed at the end of March. Duplicate letters will go to each state Health Department, Environmental Protection Agency and a high level person in the legislative branch. This should give the issues full attention and provide the best opportunity for thorough research and investigation. Again, approx. 150 letters will be mailed to the state offices near the end of March and should arrive to all the proper state entities by April 1st.

Scroll down to "AED - CPR - STAFFING FOR 24 HOUR CLUBS" and read the press release excerpts from the St. Paul Snap Fitness club fined in April, 2008. They were finally able have the "24 hour employee staffing" language changed in their favor November, 2008 which made for a tenuous 7 month process. Below is taken from this press release.

"Snap Fitness, Chanhassen, MN, plans to open its first three clubs in St. Paul under the ownership of franchisee Ben Cowan, who chose not to open the clubs until the ordinance was changed."

It is quite interesting city counsels in the "backyard" of the two 24 hour fitness giants are making allowances (changing laws and regulations) for these companies. I wonder if the rest of the country is willing to be this accommodating?

PS. If you would like to contribute to this cause, please do so by selecting a legitimate Haiti or Chile relief organization and donate the money to them. Sorry, we want this one all to ourselves! All funding will only be provided by former Snap Fitness employees. :)

Letter

Can't wait for this letter to go out!

How do you get a copy of this

How do you get a copy of this letter

LEGAL SOLUTIONS: 24 HOUR CLUBS HAVE OPTIONS

The information below may be helpful to owners and former owners of 24 hour clubs who may feel they have just cause to pursue legal avenues. Representation in this type of case is possible on a contingency basis.

The procedure for filing a class action is to file suit with one or several named plaintiffs on behalf of a proposed class. The proposed class must consist of a group of individuals or business entities that have suffered a common injury or injuries. Typically these cases result from an action on the part of a business or a particular product defect or policy that applied to all proposed class members in a uniform manner.

Typically, federal courts are thought to be more favorable for defendants, and state courts more favorable for plaintiffs. Many class action cases are filed initially in state court. The defendant will frequently try to remove the case to federal court.

Nationwide plaintiff classes are possible, but such suits must have a commonality of issues across state lines. This may be difficult if the civil law in the various states have significant differences.

Advantages of Class Action Lawsuits:
First, aggregation can increase the efficiency of the legal process, and lower the costs of litigation. Second, a class action may overcome "the problem that small recoveries do not provide the incentive for any individual to bring a solo action prosecuting his or her rights." Third, in "limited fund" cases, a class action ensures that all plaintiffs receive relief and that early-filing plaintiffs do not raid the fund of all its assets before other plaintiffs may be compensated. A class action in such a situation centralizes all claims into one venue where a court can equitably divide the assets amongst all the plaintiffs if they win the case.
reply

PETER TAUNTON - SNAP FITNESS FOUNDER/CEO

PETER TAUNTON = Case # 24040055, Court File # K598001371, Disposition Date 3/18/1999, Minnesota Attorney General's Office St. Paul, Kaniyohi District Court, Theft-by Swindle-Artifice/Trick/Device or Other, Statute # 609.52.2.4., CONVICTED, Probation Sentence - 2 Years

Snap Fitness Due Diligence - Never Enough!

FYI. Anyone notice when you put in "Snap Fitness" for a search "Anytime Fitness or Snap Fitness" from Blue MauMau and Snap Fitness @ pissed consumer come up ahead of the mysnapfitness website used by their members? KEEP THAT TRAFFIC COMING! More views = optimization = more due diligence.

AED - CPR - STAFFING FOR 24 HOUR CLUBS

It took approx. 7 months for the St. Paul City Counsel to change the language in their city regulations to allow for un-staffed 24 hours clubs. This is in the backyard of the two 24 hour franchise corporate offices! Franchisees should check with their state on required staffing at all times, AED/CPR certified staff at all times and tanning regulations requiring staff to monitor usage.

