IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE?
May 10, 2007 by Sean Kelly
Filed under Business
Read interviews with Butterfly Life franchisees at UnhappyFranchisee.com
We sent out emails to fitness franchise owners, managers, employees, and customers asking which fitness franchise is best, and why. Our first responses were regarding a fitness franchise called “Butterfly Life.”
One commenter wrote:
Butterfly Life is the hottest new fitness franchise to hit since Curve’s… With all 3 aspects of health and wellness under one roof. Diet, Exercise and Well-Being is the combination to SUCCESS!!! Join the movement to make Butterfly Life the #1 Fitness Franchise across the Country!
Phil Gerst said:
The best fitness franchise for Women’s Fitness is Butterfly Life. We’ve been open for 8 1/2 months and have signed over 200 members. Our members are seeing results – losing weight and inches, feeling better and having more energy. The excerise equipment is designed by a women for women and use stacked weight with 12 levels – not the cheap hydraulic stuff. The members really like group exercise classes – and with more than 40 different classes – including step, dance, kick/box, and ball – cardio classes, Pilates and yoga classes and sclupting classes – there is something for everyone. Add BFL’s excellent diet program and nutrition counselling and you have a winning formula for members’ success and ours.
WHAT DO YOU THINK? IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? LEAVE A COMMENT AND TELL US WHAT YOU THINK!
Ted said:ATTENTION EVERYONE: This is an unregulated site that is not controlled or monitored by anyone. I can come on hear and tell everyone that the world is flat and the sky is magenta and nobody can say anything. The people who are in charge of this are all morons.
Ted: Welcome to FranchisePick.com! Thanks for your comment. I am the “moron” in charge of the site. I have about 20 years experience in franchising, have helped launched or worked with more than 150 franchise companies, was an executive with one of the most successful start-ups in the past two decades, and write on franchising for major business publications. And while I may still be a moron, the idea of the site is to foster open discussion and debate. Yes, corporate shills can pose as happy franchisee cheerleaders, and, yes, failed franchisees can blame others for their own decisions. As in any discussion, statements can be challenged (not “controlled”) by the other participants. Verifiable facts have more weight than emotional accusations and vagueries.
If someone says the Earth is flat & the sky is magenta, YOU have the right to correct them. In the end, the reader decides which argument is valid, which poster is advancing his or her own agenda, and which poster is truly a moron.
It’s a neat thing, this free speech.
Freaked:
I know exactly how you feel. I purchased a territory in February and it has been an absolute circus trying to lease a space and open ever since. Twice I’ve been told that my space has been approved, only find out there was a “mistake” and approval was withdrawn. And I’ve been pressured to accept inferior spaces, that I knew weren’t good, just to get open. My broker even “fired” corporate and refuses to do business with BL anymore.
It’s absolute Keystone Cops at corporate and the area reps have so much conflict of interest that they often do more harm than good.
ALL THAT SAID… it’s business, it’s complicated, and we shouldn’t expect smooth sailing. Even the “Great Ones” at corporate are just people, no smarter than we are. Probably not as smart, they’re punching a timeclock for someone else. We have to expect and jump those hurdles.
Here’s some good advice: Don’t listen to the pitch of either corporate OR the dissatisfied franchisees. They each have their own agendas. Worry about YOUR agenda. This is YOUR business. Trust your own gut. Do your own homework. Make a good decision, and, once you have, blow off anyone who tries to dissuade you.
If you decide to open, stop visiting this site, it will only distract you and cause you self-doubt.
If you aren’t sure if you should open, whatever you do, don’t sign that lease. That lease is the one thing you won’t be able to get out of. For years. Be absolutely sure first.
I am taking my own advice and not rushing this decision. I’m gathering more information and watching this play out a little before I decide. And I’m documenting everything and have a damn good attorney.
Freaked out said: I am told that franchise fees go to putting together templates for marketing and not the marketing itself. Now we are in charge of marketing.
Freaked Out: Consumer marketing and advertising is paid for by the franchisees, one way or another, no matter which franchise you buy. Franchisees of larger chains pay into national ad funds, regional cooperatives as well as doing their own local promotions. If this is news to you, you didn’t do your homework.
Franchise owners need to understand that they are responsible for their own success. The franchisor can give you the blueprint and the tools, but in the end you’ve got to build the house. There’s no silver bullet, no magic TV commercial or radio ad that will fill your club and keep it full. Yes, it’s your responsibility to get potential members in the door and to keep them coming back…
Leigh said:Don’t listen to the pitch of either corporate OR the dissatisfied franchisees. They each have their own agendas. Worry about YOUR agenda. This is YOUR business. Trust your own gut. Do your own homework.
Leigh’s last comment has a lot of good advice.
Sean,
Again I say “Thank you” for this site. Great job for a “moron”!!! :>)
Ted: what is your real name and what position do you hold at Butterfly Life?? A lot of the things posted here are not right or wrong, but they are the facts that many of us live each day.
