"They Lie": 1-2-3 Fit Franchise Owners Sound Off
February 27, 2008 by Sean Kelly
Filed under Business
(FranchisePick.Com) Related reading:
“Quiznos of Fitness” 1-2-3 Fit in Financial Trouble
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9,509,657 Reasons to Read Disclosure Documents Before Investing
Will the 1-2-3 Fit Franchise be the Quiznos of Health Clubs? Is That a Good Thing?
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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If you read the comments closely, you will find that most of these 123 Fit owners were under-capitalized from the start. Many also just made poor business decisions. And some were people that were just interested in fitness, but not prepared for the challenges of the real business world. Many 123 Fit clubs are generating positive cash flow each month with happy owners.
Sounds like Misc. is indulging in the usual franchisor rationale in which “overseeding” is premeditated and the guinea pigs are premeditated sacrifices to building a network for the franchisors. If you throw enough SEEDS out there, some of them are bound to catch, and the franchisor learns and earns visibility but many franchisees are destroyed in the process.
The government regulators prefer to ignore destroyed franchisees and are interested only in preserving the franchisor and the units that have germinated.
It is the franchisors who provide the estimated startup costs to the new buyers of their franchises, The startup franchisees depend upon these startup numbers being in line with reality and make their plans accordingly to have this money available to start up their franchised business.
Of course, the franchisors use legal language in the franchise agreements wherein they are excused for FAULTY estimates of startup and capital needed. The contract permits them to be many thousands of dollars off and be immune to any action under the law.
The franchisors like l,2,3 appear to have immunity under the law to overseed as long as they have a signed franchise agreement and their UFOC/FDD in hand.
It is the CONSTRUCTIVE FRAUD of the government mandated disclosure document and the adhesory franchise agreement that comes in a package that destroys so many innocent franchisees —who mistakenly believe that there is some government oversight of the franchise industry.
See the Franchise Fool, —The Big Con and Big Franchising for some background.
Mr/Ms Cross provides some very good insight to the attitudes and expectations of some of the owners/previous owners of 123 Fit locations and other franchises. It is this, “I should have no risk when I buy a franchise concept. I should believe whatever that the franchisor tells me is all I need to know. No reason for me to engage and do some research and use my business knowledge to make a good decision”. The comments I have read, including the one from Mr/Ms Cross drip with a total lack of business maturity and understanding of how the business world works. There are a few who just want to whine and then there are the many who are out there in the arena of business – making it. I know many of the current 123 Fit owners. They are not whiners – they are business people and they are making it. Watch the 123 Fit brand. Those that bailed early will be saying “If only I would have…”. If laws were broken – sue. Otherwise, quit whining. Or keep whining if you like. As 123 Fit grows and prospers whiners will be revealed for what they are.
You defend the indefensible, Misc!
You are part of the status quo who works to defend ineffective and immoral regulation with the excuse that “due diligence” is what makes the difference between winners and losers. Read Franchise Remedies, Richard Solomon, and get educated about how the majority of attorneys are not capable of doing due diligence on all of the fraudulent franchises that are out there today.
When the federal regulator, the FTC, determined that they would remove franchisors out from under the common law fraud statutes of the states, for the purpose of promoting franchising in the economy, they set the stage for the fraud that we see today in franchising.
The franchisors are free to say “sue me” because they know that the FTC Rule/FDD and the adhesory contract that comes together in a package generally protects them in arbitration and the courts. They have thirty years of case law and regulation that emboldens franchisors like 1,2,3 fit to lie, cheat, and steal, if they are so inclined.
Franchisors know that they can sell their franchises at any degree of risk or unprofitability to the public as long as they have an FDD, a license to lie, cheat, and steal, as they are so inclined.
Franchisors have KNOWN, up until recently, that the SBA would APPROVE GUARANTEED LOANS for any franchisees that were sent their way, as the SBA’s way of supporting federal regulatory policy.
Franchisee prospects buy franchises because there is cooperation among the status quo to present franchising as a safe and almost risk free method of going into business on your own, and the franchisors are not required under law, the FTC Rule, to disclose the risk and the rewards as known to the franchisor or his agents at the time they sell the franchise to the public
When good citizens who have some resources are looking for self-employment, when jobs are not available in the economy, the franchisors are out there looking to trick these good citizens into buying a franchise, with the help of our government regulator, the FTC.
The Franchisors are now targeting VETS and their families because of the SBA Patriot Express Pilot loan progam that was introduced in mid-2007 to stimulate the economy.
Of course, under government regulatory policy, The FTC Rule, the new buyers are only given current and ex-franchisees upon which they are supposed to investigate the risks and the rewards of the franchise being sold to the public. This is an Artifice that protects the franchisor, the seller, from making any representations to the new buyer.
The FTC doesn’t make the franchisor himself reveal “earnings” or any UNIT performance statistics in his possession to new buyers. In fact, the majority of franchisors, after 30 years make NO representations within the FDD or the signed franchise agreement in order to be protected from charges of common law fraud because of their oral and written advertisments of the value of their franchises made OUTSIDE of the contract.
Franchisors are not required to make timely disclosure of the failures to new buyers and have a window of time in which they can OVERSEED and sell their franchise to the public. They are excused from TRUTH IN ADVERTISING by the FDD and the Adhesory Boilerplate Contract that comes together in a package.
Hopefully, it is the regulators who will be revealed for what they are in view of the failure of regulation that has thrown this country into the dangerous scenario we face today.
misc:
Seems like 123 Fit, like Quiznos, has a large number of “whiners” (as you put it), and certainly many many franchisee lawsuits.
Perhaps the organization just does a terrible job prescreening franchisees – or perhaps they have an uncontrollable attraction to the whining psychographic group.
Either way, the franchisor is responsible for both setting expectations and selecting franchise owners who understand the respective roles, correct?
Just seems that Q and 123 Fit has a talent for attracting – or perhaps creating – disgruntled franchisees. No?
I cannot continue to go back and forth answering these very naïve comments and claims. I own a 123 Fit. I was simply defending the claims that 123 Fit is the devil. 123 Fit is a business and expects to do business with mature business people. What I hear from the very few previous owners really only qualifies as whining and not sacking up and taking responsibility for their own business decisions. If you believe that 123 Fit owes you anything more than a business model that can work – you are like the smoker that sues tobacco companies. You should have entered business with your eyes wide open. By the way, the business model they have put forward does work. Ask any of the many clubs that have positive cash flow. 123 Fit did not review your lease to determine if it was a good deal for you – that was your job. 123 Fit reviews the lease to protect their interests. You should have been doing the same. They are a business not a babysitter. I apologize for having to be so direct, but as an owner, I am weary of hearing the same 2 or 3 previous. Franchisees bash my business on these boards. Move on. Get a life.