Anytime Fitness Challenges Ruling of St. Paul Law
Apr 21, 2008 12:19 PM, By Stuart Goldman, managing editor
ST. PAUL, MN -- Despite a Minnesota judge’s ruling to uphold the city of St. Paul’s decision to fine two Anytime Fitness franchisees for violating a city safety standard, Anytime Fitness is working with the St. Paul mayor’s office to change the language of the standard. Earlier this year, two St. Paul Anytime Fitness franchisees were each fined $500 because they did not have CPR-trained staff members on the premises around the clock at the 24-hour key-card clubs. The franchise owners argued that they met the city’s standard, saying they have workers who can be reached by phone at all times. The clubs also have panic buttons and cameras capable of being monitored remotely.

City Council in St. Paul, MN, Changes Ordinance
Nov 1, 2008 12:00 PM St. Paul, MN — The St. Paul (MN) City Council voted unanimously last month to allow 24-hour key-card clubs, such as Anytime Fitness and Snap Fitness, to operate without an employee present in the club at all times.

From IHRSA Article:
Issue #1: Staffing requirements
Some laws that mandate AEDs in health clubs also require a person trained in its use to be on staff. Because of these laws, if a cardiac arrest occurs at a club that has an AED but no one is on duty that is trained to use it, the club could be found liable for negligence. This requirement becomes problematic for 24-hour health clubs, which are unstaffed during certain hours.

From theeagle.com New York state law requires health clubs with more than 500 members to have a defibrillator and an employee or volunteer who is certified to operate it and administer CPR during business hours. In recent years, other states, such as Indiana and Arkansas, have made exemptions in their laws to allow card-key gyms outside of hotels and apartments.

In Rhode Island the state mandated all health clubs registered with its Department of the Attorney General to have at least one AED on the premises and be easily accessible to the staff, members and guests. The law also stipulates that at least one employee properly trained in the use of AEDs be on hand at all times.

PETER TAUNTON INTERVIEW - ANOTHER CLASSIC

From austin360.com Jan. 1, 2009
Tips for choosing a gym membership

It’s the busiest time of the year for fitness centers. If you’re in the market for a new gym, it pays to take the time to do the research and find a gym that works with your lifestyle. If it’s not close to home, for example, you won’t use it.

Here are some tips from Peter Taunton, founder of Snap Fitness, for picking a gym:

1. Affordability: Don’t add extra strain to your monthly budget my purchasing an expensive, over-priced gym membership that will add increased financial pressure to your monthly budget. Choose a fitness center that offers memberships at approximately $1 a day — less than you’d pay for your daily coffee. (Peter, did you read this straight off a Snap Fitness brochure? $34.95 is a great monthly price for a 2500 sq. ft. club? How about Golds Gym, Planet Fitness or 24 Hour Fitness for the same or less $$$ ?)

2. Flexibility: When choosing a gym, look for facilities that don’t require long-term commitments. Consider a fitness center that offers month-to-month memberships. Some gyms even allow members to freeze their memberships when not in use. (Lots of clubs offer a no commitment membership. Last time I checked, Snap Fitness was offering 12 MONTH CONTRACTS. Most clubs have a freeze option too.)

3. Convenience: Choose a fitness center that is close to your house, your office, your children’s school, etc. You don’t want to spend more time driving to the gym than working out. (An extra mile or two for extra amenities and STAFFING AT ALL TIMES might be worth the extra gas.)

4. Motivation: Look for a fitness center that offers online health and wellness tools designed to keep you engaged in your new lifestyle, even when you’re not at the club. Some clubs offer members a free personal web page that allows them to track workouts, schedule personal training appointments and plan meals. (You'll definitely be using this a lot, NOT. Put in Snap Fitness in a search and you will see the pissedconsumer and blue maumau websites come up before mysnapfitness used by members for the purposes Peter mentioned. That's gotta smart!)