Franchisee: Your information is incorrect, not every one “laid” off was in sales.
As for telling everyone to go to http://www.aafd.org and speak to a professional,GOOD ADVICE. It is highly recommended that everyone reading and posting here do the same.
I wish the very best to every one involved. Some will end up winners, others will be losers and I don’t mean in “pounds and inches”.
Hold your head high, do the very best job you know how. That is all we can ask of ourselves.
Sunshine: Apparently you have the answers as to whom exactly was fired from corporate, so spill it. Like I said before, I was told by an outside source that Sales and Sales Support were let go. If you want to help then give me something more to go on. If i’m going to raise hell at corporate I need more info.
I have a question about aafd. I’ve checked that site and the only thing I find is a story about the very 1st franchisees and their complaint from 3 or 4 years ago. I also remember reading somewhere that it was resolved (not sure on this though). I’ve also checked the BBB, nothing stands out, am I missing something?
Franchisee-Jackie and Sean:
I’m glad you asked this, Jackie, I’m confused about AAFD, too. A couple of months ago I spoke to a couple of people there who were trying to recruit BL franchisees to fund a pool of money to sue BL with. It didn’t seem to be at all a “neutral” organization, so I limited my interaction with AAFD.
Sean, you’re the most learned of us, what can you tell us about AAFD? Have you worked with this organization in conjunction of the other franchises you’ve worked with?
Ted: You are way off base. The conversations that we have with other franchisees are on a mutual basis. There is no harassment, the reason for the calls is to get ideas and help one another be successful. I thought that this blog was going to be a good way to find out what was going on in other parts of the country with BFL. I love this product and my partner and I are doing everything we can to make a go of it. We have built several successful businesses but this time we thought that a franchise was the way to go…..it would be basically set up, we would go through training on the equipment and such and that the branding (there’s that word again) would be done by corporate since other franchises do that. I won’t mention Curves……Pizza Hut, McDonalds, Midas, the list goes on. Yes, these companies have been around for years but BFL has been around for a few years now and the message should already be out. We counted on that. We also know that it takes time but when rent is over 7 grand and corporate “takes” 1 grand…..believe me you have to sell a lot of memberships to cover just that. There are several franchisees that are in huge debt trying to get their club off the ground….nobody gave them an accurate estimate for opening costs or pre-sales. THAT is wrong….we were in the same boat but not in debt since we have a certain amount of money and that is what we will work with. Note to Jackie…..$1,500. per month in advertising is nowhere near what you will need since it’s up to you to brand your club yourself. I won’t say more….we love our club and our members…..we were told point blank that Corporate would be there every step of the way and that they guaranteed us 100 members before we even opened….that statement is now “heresay”….go figure…never thought I was naive especially at my age and experience. I getting tired of the cat fights on here…..we should all be supportive of one another…..I applaud the successful clubs and when we reach 350-400 members I will cheer the rest of you on just as I do now. But, when I hear that a club is doing well and they have only 100 or so members I know that they aren’t even breaking even and to me that is not what I call success.
Sean: I normally am in total agreement with you but the whole branding thing I feel is a bit distorted……why else would one purchase a franchise? All we got was the name (no-one has ever heard of) and a manual ordering us to buy items that were overpriced, some impractical and from too many different vendors. We could have pulled this off for much less money and trouble. At our ages we wanted something that would be turn key, easy to get going……something fun that would help others. What we got was a big headache instead!!
Jackie: Do not settle…..make sure that your space is one that is in a great location because half the battle is just that….location, location, location!! We refused to sign the papers until we were secure in a space that we were happy with. They even had to pre-date our paperwork to make it happen because there was no way we would have signed ANYTHING until then! Maybe that should have been our first clue, eh?
Sunshine: We bought a franchise…..if we wanted to do all the legwork (once again) and work extremely hard we would have just gone off on our own and opened a club. Corporate has an obligation to us, we give them a thousand dollars a month.
Good health & happiness,
Pam
Franchisee-Jackie,
When did you sign on the dotted line? How long have you been looking for a location? When did you attend UT? Who taught UT when you were there? Is that person still there today? Have you received ANY marketing plans? Who were they from? Who was your franchise counsler or Area Rep? Are they still employee’s/associates of BFL? Do you have the LATEST Franchise Design Guidelines? Have you verified the prices in the book with any of the Vendors? Have you checked or verified delivery times? Shipping charges? How many Weight Loss Express Books and Journals do you have to buy at a time? No exceptions! How many posters will you need to cover your walls? Since you don’t yet have a location, do you have any idea how much it will cost to put vinyl on your doors and windows? Have you priced your sign? What do you think of that $350.00 blue rug you are required to have? It may be a good thing you are in Calif. you may save some on shipping. Are you going to pay $8.00 a piece for a work-out towel for your members? And what about the retail line of clothing? Realize that not all clubs are located in Calif. Can a club in Texas, Flordia, Georgia N.C.,S.C., Virginia, Conn. get $60.00 for a pair of yoga pants? $45.00-$50.00 for a matching jacket?