If 123 had to disclose its known losers and lack of profitability to new buyers, they couldn’t sell their franchised concepts in the marketplace. The failures of first owners of franchises is material information that should be disclosed to new buyers at the time of the sale.
We realize that it is all about silencing and putting down the 30% to 50% who fail and trying to keep them silenced and out of the courts to protect whatever percentage it is of their franchisees who do survive who will then continue to pay the franchisor royalites on their gross sales.
If you have such a successful business with 123, , why are you posting as “Misc” —-Why don’t you come out and tell us where your successful business is located, etc….? Or, at least your name and the State you live in.
I’m sure you are aware that your customers don’t read these franchise sites and one wonders why, if you are so busy and profitable, you take time to tell people who have been destroyed to “move on” and “get a life.” It would seem like you would just realize how lucky you are and keep your “meaness” to yourself.
You are wrong – members and potential members do read these blogs and websites. I take the time correct the inaccuracies that people like you post in order to protect the business I have work hard to make successful. You and a couple of other hateful failed club owners would love to try and bring down any successful club so you can point to it and say, “see, it does not work.” Hell know I will not disclose my club. But believe me, the 123 Fit system is working for me. And it is working for others who approach it as a business and are willing to work hard and sustain until positive cash flow comes. That does not happen in just a few months. It is hard. Business is hard. It is not for those who need their hand held 24/7. But it works and it is very rewarding when the fruits of your labor begin to pay off.
members and potential members do read these blogs and websites. I take the time correct the inaccuracies that people like you post in order to protect the business I have work hard to make successful. You and a couple of other hateful failed club owners would love to try and bring down any successful club so you can point to it and say, “see, it does not work.”
misc: You are, of course, correct. There are distinct “types” of people with distinct experiences and agendas commenting on controversial franchises such as 123 Fit, Curves for Women, Contours Express, Butterfly Life as well as the non-fitness controversial franchises including Quiznos, UPS Store, iSold It, Snappy Auctions, Dream Dinners, Super Suppers, and others.
There are franchisees who have already closed and feel they have been duped. Of course, most of them would like to see the whole chain go down & the franchisors put in shackles. Many have a tough time admitting that there CAN be successful locations or the concept can work. Some of that is a reaction from the criticism that’s just as absolute and biased from the other side – that everyone who failed didn’t work hard enough or follow the system.
Then there are the struggling franchisees who agree with the first group in many of their criticisms but are still struggling to either make it work or have active lawsuits forming against the FRs. They can’t afford to give up on the concept just yet – but need help they’re not getting in order to survive. Negativity is toxic to their last chance at success, so they try to stay away – but come and go… because they’ve got no one else to talk to since corporate isn’t interested.
Then there are the corporate or sales broker shills who come on posing as successful franchisees and try to discredit the complainers by dismissing them as lazy whiners who killed their success fairy because they stopped believing and didn’t follow the system and/or keep their mouths quiet. Of course, like you, they will never mention their clubs locations – which unfortunately creates a crdibility problem for anyone with a legit success story but who won’t break anonymity.
Then there are the truly, legitimately successful franchisees who come on, say they are successful and get attacked a couple of times and, understandably, angrily leave the conversation to go back to running their clubs.
So, you’re right… I run this site and can tell you that the negative stories get many more comments than the positive, and often the bitter and the shills come back the most often.
BUT… both sides have equal access. My suggestion is that you DO name your club and include the link to your website when you post a comment. Invite you members to come on and post in support, telling why your 123 Fit helped them get results. I’ll do interviews with successful 123 Fit franchisees if they’re willing to share the secrets of their success. Tens of thousands read this blog every month – its free publicity and as long as it’s factual the truth will come out in the end.
What’s important – at least to me – is to get past the simplistic “123 Fit is Evil” vs. “Franchisees who failed are lazy whiners” debate and try to determine what, specifically, are the factors leading some to be successful and some not. What are the successful ones doing differently? What’s their population? Competition? Local marketing and retention strategies?
More successful club owners need to share what struggling owners can try in order to succeed, and what those considering a 123 Fit franchise should think about before joining. You can acknowledge the problems and still support the brand.
All I know is that the 123 Fit in my town closed down and “cheated” their members who were angry that they paid for memberships that were now worth nothing.
All of the anger from ex-ZEES could be avoided if there was mandated pre-sale HONEST disclosure to new buyers of the known financial performance statistics of those first-owner units up and standing in the franchisor’s system who exhausted their startup funds and who have already failed to thrive.
Under current regulatory policy, franchisors do not have to disclose FAILED units until the next reporting period —and if they take them over or a third party buys them, the failed first-owner units are not disclosed as a failure of the first owner to a new buyer if they appear merely as a transfer in Item 20.
All franchisors OVERSEED, as possible, with the view that if 60% or whatever of the franchises succeed long run, this will mean success for them in the market place because, of course, they don’t SHARE in the failure of the first generation franchisees who fail to thrive and have to close down. If the Franchisor can continue to sell NEW franchises and the DISCOUNTED units of failures, the franchisor CAN thrive.
Obviously, the 60% who THRIVE will have been able to generate enough in gross sales to cover their debt and overhead and the 40% of first owners who fail in the months or the years to follow will not have been able achieve the gross sales to cover their overhead and startup debt, and will lose everything when they have to close their business down in TERMINATION.
It is this FLAW in disclosre regulation to hide the performance of units in the system that I am talking about and this FLAW appears to be intentional and for the purpose of allowing franchisors to hide the risk during the sale and churn and turn and pump and dump out of view of the public and the regulators.
The FLAW in regulatory policy appears to be for the purpose of protecting the franchisor from fraud in the inducement and to protect those units who do stand and thrive in the economy from WHATEVER PERCENTAGE of units who fail to thrive and who feel cheated and defrauded because of dishonest disclosure by the franchisor in the sales process.
If new buyers of franchises invested KNOWING up front the odds of success or failure in terms of the unit performance statistics of those who had either failed or succeeded before they invested, they would have some chance of accessing the odds of success and profits for themselves. They would not feel misled and defrauded by the franchisor, if they invested knowing the odds up front revealed by the experience of franchisees already in the system; i.e. how much in gross sales, etc.. they would have to produce to cover overhead, what the possibilities were in various locations, how many months or years had it taken other franchisees to achieve break even, etc.. What were the “earnings” etc..
Apparently, honest and effective disclosure of the risk of the purchase of a franchise, as disclosed by historical unit performance statistics, would mean that some franchisors would not thrive because of high failure rate of first owners or low profitability of units in the system.
Misc. misses the point. If there was honest disclosure by the franchisor, new buyers of franchises would have the opportunity to assess whether or not their investment and their location had good odds of success because they would LEARN from the EXPERIENCE of those franchisees who preceded them in the SYSTEM who either failed or thrived.
