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!
I just spent the last hour or so reading all the information on this site regarding BFL–MY HEAD IS SPINNING. I had no idea that things were so “out of hand.” I have a question regarding those of you who have debranded. How did you go about it? What were the ramifications from Corporate? Here is a little background on my situation. I just celebrated my first anniversary with 250 members. I need 100 more to break even. I experienced an extreme slow down in membership sales in the months of September, October, and November. I have noticed an increase in walk-ins and have sold three memberships so far in December. With that being said, I have been trying to get an answer from Corporate regarding their plans to “brand” in the new year. So far, I have not received a call back from anyone. I tried earlier this year to “step outside the box” in bringing in components that would aid in paying my $6,000 a month rent and received a nasty letter from Corporate threatening to take away my franchise right if I did not comply. I complied and am now ready to make it happen with or without Corporate. With the exception of my brief “stepping out of the box” period, I have followed the BFL plan to the tee. Has anyone heard of any marketing plans funded by Corporate in place for the new year? I thank you in advance for any feedback you have that might help me.
To: Central California – please contact the AAFD (www.aafd.org) and they will put you in contact with one of the members of the Butterfly Life Chapter. Believe me…… you’re not alone! As everyone knows…..once they have your money you’re on your own! Our membership is growing by the day…….there is strength in numbers
First Amendment Anyone – Great idea! Maybe we should get the names of the key employees out there also besides Tom Gergley and Mark Golob. I wonder how their community will see them once there names are published in various articles along side the two heads of Butterfly Lies? Inside information says they’ve known about this scam for many years…………..as I recall, the law states you must disclose any problems surrounding the sale of a franchise……….or you will be held liable….!
To: Central California
250 members after one year…Good for you!
I don’t know of a single business that shows a profit
before one year, sometimes it takes two, so you’re right on track. The aafd is not for you. Good luck and stay positive.
Jackie
Now duck & cover the negativity is going to fly.
To Jackie;
Somehow the basic problems get lost in the shuffle. No one is arguing that it takes longer than 1 year to make a profit, get a business going etc. And yes Central California is definitely on the right track. But is she there because she gets any impact/return from being a BFL and the royalty fee or could she be Central California’s Gym and be at the same place or better if she took that fee and put it towards a marketing effort.
The AAFD is the place for her if she remains a franchise. Especially in this system.
And if it takes longer than 2-6 months for B/E and or profitability, more than 200 members, less that $7200 per month rent, more than 2-3 months capital, why isn’t the sales pitch geared toward garnering and qualifying sales that could lead to success. Or are pictures of lush green meadows shown and a swamp delivered. Was there fraud in the inducement? What does a ZEE get for that money going to Corporate’s pocket?
Good job Central California! Choose for you!
Jackie, why haven’t you signed that lease yet?
Been Around,
Haven’t signed yet because we’re still negotiating the terms.
I have faith in Tom G and the current staff and I’m going forward and yes I know their backgrounds quite well. I’m sorry for those who have lost it all, I personally know one of them, but my situation is different. I’m going in to this knowing what I know from those who have graciously shared their experiences. Tom and the crew are doing their best to move the company forward in spite of Mark G and his weasely ways. I’m moving forward too.
Thank you to everyone who shared. Good luck to all of you!
Jackie
Jackie
You have a positive attitude about BFL. Do you own a franchise? Do you own more than one? If the answer is yes, then please share your club location, membership totals (the actual ones paying!) total overhead, total length of time your club has been open and how mcuh money you have already spent to date to be where you are. Maybe you have some secrets of success you would care to share since BFL Corp. idea’s do NOT work in every area where a club may be located. But don’t dare step out of the box…no matter where your club is located. If you do you become one of the branded ones now being referred to as “bad business managers”
Sean:
YES…..BFL Corp. knows what the members of the AAFD want.(and want back!) but to BFL all of this is a joke rather than the nightmare from hell that it really is) Just a bunch of loud mouthy women making threats ( sorry I know there are some men that own clubs too!) BFL had warning after warning of struggling clubs, low memberships, high overhead( since they have to approve your location and lease) and they repeatedly turned the other cheek.(check!) Do more advertising, do more mail drops, do more parties, do more and no matter what problems you are facing, make sure you have $1,000./$2,000. in your bank account on the 5th. day of every month, even if the landlord puts a pad lock on your door for non-payment of rent, even if the power company puts that colored tag on your meter because you can’t pay the bill, even if your loved one should happen to wake up dead…we don’t care as long as you make that payment every month. NO EXCUSES EXCEPTED!
Sean,with your help and this forum many many present, past and future franchisees are finding out they are not alone. BFL Corp. has had time and chances to make this wrong right. Now they should step up and admit to everyone that has ever been involved with BFL that they (BFL) are NOT always RIGHT. But they won’t……so now we(franchisees) have the AAFD, Dept. of Corp. and higher on our side.
Also, Sean, you ask about marketing for the upcoming months…of course they have a plan. The same one that does NOT work for everyone. Another postcard drop……only this time they want $2000. from all the clubs rather than the “normal” $1500. And for those that have looked at that email from DM with the post card proof attached…….DON’T YOU LOVE THAT 211 CLUBS IN BOLD PRINT AND THEN AT THE BOTTOM WITH YOUR MAGNIFYING GLASS YOU WILL SEE WHERE IT SAYS -some clubs not open yet. Go figure!!
Sunshine,
Over the past few months you’ve done nothing but ask questions, which I have answered, but you have never answered mine. Where is your club, when did you open, how many members do you have and how much do you spend on advertising per month?
