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.

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".

on August 15th, 2007

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.

on August 21st, 2007

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.

on September 24th, 2007

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.

on March 29th, 2008

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!

on March 29th, 2008

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

on September 25th, 2007

123 fit The latest update

Clubs are closing their doors faster then they can open. As of date, they have 29 clubs that are open with 4 of them closing here in the next month or two. That adds to the 28 or so that have closed their doors. So if as many clubs have closed that are open, shows you the 123 fit Franchisor DO NOT KNOW WHAT they are doing and it is BROOKSY SMITH'S fault.

If you are looking into this franchise, really look. If you dont want to commit a financial suicide then stay away from them.

on January 25th, 2008

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

on April 1st, 2008

You need help! Money Mailer ZOR Is Ugly Example!

Sorry for your bad experience with Money Maker. These ZORS are ugly in their attempts to extort money from failing ZEES.
Unfortunately, you will have to get an attorney to extract you from this bad situation ----Make sure you get one who has worked with franchise termination and law.
Depending on the State you live in, there may be relief. This term in the agreement you signed may be unconscionable under some State laws.
Good Luck to you and remember that your health comes first and don't let anyone take your health from you. Start documenting your case, gather up your records, your "ill health" etc.. and get yourself a good attorney. Call your State/Federal Representatives and Senators and complain, etc... This won't hurt.
Good Luck and remember that you are not alone.

on August 15th, 2007

Baskin Robins Australia has Same Problem

While Cold Stone has not tried (yet) to enter Australian market. the operators of Baskin Robbins stores in Australia have problems almost exactly like you describe in the USA. Stores here are much too expensives (and they are built with used equipment often from failed stores) and because of the high cost of imported product (ice cream, cones, paper, virtually everything) very few of the stores make any kind of reaonable profits. The company owned by Allied Brands and has NO business model for new stores - none. Australian people are suckers so easy to find people wanting to own their business without doing good checking. The company is being run by finanancial people as a stock market company with only concern for stock price going up. The market has almost same number of Baskin Robins stores after 15 years - a few successful locations in high tourist areas and the rest struggling and failing to be profitable. Company blames all problems on franchisees - a standard technique for shutting them up. Almost no regulation by government and Australian people don't use court system like USA, so company can get away with screwing everyone without any punishment.

on August 22nd, 2007

Post-termination royalties

Try reading Bruce Schaeffer's book, which discusses the topic, and/or contact him and see if he can refer you to proper counsel. Remember that litigation is probably going to be in the zor's hometown, but look at your franchise agreement.

on August 23rd, 2007

Money Mailer Franshisee problems

Please provide additional info about the Money Mailer problems

Is this a bad franchise to own?

on August 23rd, 2007

Money Mailer Questions

I was contemplating purchasing an existing Money Mailer franchise.

It this a very risky proposition.

I have been having trouble finding reliable information about Money Mailer franchises.

on August 23rd, 2007

I'd sell my computer and get a proper bed

can't sleep on a keyboard.

on March 29th, 2008

Yes we were

taken advatange of. This is an American Tragedy.

on March 29th, 2008

So its okay for you to violate the terms of your agreement?

I hope they do sue you, win and get paid.

on March 29th, 2008

 Revenge is buying a

Revenge is buying a person’s mortgage, allowing them a no-cost refinance on better interest rate terms, having them sign a new contract which slightly alters the foreclosure terms, insisting they have a lawyer review their mortgage, and then patiently waiting.  Once you end up with their house, and see the tears running down their wife’s face, and see their children put out with them on the street you explain to the jerk-off what his transgerression was in the sole presence of his wife(leave the kids out of it)… 

Or you give him his come-uppance in the parking lot at night… 

The above is revenge, the rest of what you people talk about is therapy.

FuwaFuwaUsagi

What is best in life?  To crush your enemies, see them driven before you, and to hear the lamentation of the women! ...Conan the Barbarian

on March 30th, 2008

It's starting

I'm already getting 123Fit calls. This is going to be another mess. It brings up an important due diligence point. Some people's names appearing anywhere - whether in the UFOC or elsewhere, written or oral - are such a due diligence red light that the name alone should make the proposal a good FranWhack candidate.

Lawyers who advise about franchise purchases might start accumulating a Rogue's Gallery of bad franchisor names for reference.

