Comments on: Butterfly Life Chairman Gergley Offers Commissions to Ex-Franchisees

By: Not Surprised But Disapppointed

Not Surprised But Disapppointed — Thu, 25 Dec 2008 14:12:35 +0000

What are the updates for the new concept?

By: BUTTERFLY LIFE: Interview with Former Franchisee Jeff Marks

BUTTERFLY LIFE: Interview with Former Franchisee Jeff Marks — Thu, 07 Aug 2008 03:17:41 +0000

[...] chain that claims to be an improvement over Curves for Women. It was founded by Mark Golob, Tom Gergley, and, supposedly, Mark Mastrov. Golob & Gergley both have checkered pasts and a history of [...]

By: BUTTERFLY LIFE FRANCHISE DISCUSSION | Unhappy Franchisee

BUTTERFLY LIFE FRANCHISE DISCUSSION | Unhappy Franchisee — Tue, 05 Aug 2008 15:55:26 +0000

By: sean

sean — Sun, 27 Apr 2008 02:10:01 +0000

Here's a current Butterfly Life franchise offer posted for your input: Butterfly Life Franchise Offer: 10 Franchises for $65K.

By: Panic Control mode

Panic Control mode — Thu, 31 Jan 2008 05:33:40 +0000

So, Ms. Cathy Galli, personal assistant to Tom Gergly…..do you really believe that anyone is going to be stupid enough to sign and fax back your amendment? I find it quite funny that you would find the need to issue this email today…..is it because no one has sent them in yet??? Perhaps, they are smarter than Tom and Mark think they are……hummmmmm.

I particularly love the last part where you state that you “are here to support us each and every day.” So, why is it when a troubled franchise owner calls any one of you and leaves a message……that no one ever calls them back. Perhaps, you should be open and honest with everyone and let them know that during this month’s scheduled BFL University training…..it had to be cancelled because there was only one person scheduled to attend. Could it be that the “party is over”? Before you used to have up to 30+ suckers in a class. What happened? Could business be slow these days? Geez….I wonder why.

How much longer can you continue to operate your skeleton crew at corporate when you can no longer sell any more franchise rights or collect any more royalties? Cathy, are you willing to work for FREE? Time will tell…..but, I forgot….Time IS against you.

By: Sunshine

Sunshine — Wed, 30 Jan 2008 23:46:09 +0000

AND …todays mail holds this for some of the remaining BFL franchisee’s………and the story goes on with more lies to try to protect themselves( Corp.). Did they send out an email to the remaining “open and happy and successful” club owners about the counter suit filed against them..why NO! Wondering why not?
Read this email sent out today:
“We have been made aware of the negative smear tactics in the e-mails that have gone out in regards to the Amendment. It’s sad that this small disgruntled group continues to spread lies and negativity designed to hurt your business and the company. It’s a false and desperate attempt to prevent you from receiving major benefits for your franchise business. The truth is they really don’t care what happens to you or the fact that you need to remain positive and upbeat in order for your business to get your quality time and attention.
We are committed to adding value and helping you grow your business each and every day. The revenue producing programs we are launching will provide extra revenue to your bottom line and help your members get better results. We will continue to work for you adding great programs and services. All of us staff at the corporate office are here to support you each and every day. Please feel free to contact me with any questions you may have.”

Where the hell was all the support and concern 12-18 months ago? Could it be that all those “disgruntled, bad business people” were smart enough to get the attention of those in command? If the lies were all lies ( and could not be backed up) does anyone think this case would be heading into arbritration? If so, I have a broker that would love to sell you some beautiful sunny white sand beachfront property in San Ramon.

By: In the Know

In the Know — Tue, 15 Jan 2008 07:55:13 +0000

Kudos to More Damage
This latest offering is no more that a Release and Hold Harmless for the price of $2400. If you are in the market to sell your club you best beware. Unless you disclose to your potential buyers, the counter claim, the environment and the true reality of being a Butterfly, you too could be held accountable. Don’t worry, the market isn’t beating down doors to become a BFL.
Area Reps, you sign and later when you are wondering where your ROI has gone you will just have to be quiet and not take action.
Franchisees beware of the wolf in sheep’s clothing. How much have you invested ,how did you get here and how much do they want EVERYONE’S SILENCE! ALOT! You sign and you are agreeing that everything you were told during the sales process, pre purchase was correct , true and something you can live by and pay rent. Can you? If Corporate wants to help, why do they need a release, Mark/Tom just help your franchisees and build your Company as you have publicly stated is your desire. Or is it? Or are you praying that everyone doesn’t get it.
Where is the final 2007 Franchise Renewal?