Past performance doesn’t always indicate future performance but it is a risk assessment factor that is vital and MATERIAL to new buyers of franchises — and that has been declared NOT to be material under federal regulatory policy. This is wrong.
Misc. could share his/her membership numbers and overhead and debt service, etc.. to illustrate a successful 123 but I’m sure he/she won’t do this.
Sean is right. Misc. could encourage sales of 123 by sharing his/her successful experience to counter the discouragment of sales of 123 by failed franchisees of 123 on this excellent Franchise Pick Site.
I have personally talked to many former 123 Fit owners. Our stories are consistant. Misc. how many are successful? Two or three? I even question their success. Unless I see their books then I’ll believe it. I have also heard of several 123 Fit clubs having a hard time. Some are planning on exiting. Out of 39 clubs how many closed this year?
Misc. stop misleading people of this broken system. Many more to follow. I hate seeing people mislead. If you are one of the very few succeeding break away from 123 Fit. That is your only hope. Anything connected with Quiznos is bad.
The business model has changed since its inception and this change must not be construed as previous lies. Each franchise owner is under their respective UFOC/FDD they signed. Any differences from year to year reflect business changes, not lies.
Corporate 1-2-3 Fit is certainly not perfect and without flaws. In fact I question how frequently they change directions. However, I believe that now they have a solid concept which includes multiple profit centers, making it easier for success.
The old saying “A fool and his money are soon parted” is true. There is no gaurantees anywhere. Anyone who has had to close their business for any reason is going to be negative in one way or another, however it does not mean that all is bad in the entire system.
Yes you can get negatives from those who failed, just as there are positives from those who succeed. It is always unfortunate when the negatives pound the blogs and message boards while the others are busy working thier success only to check in here periodically when time permits.
Just because you had a negative experience does not mean everyone else has or is going to have the same. Nothing would ever get accomplished with this attitude. Thank goodness most people research before jumping in.
I would welcome the moderator to contact me directly to discuss a successful club and what it entails and how it got that way.
Best Regards.
1,2,3 Fit Owner misses the point. The point is that this market is saturated and that the franchisor is NOT required under law to disclose the UNIT performance statistics of this system to new buyers, who are instead misled by sales people and their hype and lies into buying franchises with very high rates of failure or low or NO profitability for the new owner. As long as ZORS can sell new franchises out the front door and discounted franchises out the back door, they can keep their systems alive because they live on the flesh of their franchisees who produce the System’s gross sales upon which they take their profits.
If theoretically 50% have a negative experience and 50% have a positive experience, (positive meaning to break even) this is MATERIAL information that should be disclosed to new buyers of the franchise in a timely manner.
If new buyers of 1,2,3 Fit really knew the historical performance record of the units i n the system, the franchisor would, of course, have a hard time selling new franchises. This is why they CONCEAL this material information from new buyers of their franchise. ( The 1,2,3 Fit in my City closed down and it made the Evening News because their customers were unhappy to find them closed and wanted their money back)
1,2,3 Fit premeditates boilerplate unbargained long-term franchise agreements and long-term leases that become malicious legal traps in which failed franchisees lose everything or give their assets away for pennies on the dollar –and surrender their due process rights.
Unfortunately, the ugly and dishonest regulation of franchising encourages the franchisors to deceive new buyers and to not disclose MATERIAL unit performance statistics to new buyers —-but this may change in the future because of the state of our Union.
I agree with the fact Zors should have to disclose more information regarding performance.
What I don’t like is when zees who have closed, do nothing but bash the zors and make it harder for those of us either just breaking even or making a profit.
Best Regards
1-2-3 Fit Owner:
Which 5 or so clubs would you say are examples of 1-2-3 Fit franchise locations that are doing well, are implementing the program properly, and maintaining a decent membership base?
Clubs doing well include the following:
Sacramento, CA
Silverdale, WA
Moses Lake, WA
Cantonment, FL (multiple clubs)
Depending on ones definition of doing well, I would includes many clubs who are within one year of opening and are well on their way to breakeven and profitablilty.
It is important to note that just because a club is not making money yet, does not mean it is failing. As long is it is consistently making significant monthly progress towards breakeven, I would consider it doing well. The above clubs are all at or beyond breakeven and many others are consistently making monthly progress towards that goal.
Nobody can deny there have been club closures. However, when looking at club closures, it is important to consider many things when forming an opinion. For example, many club closures are due to inadequate working capital to remain open until breakeven. In many cases, these clubs closed within one year, some much sooner.
Considering the fact it takes the average small business 3-5 years to breakeven, it is not always the failure of the franchisor if the franchisee does not secure adequate capital to maintain operations.
As a business owner, one needs to have enough working capital to be able to sleep well at night and not worry about paying the bills. How long that lasts is up to each owners individual comfort level.
Another reason clubs closed was due to either their lack of marketing or failure to properly follow the corporate program.
I would challenge any former owner to post how long they had their clubs open and if they marketed properly and followed the corporate program.
I would venture to say the response would be they were open less than one year and they had no money left to market properly, which makes my point about having enough working capital on hand.
While it is a tragedy to have to close your business, which in many cases represents a dream or retirement nest egg, it is important to look at those experiences and learn so that mistakes are not repeated.
Remember, Thomas Edison failed over 900 times in attempting to invent the light bulb. Imagine if he had stopped on failure short of inventing the light bulb. Never give up.
My best to all past present and future owners of any small business.
Defrauding people is against the law. Many people believe they were defrauded. 123 fit made alot of money up front. Many people were taken advantage of . Have you ever heard of bait and switch? We would of had enough money if the 123 Fit did not gouge us on everything. Why settle for a measly royalty fee when you can make tens of thousands on the build out and the equipment and everything in the business. If we failed at anything it was trusting bad people. You know many of the former zees are over 50 and you have no soul. I have heard the horror stories because of the lies of 123 Fit. People loosing their houses, cars, spouses their good name because of losing their good credit. How can people from corporate sleep at night? This is not about failure it is about misrepresentations, puffing material facts and robbing the good people I have got to know through their suffering all because of your unethical business practices.
Barb. My heart goes out to anybody who goes through all that is involved in a failed business effort. Good people are hurt – beyond any financial measurment. Despite peoples very best efforts and intentions – sometimes businesses just don’t make it.
And there is no doubt that 123 Fit corporate has made mistakes. You obviously feel you were mislead and maybe even laws were broken. But my experience has been different. Corporate has done what they said they would do. They have not lied to me – ever. I don’t want to minimize your experience. But I do want to get my message out that 123 Fit has been good to me. And when you respond to others posts by saying they have no soul – you really lose your credibility. You had a bad experience with 123 Fit. We get that. But can you also get that some of us have had a good experience with them? I have been very specific, posting my numbers and what has worked for me. I am not with corporate. I am just a club owner that is on the brink of being profitable.