Many of the bad guys aren't widely notorious, and just a few of us may know of many of them. We might be doing the entire BMM community a great service to have a listing page where people could find the names of franchisor personnel who's names alone would cause us to recommend against doing business with them. Inasmuch as that would be like a Dunn&Bradstreet sort of opinion reference based upon their known history, this would not be a slander issue, though many of them would claim it is a slander issue, and it might be that we have to defend against such a claim and actually win one to make the point. If other lawyers who strongly support this forum site would join in, I would happily participate in a group of lawyers willing to defend against actions brought to intimidate BMM - pro bono.

BMM is too valuable to the franchising community to allow it to be intimidated by the bad guys. 

Richard Solomonwww.FranchiseRemedies.com

Posted by RichardSolomon on September 26th, 2007

From another sad 123fit owner!

Our experience with 123fit has been a horror story from the beginning. I have to admit that I personally love the circuit and the business. I love the people who come into our site. I feel like I am letting them down. The people I have grown very fond of. Unfortunately only 5% of the population are dedicated to excercise and really taking care of themselves. The area directors claim we have 95% of the population to market. Human nature is to be lazy. What happens is many quit because they get tired of the circuit or can't motivate themselves to work out.
The 123 fit franchise came up with a brillant circuit. If only the people who got us started were honest and cared about our welfare. We had no representation from the beginning and that is why we have ran out of money and can no longer afford to carry on. our area director has been supportive. If only he was there from the beginning. I know he would of advised us better. Maybe I'm wrong because I tend to be too trusting. I still want to believe there is good in people. It doesn't change the fact we have used all our equity lines. We are going broke even when my husband and I have never hired an employee. If you buy this circuit you will have a great circuit. Cover your ass and have 3 to 5 years capital to make sure you don't have to go through what we are going through. Most of all know your market. (One area my husband and I failed at.) If we had known about having 3 to 5 years capital to insure against the obvious we would never had gone into this business. I felt a responsibility to write something. We have never spent so much money in such a short time. There goes our retirement and dreams. We just have to regroup get out and build new dreams. Dreams that envolve a life more simple. Oh well I came into this world with nothing and I will leave this world with nothing. But as long as I have life I will fight to succeed. But if something is not working it is pure insanity to continue. Perhaps we didn't have enough time to succeed. The truth is we didn't have enough money.

A very sad 123 fit owner!

on November 21st, 2007

123 fit closes more clubs

More on this loser. Brooksy Smith, president/owner of 123 fit along with Rick Schaden, has CLOSED his 2nd 123 fit club in Texas. He did it very quietly. Now hows that for franchise support. Even the owner of 123 fit CANT open a club and keep it running. So much for his "proven system"

DONT BUY 123 FIT or anything that has Brooksy SMith or Rick Schaden involved. They are CROOKS!!!

on February 8th, 2008

Thanks Austrailia ---In the Global economy, franchise slaves

Thanks Australia! It may be that in the global economy, franchise slaves and indenturing will be the norm.
I know our big American franchisors are spreading out all over the world and this ugly practice will spread, as well. Hasn't Quiznos also run into trouble in Australia and Canada.
Mayve, if people like us can talk on a free and uncensored Internet site like Blue Mau Mau, we can spread the word and stop the bastards in government who cooperate with the private interests from victimizing the public and the taxpayers to maximize the profits of big corporations.
You know that the Minister of Industry in the UK was too smart to join ranks with the ZORS and present a picture of government regulation of franchising to the citizens of the UK that would lull them into a false sense of security.
You know that media is also controlled by big money and big corporations and that they won't reveal any of this to the general public. Big money associates with other big money and our elected officials associate with the big money and the dirty secrets of franchising are hidden from the public.

on August 22nd, 2007

Food franchise data / Australia

Buying a new concept is risky, though there can be advantages to being one of the early franchisees.

If you are willing to wait, there are trade publications which publish sales data on food franchisors. Looking at same-store saled data, there is not good news for the specialty ice cream franchisees, and now I notice that they are now offering pre-packs. Historically, that is not a positive sign for franchisees-- think Carvel, Baskin Robbins, Haagen Dazs.

The Baskin Robbins situation may turn out more upbeat for the franchisees who can convert to the multi-concept sites to capture more of the daypart and more cold weather traffic.

On Australia, there was a grant proposal submitted by Professor Buchan at Univ of NSW to study the impact of franchisor failure on franchisees. Her proposal did not make the final cut, but my understanding is that she continues to work on research into the issue, with a focus on Australia and New Zealand. An interesting side note is the sub-rosa effort by US franchisors and a certain major Washington-based franchisor trade lobby to undermine Minister Fran Bailey's efforts.

on August 23rd, 2007

no it's your tragedy

franchising is the American success story!

on March 29th, 2008

123 Quizno's

Richard,

About 1.5 years ago, I was approached right here in Cleveland by a 123 Fit dude. When he told me that the folks "behind" Quizno's started this one, I got frightened...very frightened.