Why would you want to raise hell with BFL Corp. office? Stand your ground. I agree! The final choice for your club location should be YOUR’S not theirs. They are going to get their money every month no matter which corner of the block or side of the street you are on. It is your money you are spending
Contact this person: rpurvin@aafd.org for more information about Butterfly Life.
Pam: I hear the pain and I do totally understand where you are coming from. Don’t all franchisee/ club owners (BFL) wish they could pay themselves that $1,000.00 each month.I believe that was the intent of many people who chose to purchase these franchises. To eventually make a return on what they invested. Break even each month is one thing, making a profit is another.
Lets not fail to mention again the $1,500.00 each month that every club open is suppose to spend on advertising. Lets add this up 100 clubs x 1,500.00 a month =150,000.00 every month that the franchisee’s are paying for advertising? Can any one say just how much BFL Corp. spends every month on “BRANDING” .Lets do that again. 150,000.00 each month x 12 months = 1,800,000.00 per year the franchisee’s are paying. And how much did Corp. spend in 2006-2007 for CLUB MEMBERSHIP advertising?
FYI: There are not currently 100 clubs open and in operation. The club counts are like the memberships, open one this week and next week 2 more will close their doors. Come back to this site next month and see how many of these same people have had to close or lost their clubs.
FYI- I mentioned having to pay for advertising to explain the mixed stories I heard from BFL. Initially it was we are marketing nationally and then it was marketing is up to you. Sean you appear to have an agenda ??? Not sure. But I have done my homework. I guess I was was under the assumption that this site was to help voice opinions, concerns, ect. Maybe the BFL website is a more appropriate place to visit for BS.
Sean: I think you were too kind to Ted who obviously did not do his homework and researched this website and your background before posting. We are grateful to you Sean for your experience and this forum.
Leigh/Franchisee-Jackie/All: Yes you may be confused about the AAFD where Butterfly Life is concerned. In late 2004, when there were 16 franchises open, yes disgruntled franchisees (promises made never delivered) approached the AAFD seeking help in dialoging with Corporate. That IS what the AAFD does with many name franchisees/ors across the country. The response from Corporate was a resounding slammed door! Twelve of the 16 joined under the auspice of trying to continue to try for dialogue and possibly salvage their investments or make successes of their invesments. No dialogue was ever opened as the door continued to slam! By the way not one of those 16( some who opened in 2003) are open. Many are bankrupt! The AAFD is helping the now many BFL franchisees since 03-04(a great number closed or struggling with a few months left or turning their clubs over after a very short time for a Corporate gain) find a way to re-coup the unbelievable losses from a misrepresented business model. This is not a young company. It will enter it 5th year in 08. If you need two to three years working capital why is that not stated in the sales pitch. is it owner operated or you can keep you day job and run it with a staff. (I’ve heard it pitched both ways) And franchisees expected to spend on local grass roots marketing they did not plan on branding the product except through their success as viable franchise. They were promised TV shows, books vitamins, liason with a National home products “guru” , commercials. (Commercials came but focused on franchise sales not brand or business) None have materialized. If there are start up failures expected what is the rate these days 30% every year sometimes 50% of opened stores. And what is the plan of the franchisor to address these issues. If they are now focusing of the current franchisees, then who will be servicing them, all the counselors and sales people are gone from the website, even prominent university trainers. Not much has changed in the operation at corporate. Except to throuw a great many release and hold harmless agremnets to former franchisees.
After 2-3 years Curves was on Oprah, “the Show” not the 1-5 minutes before. ( I have a friend in Florida who owns 4 Curves and been in the system for 7 years, she is well above breakeven on all 4 and they didn’t open at the same time and was on her 1st club early on). BFL is no Curves.
The question is if you are sold “an expensive SUV(Escalade) and what is delivered is an(Escape) and you try very hard to make it into the Escalade, on your own with no Corporate help and can’t do it because you planned for 2-3x their estimates and that is not enough. When can you state that perhaps the sales pitch completely misrepresented the product and the company behind it and mistated the “State of its Union.
Google caleasi. The DOC”s site for UFOC filings, look at the history.
And Leigh or others if you decide to open be sure you have an out with your lease or the ability to go independent. Yes this is business, big business with a fraudulent sales pitch that entices the signature on the line and the money in their pockets.
To the person who has contacted 40 postive franchisees, let’s match lists or is positive “I don’t have a second on my house yet.”
And Leigh if you have the moxy call Bob Purvin of the AAFD and have him tell you that the Butterfly Life Chapter is indeed a different animal for them, not initially, but one they willingly take on. Or read his book about franchise fraud, Sean has complimented on this site.
