Lady of America Franchisee Locks Door, Walks Away
October 22, 2007 by Sean Kelly
Filed under Business
(FranchisePick.Com) According to a report in the Napa Valley Register, Lady of America Franchise Corporation officials were “shocked” to discover that their Napa, CA franchise owner Laura Dayton locked her fitness club last week and walked away, leaving her lady fitness members (I assume) sitting ducks for Krispy Kreme, Dunkin’ Donuts and other franchises eager to prey on ladies unable to maintain their fitness regimens.
According to the Register:
Jan Harder of Shelter Bay Retail Group, the management firm for River Park Shopping Center, said she could not comment on the Lady of America closure due to “legal action.”
A message left for Laura Dayton, operator of the women-only fitness center since it opened a few years ago, was not returned.
While Lady of America corporate officials attempt to contact former employees from the River Park Shopping Center location, a team of corporate employees will re-open the gym, she said.
“We’re going to get it back up and running,” said Cook.
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“The gym will be run the same, if not better, with the same amenities,” said Cook.
More than 1,500 women belong to the club.
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The Lady of America Franchise Corporation, based in Ft. Lauderdale, Fla., operates more than 600 franchised units worldwide under four brands: Lady of America, Ladies Workout Express, Workout Express and Health Clubs of America. The company was established in 1984 and franchised since 1989.
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Cook said the Imola Street Lady of America franchise is available for purchase.
Reader comments on the news were fiery:
pnutgallery wrote:
” I am disgusted with the response from the corporate office. LOA has been bouncing paychecks for 3 years. On the day of the eviction (not a voluntary closure) the corporate office had an opportunity to prevent the eviction. LOA corporate has been aware of this situation for years and just kept collecting members’ dues just like the owner. Ladies should go to a place that values their business. “
fitfamily wrote:
” It is unfortunate for the ladies that not only worked out at LOA but also the staff, no one had any fore warning and that is poor business practice. There are other ‘woman’ friendly places that work hard to treat their customers & employees with highest regard such as Adventure Boot Camp and Symmetry. “
iCare (owner of Symmetry perhaps?) wrote:
” Amazing really that this club is re-opening. I find it truely astonishing that this gym woulud re-open at all after all of the problems it has had with management and staff. Being an all womans gym is a great idea but being a previous member i know that the staff along with the majority of managment was a joke. I find it hard to believe that corprate would even waste it’s time. I’ve taken my business to a much better, frendlier, and cleaner all womens gym, Symmetry, in Napa and advise that all LOA members do the same! “
mytwocents wrote:
” It was obvious there were problems with staff but it’s very poor customer service to shut your doors without notice. “
Napa’s not the only place where Lady of America is having franchise troubles. In October’s Franchise Times, Janet Sparks reports that Lady of America battled a lawsuit against 50 franchisees in Florida (which the company won), 22 franchisees in California (which they settled by buying out the franchisees) and are now facing a lawsuit brought by Minnesota franchisees. The MN lawsuit in U.S. District Court, Randall, et al. v. Lady of America, “stems from franchisees who allege they were duped into becoming franchisees and some have now had to close their businesses due to being unprofitable.”
SEE ALSO: Blogliography: 30 Minute Fitness Franchises
People need to understand the nature of the beast that is “Lady of America”. The franchises are designed to fail. The corporation views franchisees as contracted victims and steals money directly from the franchise through several schemes, elevated rent with kickbacks from the landlord to the corporation, membership processing fees twice the going rate, high royalty fees, restricted equipment vendor to owners of the Deerfield Beach LOA and raised equipment costs just to name a few. They just want to lock the franchisees into a contract and steal as much money as possible. Sound familiar? They use the same tactic with the members. It is not designed to be successful, but if it fails its the owner’s fault.
Owners have the best intensions but were sold a phony business plan and trapped by a contract based on lies. The corporate has an army of lawyers instructing them how to legally lie and get away with it.
The members may feel mislead and ripped off, but for the owner, it is a thousand times worse.
I went there every single day on my lunch. It was my regimen. To go there and find that it was closed really ticked me off! With no kind of warning? I just couldn’t believe it. I was never totally happy with the gym. But it served my purpose and it was close to work. But, to just up and close it with no warming? This is unacceptable customer service and if they do want to hang on to any customers they better compensate them in some way or another because I for one will not go back unless it’s an offer I can’t refuse. And the website.. it says it will be updated accordingly.. ugh I haven’t seen one update. How about an apology, how about an explanation, how about some new information! Something.. it just says “sorry we’re closed and looking for a bigger place” WELL THAT ISN’T GOOD ENOUGH! Do something! Obviously these people don’t have a clue about running a business, or franchise! Or Customer service!
[orininally posted at http://www.pigasys.com
THIS FAD IS DYING!!!! Curves started a monster. With all the knock offs you have no chance to be successful in this business. Do not open any type of ladies only circuit. They are a joke for the owners. You will be set up to fail. This poor lady was probably losing her butt financially. Do you know how many people refinanced their homes to get into a business they had no experience in. If you want a gym you better know the business. Reserch your town because I can tell you that the established competition will put a new fly by night franchise out of business. Curves is going down fast and closing down left & right so are these little copy cat centers. Whatever you do Don’t buy one. They cost more than they make. I started one and thankfully I was an independant and was able to expand to a co-ed facility adding classes and grow rather than close down because my ladies circuit was getting too boring and members were cancelling by record numbers. I do have experience and was able to save my business. Good Luck.
“Lady of America” Corporation can be likened to a ‘vampiar’. The company seduces you into the business, with promises of profit that ends up being a deficit. Once the contract is signed the life is methodically sapped from your being. First, the “support” your were promised is non-existent. Then, as you struggle to keep “alive” with the franchise fees, restrictions on sales and design, royalties, and operational fees to “National Fitness” your realize you are dying finacially. It was the worst experience of my life, and I’ve had tragedy before.
Thanks so much ladies for the advise. I was going through the process to open a franchise with lady of america. I changed by mind……thank good for people out there with experience.
I too am an Ex-Franchisee. I am also someone who failed at this business. However – I have my MBA and have since obtained employment from another franchising company (non-gym). What I have learned is this…the contract I signed – did not lie. The fees I agreed to – did not change. The colors, the equipment, the products – I knew about before hand. LOA is in the business to SELL franchises. That’s what they do. Maybe it’s a poor business model – maybe it isn’t. What I do know is that I was seeing stars when I signed on the dotted line – and they were not forcing my hand to do so. When it came time that I had to close my doors because I financially couldn’t do it anymore – they very amicably let me out of my 10 year contract. They did NOT have to do that. I respect them for that. What I think they could do to be more successful in THEIR business – of finding franchisees who stick around – is to be more choosy in who they decide to let franchise. That is harder to do then say. They are enticed right now with the initial franchise fees which do bring revenue – but they need to start thinking long term…their biggest revenue will come from helping franchisees to be LONG term and be able to sell their gyms for profits – and renew 10 year contracts…their biggest revenue is going to come from R&A fees. The franchise I work for now…their franchisee fee is FREE – the catch…you have to prove you can make it day to day – by working as a GM for at least 12 months first. THEN they KNOW you can make it and you know EXACTLY what you are getting into. Take ownership for what YOU failed to see!