Jackie (not yet open)
Dear Jackie,
PUHLEEZ! Your charade is so transparent – straight from the undercover cop wanna-be playbook, Secret Squirrel 101. If you have a signed contract and intention to open a But-Flea gym, then I’m the Queen of England. You are a corporate mole. I’ve tracked your postings. I’ve identified your sloppy technique to try to extract information. I’ve analyzed your writing style. AND, I recognize your collaborative vernacular because I’ve spoken to you before.
To Everyone Else: Don’t waste your time responding to “Jackie.” Tom has sent “Jackie” on a fishing expedition and boy, is it ever fishy!! (Pam & Brandi caught on right away. Way to go!). And I AM a bona fide trained investigator. Did I mention that I’m NOT the Queen of England?
Jackie,
Yes, I have answered your questions, but I will be more than glad to answer them again. I DO NOT own a franchisee. I do however have family and friends that do and I have walked the path with them daily for well over a year. It is a heartbreaking experience to watch the ones you love go through something like this. But maybe that is just my EASTERN COAST/ Southern Belle charming way. And as I said before (now that you have reminded me of who you are) you need to do whatever your heart and gut tell you to do and whatever that choice is, I wish you nothing but the best. Besides, BFL is in dire need of some new and fresh franchisees……..3rd./4th. generation bring it on…..they need the money.
I too have watched a family member go downhill. Jackie I’m sorry but everyone’s situation is different than the next when they first start out. You think you are different for some reason. “It won’t happen to me, I know what I’m doing.” You have been warned, no one wants to see you fail, but, guess what…it’s inevitable. Bottom line. The numbers don’t gel. Good luck kid!!!
Although, all are seeming to wait and believe the white smoke will appear and declare Mr. Gergley the next Pope. And yes his PARTNER, Mr. Golob is a criminal con artist that has had his hands in other’s pockets since Elaine Powers and before. But let’s review. The TWO have been together at least since Fit and Healthy in 91-92. Mr. Gergley did not run at the first hint of the con , he has stayed and been party to the activities. The whole crew at current corporate has been together for quite awhile. “Thick as theives” A family affair! Each individual is culpable! Now I understand that there is a private burning bush in San Ramon that is a hiding spot for all to stand behind. Believe me I am not being disrespectful, it bothers me how the Christian shield is wrongfully utilized.
Let’s look at the facts. A failing franchise system and a flawed model. Has anyone done any brand awareness studies! In marketing research one data point is…well one. Two you may want to notice, three or more is a trend!
There are way more than three on the failed clubs ,the number of companies run to the ground
the number of bankruptcies.
And Jackie I applaud your blind faith, it is wonderful that Mr. Gergley wishes to move forward. We all do. He apparently doesn’t want to see or accept his responsibility for the train wreck he has been party to in this venture for the past 4 years. Or the ones before. He certainly has enjoyed the spoils. Greed and avarice are two of the Seven Deadly Sins.
P.S. Where is the retirement fund and why do some employees get one paycheck and others( family members) get 6-7 . Perhaps other government agenicies(IRS) other that the DOC need to take a look at this company. Good Luck to all.
Marketing Question: The Brookesville, FL (url below) hosted a Networking Open House in Nov. Is this something only they did, or has corporate encouraged this and/or other non-fitness related events for your clubs? What do you think of it?
“Butterfly Life of Brooksville, a women’s fitness center at 7340 Broad St., Brooksville, will have an open house with networking opportunities from 8:30 a.m. to 4 p.m. Friday. Vendors attending will include Mary Kay, Market America, Home Interiors, Avon, Tupperware, Sensuria, Michele Siggins Accessories and others. For information, call 796-6070.)”
http://www.sptimes.com/2007/11/19/Hernando/Business_digest.shtml
Sean – Market Question: Brookesville, Florida is definitely operating outside the box. As a matter of fact, BFL has served default papers on others for doing just that. Maybe they are changing their attitude and seeing the light……..or maybe the default papers are late in coming. Congratulations Brooksville, hopefully others are following your lead and realizing it’s the only way to put food on the table. FYI – So many honest people out there believe their verbal statements and promises at the seminars…..we’re only human….but remember it’s whats in writing that counts!!!!! Fraud in the inducement is the legal term. (ladies in corporate….how do you live with yourselves knowing you’re contributing to and perpetuating these misrepresentations?…..hope you can sleep well at night!)
What’s it going to take for BL Corporate to fold?
I’m not interested in them just “going away” I would like to see them suffer as we all have. Some of you speak of healthy, booming, thriving clubs but yet you won’t disclose how you got there…..this leads me to believe that there is no such thing!! So, to ask my question again, what’s it going to take to make Corporate stop and pay for what they’ve done?
To Jackie is DENNY
Good work! I was suspicious when she listed a reason for not signing/opening yet was she was “still negotiating the deal” Negotiation, who got to negotiate the terms of their franchise agreement!!? It was sign,write check,clear check and seeya!! Visa Versa is right how do you people sleep at night?
To: Jackie IS Denny
You are a bona fide idiot! I am a franchisee doing my due diligence. Your comment…”try to extract information”…wow, you caught me! Isn’t that the f’n point here, to get information. You say that you’ve spoken to me before, who the hell are you? I think Pam and I have corresponded via email at one point about a month ago when the negative emails began to fly. I will be opening in Southern CA as soon as I get this lease worked out. So genius, stop trying to discredit those of us with something positive to say or those with valid questions.