Sunshine: Take a breath. So many questions, here are the short answers. Signed early 07, been looking for a space since then, i’m very picky. Yes the folks who taught BLU are still there. I never had a franchise counselor or area rep. Yes I have current stuff. I’m aware of what I have to order and have budgeted appropriately. I utilized the UFOC as well as the BL website and contacted owners to find out things such as cost, before I signed anything. And yes, folks here in CA will pay those ridiculous prices for workout wear. I happen to agree with the corporate guidelines for location. If you’re in a busy shopping center where women can do there thing with you and then conveniently run into the local store, your going to see them more.
The reason I want to raise hell is that I agree with all of you that BL needs to get some commercials going again. So…i’ve answered your questions now maybe you can answer mine. Please keep in mind that we are not enemies, we’re here to learn something and help each other. When did you sign and how long have you been open? Where are you located and how many members do you have?
Oh and about the $1500 per mo advertising requirement…that’s for the first 4 months. After that you can decide how much or little to spend.
cont’d…Yes I know, with out BL helping us by Branding as promised, we will need to spend more on advertising.
So Sunshine, if you have info on who was fired or anything else that spells doom and gloom, share it. Isn’t that the idea here. And please stop insulting me by assuming that I’m just naive because I still have hope for success.
Good information and ideas. Thanks for your comments. Sometimes comments come off more insulting or abrasive than intended, so keep your cool. Try to attack the arguments or information, not each other, and the conversation will be more productive. These are important issues.
freaked out said:I mentioned having to pay for advertising to explain the mixed stories I heard from BFL. Initially it was we are marketing nationally and then it was marketing is up to you. Sean you appear to have an agenda ???
As a marketing consultant to franchise companies, here’s my agenda: I push franchisors to develop clear and compelling brand images and brand “stories” that are true, real and integrated throughout the entire organization. I compel them to put together strong, results-oriented promotional program franchisees can implement on the local level (because that’s what works), as well as branding initiatives that benefit the entire system. I compel them to use their ad fund effectively for the sole purpose of driving unit sales, and to disclose every expenditure to franchisees in detailed reports. (My approach does not appeal to franchisors who don’t put their franchisees’ success first) My focus is on franchisee success because in good organizations that’s what drives everyone’s success.
After providing a clear, compelling brand message, a strong strategy and tools, I tell franchisees what they don’t want to hear: The truth. It’s up to them to win their market, to build their businesses, to get customers in their door, and keep them coming back (with friends in tow). Many ad agencies will tell you what you want to hear, but I’ll tell you what you need to hear. My experience isn’t out of a book… it’s the result of working with thousands of franchisees and learning from the most successful of them.
The franchisor has the obligation to provide a strong brand image and the means to communicate it as best they can within the budget they have to work with. If they’re not providing you with the tools you need, you have a legitimate gripe and need to push until you get it. Ultimately, they will listen… but only if you accept responsibility for implementation and are realistic. That’s just the way it is.
Those who have already closed are understandably going to focus on who’s to blame. Those still in the game need to push for solutions and can’t afford to get unduly negative. Those who haven’t signed a lease should study these issues very carefully.
As a previous owner of a BFL club I have only one agenda, to let potential franchisees know that you need way more money than BFL says to reach break-even and consequently make a profit.
The clubs I know that reached break-even in the time Corporate says it takes, did so by spending considerably more than $1,500 a month. Please have AT LEAST a year of working capital. GOOD LUCK!
I think you’ll all find this post very interesting:
Franchise Dreams Becoming Nightmares for Many Fitness Club Owners
Nearly 60 Contours Express franchisees are alleging fraud and breach of contract. There’s a link to the Petition for Damages document that has not been circulated publicly until now. They also complain of unrealistic start-up costs and breakeven projections.
Question for those who have opened BF franchises: In your opinion, what is the REAL initial investment number they should be using? What was the actual cost of opening your facility? What was the actual working capital (dollar figure) needed?
Yes, Sean, I saw that post- facinating and timely! Did you write it?
I’m going to go back and look through all of the Contours Express postings now… compare them. Jackie and Freaked, you guys should, also.
I will say that when I was researching franchises I went to visit a Contours in my town. She had only been open two months and had that serious “deer in the headlights” look. She closed the next month.
BR: Actually, I have spoken to Bob Purvin, and I’ve sat in on one of the conference calls.
I completely understand the position of the early franchisees involved in this action. But it’s just not appropriate for me to be involved, because I haven’t opened, may not ever, and therefore haven’t yet been injured by BL. The only thing I’m out is my franchise fee, which, if I wanted to pursue “getting whole,” I would have to do independently.
I have no beef with you guys. I think you got suckered.