By: More Damage Control from Tommi & Markie Poo

More Damage Control from Tommi & Markie Poo — Thu, 10 Jan 2008 06:38:47 +0000

AMENDMENT AND MATERIAL MODIFICATION OF FRANCHISE AGREEMENT
FOR EXISTING BUTTERFLY LIFE FRANCHISEES

This amendment and material modification of franchise agreement (the
“Amendment”) is made this __ day of January, 2008 (the “Effective Date”), by Butterfly
Fitness, Inc., a California corporation (the “Franchisor”), and ____________________
and ________________ (collectively, the “Franchisee”), and ___________________ and
__________________ (collectively, the “Guarantors”), if applicable.

RECITALS

Franchisor and Franchisee are parties to a Franchise Agreement dated
___________ __, 200_ (the “Franchise Agreement”). All terms not defined in this
Amendment shall have the meaning set forth in the Franchise Agreement.

Franchisee desires to amend and modify the Franchise Agreement. Franchisor
consents to the amendment and modification subject to the terms of this Amendment, if
Franchisee executes this Amendment prior to February 1, 2008.

AMENDMENT AND MODIFICATION

I. Section 6.01(b). The following shall be inserted after the last sentence of Section
6.01(b) of the Franchise Agreement:
“During the calendar year 2008 only, Franchisee shall pay a reduced

royalty fee of $800 each month. All other terms and conditions regarding

the royalty shall remain unchanged.”

II. Transfer Fees and Assistance to Sell. Franchisor will waive the transfer fee
on any sale if Franchisee is a Butterfly Life franchisee whose Butterfly Life Center was
opened prior to December 11, 2007 and if the Butterfly Life Center is sold prior to
December 31, 2010.
III. General Release, Confidentiality and Non-Disparagement. Except as otherwise
stated in this Amendment:
Franchisor, and its owners, successors, representatives, assigns and affiliates,
release and forever discharge Franchisee, any Guarantors, and their owners, successors,
representatives, assigns, and affiliates, of and from any and all obligations, liabilities,
losses, damages, claims, actions, suits, proceedings, investigations, demands,
assessments, judgments, costs, and causes of action, whether known or unknown, which
Franchisor now has, or at any time has had, or may at any time have, arising prior to and

including the date of this Amendment, except as otherwise stated in this Amendment.

Franchisee, any Guarantors, and each of them, for themselves, their owners,
successors, representatives, assigns, and affiliates, release and forever discharge
Franchisor and its owners, successors, representatives, assigns, affiliates, officers,
managers, employees and agents, of and from any and all obligations, liabilities, losses,
damages, claims, actions, suits, proceedings, investigations, demands, assessments,
judgments, costs, and causes of action, whether known or unknown, which Franchisee or
any Guarantors now have, or at any time has had, or may at any time have, arising prior
to and including the date of this Amendment, except as otherwise stated in this
Amendment. Franchisee and any Guarantors represent that no third party claims an
interest in any claim released by this release.

This Amendment is executed by the parties for the sole purpose of amending and
modifying the Franchise Agreement as set forth in this Amendment and this Amendment
shall not constitute nor evidence as an admission on the part of any party. The parties,
for themselves, their agents, employees, and legal counsel, shall keep the terms of this
Amendment confidential and secret unless required by law or court order, and shall not
make, or cause to be made, any untrue statements concerning the other party or this
Amendment which may have the effect of disparaging the other party or in any way
harming the other party’s business reputation. Franchisee and any Guarantors further
agree that Franchisee and any Guarantors will not disparage the personal or business
reputation of the directors, officers, managers, members, shareholders and employees of
Franchisor.