For those of you wanting to hear from profiting BL’s, why would they post here, they are not even looking at these websites. The only people who are here are people like me doing my due diligence, people who have had a bad experience and are trying to get advice and or warn others and of course corporate shills. But not successful business people, they don’t have a reason to be here. I will definitely let you know how I’m doing after I’ve been open for a year, good or bad.
Jackie
To: In The Know
I’m negotiating my LEASE, I signed my agreement in Feb and attended BLU in March.
And you are wrong about negotiating the agreement. I wasn’t smart enough but my friend had a great lawyer and they negotiated some parts of her agreement.
Jackie
Re: Market Question-Brookesville
That kind of marketing was encouraged at my BLU.
Jackie said Re: Market Question-Brookesville
That kind of marketing was encouraged at my BLU.
Jackie: What is the strategy? As it’s an all-day event, is this like a micro-trade show? Do the vendors pay to be there? Or is the point just to get more traffic to the unit?
Isn’t there an extranet or forum where BL franchisees share marketing ideas?
Jackie: You’ve obviously been doing extensive due diligence, and decided to move forward developing your club. If you’re in So Cal. I’m sure you’ve visited many clubs. What were some of the successful locations that made you excited about moving forward? Were those clubs operating differently than the less successful or struggling clubs? If someone wanted to visit 3-5 clubs to see BL at its best and most profitable, which locations would you (or anyone else here) recommend?
Which clubs do corporate and ARs bring prospective franchisees to visit?
Sean,
I don’t know the specifics of the Brookesville event, I was referring to the ideas of marketing and networking in general, they are encouraged.
My reasons for going forward are many but I’ll share a few. First of all there are no clubs where I live, the majority of clubs are in Central CA. Before anyone jumps on me….there was one near LA but it’s on the closing list. The other club down south, which I did visit, is in Palm Desert and that one just opened in August. So I will be the first down here, which will be a challenge, I know.
What makes me excited about going forward is that this is a great concept. It is exactly what I was looking for last year at this time when I wanted a place to work out for myself. I researched the competitors and knew that by far BL was the best. Then I started digging more and found this website. I listened respectfully to the advice from franchisees who were not happy and asked many questions that were answered and some not. Your answers helped me make my decision. You confirmed the things that I already believed regarding marketing my business in spite of the lack of Brand awareness. I also think location has a lot to do with the success or failure of this type of business and I’m not talking about which corner, but which city or town. My market is Orange County, it’s full of women who want to look and feel good and have the money to do it. Since I feel that the UFOC did not accurately state the amount of money needed to open and operate, I’m going to apply for a loan before I need it and before I sign my lease. I should have done that sooner but at the time I had no reason to doubt the UFOC, now I do. I’m not an expert, I’m just a woman on a mission, my own mission. I will come back and update my progress for the sake of helping others, but I’ve learned by now that if I have something positive to say it will get twisted. I don’t know what good it will do but I will check in now and then. To answer your other question, yes, there is a forum for AR’s and Franchisees to share ideas. It’s a positive place to share ideas.
Thanks for you help Sean,
Jackie
To Jackie
I have seen the same kind of accusations made on other blogs like the ones Jackie is Denny made about you and using the same words. I think its just somebody who has nothing better to do than read other peoples stuff and try and cause problems everything about Butterfly Life is on the website so that’s where she (or he?? probably got the information. Don’t let them get your goat. You are doing exactly what you need to do to yourself. Keep it up.
New post about a similar situation:
IS SHAPEXPRESS A GREAT FITNESS FRANCHISE OPPORTUNITY?
Jackie: Did you contact the person who closed two years ago (should still be in the UFOC) in Orange County…..specifically Huntington Beach? He was forced to close based on the extremely negative articles that were in the Orange County Register about Mark Golob’s sneaky tactics in shutting down the Linda Evans facility overnight. 450 members filed an action with the DA’s office, Joe D’Agostino, and after a year, Mark Golob and Mark Mastrov settled with them. This franchisee lost members as soon as his clients associated Mark Golob with Butterfly Life. Golob’s bad reputation preceeded him since Linda Evans was right around the corner from him. Tom Gergley (who was aware of this)assured this franchisee that it would not affect his business. Even promised him a discount on his royalty fees if he opened. He believed him…..Low and behold……this good Christian was spewing a bunch of lies. It’s all documented. I believe the article info was posted on one of the earlier blogs here. I wonder if you have contacted the other ex-franchisees in So. Cal. They all should be in the UFOC. I truly wish you success in your endeavor, but please know that the “disgruntled franchisees” want to protect those of you who are open, will open and those who have closed because of the misrepresentations made by Tom and Mark and their trustworthy employees. Please feel free to contact me directly through Sean. So Cal is the place to succeed and would definitely put them on the map………too bad they couldn’t see it……or maybe didn’t care to
Linda
I lived near the Huntington Beach location. I don’t remember anything about it though I wasn’t looking for a place to work out at the time. I do remember the Linda Evans mess. I had copies of the court documents with me when I spoke to Mark on Discovery Day, even though I think he’s wormy, he didn’t say anything against the documents or the people involved. How could he I had it in print.
Thanks for the information and your well wishes.
To all the people out there full of questions…GOOGLE is your friend. I spent hours upon hours googling everyone and everything associated with these people. You have to dig deep, you can’t give up after the first page, some of the most interesting things came from page 40 or 50 of a search. After all of my digging, I know I can make this work, I just need to get my $ ducks in a row and i’m off.