I believe that Butterfly Life has the best product that’s why i’m not going to run away. I am however going to approach this venture differently. I’m going to have to act as if this is a start-up, not a franchise and proceed accordingly. I will definately start by choosing a smaller more affordable space. Those of you who are open…how important is the retail part of BL, how much $ per mo does that bring in? Maybe i’ll go small enough to ditch that whole corner. Opinions? Please share. I will just have to really focus on grass roots marketing and work with what i’ve got.
That said…I need to get back to focusing on finding a location. I’ll check in now and then and hopefully those of you who are struggling are still here and doing much better. Good luck to you and to those of us who are just starting out stay positive. ttfn
Jackie: It’s a shame that you can’t just dump BFL and do this on your own! As for the retail part of it….we don’t sell much but according to BFL you are supposed to order $1,200. worth before you open. The list is worked out for you…..I had to change some stuff since it was summer when we opened. Good luck, I wish you all the best!!
Pam
Thanks Pam I wish you the best as well. I appreciate everyone’s comments and ideas, good luck and thanks for sharing.
Leigh, If you have sat in on the calls you obviously could not identifiy yourself yet in your earlier postings your seem to intimate that this may be a good venture, just young. Then why not stick with it through the growing pains for your greater reward. I give this whole company 6 months. For future franchisees how many franchise contracts have been signed in the last three months. Again how many are successful per the model sold.
And yes we may have been suckers but so are you. You obviously didn’t do your field research or you would know the failure rate and the impending failures or could it have been hidden. Your attitude is different than when you first blogged(contacted). Apparently you have a big pocket of money and 30k is no loss and you have the concscience of those who watch crimes committed and do not have the strength to speak up. This company is not a young start up waiting to organize, it is a failure waiting for the cons who started it to give it up. I have been party to many product start ups in my career and the companies launching have had greater smarts to “know when to fold them”. And I will verify your conversation with Mr. Purvin .
And by the way Leigh, those suckers out there gave you incredible insight and knowledge when you requested it through the website. It is a shame that you speak so negatively of those that helped you with your business decision. You have a grain of sand of knowledge on this franchise. It also is a shame you shun personal interaction afforded to you but prefer anonymous censure. I applaud those who have taken a stand and not just covered their behinds.
BR:
I agree whole heartedly with what you just said!
Leigh would be singing a different tune if she had
just walked in our shoes for the last 2 years!
Many of us have had our own businesses for years. We are not stupid nor are we inexperienced. Our down fall is believing the sales pitch – when I was sold the
regular TV spot on Oprah -He said It was a “done deal”.
I only wish this blog would have been here for me to read because I would have spun on my heel and run.
By the way -I only sold about half my original $1,200 retail after 20 months in business. No profit there-now it’s in a garbage bag in storage.
BR:
Wow, I’m sorry if you felt I insulted you; it was not my intent. I thought this blog was to share information and ideas, not attack each other. That’s no way to be successful.
To be clear, I sat in on one call and decided that suing BL was not appropriate for me. I did not criticize you because that’s what you have chosen to do.
As for anonymity, if you have something valid and true to say, there’s no need for anonymity, initials, or made-up names. That’s why I use my real name.
I’ve enjoyed the postings, but it’s deteriorated into a cat fight, which is not productive. I think my time is better spent elsewhere.
Good luck, everyone!
Sometimes comments come off more insulting or abrasive than intended, so keep your cool. Try to attack the arguments or information, not each other, and the conversation will be more productive.
The combination of highly emotional issues, anonymity & comments that are both written and read quickly can cause some miscommunication and hot exchanges. Let’s not blow the opportunity for good, open dialogue. Let cooler heads prevail. (Remember how graciously I accepted being called a moron? Of course, I get a lot of practice.)
Loan from the Bank to open a club – $120,000
250 – 300 member to break even – $12,000
Another 100 members to pay loan – $1,500
Another 100 members to pay Salary – $1,500
Money to pay for yourself
Enough money to pay yourself – Priceless
Cont’ I am thinking that a salary of $1,500 a month for the 14 hours a day you have to spend
running your club is not a very big salary. You have to ask yourself “Is it worth it?”
That might only be $4-$5 an hour, but what about the perks? Like… free exercise!
Someone else and I have the same first name & already was writing on the blog so I used my feelings to create a name.
Sean,
Early 06….including franchise fees, build-out according to Corp. requirements, signs, retail racks, clothing, cubbies, lockers, sofa, chair, circuit equipment, rebounders, Life Vision, etc. on the East Coast 139,000.00 which DID NOT include 6 months of operating capital @7,000. each month. Another 42,000.00 not to mention advertising BEFORE you open your club approx. 8,000.00. The first 100 members to sign pay no enrollment, no processing fees. Depending on your market monthly fees on average are 29.00-59.00 a month. Even at 39.00 a month, that takes several memberships (175!) just to cover one month of expenses. Some of the club owners are in their club 12-14 hours a day, where as others take the 2-3 hour break in the middle of the day to “work” out side the club marketing.