IV. Miscellaneous.
A. Entire Agreement. This Amendment, and any attachments and documents
referred to in this Amendment, constitute the entire agreement among the parties with
respect to the subject matter. This Amendment is executed without reliance on
representations or statements of the persons released or their representatives, other than
as set forth in this Amendment. No amendment shall be binding unless in writing and
signed by the party against whom enforcement is sought.
B. Joint and Several. Franchisee and any Guarantors shall be jointly and
severally liable under this Amendment.
C. Severability. Each provision of this Amendment is severable. If, for any
reason, a court or arbitrator having valid jurisdiction deems any provision of this
Amendment invalid, such determination shall not impair the effect of other provisions of
this Amendment. Such invalid provisions shall be deemed not to be a part of this
Amendment.
D. Attorney’s Advice. Franchisee and any Guarantors represent that an
attorney has advised them in this transaction and in executing this Amendment.
E. Waiver of California Civil Code Section1542. Each party fully

understands that facts relating to any matter covered by this Amendment might be found
to be other than, or different from, the facts now believed by it, him or her to be true.
Each party expressly accepts and assumes the risk of such possible differences in fact
and agrees that this Amendment will nevertheless remain in effect. Each party
expressly waives any rights, benefits and protections that might have been afforded by
California Civil Code section 1542, which provides:

[A] GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR;
and any statutory, common law, or other doctrines of similar force and effect of any
jurisdiction, under state or federal law.

Signed as of the Effective Date.

Franchisee:

a _____________________________

By:___________________________
Print Name:___________________________
Title:___________________________

Franchisee:

a _____________________________

By:___________________________
Print Name:___________________________
Print Title:___________________________

Guarantors:

_____________, Individually

Franchisor:
Butterfly Fitness, Inc.

By:______________________________
Thomas Gergley, Chairman/President
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

TRANSLATION:

The first section only saves Butterfly franchisees $2,400.00 for this year. It is not a great deal of money. Besides, what happens next year?

The second section presupposes a market for resales. How many units have resold in the last 24 months? Is it realistic to assume that a failing unit can be resold? There is no market for failing units. Who would be foolish enough to buy one?

The third section is a release that covers Butterfly for pre-purchase misrepresentations, but does nothing for the franchisee. Essentially, Butterfly is buying itself a release for royalty reduction of $2,400.00. It is a great deal for Butterfly, but a lousy one for the franchisees. The fact that they are offering such a program, is an indication that they are nervous, and believe themselves vulnerable to a legal attack.

By: Titanic

Titanic — Wed, 26 Dec 2007 01:33:57 +0000

Any break down on that payroll? How much do the owners pay themselves, their family members? If you are losing money, just like the clubs, owners shouldn’t be taking a paycheck home.

How much did they pay for advertising to promote club memberships or was it all really just spent on advertising to sell franchises? I’d bet at least 80% is for the latter.

I wonder if Mark and Tom got Coal in their stocking from Santa?

By: Broke and Hopeful

Broke and Hopeful — Tue, 25 Dec 2007 05:34:20 +0000

Agreements, releases, commisions, lets make a deal! Let’s see if someone out there has a nail file in their pocket….might make a good key or maybe even be used as a “get out of jail” card.
For all of the franchisee’s that are still open and don’t know who or what to believe anymore….remember most attorney’s have a free consult. Somewhere in this nightmare you have to start believing in someone…so start with yourself. What is your gut telling you?
You have read a lot of information here, Sean has posted some very good points and things to think about. If you want to continue to believe in BFL, like some of the area reps ( because it makes them sick to realize they could lose $250,000.00+) then by all means that is what you should do. If you are uncertain about what to do, like so many others, don’t just sit back and wait for the fire works. Stand up and be a part of the fire works…..by forming the BFL chapter with the AAFD, it has got the attention of Tom G. Too little too late for a lot of people, but if you are still open and want to salvage any part of your investment……take control! Don’t give them your club! If you don’t want to join the AAFD, then think about what you do want and how you can get it…standing there all alone.
Or join the AAFD, keep your club, debrand it, bring in your own line of clothing/tee shirts,nutritional supplements, vitamins, make up, go co-ed, or have husband & wife nights, contact Humana Insurance about their Silver Sneakers program, where they pay you to hold co-ed group exercise classes, think retail! The only way to make it today is to have something more than memberships. There are many possibilities if you look for them. How much better off would you be, doing all the things that BFL corp. won’t let you do? Doing things they promised you and never delivered on. If you’re going down…go down with a fight..fight for yourself. If you love your club, your members, helping others…then stand up and say “NO MORE”.
In case some of you have not heard….. as of Sept. 30th, 2007 ( the end of their fiscal year)
BFL LOST $875,000.00. How? According to their “books” advertising and payroll. So now there is NO advertising going on unless you want to count that same old postcard crap( that the franchise owners foot the note for) and everybody except “family” has been laid off. But then with clubs closing daily and some not paying royalties……opps……wake up people. The writing is on the wall,(AAFD) not in the sky!
Merry Christmas and God help us, may 2008 be a better year for those of us that lost it all in 2007