When you continue to post your hateful comments it hurts me and other club owners. Potential members read these blogs and some will not join after reading your comments. You are hurting those of us that are making it. Can’t you let it be? We know already about how 123 Fit lied to you and stole your build out money and all that. So can we give it a break now? Let us that are left have a chance.
Pete be specific. What club do you have? I am talking in behalf of many couples who have been hurt. Corporations should not have l the right to go forth and misrepresent people for thier selfish gain. If I say 123 Fit is a good corporation I would be misleading the public who have the right to know who is good or bad in franchising. There are good franchises out there. 123 Fit is not good. Too many lies. Too many people hurt. Pete I can give you people’s phone numbers who you can talk to and they will tell you how 123 Fit keeps you staying in business by telling you other’s are doing it. I can be more specific if you are more specific. I am not hurting your business. 123 Fit should step up to the plate and help the former zees. If they were good they would change their business practices and help the one’s they have made poor. Remember most of the former zees have spent a life time working hard. Until they met up with 123 Fit.
If corporate was solid why have they closed their main headquaters on Larimar. Why are they $36,000 behind on their rent there? They could be more behind now. Why are several of the men and employees no longer there? Why is the CEO focusing on another business adventure? (A bar in Denver.) I have heard there hasn’t been a webinar for a long time. 123 Fit must be in financial trouble. There are lawsuits coming up and some being put on hold until corporate decides to do something about the lawsuits. Pete you are either from corporate or in denile about the state of the 123 Fit corporation.
The CEO tried to make a go of his 123 Fit circuit in Denver on Larimar. They had radio advertisements and did extensive marketing. Which we paid in an advertising fund and received
no advertisment via radio. The only advertisement was for selling of the clubs. Larimar did not make it. You still will not comment on the CEO’s failure to make his clubs succeed. I am sorry to say Pete I do not believe a word you say. 123 Fit is not a branded name. Members come and go. Your numbers do not make sense at all. You never have anyone go on hold? Pete you give it a break and stop misleading people on the integrity of this bad franchise.
Barb,
You must be from corporate as you tend to have inside information on their rent status with exact figures. I find this amazing you have this information.
You also should not be attacking Pete as he has clearly stated he has had a positive experience as others have, despite your negative one. He even acknowledges sorrow for your failure. That being said, he is not misleading people. He says nothing of the integrity of the corporate office, only his own experience. Let those working hard, continue without dragging others down.
With all you seem to know about corporate office, rent, and what the CEO is doing makes you appear either as a corporate insider or a stalker, neither of which is positive.
Everyone posting is using their own experience. Why cant you acknowledge that others can have a different experience than you?
Best of luck.
That is so funny. I am from corporate. I am not trying to drag Pete down. He will not disclose his location.
Anyone can walk by the old headquaters and get this information.
Me a stalker? Sean are you laughing with me. People can get this information. There are 123 Fit’s in Colorado. If I were still in business I would not want to be apart of this brand. It is through investigation and talking to reliable sources that I get up to date information. Former zees talk to one another. Existing zees some are unhappy. The truth sooner or later comes out. 28 clubs left. How many never opened or went out of business? I assure you it is more than 28 clubs closed. People are upset. Rightfully so. The only way anyone can have a positive experience is if they are the same type of people. I can give you reasons for the clubs doing well. The question is what did corporate do with their money they made from misrepresenting all the former zees who are out of business?
The statement, “I am from corporate,” should end with a guestion mark. I am not from corporate. I am merely proving there are people who have been investigating the corporation. There have been former zees who are from Colorado. They can simply walk by the old headquarters. We know alot more than most. People share information. Why wouldn’t we? We have been put in bad situations because of bad people.
One cannot simply walk by the old headquarters and find out what the CEO is currently focused on or how much rent they pay or are behind. That is BS!
Just because you are a former zee does not mean you all of a sudden get inside information. Neither does the fact someone used to be a zee in CO make them all of a sudden get inside information. I believe you that those who closed share information, however, that does not mean you have an insider look into what corprorate is doing or the CEO.
Ha! You speak of non-sense, but it is funny.
Earlier you mentioned that corporate office made money off of your buildout. Corporate does not make any money on anyones build out costs. They do make money on the artwork/furniture/fixtures/equipment. The amount of money the artwork/furniture/fixtures/equipment costs is disclosed before hand. The actual cost of building/materials/construction costs are between the franchisee and the contractor. In fact, as a franchisee, you see bids ahead of time and know what the costs are.
Have a great night!
Barb says: “The only way anyone can have a positive experience is if they are the same type of people.”
Response: Not true at all! You mean to say that people who are successful are the same type of people as corporate? Nonsense, especially since corporate is still finding their way around the fitness business. Those who are successful are true entraprenuers especially since corporate support is not that great, the product is though.
Barb says: “I can give you reasons for the clubs doing well.”
Response: I would love to hear your reasons as to why the clubs are doing well!
You can respond in order:
1. Sacramento
2. Silverdale
3. Moses Lake
4. Cantonment
5. Swampscott
6. Pensacola
7. Spokane
8. Oro Valley
Lets just start with these. Please give us reasons why each of the above clubs are successful. We will sit back and await your input.
Thanks for helping us to understand!
You were told differently. I need to know who you are to have a good debate. Remember trust but verify. What 123 Fit do you own? Who are you? Yes you can walk by corporate and find out how much they are behind on their rent on Larimar. How do you think I came up with the how much they are behind? Former zees in Colorado can walk, talk and read. If you think people’s lives being destroyed is funny than you are a sick puppy. There is nothing funny about 123 Fit.
1. Sacramento- There are two partners who make alot of money. I called there one afternoon and asked a employee guestions. He said the two partners, Mark Weaver and I did not get the name of the second partner. They have always sold other things in their establishment. I was told they were doing things differently than other former zees.
2. Silverdale- His father bought the club for him. He bought an existing Healthy Excercise that was a Ray Wilson Club. I understand they are partners. His build out was not anywhere as much as ours. He claims he looses 300 members when a ship sails out. I understand he has told people who asked me this that when a ship pulls out he signs up new members when a ship pulls in. He did not have the overhead for build out. When we visited his club he did not have the so called exclusive equipment the other clubs have. Some former zees claim he still doesn’t have the equipment. He claims he started from zero members. I don’t believe it. Many of his members like the old equipment. Life Fitness has different levals of equipment. There is home commercial which is our equipment. Silverdale claims they had two build outs. I visited Silverdale it is big. A paint job and new flooring is all I could see he had to do. I find it interesting that he will not stand up to the reason why he could hire employees. It is called “The Bank Of Dad.” Most of the former zees did not have this luxery. He even told me he joined Curves. He claims he markets alot. I know he has pretty girlies running his club. Could that be the reason he is successful? His numbers have not changed much in a year. But corporate uses him as a prime example as a successful club.