Good Luck to you all and thanks!
Jackie,
I have read the blogs and followed along with the unfolding drama over the last couple of months. I think there are several things you should consider:
1. Yes…most of what has been said regarding the way these franchises were sold is absolutely true. The expenses were under-reported and the revenue exagerated. I was involved with Butterfly at the begining and sat in on many meetings where it was expressed to Mark that franchisees were coming into the venture with unrealistic expectations where the revenue and expenses were concerned. We too were told that the model could be successful if the people would do exactly what we told them to do. We as a corporate team were very concerned because we genuinely liked the people coming through the university and wanted them to be successful and yet it was clear to me that unless the were health club veterans, they were in deep trouble. (It later turns out that a couple who were in one of the early universities- the husband was a health club veteran- they bailed and closed down as well.)
You don’t have this many franchisees that are ALL unhappy without there being some truth to the story. Whether the misrepresentation was done out of ignorance or purposely, the end result is that the company has very few, if any, locations that are generating enough revenue to cover expenses and a paycheck for the owners. That is not a good thing under ANY circumstances. It also speaks volumes about the character of the people involved. The current corporate team now has a responsibility to fix what went wrong and the fact that they refuse to accept responsibility should have major warning bells going off in your head at this point.
2. How many successful corporately owned stores are there? The most successful franchise organizations ALWAYS beta-test their own business model and can demonstrate sound businesses practices, selling and marketing strategies that have been proven to work as well as a P/L statement that shows expenses and revenue. On my side of the business, we call this “leading by example” and/or “putting your money where your mouth is”. When there are successful corporate stores, this demonstrates that the franchisee has developed a model that can implemented and that THEIR staff has the skillsets necessary to teach others how to do it. How many Butterfly Life’s has ANY of the corporate staff ever run? If the model is so successful, why don’t ANY of them own one?
3. This last point is the most important and you can take this one to the bank: this type of franchise model is struggling all over the place. There was an article in a fitness industry trade magazine two weeks ago that went into great depth about how this type of model failing all over the place. A very well-respected industry vet was quoted as saying that this a “dark spot” in the industry.
EVERYONE who is now running a successful club in this industry will tell you that in this market, the monthly dues will no longer cover your expenses and bring you enough profit to live on. If you go into this thinking that it will, you had better have a huge, I mean HUGE fund to draw from for the next 24-36 months. You absolutely must be able to have services like personal training, weight management, supplements, fee based group programming and children’s program fees to provide enough additional revenue with a profit margin of 30% or better, to be able to pay this bills and yourself. I just cannot stress this enough! This is the biggest thing that is wrong with the Butterfly model! There are no real ancillary revenue streams and therefore no profit. I operated clubs in Southern CA for several years. The competition is brutal. By running a women’s only model, you automatically eliminate 50% of the population who could buy a membership. Throw in the fact that your equipment package is limited and there are no LIVE classes(this one is huge-women want good classes and they want them live-call the owner of the Pleasanton/San Ramon clubs and ask him what his Life Vision attendance is VS. his live classes) and you are taking on something pretty big. You are going to be swimming with the sharks girl…and you need to understand that no amount of hard work, dedication, etc. can compensate for a poor business model in a cut-throat market.
You sound very smart, capable and and obviously you are extremely motivated. Those things however will not make up for the fact that the “women-only franchise model” is DEAD. Curves had the lock…they got there first, penetrated the market place before anyone knew what they were up to and BAM…the rest is history. Shape Express, Liberty Fitness, Contours, Butterfly Life, Lady of America-all of them have the same history…more failures than sucesses.
If you want to get into the fitness business-look at taking on some partners who have some $ and then explore some concepts like Planet Fitness or World Gym. Planet Fitness is coming out with a less expensive, scaled down model that might work very well for you.
I have been folowing your story and I wish you the best. I am a 20 year veteran of the fitness business and I have run the women’s only model and now own and operate a very successful club on the east coast. I am getting ready to buy my second location and rebrand it. I have also made many mistakes myself but have learned from them all. I was lucky that I didn’t make one of those mistakes that cost me my house, my savings, my retirement, my self-esteem and my sanity. It truly was by the grace of God that I am where I am now.
I wish you well and hope that you will take my advice to heart. I have no personal ax to grind with Butterfly but I do call it as I see it. Right is right…and wrong is wrong. Good luck.
JACKIE: You are obviously a brilliant businessperson who knows a sure thing when she sees it!
These other people fell for Golob’s schtick but you already know about his integrity.
These other people were taken by surprise when the women’s 30 minute concept started tanking, but you know full well it’s a loser!
These suckers really believed there would be a massive branding effort, but you’re already aware that people will think your club’s a pet store!
These struggling Zees have to wonder if they should have known better, but you DO know better!
These people went into business not knowing if they’d be successful, but your chances couldn’t be more clear: 0.
Like I said, you know a SURE THING when you see it!
Buy yourself something REALLY nice for Christmas this year… It’s gonna have to last you for a while!
Happy Holidays!
Tread Carefully
Hats off to you. We are happy to have you. And you are SOOOO right!!!!
Corporate
You all know who you are, you know what you have done, you all were there, for a very long time and knowingly and willingly participated. That fact makes you accessories to fraud. Anyone and everyone can be named. The blogs won’t stop, the trade journals won’t stop calling us and the walls won’t stop talking to us. Some out there have a great deal of integrity
Jackie, we’ll plan a “party” at your location, there are many who have gone before you in the same area, Heck, they may still be paying on a lease, maybe you could do some good and sublet! By the way , if you are for real and have taken this long to find a place , corporate would have sent you a default notice for not opening in the stated time period and re- sold your area…oops hear not alot of sales going on so you dodged a bullet.