Franpro 

Posted by franpro on September 26th, 2007

And many

Thousands of stories of burned zees.

on March 29th, 2008

MONEY MAILER failed to deliver the PROMISE

I would not purchase a Money Mailer Franchise....I would of course do my own research first, but I can tell you that the things that the Franchisor tells you prior to buying is not the case one they get your money....
The price at which they elude you can sell the envelope advertisements for is false in many cities. The support they offer is far below par. The Field support offered was the same person that was in the same training clas as I was in.....
Be vary careful in purchasing a MONEY MAILER faranchise.....

on September 11th, 2008

I'm thinking of buying into Money Mailer Please help

Please help me I have someone who wants to sell me this franchise in NJ. He has showed me that over the past 4 years he has a proffit of over 65k per year. he wants me to buy it because he is purchasing a grocery store and wont have time to give to his exsisting clients. Please help me if you can and tell me what went wrong.I don't want to make a mistake. Pat 4723@embarqmail.com

on October 22nd, 2008

Thinking of buying a Money Mailer

There is only one person to speak to if you are looking at the coupon mailer industry and that is Jim Coen. He has forgotten more about this market than you will ever learn and he is a frequent poster on BMM. He spent many years with SuperCoups and knows the industry inside out, he is also one of the franchise expert contributors on this site and is currently president of the Dunkin Donuts franchisee association

Posted by Guest on June 13th, 2009

Re: MONEY MAILER failed to deliver the PROMISE

You are obviously an idiot and a moron. Seek help.

Posted by Guest on June 12th, 2009

I am sorry

Hello,
My name is Roberta and I am one of the first 123 fit owners in San Diego.." Scripts Ranch to be exact"...
I was partners with the one and only Ray Wilson...24 hour fitness...Brooksy Smith "co-founder of 123fit"is one of the nicest people you will ever meet...
You are right about watching your market and money...My club closed after my relationship with Rays nephew ended...
The circit is fantastic and I miss it VERY much...

If I had a chance to do it all again I still would "without the famly drama"...Do not look back at this as if you failed ...I learned alot and helped many troubled people that suffered from the vices of being out of shape and or over weight...I have many fond memories of it all and I hope you focus of the good of 123 fit and not just the bad...
Someday I know the dream of success for 123fit will be a strong name in every house from the west coast to the east coast...

Happy holidays my friend..

Be well always
Roberta Burger

Posted by Roberta Burger on December 7th, 2008

At what cost?

Many people's lives have been destroyed. They did not battle test the system on their buck. Have you not read that Brooksey's clubs all went out of business? You are either a shill for 123 Fit or a personel friend of the CEO. Would you like to talk to the over 40 couples whose lives have been destroyed because they used us to battle test their system. The circuit is good but there are many good workouts out there.
I too have many fond memories of members in my club. You cannot convince me Brooksey is a real nice person. Nice people do not go around and hurt people. You can't be real.

on December 7th, 2008

Roberta Burger

You a so full of it Roberta. You advertised for 123 fit and helped them sell based on lies about your club.

How can you even claim to have been a 123 fit when you did not even have the complete "exclusive" simbio workout at your club.

You also claimed to have about 1000 members! At least that is what you told us first waive of franchisees that had bought. You lied! How could you go from having that many members to a club that closed by early 2007. Did you lose so many members and that made you close so quickly? No you were already a losing club and said anything to get other people to buy a franchise. Because you thought the same as everyone else, the more clubs sold, the chances of finally being successful were better. Wrong.

Brooksy is a lying, cheating, and I do mean cheating on his wife, PIG. It is eventually going to get him in the end.

Lets see, most of Colorado had closed now. Now they are down to 21 clubs open and over 100 that are closed and WILL NEVER OPEN. Counting the days they will close for GOOD and not harm anyone else financially.