Opinions. Cat fights, insults, hurt feelings, misunderstandings,truths, lies, all of these are part of life. Some of the people posting here are honestly trying to help others-give caution to others. To those that are and have been successful-share your story how you became successful. What “works” for one club in Calif. may not work for a club in N.C. Those that are failing, losing their homes, filling bankruptcy when 2 years ago they had a perfect credit rating are sharing their experiences, their pain, their suffering, their fear of their own future- all in hopes that others MAY learn something from these post. BFL has mislead, misrepresented and out right lied to many people maybe not to all. Some have voiced that here. I have learned a lot from these post- take what you want or need-leave the rest behind. I have gained some very sound advice from the “moron”. Thank you again Sean.
What all this boils down to is this: What were you told before you purchased the facility. The cost of opening, and how long it would take before you would break even. I purchased in 05 and was told it will take four months to break even. The cost in the ufoc only had three months of working Capital in it. It also listed only 14,000 – 20,000 for all the other equipment and furniture. (Did not include circuit) Until I went to the franchise university I could not confirm the prices of the couch, desk, lockers, relizon products etc. If you added everything in the book they wanted you to buy it was well over 20,000. I also asked three different times if that 20,000 included the price for the building sign. And I was told yes three times. I was trying to make a good decision based on how much money it was going to take. By the way the sign is not included in the price of the 20,000. My sign cost $5,000. Anyone looking for a sign it’s for Sale. Before I opened Mark had a franchise seminar here and sold me a bill of goods and how the cost was going up. The new ufoc was coming out and the costs of the franchise fee were going to $1400. $1000 royalty and $400 advertising. The new ufoc was in at the Dept of Corporation and it was a matter of days before this would go into effect. So if you wanted to be under the 2nd ufoc you had to hurry. He also told me that when the 30minute TV show hit in June 06 (this was not a matter of if it was to air, but firm June air time) the franchise fees were going to be 59,000. I bought into the lies and purchased three more clubs. After all I loved the club and with the background of corporate… Butterfly Life would be know nation wide. Or so they said. I was told they expected 500 opened clubs by the end of 06. Their numbers are always so far off. When I decided to go ahead they knew I should have had the 2nd ufoc in my possession for 10days prior to signing for the new clubs. But they conveniently let that slide. I found out later they did raise the royalty fee to $1000 but terminated the $400 advertising fee at the end of 05. All clubs who signed prior to 2006 all have to still pay a $400 ad fee. Don’t understand how they can charge some clubs and not others for the ad fee. I tried every type of advertising they suggested and more, did a lot of community shows to promote my business. I circled an area around my club and did outreach. This is a very hard business and trying to maintain members is very hard to do. Even if they see great results and enjoy the club does not mean they will stay. Your always trying for new members and without the national advertising to help most will not succeed. Corporate comes out a couple of times a year during conference calls to let you know about a hugh campaign push. Big national TV push be sure to man your phones, this was July 06. They said they were throwing hundreds of thousands of dollars at this campaign. I received one call and when I called around to other clubs they were experiencing the same thing which was nothing. Corporate would never give the same story on what happened. They new a lot of clubs were in trouble and I think they just tried to say anything to keep you going. They also promised on the same conference call that in September and October 06 they were going to run full page ads in women’s magazines and large ads in National papers around the country. The only thing they ran was a ½ page ad in a franchise magazine to sell more franchises. So what were trying to tell all of the new people who have not yet opened is they will always promise something great to keep you hoping for the next couple of months that things will pick up and that their’s something new in the works. What ever happened to purple door communications (this was five business women who were hired by corporate to promote all the butterflies that were opened) they did start with brand new clubs who just opened in Florida but have never heard from them after that. My business is now closed and I am 275,000 in debt. I can’t tell you how many times I just sat in my club after it was closed and cried. If you do not have large amount of liquid cash that if you loose it’s ok. My suggestion is not to do it until they change their business tactics and give the truth on cost and time and their business plan for branding the name (not pie in the sky branding). How many clubs are at the 400 level of members? Remember break even does not make you money. How many of you have families, I was told one person easy could run this club. I was going to hire someone part time after I broke even. Never made it to that level. When I called corporate to tell them I really needed help all Mark could say (after he mentioned how much trouble I would be in with my landlord if I shut my doors was) SORRY ITS ONLY BUSINESS!! Well I never would have opened the business if the true numbers were in place!!! I do wish the best for all of you still trying, but if you’re running low on money don’t wait on the promises of corporate. Start putting together your exit strategy before it’s to late. The only good thing is the 3rd generation of equipment now has more weight so you might not loose existing customers who plateau on the old machines. I wish the best for all who have purchased these franchises.
Sooooo Disappointed: I am sorry to hear how badly things turned out for you. Thanks for sharing your painful experience; no doubt you helped someone else make an informed decision.