Pop Quiz
Guess who said it:
September 23, 2007 at 3:30 pm
• Hopefully, corporate has learned from their mistakes.
• From January to September 2007, almost 40 franchises said that they were positive. Only two were struggling.
• Corporate only laid off its sales staff in order to focus more on support staff for new and existing franchises.
• More positive things were said by owners who opened in the past year.
• Everyone on this blog is failing to remember that there was a time when no one had heard of Curves.
• It takes time for any business to achieve profit level … 6 months to a couple of years to get out of the red.
• Mark Golob is the president of the How Great I Am Club.
September 24, 2007 at 2:02 pm
• I’m skeptical about these sites.
• The owners I’ve talked to asked me not to reveal their identities.
• I’ll continue to call owners so maybe I’ll talk to one of [Pam’s] friends eventually.
• Butterfly Life is wasting money on the “ridiculous 5 minute TV show.’”
• I think they [corporate] are starting to “get it,” too, because the TV show isn’t on anymore.
• They [corporate] need to focus on commercials that target membership.
• It took Curves “some time” to be brand recognized. It didn’t happen overnight.
• I bought a franchise instead of opening an independent club because of Branding.
• I chose Butterfly Life because “we” [emphasis added] have a better product.
• I talked to several Curves and Contour Express owners who said they are having problems with retention because of their equipment and because Butterfly Life clubs are moving into their areas.
• I’m not here to argue with anyone.
• I’m not here to downgrade anyone who is having a hard time.
• I want to hear both sides.
• If someone posts something negative, no one says anything.
• If someone posts something positive, you say it’s corporate.
• Being the first in an area to open a club is very difficult.
• People who have opened a club in an area where Butterfly Life has a “presence” have it easier.
• I’m here to learn as much as I can.
• I’m here to share what I know.
• I’m sorry that you’re having a bad time.
• Where is your club and when did it open?
• Will you come out on top with a little more time?
• Do you see yourself going backwards?
• Does corporate timing have anything to do with an individual club’s success or failure?
• Clubs that opened before 2006 describe a corporation different from the one I know.
• I’m just trying to get an objective view before I sign a lease.
September 24, 2007 at 2:25 pm
• Corporate sold 3 franchises in 2004; 18 in 2005; and “there were” 30+ in 2006.
• Because the numbers have increased each year, I’m wondering if maybe by now they’ve worked out some of the “kinks.”
• The owners that I attended BLU with are in contact with me weekly and they’re doing great.
• I’m only asking questions because I want the option of cutting my losses before I lose.
• I want to know what per cent of unhappy owners bought before 2006.
• The people I know & have talked to who are happy, bought in 2006-2007.
• Where is your club? Are there other Butterfly Life’s in the area? “Just curious.””
• “Slow your roll, we know it’s not perfect but it is what it is.”
• If we can learn anything and follow up with more questions for corporate, it helps.
• Did you just learn that marketing was up to you?
• Have you not attended BLU yet or read the agreement?
• “Don’t freak, take a deep breath, you can do it.”
September 24, 2007 at 4;11 pm
• Apparently, Sunshine, you have answers as to whom [sic] exactly was fired from corporate, so spill it.
• Like I said before, I was told by an outside source that Sales and 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.
September 24, 2007 at 4:18 pm
• I have a question about aafd.
• I’ve checked that site and the only thing I find is a story about the very first franchisees and their complaint from 3 or 4 years ago.
• I also remember reading somewhere that it was resolved (but not sure).
• I also checked the BBB, nothing stands out, am I missing something?
September 24, 2007 at 8:20 pm
• Take a breath.
• I signed in early 2007.
• I’ve been looking for a space since then. I’m very picky.
• The BLU staff are still there. I never had a franchise counselor or area rep.
• I have current stuff.
• I’m aware of what I have to order and have budgeted appropriately.
• I utilized the UFOC and the Butterfly Life web site and contacted owners to find out about costs before I signed anything.
• Yes, folk, here in California we pay ridiculous prices for workout wear.
• I agree with corporate’s guidelines for location.
• If you’re in a busy shopping center where women can workout at your club then conveniently run into the local store, you’re going to see them more.
• I want to raise hell at corporate because they need to get some commercials going again.
• I’ve answered your questions, so you can answer mine.
• We are not enemies.
• We’re here to learn something.
• We’re here to help each other.
• When did you sign and how long have you been open?
• Where are you located?
• How many members do you have?
• The $1500 per month for advertising is for the first 4 months. After that you can decide how much or little to spend.
September 24, 2007 at 8:25 pm cont’d
• Without Butterfly Life helping us by Branding, we will need to spend more on advertising.
• If you have info on who was fired or anything else that spells doom and gloom, share it.
• Isn’t that the idea here?
• Please stop insulting me by assuming that I’m just naïve because I still have hope for success.
September 25, 2007 at 11:26 am
• I believe that Butterfly Life has the best product.
• That’s why I’m not going to run away.
• However, I am 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 start by choosing a smaller more affordable space.
• How important is the retail part & how much money does it bring in per month?
• Maybe I’ll ditch the whole retail corner.
• I will just have to focus on grass roots marketing and work with what I’ve got.
• 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.
• Good luck to those of us who are just starting out. Stay positive.