Posted by Guest on February 22nd, 2009

Amen, STOP hurting people

I cannot understand how they can sleep at night.  Down to 21 clubs.  That should be enough warning for people to stay away from 123 Fit.  After all they are Quiznos people.  A fitness business ran by people who sell subs.  Even Quiznos is having their problems with many unhappy zees.  Anyone interested in 123 Fit after hearing of all the problems with Quiznos has to have serious problems in the head.  It only took reading all the horror stories here on BMM to raise a giant red flag.  Unfortunately it was too late for us but please people read and stop.  Get out as soon as possible.  Have enough money for your family to reorganize.  Do not trust your area directors or anyone associated with this franchise.   

on February 22nd, 2009

Reply

Roberta -

How funny to find you on this website spouting about what a hero Brooksy Smith is. I was one of the first people to invest in the franchise due to the lies you used to "sell" the business. Yes, I remember the pictures you brought out about your "before self" compared to your "after self" and I am happy that you were able to lose weight and become healthy but that gave you no justification for doing what you did in having a hand in ruining so many people's lives. You lied to my face about the # of members you had, the cost it took you to maintain, and actually it probably didn't COST you anything because you were dating Ray Wilson's nephew at the time - although we only found that out later. Your club closed because just like the other clubs linked with crooks the likes of Ray Wilson, Joe, Ochoa, Brooksy Smith and Rick Schaden, there was no way to keep them open.It didn't matter if we worked 70 hours a week in our clubs, marketing our clubs, attending Chamber functions, whatever we could do because our lives were on the line. None of it mattered. We were just swindled - like all of the franchisees who have come into contact with this group. Many have taken their own lives - one man walked into a Quiznos that he had owned and blew his brains out. So, HOW DARE YOU pat Brooksy Smith on the back. You have a lot of nerve lady. You just stay in your little Idaho town and maintain your healthy lifestyle while the rest of grapple with court fees and arbitration and bankruptcy.

Posted by Guest on March 7th, 2009

I dont buy your crap

Sorry I cant buy your crap.123fit is garbage cicuit or business model or whatever may.....Period

Posted by SAM OJHA on July 24th, 2010

Where does personal responsibility come into play?

or does it?

Posted by Guest on January 2nd, 2011

123fit, a Great Fit!

"If you don't Use it, You lose it." It is a quote heard throughout
the fitness world. It also can be used in the business world.
The 123fit concept is a very very good one, but when owners don't
want to Use the advice given, why be surprised when they are not
succeeding... When a franchise is successful, it is "the owner"
when they fail, it is "the company or concept" shame on the owners that just don't want to listen. I am successful, thanks to the 123fit company.

on May 2nd, 2008

"I am successful, thanks to the 123fit company."

Please elaborate.

on May 2nd, 2008

If this is true

I really am happy for you.

Success in any system has to do with many factors. You may have very low rent, your build out was hardly anything and you were one of the few that had the support of the company.

I understand there is only 19 clubs left. When we opened there was 39 stores. Do you think it was all our fault? 123 Fit at the end of 2006 was suppose to have 190 stores. Alittle behind aren't they? How long do you have on your lease? 7 to 9 years? I hope you have continued success because you have a long ways to go.

I understand the club in Kansas City, Mo. closed last week. It hit the news. Was it their fault too?

on May 2nd, 2008

You must sell 123fit franchises

"when they fail, it is "the company or concept" shame on the owners that just don't want to listen."

What bullshit.
This is the lie used by every franchisor.
(Like people would invest tens of thousands for guidance THEN NOT LISTEN???)
You MUST be a 123fit salesman.

on May 31st, 2008

After a month or so in the business of 123 Fit

Our area director said, " You are on your own." When you buy a 123 Fit you are in business by yourself. LIsten to whom? Their in the business of selling franchises and not helping you reach success. I guess you have to steal as much money from the first generation as you can? 123 Fit is growing? More lies. Haven't you hurt enough people with the Quiznos franchise? 123 Fit will not make it because lies eventually catch up with people. After 3 years how many clubs are making it? 2 or 3? Wow you guys are so successful. Yes you made money off of good people. The smart one's never opened their doors.

To all those that buy into a 123 Fit just remember you are buying a fitness center runned by people who know very little about fitness. If they mention Ray Wilson he left in 2005. Ray Wilson did not put the circuit together. When they mention Ray Wilson ask to see where his office is or insist on talking to Ray Wilson.

The circuit is now called revolutionary. They told all the first generation it was exclusive. It is Life Fitness equipment and ANYONE can buy it. The circuit is now sold to anyone that wants to buy it for a business. It is in many YMCA's and other clubs. Turn whatever they say around and you will get the truth.