3. Moses Lake- I have tried to talk to the owners of Moses Lake before we signed the agreement. They are impossible to reach. My husband and I visited Moses Lake and they were not there. Three people were working out and a young girl was supervising the club. We saw the circuit for the first time. I have heard from other former zees that the most they have made is $1000. Their numbers have gone down a bit. The owners own a Quiznos in the same shopping center. I also heard they were trying to sell their club. Nobody has heard anything on this. But on BMM people seemed interested. I understand the wife is Vice President of 123 Fit. They are definitely in with Quiznos and 123 Fit.
4. Cantonment- This is the club I call “The Lady From Florida.” She is a area director and sells clubs. Her father was also a area director and club owner that went under. I have proof of his bankruptcy. How can anyone sell a concept that bankrupt her own father? Her father claims her rent is only $1200 a month. That would contribute to her success. Many of the former zees had much higher rents. I talked to her once. She claimed she got into schools. PTA’s and she told me she bets she would sign at least 8 new members. She also claims she lost her weight because of the circuit. She had surgery to loose her weight. That was told to me by the one that sold us on 123 Fit. He skipped the country. I wonder why?
Swampscott I know nothing about. I do not recall seeing their name on the weeking reports when we were in business.
6. Pensacola- That was “The Lady from Florida’s first club. Supposely a terrible location. Low rent, low build out and still I do not understand how she can sell clubs where her own father went bankrupt. Pensacola’s numbers have dropped alot. Is it because The Lady from Florida is not running it? Are the schools and businesses more open for fitness clubs to go in and solicit there. I know where I am from I called schools and went to businesses with very little success. Eventually we got kicked out of parking lots and businesses. We went to hospitals.
7 Spokane- Is not breaking even yet. I would not put this club on the list. Their build out was very low. Since her husband is a contractor. Still they should be making money now. They are not.
8. Oro Valley Another club that I do not recall seeing on our weekly reports.
Nobody said 1-2-3 Fit is funny, I said your comments are funny.
Are you telling me that there is a document posted to the door of the old corporate office which clearly states they are behind in rent a total of $36,000 and several months?
It would also be amazing if there were documents on the door telling of the ventures of the CEO. I just dont believe that, but am open to find out more.
I don’t know why my specific identity being known is necessary in order to have a debate and exchange information. We are already doing that.
You were the one who said:
“I can give you reasons for the clubs doing well.”
I just asked for you to say what you said you would do. Your giving reasons for the clubs doing well has nothing to do with my or anybodies identity. If you don’t want to do so, then dont lie and say you will. Nobody likes a liar.
I hope you do the right thing. I know you have it in you. Best of luck!
I appreciate your response to the reasons. I knew you could do it. Thanks for the insight.
I does appear the vast majority of the information you have is 2nd hand at best!
Thanks for taking the high road and giving your reasons. It is helpful to see where you are coming from.
Best of luck!
1. Sacramento: Yes they do things differently. They think outside the box and make things happen. A true business person. Congrats to them! They use the same equipment as everyone else does. Amazing!!! Talking to an employee does not give you the inside information needed to make a qualified decision.
2. Silverdale: This club was originally called “Ray Wilson’s Healthy Exercise” When 1-2-3 Fit bought them out, Silverdale switched to the new brand, requiring a second paint job,new equipment, furniture/artwork, scale etc… The owner who started as Ray Wilson Healthy Exercise is the same owner that is there now. Regardless of where financing came from (You must know them better than I to know who gave money to whom), the club continues, has a full set of Simbio equipment and appears to be running smoothly. I hear they have a great staff, and yes I am sure they contribute to their success.
3. Moses Lake: One of the owners is almost always there, which contributes to its success. Being a VP of 1-2-3 Fit does not make ones club successful, especially since it is a title which is new. Again, you “heard” they were for sale, you “heard” they make $1000/mo. This is all second hand at best.
4. Cantonment: The only valid reason you can give for success here is cheap rent, according to her father. I believe this to be true if in fact she has cheap rent. You talked to the owner once? I bet it was long ago too. Not very reliable info.
5. Swampscott: You claim to not know about them. However, you constantly refer to Weekly Reports and having inside access. They have been on the reports for sometime. Not valid info.
6. Pensacola: Again “supposedly” does not cut it when talking facts. No good data here, but you do mention the weekly reports and I guarantee you that Swampscott is on them. Look!
7. Spokane: Supposedly you claim they are not breaking even. Does this mean you spoke to them and know exactly what their breakeven is? Also, as long as their revenues continue to grow, I would count them as doing well and progressing towards breakeven. Your info is lacking again.
8. Oro Valley: Again, just like Swampscott, they are on the list you supposedly refer to all the time.
My point in all this is that you need to lighten up and realize that your thoughts on what you think you know and what you actually know can be two very different things.
When you begin sprouting enough items enough times, you actually may begin to believe yourself. This frightens me, to think you may actually believe most of what you are saying.
I believe your had a bad experience, we all know that from reading your posts. Nobody doubts this one bit. In fact I feel sorry for the fact you had such a negative experience. However, that does not mean everyone else had the exact same experience. Yes, there may well be others who where hurt as well, but this by no means is everyone.
As long as you continue to think negative, you exude negative energy and that is what will surround you. Let it go and focus on he positive aspects in your life and move on to a more happy place. Until you let go, you will never be happy.
Best of luck and thanks again for your insight. It is much appreciated.
Remember there are several clubs in Colorado that went under. In two magazine articles they mention two former owners. If people would take the time and talk to these former owners you would feel the same as me. Our family was tremendously hurt by 123 Fit. I know the pain of loosing everything you worked for many years. People need to study the world of franchising before signing an agreement. There are so many scams out there and I would hate to have other’s face the financial hell we have experienced all because of a bad corporation. Remember defrauding people is against the law. I believe the more people write their stories of misrepresentation, puffing material facts more people will not be victims of zors who premeditate how their going to make fast money on the backs of hard working people who have enjoyed fantastic credit and decent life styles. All to be robbed of the fruits of their labor because of greed. I did a survey when talking to former zees. 98% of the zees I talked to did not know about franchise lawyers. The more educated people become the harder it will be for unethical zors to scam people.
My heart goes out to all the former zees and existing zees in other franchises that are going through hard times because of being taken. The suffering is unbelievable.