5. Usability: Tour the facility to determine if it has an environment you’d feel comfortable working out in. Many offer free guest passes. Take advantage of one and look for quality, well-maintained equipment. Make sure the club’s operating hours work with your schedule. (All clubs offer free guest passes. All clubs have a cleaning staff, not just management who clean on top of all their other duties. Most people don't work out in the middle of the night. If a member has a medical emergency and the state, county or city requires an AED certified person at all times, but the franchisee was told by corporate "we have come to a result the state was happy with", GOOD LUCK!)

I’ve got one more that’s not on Taunton’s list — you don’t actually need a gym to get fit. Try walking, running or biking. No membership required. (WOW! Even the publication editor who added this last section saw through this obvious steaming pile of advertising rhetoric for Snap Fitness! How'd that feel for you Peter?)

SNAP FITNESS OR SPIN FITNESS

Please read this article/press release carefully. These excerpts will be used from it for calculating SNAP SPIN.
"with about 250 members paying roughly $35 a month." "2008 revenue: $31,716,000" "The company has roughly 1,000 clubs open in 48 states, Canada, Mexico and India."

http://twincities.bizjournals.com/twincities/stories/2009/10/26/focus1.html

Snap Actual 2008 Revenue - $31,716,000, Roughly 1,000 Clubs, Annual Revenue per Club = $31,716

Snap SPIN Revenue - Typical club has 250 members paying roughly $35 month, $35 x 12 = $420 annual dues per member, $420 annual dues x 250 members = $105,000, Annual Revenue per Club - $105,000

SPIN FITNESS DIFFERENCE: $105,000 - $31,716 = $73,284

Just for fun, lets say there were only 500 clubs with the same stated 2008 revenue instead of 1,000. The Annual Revenue per Club would be $63,432. SPIN FITNESS DIFFERENCE $105,000 - $63,432 = $41,568

ANY QUESTIONS?

Snap Fitness - The No Spin Zone

After being involved with Snap Fitness for a few months, I feel very comfortable sharing information with potential franchisees about the company. I have experience in the fitness industry previous to Snap Fitness.

1. Owners and management are required to sign legally binding and extensive non-disclosure agreements which restrict them from speaking openly about Snap Fitness corporate. This could have a detrimental effect on potential franchisees attempting to perform proper due diligence and acquiring honest and accurate information in regards to the ability of realizing a satisfactory return on investment.

2. Even if there were no profitable Snap Fitness franchises, it is still possible Snap Fitness corporate could continue to benefit financially, increase market share and continue to successfully recruit new franchisees.

3. There was always a constant flow of internal e-mails from Snap Fitness owners soliciting to sell their club and/or franchise license(s) for substantial discounts.

4. The emphasis, expertise and resources of the company are heavily invested in franchising and expanding both nationally and internationally. There were lots of discussion about new programs, technology, campaigns and support but only a small percentage of this was actually delivered effectively.

5. I advise you to research the Snap Fitness clubs throughout the country and you will see there are several that do not provide staff or have very limited hours for employees at the club. Minimal staffing is more prevalent as you investigate clubs closer to corporate headquarters. Remember this if you decide to pursue a franchise.

6. I do not believe their business model is sustainable. The reason for the expedited interest in developing international franchises is certainly motivated by the reality of the lack of success of so many of the individual franchisees here in the USA.

7. Snap Fitness franchise/business model enjoys the same benefits as MLM companies (multi level marketing). The people at the top (corporate) are financially successful while the little guy at the bottom is struggling but still subsidizing those at the top. The Snap Fitness corporate franchising business model is not set up to "share the pain" with their franchisees.

Recommendation: If you enjoy long hours, stress, cleaning, employee turnover, volunteer work and subsidizing your company every month, you will definitely enjoy Snap Fitness.

(Barbara, Keep pounding away! A lot of these people have thick skulls! You are providing a necessary service to the innocent and naive who think the fitness industry is a "piece of cake" or "a great investment". Keep up the great work!)

In regards to Gary Findley from Curves hired to bring his wealth of success and experience to Snap Fitness, just put in "curves for sale" in your web browser and EVERYTHING you need to know about him will come up!

