"They Lie": 1-2-3 Fit Franchise Owners Sound Off
February 27, 2008 by Sean Kelly
Filed under Business
(FranchisePick.Com) Related reading:
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In Stuart Goldman’s recent article (Lights Out) about struggling 30 minute fitness franchise concepts, failed franchisees of the much-hyped 1-2-3 Fit fitness chain speak out.
In the article, fitness franchise owners tell how their dreams of capitalizing on a hot new franchise concept founded & led by high-powered Quiznos execs turned into their own personal financial nightmares.
“I thought they knew what they were doing”
Mark Metevia, 1-2-3 Fitness Franchise Owner, Parker, CO
…When company reps encouraged him to open his location about a quarter-mile from a community rec center, Metevia saw it as a red flag, but he followed their advice anyway. Company reps also told Metevia that he would have 200 members before he opened his doors. Six months after opening, however, Metevia’s club had only 100 members, and he ran out of money.
“You’re in business for yourself, not by yourself,” Metevia says of being part of a franchise. “But I started to feel by myself.” When he closed his store last May, Metevia had lost about $250,000, but more strikingly, he says the stress of the situation contributed to his divorce, and his financial situation caused him to sell his boat and automobiles. He also is losing his house.
“1-2-3 Fit lied about opening costs”
Lloyd Doolittle, 1-2-3 Fitness Franchise Owner, La Quinta, CA,
Lloyd Doolittle of La Quinta, CA, brought a wealth of management and sales experience to 1-2-3 Fit and had the No. 1 franchise in the company with more than 600 members. Despite the high numbers, Doolittle closed his store last August, just 16 months after it opened.
Doolittle, whose losses totaled about $250,000, says 1-2-3 Fit lied about opening costs, increasing the costs with each UFOC. In the 2005 1-2-3 Fit UFOC, the total initial investment was estimated between $39,315 and $69,928. In the June 20071-2-3 Fit UFOC, the initial investment had increased to between $176,750 and $229,425.
“…the market is saying, ‘This is nothing. This is doing me nothing.’”
Industry vet whose wife lost $200,000 with 1-2-3 Fit
One industry veteran, whose wife opened and closed a 1-2-3 Fit franchise, says members eventually tire of the 30-minute circuit routine. Also, many people who join a club like 1-2-3 Fit simply are not gym goers and quit more frequently, he says.
“With the smaller facility, you get no ‘wow’ factor,” says the industry veteran, who requested to remain anonymous. “Maybe the market is saying, ‘This is nothing. This is doing me nothing.’”
“They just lie…. They’re using real people for guinea pigs.”
Barbara Jorgensen, 1-2-3 Fit Franchise Owner, Redmond, WA
“I call it an American tragedy,” says Barbara Jorgensen, who closed her Redmond, WA, 1-2-3 Fit store last month, just nine months after its opening. She says her losses total $300,000….
“They just lie. They don’t understand that exaggerating is lying,” Jorgensen says of 1-2-3 Fit executives. “They’re using real people for guinea pigs. The truth is, the system does not work.”
Read the article: Lights Out
WHAT DO YOU THINK OF 1-2-3 FIT, ITS FOUNDERS AND GOLDMAN’S ARTICLE? YOUR COMMENTS AND INSIGHTS ARE APPRECIATED.
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Quiznos franchisee Rich Piotrowski and his wife Ellen Blickman have just won a two-year battle with Quiznos. Interesting story. Check it out:
QUIZNOS: Quiznos Franchisees Celebrate Legal Victory
Judge Hoffman’s Ruling Against Quiznos Franchising II LLC (PDF)
Interesting article about 123 Fit … I saw the writing on the wall when I started working for them. Corporate completely miss the target with a well thought out concept. I understand the Ray Wilson gave them the concept. I worked for Ray during the building of his empire Family Fitness Center, and before that I worked for the man who gave Fitness Clubs their start, (Jack La Lanne) the 123 Fit concept was a gold mine in itself, but the execution of it was handed down to people who new nothing of fitness but had some business sense, bad mistake. I watched how corporate marketed to the wrong demographics over and over, promotions were expensive with no return on the franchiser dollars, the hours were inconsistence from state to state, most employees were not train properly and had little health and fitness background. One specific club fail to pay their employees knowing they were going to close their doors .. underhanded and shady job ethics. Lots contributed to the dimise of 123 Fit, and the franchisers were left holding the bag. The concept is still one of the best I’ve seen in years since Family Fitness days, executing it will take the best of the best … with our dwindling economy stress is the number one factor, people are loking for a a release without the high price tags and long lines..I have the knowledge and experience to make it work. There’s no bad ideas, just poor execution.