One thing I have learned about business is business is based on facts. Can everyone I talked to be liars? I doubt it. In fact many people I have talked to we have become friends. We share a common bond. The true liars have been the sales people and corporate. Having 28 clubs does not make 123 Fit successful. There are at least 3 I know of that are unhappy. The market is saturated with fitness clubs. People are loosing their jobs. The first thing to go will be memberships. Do you not read the stories of other fitness centers? I assure you 123 Fit is not exceptional. Facing reality is positive. Wearing rose colored glasses is deceiving yourself. Hopefully you aren’t wearing rose colored glasses.
I would like to know if any of your 1-2-3 Fit friends include any current franchises who are happy and are doing well? It is interesting that the only people you seem to know are the people who have had a bad experience.
Nobody claims that 1-2-3 Fit is exceptional. I will go on record as saying that 1-2-3 Fit is anything but exceptional. However, I still have a solid, ethical business which has been built from the ground up with lots of hard work by all involved.
Fortunately, the vast majority of my members sign annual agreements so most of my income is protected for the next six to twelve months until those memberships expire. That gives me time to obtain new members and time for the economy to improve.
I truely agree with your assessment that business is based upon facts and that everyone is not a liar.
The fact is that my club is profitable as are others and we are not liars. Another fact is that your club closed/failed, as did others, and you are not liars. Both are true. There is always going to be a positive and negative.
Perhaps you might want to try your luck with another franchise, perhaps Smashburger?
Best of luck to you!!!
You are truly hilarous. Good luck with your club and I wish you success.
If 123 Fit goes under you can go solo.
Barb says that “defrauding people is against the law” and I truly believe that Barb was defrauded in the common sense of the meaning of “fraud” as understood by the lay person.
I believe Barb worked in the Real Estate Industry where there are state rules and regulations that protect consumers from fraud in real estate transactions. She had no idea, of course, that the Disclosure document she was provided under FEDERAL law and STATE law would offer NO protection for her and would actually help the franchisor to “spin” the great value of the investment and then to induce her to purchase and signature of the contract without having to prove the viability of the franchise to her or anyone, including the government regulators.
Only two of the 23 items required to be disclosed under the FTC Rule/FDD could possibly give the new buyer of a franchise any MATERIAL information concerning the risks and rewards of the franchise, itself. Item 19, “earnings claims” although MATERIAL is OPTIONAL, and Item 20 is an Artifice upon which new buyers are supposed to be able to perform due diligence. Actually, Item 20 acts to protect the franchisor from making any direct statements in the FDD concerning the performance of the franchise to the new buyer, and protects the franchisor in the courts.
However, “fraud” has been redefined under law in the legal sense, because, when the FTC regulated franchising in the late 1970’s, they took franchisors and their unilateral contracts out from under the purview of the common law fraud statutes or the “securities” protection statutes of the States.
In practice, a franchisor is licensed to sell franchises within specific states as long as the franchisor is compliant with the FTC Rule. The FTC Rule DOES NOT provide a private right of action for violation of the FTC Rule, and this is Federal Regulatory Policy. The FTC Rule is flawed because it doesn’t require the franchisors to disclose any unit historical performance statistics to new buyers.
In practice, there is generally no fraudulent inducement to contract or concealment of material facts, etc.. unless there is an actual violation of the FTC Rule/State FDD. Even when there is a violation of the FTC Rule, the arbitrator can find that the violation is not proximate to your damages by reason of the fact that franchisees have signed a contract indicating that they didn’t rely on anything other than what is contained within the four corners of the contract. (Study the Coffee Beanery Case)
Apparently, franchisors are protected from all of their representations and statements made outside of the actual contract, which may be outright lies, as long as their actual boilerplate and unbargained contracts contain legal language that protects them in the courts. (See Richard Solomon, Franchise Remedies, excellent essay on this subject matter, wherein he explains that the Contract is a license to lie, cheat, and steal for those franchisors who are so inclined)
Of course, the government had no idea that the franchisors would misuse the law provided in the subsidy of the FTC Rule to the great extent that they do today.
We can only hope that the FTC will not remain deaf, dumb, and blind forever and that the State regulators will try to stop the bloodshed. We can only hope that the Congress will do their jobs and regulate in the interests of ALL of the parties involved in franchising.
If citizens, who are looking for jobs and income, are going to be induced to buy “Smashburgers” or “Poopydoopy” or “Shitness” franchises that are licensed under our laws, then the law should also make the seller disclose MATERIAL Unit performance statistics on a timely basis to new buyers of the franchise.
Carol,
I couldn’t agree with you more on the fact that they should make the seller disclose material unit perfromance statistics on a timely basis to new buyers of a franchise.
In Barbs case, as in anyone case who fails, it is always a tragedy. However, there are those franchisees who DID have attorneys review the UFOC/FDD and chose to continue and are profitable and happy.
Again, the caveat is buyer beware. The real tragedy is ignorance on the part of buyers who do not give themselves the proper due diligence.
I am always amazed at how little people put time and effort into checking out what amounts to be one of the largest purchases in their lifetimes. If I were going to start a business to help my retirement, you can damn well know that I will research the heck out of it before signing anything. To do otherwise is suicide, and unfortunately it happens all to often.
It would be nice to see the laws changed to reflect more protection on the consumer side.
Best of luck!!!
Dearest Barb,
A sense of restraint may be your guide today as you engage in conversations with others. You may be sensitive about creating conflict, which could mean your behavior may seem reserved. by asking sincere questions and being accepting of whatever the other person my feel comfortable to share, you can avoid conflict. If others choose to argue, you may want to act as a moderator to create an atmoshpere of open dialogue. If you can have a conversation without being judgemental of views that differ from your own, there is no need to be overly careful. We can share our opinions if we choose, without being overbearing. As long as we dont insist that we are right, or act as if we know everything and the others dont, conversation without conflict is possible. Today you can let caution guide your choices but also allow yourself to be part of a dialogue that cfan enlighten all involved.
If everyone is afraid to discuss important subjects for fear of conflict, there would be no way to have open dialogue and reach agreements. Conflict in conversation is not to be feared; conflict in action is the challenge. If we have the courage to face opposing views and not back down, and share our views as well, we may be able to diffuse a situation fefore it escalates into action. By being open to discussion and nonjudgemental in your approach toady, you invite others to share their perspectives, bringing greater understanding to all involved.
On this I shall retire for now.
Best of luck!!!
Thank you 1,2,3 Owner for the reasoned response to my postings.
You were lucky to have used attorneys but did your attorneys actually point out the great risk of a new franchisor in a saturated field to you, and did they point out the malicious legal trap of the long-term contract with the 3-Net lease, etc… that could destroy you if you failed to thrive in your business before you ran out of money?
Did your attorneys point out the first reason of the Ten Good Reasons Not to Buy a Franchise, that appeared in NOLO and then in Forbes magazine? —-and then discuss the other nine reasons with you? I think not! Because, as Richard Solomon of Franchise Remedies indicates, most general attorneys are not competent to help franchisee prospects.