Often, the entrepreneurs who start companies and the sales people who sell opportunities often have the “It’s only business” viewpoint. To many of them, this is just a game, with winners and losers… nothing personal. To most franchisees, it couldn’t be more personal: Their savings, credit rating, credibility, self-esteem, marriages and happiness are on the line.
You will survive and emerge stronger… karma will prevail.
Sean – love your thoughtful comments…..you moron you!!!(just joking!) We need you to be our mediator with BFL……..joking again!!! Thanks for bringing everyone back to what’s important….sharing pros and cons and hopefully giving others the tools to make a wise decision.
Leigh – It’s most definitely appropriate for you to support those in the AAFD. “The only thing I’m out is my franchisee fee….” seems like a lot of money to me, and to those who have filed bankruptcy; lost their homes; their retirement….. I bet you don’t know how many people were out “just their franchise” fee! I’m an original owner (now closed) and there is much the newbies don’t know. How do you think they’ve made a huge portion of their money….. because no one has challenged them. You can’t walk away and allow Mark and Tom to destroy other peoples lives without any remorse. We all have a responsibility to each other to stand tall and to stand together to demand ethics, integrity and professionalism in the business world. If you were on the conference call long enough you would have known that you can “get whole” without going independently. That’s why we have to stand together. Franchisee Jackie – Maybe things have changed, but we had to abide by the franchise agreement regarding the size of the club. We couldn’t go smaller just to save money. I commend your positive attitude….as we all had in the beginning. What has BFL done to make you successful?…….they have given you a name……….that hasn’t even been branded……..you could continue on your own……..buy your own DVDs…….save $1,000 a month and be as successful as you will be with them! We don’t want anyone to close their doors…….we just want them to get the help they were promised! As Pam says….you can do this on your own! Remember, when they change their Franchise Agreement, you will have to abide by it. BR and Sooooo Disappointed – You said it well………….can you believe I could add a lot to it?!?!?!? By the way…..check out the lawsuit against Linda Evans…….Mark closed the doors and hoped no one would find him……Carol Edmonston and 410 paid members did and filed a suit with the Orange County DA’s office and collected $40,000 from Mark Golob and $70,000 from Mark Mastrov. This is public information that was published in the Orange County Register several years ago (google it)……….Golob sounds like an upstanding man to me!…….and there’s a lot more we don’t know about yet……..people are finally coming forward……it ain’t over till the fat woman (no pun intended!) sings………and she hasn’t sung yet!!!!!!!!!!!!!!!!! Good luck to those who can make this work………I would love nothing more.
Contact Sean for my email if you have questions or concerns……..I’ll be happy to share my experience and maybe it will help in your success.
I wish you clear vision and great success (thanks RM for a geat motto….I told you I’ll use it all the time)
FYI: The Contours Express franchise lawsuit document and the Contours Express franchise disclosure documents are available for download at the FranBest.com document library:
http://www.franbest.com/?page_id=323
The Butterfly Life franchise agreement, franchise offering circular, area development agreement, area representative agreement, and list of franchisees are posted as free downloads at the FranBest.Com Franchise Document Library:
http://www.franbest.com/?page_id=323
Sean,
I would like to ask you a question based on your “moron” knowledge and what you have read here. Bottom line is some of these franchise owners feel abused, used, lied to, cheated. What would your advice be to these owners going under/out as we speak?
Yes, each one signed their agreements with or without the advice of an attorney, yes they knew they would be paying royalty fees each month, but many were lead to believe that with a “combined 100 years of experience from the Corp. team” that by this time there would be hundreds of other clubs open and successful. That women all across America (not just those in Calif.) would know what-Butterfly Life-is.
How can these franchise owners turn this around before losing everything? What would be your advice to someone who has not “signed on the dotted line” already?
I know the question is directed to Sean, but for all it’s worth….RUN! RUN! RUN! the other way!!!!!!
Where’s Waldo?…………..oops…….I mean Mark Golob? Have you been banned from corporate or are you taking a lengthy vacation with the money from those who never opened?
I have been open a little over 7 months. (past the point coporate said I would be breaking even) I have been working my tail off, doing everything coporate suggests. I just ran my
P & L statement for the last quarter. My income was a little over $6,000 and my expenses (including advertising, rent, utilities, insurance and misc.) where a total of $20,538. You do the math. This does not include a salary or payroll.
Broke, I am so very sorry – my income never got higher than yours in over a year and a half – my
expenses were some less thank goodness. I too
followed everything my rep said – with the exception of the monthly postcards & advo after
I had no advertising dollars left.
I am now closed, dealing with a law suit from
my landlord, threats from corporate of a lawsuit
as well as working with my atty. on a bankrupcy.
Less than 2 years ago, I had $200,000 in the bank and a 800 credit rating, Now I have maxed
my credit cards,spent the $200,000 and have law suits looming and am declaring bankrupcy.