September 25, 2007 at 5:33 pm
I appreciate everyone’s comments and ideas, good luck and thanks for sharing.
Dec 3, 2007 at 12:12 pm
• BIG QUESTION!
• We all agree that BL is the best product out there.
• We all agree that BL lied when they said we only needed $90-115K to open and survive the first 4-6 months.
• Is it possible to open and be successful with enough working capitol ($200K) OR
• Is there something else wrong with the business?
• Corporate also lied about Branding.
• Sean reminded us that we need to advertise our 3 mile world.
• The royalty fee is inconvenient at best.
• I know so many who, like me, believed corporate so didn’t get loans before opening.
• Is lack of funds before opening the biggest obstacle? OR
• Is there something wrong with the model?
• I haven’t signed a lease yet because I’m still trying to sort through all of this and figure out what to do.
• I signed my agreement a year ago in spite of my feelings for Mark G.
• I believe in the product.
• I’m not blind to the problems with corporate.
• I’ve had my eyes wide open all year.
• I really want this to work.
• I love the concept.
• I would appreciate if anyone could answer my question.
December 4, 2007 at 10:47 am
• Good for you having 250 members.
• I don’t know of a single business that shows a profit before one year.
• Sometimes it takes two years to show a profit, so you’re right on track.
• The aafd is not for you.
• Good luck and stay positive.
• Now duck and cover because the negativity is going to fly.
December 4, 2007 at 5:25 pm
• I haven’t signed a lease yet because we’re still negotiating the terms.
• I have faith in Tom G and the current staff, and I know their backgrounds quite well.
• I’m going forward.
• I’m sorry for those who have lost it all.
• I personally know someone who has lost it all, but my situation is different.
• I’m going in knowing what I know from those who have graciously shared their experience.
• Tom and the crew are doing their best to move the company forward in spite of Mark G and his weasely ways.
• I’m moving forward, too.
• Thank you to everyone who shared.
• Good luck to all of you.
December 4, 2007 at 6:15 pm
• Over the past few months, Sunshine has done nothing but ask questions.
• I have answered Sunshine’s questions.
• Sunshine has never answered mine.
• Where is your club?
• When did you open?
• How many members do you have?
• How much do you spend on advertising per month?
• I’m not open yet.
Dec 5, 2007 at 11:35 am
• You are a bona fide idiot!
• I am a franchisee doing my due diligence.
• Trying to extract information is the f’n point here.
• Who the hell are you?
• I think Pam & I corresponded via email at one point a month ago when the negative emails began to fly.
• I will be opening in Southern CA as soon as I get he lease worked out.
• So genius, stop trying to discredit those of us with something positive to say or those with valid questions.
• For those of you wanting to hear from profiting BL’s, why would they post here?
• They are not even looking at these web pages.
• The only people here are people like me doing my due diligence AND
• People who have had a bad experience and are trying to get advice AND
• People who have had a bad experience and are trying to warn others AND
• Corporate shills, of course.
• No successful business people are here because they don’t have a reason to be here.
• I will definitely let you know how I’m doing after I’ve been open for a year, good or bad.
December 5, 2007 at 11:40 am
• I signed my agreement in February.
• I attended BLU in March.
• I wasn’t smart enough to negotiate my franchise agreement, but my friend had a great lawyer who negotiated some parts of her franchise agreement.
December 5, 2007 at 11:42 am
That kind of marketing was encouraged at my BLU.
December 5, 2007 at 1:33 pm
• Marketing and networking in general are encouraged.
• There are no clubs where I live.
• The majority of clubs are in Central CA
• There was one near LA but it’s on the closing list.
• I visited the Palm Desert club that just opened in August.
• I will be the first one down here. It will, therefore, be a challenge.
• The great concept makes me excited to go forward.
• It is the kind of place I was looking for the last time I went looking for a place to workout.
• I researched the others and Butterfly Life was the best by far.
• I started digging more and found this web site.
• I listened respectfully to the advice from unhappy franchisees.
• I asked many questions; some were answered, some were not.
• Your answers helped me make my decision.
• You confirmed what I knew about having to market my business without Brand awareness.
• Location has a lot to do with success/failure – not which corner but which city/town.
• My Orange County location is full of women who want to look and feel good and have the money to do it.
• The UFOC did not accurately state the amount of money needed to open and operate.
• I’m going to apply for a loan before I need it.
• I’m going to apply for a loan before I sign my lease.
• I should have applied for a loan sooner.
• I didn’t think I’d need a loan before because I had no reason to doubt the UFOC.
• Now I have reason to doubt the UFOC.
• I’m not an expert.
• I’m just a woman on a mission, my own mission.
• I will come back and update for the sake of helping others.
• I’ve learned that if I have something positive to say, it will get twisted.
• I don’t know what good it will do, but I will check in now and then.
• There is a forum for ARs and franchisees to share ideas.
• The forum is a positive place to share ideas.
• Thanks for your help, Sean.
.
Mothra
Your point?
I think it’s like a tribute. Or a shrine.
These people read too much into everything.
Next they’ll probably claim that you refer to them as Mark G. and Tom G. so google searches of their names don’t bring them here. They’ll take things like that as indicating you’re one of them corporate shills, when actually you abbreviate for speed and efficiency.
Don’t listen to them, Jackie. I believe in you.
To: Tread Carefully
Thanks for your pearls of wisdom I really appreciate it.
Many of you have been very helpful and genuinely concerned for those of us who are just starting out. Thank you too!