Weren’t you just LUCKY and this is why you can be so “smug” in your response to Barb? What if you were on the losing side of this proposition? Can’t you recognize the “constructive” fraud of a boilerplate-adhesory-self-serving non-bargainable contract that is wrapped in a government disclosure document that is supposed to protect the consumer franchisee prospect by disclosing the “risk” of the investment —–and doesn’t do this?
Aren’t you thankful you were lucky?
Washington State has laws that require up to date disclosure. Anything that affects your decision to sign or not to sign. That includes zees who have closed. It is my understanding that California and several other states have strict franchise laws about material facts that would affect your decision. It is my understanding that several of the first clubs that were Ray Wilson’s Healthy Exercise closed their doors. 12 clubs closed in 2006. 2 clubs close in 2005 which were disclosed to us in the UFOC. How many closed before we signed the agreement? How many were in trouble? All this information should of been disclosed to us before we signed the agreement. The laws are state laws. Washington State has some of the best laws that protect the zee. People need to talk to the Securities department of their state to get the laws in franchising that is current. They have franchise lawyers there that you can talk to.
Carol:
Luck had very little to do with our club success.
I can tell you that we did use a franchise attorney who did make us aware of the many pitfalls involved in this new franchise. It took almost six months worth of research before making our decision.
I would credit doing our homework and knowing what we were getting into and reserved enough access to working capital (3-5 years) to allow us to do what was necessary to obtain profitability.
However, depending on how one looks at the market determines what your competition really is. 1-2-3 Fit is a co-ed circuit club, much different that the ladies only circuits and different than the larger big box gyms. The market for this particular gym is the “deconditioned” population who does not work out but has most likely belonged to another gym at some point. This is a huge market.
Luck has little to do with my success. It is the time spent on identifying and working a specific marketing plan to garner enough members in the above demographics which allowed our club to become profitable. It also has to do with the initial research into where to located the club and identify the market before signing any franchise agreement. Third, smart hard work has played a role as well.
If our club failed, it would not have been the fault of anyone at corporate 1-2-3 Fit. Ultimately it is was our name and our decision to sign on and purchase a franchise. I don’t know of any business that guarantees success, let alone success in less than one year time. To think that is absurd.
In looking at the failed clubs, the vast majority closed within one year. It is also important to note that when 1-2-3 Fit merged with Ray Wilsons Healthy Exercise there were about 11 clubs under the Healthy Exercise name. They were all given a choice as to whether they wanted to change to 1-2-3 Fit or not. Nine chose to leave the system, resulting in nine store closings in the starting phase of 1-2-3 Fit. Initially the pricing structure for these remaining clubs was extremly low. This low pricing along with a poor location was what drove one of the remaining two Healthy Exercise clubs to close its doors despite having a larger than average membership with a lower than average monthly membership price. That left only one Healthy Exercise club left, which became 1-2-3 Fit and continues to operate, having opened in 2004.
There are other reasons beyond corporate 1-2-3 Fit as to why some of the clubs failed, although not the only reasons.
I fully support a change in franchise law and would welcome to become part of a group to faciliate such a change.
However, I think it is ignorant to place all the blame on the franchisor, when other factors helped to lead to club closures.
Best of luck!!!
Barb:
Please read my prior post regarding the Ray Wilsons Healthy Exercise clubs which closed. They closed because they chose not to participate as 1-2-3 Fit and exercised their option to leave the system. These closures had nothing to do with 1-2-3 Fit, in fact they were all under Healthy Exercise franchise agreements or were privately owned by Ray Wilson himself (6 clubs to be exact)
To group these initial closing as having a problem with corporate or being screwed by corporate is not a fair arguement. Whenever you talk about failures you must discount the number of closures by eleven (11).
That being said, if the laws were broken and you can prove that, why dont you get with all the others you contact and file a class action suit against corporate. That would be my plan of attack if we were defrauded and the law was broken.
It will take strong advocation from the masses who have been wronged and a savvy attorney(s) to effect a change in the franchise laws. Surely there must be somebody out there who can take a case pro-bono. Carol, perhaps you can point people in the right direction.
Again, it is not my intention to in any way belittle your experience or the experience of others. I am just sharing my humble experience and knowledge as it relates to my dealing with
1-2-3 Fit.
I know lots of people who have successful franchises and make lots more money than I ever will with 1-2-3 Fit. Many of them had to spend upwards of $1 million for their franchises. I find it difficult to imagine that they all are “screwed” by the franchise agreements they signed. In fact many of them are multi-unit operators at this point. In fact it is because of these successes that initially got us to look into a franchise and then price and personal interest brought us to 1-2-3 Fit.
I made sure to have a franchise attorney guide us through the process. It is mind boggling to me that others would not do this.
I would not go to an OBGYN to have brain surgery no more than I would have a general attorney represent me in buying a franchise. That would be absurd!!!
I am sorry for your failure, however, I believe that some of the blame for your failure resides with your not performing due diligence before entering into a contract.
After all, you often stated the relationship between 1-2-3 Fit and Quiznos. 1-2-3 Fit has always been open about this relationship and it would have been very easy to research online about Quiznos and find out information which might have caused you NOT to sign a franchise agreement with 1-2-3 Fit.
In no way am I saying 1-2-3 Fit is innocent in some of the things you say, but you need to take personal responsibility where appropriate.
Huskies lost, its a bad day.
Best of luck!!!
I can bet you that most business people who enter to an agreement seek out the advice of an attorney before doing so. If they don’t, they are stuck with the agreement they signed. Buyer beware.
Go Broncos!
Best of luck!!!
One more thing Carol:
We were not lucky to have used an attorney. We were smart and savvy, and continue to run our business the same way.
Unfortunately, the world is filled with lots of people who dont understand basic business. Yet these same people go into busniness believing everything the franchisee says without any fact checking.
If people such as Barb rant about how Quiznos is so bad and they are the same people who own 1-2-3 Fit, yet they did not do their own fact checking and fail. It is not entirely the franchisors fault. Since 1-2-3 Fit even mentions the connection in the UFOC it would have been easy to go online and find out all the negatives about Quiznos BEFORE signing a franchise agreement with these same people.
Do you honestly think Barb did her due diligence? Sorry Barb, but you learned a costly lesson. I feel horrible about your having to close, but some of the blame rests squarely on your own shoulders. I am sure others are in the same position.
Go Bengals!!!
Best of luck!!!
The stories I have heard from former zees of 123 Fit has been terrible. I will not go into their stories even if I recieved it first hand from them. All our stories are consistant. Corporate has not been our ally. What do have to say about the equipment? Why did they change their web site to say it is the most efficient equipment instead of what they disclosed and advertised as exclusive. What is you definition of exclusive? It means no one else has it. You can argue among yourself when all hell breaks loose for you. I wish no ill will on anyone. Those that misrepresent and puff material facts should stop because sooner or later it will catch up with you.