What a life changing experience I have had
with Butterfly Life! Do you think that was the
“life changing experience” they are selling?
Anti Butterfly-your story is my story. I owned a Contours Express for 4 1/2 months, started with a little over $100,000. Now 1 year later the landlord sued me so I filed bankruptcy and am working 2 jobs just to pay the high mortgage from refinancing my home. It sounds like you guys are where we were a 10 months ago going back and forth about how you were lied to and cheated by these people! Now we at least have a lawyer and a lawsuit to hopefully get some of our loss back and make Contours Express Corporate change their ways. Good luck to all of you and hang in there. Maybe our lawyer can help you.
I understand many of you are scared and angry. Have you noticed that none of the franchisees who are making it post here – and before you jump all over it – yes, there are some. That’s because they are too busy doing what they are supposed to do and what Sean has wisely suggested- running thier business and focusing on local marketing.
If you think sueing corporate is going to do anyone any good, think again. If you’re right and they are in tough financial times what will they have in the way of money to give to you!?! I talked to the AAFD. Think about this. They are lawyers, how do they make money? Through lawsuits not negotiations. I have yet to hear any other solution than litigation. BL corporate loses, paying out money to defend, filing parties lose because there is nothing left to pay out and meanwhile you are ruining it for those who are trying to make it by diverting much needed resources. I don’t doubt some qustionable claims were made but there are two sides. Brands don’t come in a bottle. No one heard of Curves until the late 90’s by which time they had 5,000+ clubs and all of them paying into a marketing fund. That’s what we need.
Now go ahead and let lose with all your angry responses but realize the amount of time some of you with clubs spend here focusing on dooms day could be spent making this work. To those of you who are already closed, I am truly sorry. I can imagine the devastation. But, will you feel better if corporate and all the current franchisees are bankrupt with you?
Doing My Best: I never said that the people posting here are failing because they spend time blogging instead of doing local store marketing, as you imply. They have it all on the line and are looking for help. In my opinion, if Butterfly Life corporate wants to avert the lose-lose scenario you describe, they need to restore faith that they truly care and will work with the franchisees to help them succeed on the local level.
In my opinion, the Area Reps have to realize that their investment isn’t being threatened by bad press and it won’t be saved by sweeping problems under the rug. It will be addressing the marketing problems and working together to build the brand. The company needs to step up with some real, results-oriented marketing initiatives that drive membership. If they can’t do that, there are alternatives to litigation and mutual destruction. Franchisors have suspended or greatly reduced their royalties, temporarily or permanently. Franchisors have released marginal stores from their franchise agreements to try to make it work as independents.
Doing My Best: This is the time when franchisors need to step up to the plate and show some leadership, as well as concern. They may be doing this… are they?
Yes, Sean- sure is sad that Contours Corporate might be concerned now, only because there is a lawsuit pending against them. If we hadn’t of stood up for our rights when we did, they would still be going on with their frauduent dealings, and probably still are!
Doing My Best: Who are you? Where is your club located? I get the impression that you are a successful Butterfly Life franchisee and I would LOVE to know how many members you have and how long it took you to get them. I agree with those that have stated that they think BFL is the BEST product out there for women ~~ I love it and our members love it. My concern is that we were told one thing……several things….and they have turned out not to be so. If we had known the truth, as much as we like the product, we would have never bought into this business!! Our opening day was in early July and now we have 50 members and one on hold due to a shoulder injury. We need 350 -400 members as our rent alone is over $7,000. SO…will we make it? We will do our best along with lots of prayers and luck!!!!
Doing my best, go ahead and say what you want. Lets see how you feel when you have been open for over a year and you are close to losing your house because you have filed for bankruptcy. No, we are not trying to make corporate and everyone else go bankrupt with us. That is not the point here. The point is we where cheated and lied to and we want the lies to stop for current franchiees or even future franchisees. Even though my club was not succesful, I wish success for franchisees who are still open. If we have to band together against corporate to make them step up and do what they promised us and many others then that is what has to happen. I do believe in the product but when you are doing everything in your power to keep your club running and corporate is not holding up their end, then you are basically a sitting duck. You buy a franchise for the name. If I wanted to have struggling club, then I would have opened under my own name and not bought into a franchise. I haven’t seen a BFL commercial in over a year. The only reason I saw that one that day was I just happened to be wathcing a channel that I or other people don’t ordinarly watch. No they don’t advertise on a local channel during the day when Moms and housewives are at home. They advertise on something like Lifetime channel on a late Sunday afternoon. I have even spoke with people who live in CA and they have never heard of BFL. I have spoke with a man that lives down the road in San Ramon that has never heard of BFL. What does that say? As for you and the others who do not agree with us, go ahead struggle, stress, wish for the best and let Corporate continue with their lies and broken promises.
Doing my best…..one more thing. I see you found time in your “busy marketing schedule” to blog in. You must have missed at least 15 leads blogging in. lmao!