Snap, have now franchising in

Snap, have now franchising in Australia, just looking at the disclosure document it only relates to franchise activity in this Australia. I wonder will they provide a DD for the USA activity??

Various contributions have

Various contributions have made me feel the need to look into the opportunity of investing in a franchise. Relatively low income and long working hours - the office politics, the early starts and not spending enough time with my wife and family ect ect.....testking 70-432 Question is, does anybody have any success stories from running a small manageable franchise that can be run "Husband and Wife with small children?" What is it that you do, what are the main benefits, has anybody made a big loss that so thay have had to "pack up and leave"? testking 352-001 Should I steer clear of the idea and continue on the stability of a monthly wage? testking 646-223 Please be honest, this is a serious step that I am currently looing towards. Go on, see if you can slap a smile on my face! Reply With Quote

If you really want what you

If you really want what you say, starting a business will not be your answer - whether it's your own business or a franchised business. Corporates make it sound easy, but it's a lot of work!! If you decide to do this, be sure you have the energy and time dedicated to making a go of it. I am a successful independent small business owner, but it wasn't without lots of hard, sometimes very dirty work. I happen to love what I do, have lots of energy and a great support system, so it works for me. Just don't go in it thinking your going to make lots of money with little effort. I just simply does not work like that!!

Budget Blinds

An "up and coming" terrible franchise is Budget Blinds. They have consistently lost owners over the last three years - now down below 950 and dropping like a rock; the franchisor refuses to help the struggling franchises in any way - "it's all their fault" - charges a flat royalty fee that is killing most franchises and a national advertising fee that gives most virtually no help or exposure. IF ANYONE IS CONSIDERING PURCHASING A BUDGET BLINDS FRANCHISE, RUN DON'T WALK IN THE OTHER DIRECTION - YOU'LL BE MAKING THE BIGGEST MISTAKE OF YOUR LIFE!! Many are trying to sell and can't even get 1/4 of what they initially paid. A lot of brokers won't even handle them and the franchisor can't even resell the ones that have gone under. But, "it's all the franchisees fault'!

Garlic Jim's sucks too!

14 Garlic Jim's have closed down in the last 8 months. In all cases, it was because the stores were not making money and the franchisees ran out of money. Many of them are having to file for bankruptcy. 8 of these stores are in the Portland, Oregon area. When some of its franchisees tried to point out that it was against the law (according to WAshington state franchise law) to charge more than wholesale for supplies that franchisees were required to buy from the franchisor (basically all the food products), Garlic Jim's ignored them. The commissary was a revenue stream for them and they weren't going to give that up. Between royalties, advertising coop fees (that any franchisees outside of Seattle never really saw any benefit from), and overpriced commissary supplies, just about none of the franchises are making any profit. Shame on Garlic Jim's!

worst franchise i can

worst franchise i can imagine. self serving founder who has defrauded hundreds of thousands of dollars from investors and franchise's. if they owe you money, stand in line, because the line is very long.

Galic Jim's

Do they owe you money, stand in line.....

national ad fee's for garlic jims

I question the "national advertising fee's". I used to own a Garlic jims, and the 3.5 percent they take every week should have been questioned. How many stores are there outside of Washington now? Currently, the 2.5 percent local ad fee is a joke as well. No more advo? Buyer beware!

Money Mailer threatening legal action against failing franchise

I made the mistake of starting a Money Mailer franchise 2 years ago. I have invested a large amount of money, and have lost larger and larger sums every month as I followed the franchise growth plan. Little of the promised training or marketing support ever materialized. Two months ago, my health failed (partially as a result of financial stresses) and I realized I could no longer stay in business. Last week I was contaced by Money Mailers Legal department that I may be held responsible for all of the royalties and penalties for the entire duration of the remaining 8 years of the agreement, "a sum in excess of $250,000, plus legal fees".