Talk to all the first generation. Many have been in sales most of their lives. People do not stick to the program. They get tired of the circuit. I understand the sales people are saying most of us that went out of business were poor sales people. Wake up talk to all the first generation. Many have gone bankrupt and have been suffering tremendously. Their like Quiznos. It is called GOUGE,GOUGE and GOUGE. They are not to be trusted. The zees I have talked to outside of 123 Fit that are successful get support from their zors. I understand some of the new zees have opened with 100 members. You have a long way to go. The one's that are making it have very low rent and help from family members. Watch out for new fitness clubs opening up. That may be your demise. Too much competition.

To date there are 29 clubs open. When we opened in April of 2007 there was 39. Sure they sold some new clubs. Let's wait for 6 more months or so. I talked to one in Texas that was excited about opening a pre-existing club. Today he is out of business. Even pre-existing clubs aren't making it. Good luck to all the new clubs. I am not worried about the zor. It is the existing clubs. Families that will have their lives ruined all because of greed. Out of the 29 clubs 1 club is the former headquaters of 123 Fit. Should we count that too? That means 10 clubs closed since we opened in 2007. On the 2007 FDD it says 12 closed. There has been a significant number of clubs closed. If we had known about this I know we would of never touched it. Lies all lies and more lies. All the stories of former zees are consistant. Don't let them make up your minds. 123 Fit is a sure way to financial disaster. Please listen to those who have been on the front lines of this franchise.

Wait until the 2008 FDD comes out. Many more went out of business. Including us. Las Vegas, Redmond, two in North Carolina, Mass., Florida, Kansas City, Missouri, Texas, 2 which the CEO Closed. I am sure more have closed. I know of some who never opened. (Good for them.)

on September 14th, 2008

After a month or so in the business of 123 Fit

Our area director said, " You are on your own." When you buy a 123 Fit you are in business by yourself. LIsten to whom? Their in the business of selling franchises and not helping you reach success. I guess you have to steal as much money from the first generation as you can? 123 Fit is growing? More lies. Haven't you hurt enough people with the Quiznos franchise? 123 Fit will not make it because lies eventually catch up with people. After 3 years how many clubs are making it? 2 or 3? Wow you guys are so successful. Yes you made money off of good people. The smart one's never opened their doors.

To all those that buy into a 123 Fit just remember you are buying a fitness center runned by people who know very little about fitness. If they mention Ray Wilson he left in 2005. Ray Wilson did not put the circuit together. When they mention Ray Wilson ask to see where his office is or insist on talking to Ray Wilson.

The circuit is now called revolutionary. They told all the first generation it was exclusive. It is Life Fitness equipment and ANYONE can buy it. The circuit is now sold to anyone that wants to buy it for a business. It is in many YMCA's and other clubs. Turn whatever they say around and you will get the truth.

Talk to all the first generation. Many have been in sales most of their lives. People do not stick to the program. They get tired of the circuit. I understand the sales people are saying most of us that went out of business were poor sales people. Wake up talk to all the first generation. Many have gone bankrupt and have been suffering tremendously. Their like Quiznos. It is called GOUGE,GOUGE and GOUGE. They are not to be trusted. The zees I have talked to outside of 123 Fit that are successful get support from their zors. I understand some of the new zees have opened with 100 members. You have a long way to go. The one's that are making it have very low rent and help from family members. Watch out for new fitness clubs opening up. That may be your demise. Too much competition.

To date there are 29 clubs open. When we opened in April of 2007 there was 39. Sure they sold some new clubs. Let's wait for 6 more months or so. I talked to one in Texas that was excited about opening a pre-existing club. Today he is out of business. Even pre-existing clubs aren't making it. Good luck to all the new clubs. I am not worried about the zor. It is the existing clubs. Families that will have their lives ruined all because of greed. Out of the 29 clubs 1 club is the former headquaters of 123 Fit. Should we count that too? That means 10 clubs closed since we opened in 2007. On the 2007 FDD it says 12 closed. That means more closed in 2006. The people we went to training with only 1 club hasn't closed. His club is in Colorado. He isn't happy. There has been a significant number of clubs closed. If we had known about this I know we would of never touched it. Lies all lies and more lies. All the stories of former zees are consistant. Don't let them make up your minds. 123 Fit is a sure way to financial disaster. Please listen to those who have been on the front lines of this franchise.

I hope and pray the hurt zees will get recourse for all the misrepresentations, puffing material facts and defrauding people about the equipment being exclusive. If you decide to invest in this failing system I hope you have lots of money. Watch your money go down the drain. All they will say is other's are doing it. (Another lie.)

on September 14th, 2008

New Update on 123 Fit

These guys are really turning it around. After many of the low performing clubs closed and with a shake up at HQ, things are looking better. As a group, club owners had a good summer - traditionally a slow period. Revenues are up thanks to new pricing structures, better selling support material, and new nutritional services. My heart goes out to those clubs that did not make it. But new clubs are opening in different areas of the country with a new breed of owners. Good luck to you all!

on September 13th, 2008

How many are currently profitable?