To those who spend more time trying to discredit those of us who are trying to sort through the fluff and the muck…go focus on something positive in your life!
As for me, you’ve worn me out with your negative BS, I’m out of here!
In about 3-5 months you will see my website listed with all the others and then you will know that I’m not corporate. If I decide not to go through with it I will let you know. In the spirit of wanting to help others the way that I have been helped, good news or bad, I will let you know how I’m doing after one year.
To those who lost it all I really am sorry. Like I said before, I know someone who lost it all and after spending an intense week at BLU we’re like family. We all root for each other and want nothing but success! I know that everyone here had the same dreams and those that turned to nightmares are heartbreaking, my going forward is not a slap in the face to you. Good luck to you all.
Thanks again Sean your comments have been most helpful.
PEACE!
Jackie said: To those who spend more time trying to discredit those of us who are trying to sort through the fluff and the muck…go focus on something positive in your life!
As for me, you’ve worn me out with your negative BS, I’m out of here!
Jackie: I find that it pays to stay loose and not take stuff too personally in the new medium of anonymous blog conversation. In the volatile conversations on this blog, I often see corporate posers trying to extract true identities of their detractors. I’ve also seen a lot of paranoia and real commenters unfairly accused. Personally, I choose to treat people as who they say they are, but keep people from posting contact info or email addresses unless they are sure who they’re talking to.
So don’t take take the conspiracy theorists personally. If you’re a franchisee looking for a location, they weren’t addressing you anyway. If you’re not, you probably don’t care what they think.
Look on the bright side… you’ve got a JACKIE FAN.
I agree with Jackie Fan. I think it’s a shrine and a temple, too, because Jackie is a woman who has found her “goddess within.” Her indomitable spirit against impossible odds has left an impression on me for sure.
She is one person who really understands what this blog is all about. If you just open your eyes and stop being so negative, you can see that Jackie really likes us, she really likes us!!
And she said it best herself: “We’re here to help each other.” I ask you to just stop and count the many ways Jackie has helped us!! And now, too, every time I go to this blog, before I open the page, I repeat what Jackie said: “We’re here to learn something.” When you finish counting the ways Jackie has helped you, then just contemplate all that you’ve learned from her. If I only knew then what I know now, thanks to Jackie, things would be a lot different.
And finally, when you’re feeling down & depressed, just remember what Jackie said,
“We are not enemies.” I’ve turned my life around. Starting today, this very day, I’m going to forget about the thousands of dollars that was stolen from me, and take Jackie’s advice to “focus on something positive in … life!” You know, if Gergley and Golob had to take my money, they probably needed it more than I did.
I’m offering this challenge to everyone: Let’s just forget about the money!! Jackie has said she’s sorry about what happened to us, and that should be enough. We need to stop raining on her parade and just move on. The negativity is getting to her. Let’s put on a happy face all ready!! And besides, she said she was going to raise hell with corporate (as soon as we give her some more information). She’s gonna be fightin’ the good fight for us. I feel better already.
Thanks, Jackie. From now on, when you think of your fans, think of Sally Rand!
Pop Quiz
Guess who said it:
December 6, 2007 at 10:20 am
Your point?
December 6, 2007 at 11:02 am
• Thanks for your pearls of wisdom.
• I really appreciate it.
• Many of you have been very helpful.
• Many of you have been genuinely concerned for those of us who are just starting out.
• Thank you too!
• Those who spend more time trying to discredit those of us who are trying to sort through the “fluff and muck” [should] go focus on something positive in your life!
• You’ve worn me out with your negative BS.
• I’m out of here!
• In about 3-5 months you will see my web site listed with all the others.
• Then you will know that I’m not corporate.
• If I decide not to go through with it, I will let you know.
• I will let you know how I’m doing after one year – good news or bad – in the spirit of wanting to help others the way that I have been helped.
• I am really sorry to those who lost it all.
• I know someone who lost it all – like I said before.
• We’re like family after spending an intense week at BLU.
• We all root for each other and want nothing but success.
• Everyone here had the same dreams.
• Those who turned to nightmares are heartbreaking.
• My going forward is not a slap in the face to you.
• Good luck to you all.
• Thanks again Sean.
• Sean’s comments have been most helpful.
• PEACE.
Good Luck to you Jackie……..I hope you have lots and lots of cash to keep you floating for about 2 or 3 years. I certainly hope after those years have rolled on past that you have enough profit to pay yourself back for the thousands of dollars you have personally contributed. If I had the money I would still be open. It is a great concept……but I looked ahead after I wasn’t breaking even after a year and realized I was never going to be in the black with the minimum amount of money I had access to. I certainly wasn’t going to be up to my eyeballs with oustanding loans for the rest of my life either. If you can get away with it you really need to go outside the box to be successful. I also had too much compitetion around me. LA Fitness, Curves, 24 hour fitness and most of the home owners associations around me had their on Gyms for the families in ther subdivisions. My question is why on earth would Corporate approve that location knowing I had so much compitetion? Because they want their money! I know I should have known better…..however according to corporate all those big clubs weren’t my competition, they attract different crowds. BS! If I can get live classses, tread mills, swimming etc. for the same price or less, guess where I am going. Oh by the way I am now member of a gym that offers tons more (live classes and tanning) and I pay $29.00 a month. Again good luck…..and hopefully we will all learn from this and Corporate will have changed for the positive for all of you that are Pro BFL.