THANKS FRANCHISING SUCKS

We are going to the attorney generals office and to whoever will listen to us. We have lost everything, but our right to revenge. We will have our revenge. We were not prepared finacnially for this business and the training we got was non existant. We were lied to and tonight my family is cleaning offices for the first time and making real money and guess what we are not paying a vampires royalty. Let them sue us!

Our life has ended! We are destroyed thanks to our Franchisor

We understand we have lost everything. Tonight we are sleeping on an air-bed. We lost our home and our furniture. My husband is so depressed that he is not even able to get a job. I hate the day I was told "we would now be able to live our dream." Dream??? You mean nightmares!!!!!!!!!!!!!!! Franchise sales people should rot in hell. Why should we be subject to sales tatics. You were taken advantage of just like us, buy smooth talking franchisors that could care less if you loose everything! No friendly calls or help now. We understand.

Another franchise like QUIZNOS is 123 FIT by the same people.

I wish I had read up about all this before I bought a 123 fit franchise. This is a 30 minute circuit training fitness club. Believe it or not this has been started by Rick Schaden, Brooksy Smith, and Dan Demolli, John Gallivan, Michael Grodi, John Fitchett other Quiznos has beens that have bailed from the Quiznos franchise. Seems they are utilizing the same "screw the franchisee concept" with fraud, misrepresentation, blah, blah...to get this supposedly new revolutionary "simbio system" workout going. The same lies, misrepresentations, fraud, errors and omissions as the Quiznos franchise. I am sure they have taken the Quiznos UFOC and replaced the name in there with 123 Fit. DO NOT BUY INTO THIS FRANCHISE. You will lose all!! Approximately 20 clubs have already closed down. Some Quiznos has beens have already bailed on the 123 fit franchise and moved on after losing their money. But 123 fit, Rick Schaden, Brooksy Smith still continue to prey on people and sell this "Simbio system" concept that they lead you to believe is exclusive for the 123 fit franchise. The only thing that is exclusive is the made up "simbio" name that they put on the Life Fitness equipment. AND IT IS NOT EXLUSIVE PEOPLE!! Go to Life Fitness website under the circuit training section. You can buy this same equipment through them. You DO NOT NEED 123 Fit, ex-Quiznos people, to do this. SAVE YOUR MONEY. RESEARCH!!! I dont want you to go through what all of us have been through. It is a nightmare. Signed 123 fit owner

Cold Stone Creamery

Cold Stone is a sad example of poor marketing and a business model that just does not work for the franchisee. I belive that they started off with something good but then they got greedy, opening too many stores without the proper research and making the stores too expensive to open with the new look that came out in late 2002-2003. Before that, the stores were only about 150K to open, which was reasonable, and the market was not over-saturated with stores so owners were not competing with each other to make a profit. If you talk to top execs at Cold Stone they will ADMIT that the business model does not work and that with current sales, the stores are too expensive to open, but they have known this since 2004 and they have not slowed down selling franchisee agreements - on stores they know will never open -and they have not done anything to lower the cost to open these expensive built-out stores. Their arrogance and marketing failures have been a disaster for the franchisee community and yet they still blame failure on the franchisee and do their best to portray every failed store owner as a poor operator. Very similar to the problems with Quiznos, the area developers for cold Stone were pressured to sell as many agreements as possible and also were compensated for it. That led to people buying up agreements on locations that were never opened and losing their franchisee fee (now up to $40K) and also a lot of stores opening in poor locations or too many stores opening up too close to one another.

Journalist Seeks Disgruntled Franchisees in South Florida

I am a journalist, and am writing a general readership trade book that touches on the politics of the franchising business. I am looking for franchisees who have had a bad experience with their franchisors, and who are willing and able to speak about what happened. I work out of Washington, DC, but for a variety of reasons, I especially want to speak with franchisees in South Florida.

Please contact me at (202) 431-6066 or lynn@newamerica.net.

Thank you,
Barry

Use caution Findley Group

THe Gary Findley group is taking money for franchises that are not market able. Most malls will not allow the Showcolate kiosk's so check with your local mall before you send money.

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