Any idea?

on September 16th, 2008

123 Fit Profitability

I would estimate that half or more of clubs are at or near positive cash flow. So much depends on the operator and how they manage labor and other expenses. A few clubs are making BIG money and a few are probably not going to make it. But it looks to me like 123 Fit has re-set and is now operating with a good group of owners and will make it just fine. They have really put together a good package of services including exercise, nutrition, and weight loss and they are marketing it to a group of consumers that are not currently going anywhere else to get this. If you consider that many experts will advise that a new business owner should expect and plan for 2 years or so for the business to generate positive cash flow and that many of the newer 123 Fit owners are at or near positive cash flow in a year or less - that is pretty impressive. As comments on this board reflect, 123 Fit may not have done a good job in screening prospective owners in the past. That is probably a flaw very common in the franchise world.

on September 19th, 2008

I will believe it if I saw their business profiles

Half are making it? Prove it? I don't believe it. 28 clubs is not enough proof that 123 Fit is making it. 123 Fit have lost many clubs due to gouging and no support from the zor. Stop misleading the public. Stop telling future zee wannabees the former zees are all bad business people. Our biggest mistake is trusting you. Scamming people with your lies was your mistake. They screened people to see if they could open a franchise. How much money they had. Lied to them and caused alot of pain for people who have worked hard all their lives. Was Ray Wilson there? Was the equipment exclusive? Did you use real people and battle tested your system on them?

Your comment, "123 Fit may not have done a good job in screening prospective owners in the past." Turn that comment around. "Did the zees do a good job in sreening the zor and all his sales reps?" This is a very common flaw with future zee wannabees. The zor makes sure you have assets and money to start the business which I believe people should not do until a FBI type of investigation is done. If they don't give their financial profile to the zor they will not accept you. This is be the best thing that can happen to you. You would be enjoying the fruits of your labor and not the zor enjoying it for you.

If any 123 Fit clubs are making it there are concrete reasons. Low over head is the main reason. Again is 28 clubs proof that 123 Fit is a good investment? They started selling clubs in 2005. 3 years later there is many failed zees and only 28 opened? I am sure many are not breaking even or close to it. Again prove it.

on September 19th, 2008

123 fit

Believe me, if there is ever a positive comment regarding the business practices of 123 fit, it is being made by a paid corporate employee. There are about 30 that have closed, including 2 of Brooksy's OWN establishments. He lets his poor Dad, Bob take the financial fall for his unprofitable business models. Tells ya what kind of guy you're dealing with huh? These people prey on innocent, naive people who used to have equity in their homes and are now facing financial ruin. He'll always make sure you call certain franchisees - like Brian Keene in Washington, Brian is one of the biggest liars out there, his membership hasn't changed in 4 years, now no one can really think that club membership doesn't significantly change by the hour - even the large establishments. Just be careful about entering into ANY financial agreement that is linked to the names of Brooky Smith or Rick Schaden.

on September 30th, 2008

It is not me writing above

There are many people out there that won't write because they want to forget and their full of fear.

People write your stories. It is not whining it is reality. I am not afraid of 123 Fit. If I write nothing but the truth I have nothing to be afraid of. What can I be afraid of? Becoming homeless? In that case will Rick Schaden help me? Will I have to move to Denver to be part of his homeless project?

People write your stories. If anything happens to me you know why. If I stop writing you definitely will know why. I don't have a computer. :

on October 1st, 2008

Are you kidding?

Since you have posted this blog Brian Keene - I hear you are now experiencing the full wrath of Brooksy Smith and Rick Schaden. So, hmmmm, they're not answering your telephone calls. Hey dumbass, it's because they're out of business. The got evicted from their office complex months ago and moved their equipment to a storage shed in their attorney's office. I have no sympathy for you - you were just as big a liar about this whole franchise as anyone else. How many people did you lead astray with your lies about the "successful" club you were running. These people will never be stopped because the justice system is just as crooked as the people selling these businesses. No one in the US is interested in helping the poor morons who lost everything.

Posted by Guest on March 6th, 2009

What about you Zarc?

TROLLING FOR VICTOMS..UH HUM..I mean plantiffs? How did the Curves lawsuit work out for you? I hear you did well, but your clients didn't do so well.

Posted by Guest on January 2nd, 2011