Jackie,
Should you happen to return to this site and you would be interested in buying a BFL sign, over 2000. worth of retail clothing, a beautiful PLASTIC sofa and chair, several hundred dollars worth of BFL promotional items REAL CHEAP, then by all means send Sean your contact information.( That way those with something to sell can contact you!) There are several people that would be interested in selling you these items. We know BFL Corp. will not allow you to buy the equipment from another failed club, unless they have stopped “newbies” from buying ANYTHING at all except from their “VENDORS”.
Fool Me Once…
Dec 12, 2007 at 11:16 am
Tom Gergley – Get Real!!!! Do you really think that your letter to “Dear Former Butterfly Life Owner” dated Deember 11, 2007 is a generous offer? It should be posted here soon. Then we can get input from all the “bad business managers” regarding your offer. By the way, thanks for letting us sell the equipment and keeping 100% of the profits…it’s our equipment to sell anyway…not proprietary…you can find it on the internet. Will you allow us to sell it to new franchisees…or is it outdated? And thanks for spliting the franchise fee with us if you resell our location. Let’s see, I would make back 1/20 of my loss…if you ever sold it…been there done that with you!…and not charging a commission…your generosity baffles me!!!!!Perhaps all the “bad bussiness managers” have become more educated and will refuse to sign your generous offer. And what makes you think anyone will sign your release agreement either? Divide and conquer…it only works so long. All the AAFD members believed your offer for mediation in November. In good faith we made the attempt…your offer was insulting. Why should we believe you now? Hopefully, the legal issues will be settled soon, or EVERYONE will lose. Stay tuned
Where is the post from today? I read it earlier & now it is gone. It was the one about Tom.
never mind
Tom, I am offeded by your bulls–t offer of 12/11. Come on do you think the franchisees fell off the turnip truck?
I want you to know that I pray for you everyday – God tells us to pray for not onlyour friends but also our enemies.
On judgement day the big guy won’t be happy with you
for screwing all the people that believed you and your
promises.
Your plan with this phoney baloney offer is to divide
us but all you have done is piss us off and
make us stronger. Thank you for that ! ! !
What is everyone thinking about the offer?
to Fool Me Once
Love it!
To Confused
Call us. http://www.AAFD.org
You will no longer be confused.
To all
Has anyone seen the agreement that everyone is supposed to agree to without seeing, then sign after agreeing only to find out that….oops. Sounds like the original franchise agreement.. Bait & Switch.
Get real corporate, so you are agreeing to let the folks with old equipment sell to new franchisees…really? And the making back of bare 1/20 of the losses sustained by your misrepresentations, the fraud ,is a deal!? You know we have your line and the documents rescinding it. The walls are talking, can’t you hear it? Do you have any idea how many people have contacted the AAFD? As stated before each and everyone who has been party to the fraud and known about it, hidden it, will be responsible.
Why is selling a territory again something you tout as a great thing. I guess because you have resold many territories out from under many people and have reaped the rewards ,that you think it is a gift. Give a 100% or is it you know you can’t sell the BFL name and it is a hollow offer costing you nothing. People DO NOT SIGN! Their deals are always one sided!
Area Reps , you guys haven’t had enough yet! What is your time line for recouping your investment? Better be long. This crew has been together for along time doing the same routine. Remember , Mr. Gergley did not just join this company yesterday, going on 16 years, Tom? in this partnership? You are not innocent!
To all franchisees: How’s that book deal or TV show going with Martha, Oprah, Dr. Phil? These people are successful because they have great minds behind them…why would they jeopardize their reputations with known scam artists? Think about it…did you make a mistake? Contact the American Association of Franchisees and Dealers at http://www.aafd.org
Knock Knock…..who’s there? Mark.
Mark who? Mark Golob…..the KING of the Scammers.
Ya know…..he reminds me more of Gollum in The Lord of the Rings. Just a few more years and they will look like twins with his hairline rapidly receding, the curvature in his back looking like a stegosaurus, and his arthritic posture collapsing as quickly as his general health. What a look for a President of a fitness franchise!
So, how did he ever get into the fitness industry then? The poor bastard was adopted into a prominante family that raised his like their son and introduced him into the business. Sadly though, as many impoverished and fear driven youths, he became obsessed with one thing…….MONEY. Gaining it by hook or by crook…..he even offered his own adopted “brother” a piece of the Butterfly action, but of course, he had to pay full price (sorry, no discounts for family…..unless you are talking about Carly and Taylor). Mark’s karma has come back around and will effect him and his whole family in the end though. That’s universal law #1. What goes around, comes around.
As HUGE as Mark’s EGO is……it must be killing him to stay silent for so long. But, it seems that he has decided to stay around for a while longer since his home in Orinda is off the market now. FAILED to sell it apparently. No doubt he probably got caught in another lie and the buyer ran as fast as they could. Muzzled once again.
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
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?
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
_____________, 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.
“The fact that they are offering such a program, is an indication that they are nervous, and believe themselves vulnerable to a legal attack.”
WOW!! Does any one think it strange that termination/default letters and emails from BFL went out today Jan.11, 2008 all dated Jan.10,2008……….the same day a counterclaim was filed against them?? In my opinion “nervous” does not come close to what BFL is feeling. I know some people that will be sleeping peacefully tonight and I don’t mean TG or MG!!
Let their nightmares begin………..fireworks in January!!
Weeeere Baaaack – Not only has a counter claim been filed against the boys, but I hear a class action is pending. Could mean that “ALL” franchisees will get a shot at ‘em!!!!…even area reps if they’re smart and join the action. We’re on a roll…and noting can stop us now (what a great title for a song!?!?!)