Simple Due Diligence - Shape Express

Posted Thu, 2007/12/06 - 10:27 by michael webster

Sean, at Franchise Pick, has a nice little story about Shape Express . "Its marketing materials call the ShapeXpress chain “America’s Upscale Women’s Fitness Clubs.” Is ShapeXpress America’s next great fitness franchise? The answer depends on who you ask."

Actually, it doesn't depend at all on who you ask - it depends on what is in the UFOC. Here is the revealing Item 20 picture.

At the end of 2005, 22 had left and 64 were still in. Or a 25% chance of losing your entire investment. Nice.
At the end of 2005, there were 222 stores, signed but no opened. Perhaps a Quizno SNO in the making?

Good thing that nobody reads the item 20, eh?

This item 20 screams: run away, run away, run away now.

Franchise topic:
- legal,
- op-ed

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