By the way the attorneys all suggest the word should be investigation instead of due diligence. Richard Solomon does say due diligence and is an excellent attorney for zees to go to that is very knowledgeable about vetting franchise systems. He does charge for his services. I would rather spend $4500 for him to help us with pre-investigation of a franchise than loose hundreds of thousands on a franchise. By the way the attorneys say people should work in the franchise of their choice for at least 6 months. People who are interested in buying a franchise should follow this advice. Most people who bought 123 Fit did not have all this knowlege including us. It however does not give zors any right to take advantage of people who do no know how much investigation is necessary. It does not give zors the right to defraud people with icons in the business and exclusive equipment. You all know that Ray Wilson left in 2005. The equipment was never exclusive. By
the way many other fitness businesses use Doctors names, celebrities names and even special studies to lure people into signing franchise agreements. There is nothing new under the sun. Conning people has always been apart of life. With this I will end with I do blame 123 Fit for misrepresentations and puffing material facts. Good zors are there for their zees. Good zors battle test their systems on their buck and not on the backs of the hard working people of our country. The blame I will take is I believed the sales people. They are very smooth. Hopefully the laws will become harder on those that go forth and develope scams to hurt people. If you say there is not people who premeditate these schemes, who is being realistic? I don’t believe all the existing zees are bad. I do believe the 123 Fit corporation is not good. I do not believe customers of 123 Fit read here. Why would they? Their interested in their own lives and many are not able to buy a franchise. When people hear about Quiznos many do not know how many people have been hurt. The same with 123 Fit. I personally never did much research on the computer until our club or for real estate. Most people think that Quiznos is successful. People who look up Quiznos are those interested in buying. That is the only reason you would love people to stop posting their horror stories. You want to sucker more in a system that is only working for a few people. My honest opinion after going through all this is people should major in business before going into any business adventure or have lots of experience in business. Unfortunately the reason people buy franchises is because they think it is safer and they do not have alot of experience in running a business. It is the wrong way to think. It makes people perfect victims of the unscrupulous. The scum of the world that prey on the naive to rob them of everything they have worked for. With that I will stop writing because it saddens me beyond belief to know that thousands of people have been hurt emotionally and financially all in the name of greed. On that note may the existing zees survive and hopefully those interested will take more than 6 months to investigate a decision that can change your life. Hopefully for the good but in thousands of cases in the World of Franchising the change is devastating.
Barb:
Exlusivity on the equipment is for their branded “Simbio” which is made by LifeFitness.
LifeFitenss will not sell their circuit series to any small club making it exclusive to our market and demographic. However, a YMCA etc… can purchase it under the name LifeFitness but circuits dont work in these large scale clubs despite their attempts. This is a whole other conversation.
As to the corporate claim of having the world’s best workout? The have removed that language. It is interesting though that you can go to many restaurants etc… that all claim to be the worlds best this or that. I was visiting Seattle recently. If you go down to Pike Place Market you will see that there are four vendors all in a row claiming to have the worlds best chowder. I strongly doubt there have been tests of every chowder in the world. Are they all lying and misrepresenting themselves, or is the “worlds best” title a subjective one?
It is however, proven to be more efficient than other workouts based upon the scientific Swedish Hospital Study.
As to Ray Wilson, yes he left and sold his stake in 1-2-3 Fit back to corporate as he did not like giving up control of how the business is run. He has been very successful in the fitness business, but found out he did not like giving up the reigns of power, and decided to bow out. He did however, endorse the workout and knows the circuit concept works great, which is why he founded it in the first place.
You nailed it by saying people need to investigate before signing anything. I could not agree with you more. It is as you said, better to spend $4500 in attorney fees than to loose far more by entering into an agreement later regretted.
It is not the franchisor responsibility to babysit all potential franchisees during the investigation period. If you come to the table ready to sign, they will vett you and sign an agreement. They do not need to make sure you spoke to your attorney and worked in a franchise and researched on the internet etc…
According to your thought process, anybody who buys a product they dont like should blame the seller for not doing proper investigation before buying. That is not the sellersresponsibility. If you are buying a house and choose not to get an inspection, ignore the disclosure docs and buy it anyways, and have problems, it is not the sellers fault.
I certainly hope that you don’t base your vote for President based soley on the ads of the candidates without investigating deeper. If you did and the winning candidate does a lousy job, is it the candidates fault? Hardly, but many people do just that.
Obamba, the Messiah, McCain, the Maverick or Brooksy, the Used Car Salesman? Choose carefully as the country hangs in the balance.
Go Patriots!!!
Best of luck!!!
I disagree. However I am not wanting to write my opinions anymore. You are convinced the equipment is exclusive. The only thing exclusive is the name Simbio. We saw them peel off the Life Fitness stickers and replace them with Simbio and 123 Fit. Life Fitness is selling the circuit to people who want to open a fitness business. Again you are misleading people.
Good Luck!
Go 49er’s and Sea Hawks! I have two favorite teams.
You can disagree, but the fact is that the branded name Simbio is exclusive and the entire line of circuit equipment is only available to larger clubs. Check it out with a phone call. Yes, you saw them peel off the stickers because your club was one of the first to get the new equipment and it shipped before the labeling went on. It now ships with Simbio already on it.
No misleading people here, those are the facts. You can verify with Life Fitness if you chose. I did as soon as the new equipment was listed on their website some time ago. Unless they have changed their policy.
Good luck on your search. I hope you search out the truth.
The Truth Shall Set You Free!!!
Palin or Biden? That is the question. I heard Biden is buying a franchise and choose Palin to be the model for selling memberships??? What do you think. This could all be hear say.
Best of luck!!!
I just went to Life Fitness and saw a manual and the exact equipment we have. In fact I set up my own circuit in my basement. Where in the hell did you get strength, cardio, strength recovery? Life Fitness is selling the circuit as a circuit to anyone who wants to buy it. Go to Life Fitness yourself and I would love you to comment on that. It is so obvious. The first time a zee goes to this Life Fitness site we are shocked. Exact equipment and selling to anyone who wants it. It even tells you how to start your own business.
Again stop misleading the public. Google Life Fitness Equipment go to Circuit and people there is all our so called exclusive equipment. The Truth Will Set You Free!!!
I know it is on their website, i already told you that in my previous post. Call them and ask about buying it for a small fitness circuit only club. When they began carrying it, I did just that and they said they would not sell to small clubs under a certain number of square feet because that was their agreement with 1-2-3 Fit. Maybe it was only for a year or so. I would encourage you to check it out.
Besides, 1-2-3 Fit only claims “Simbio” as the exclusive equipment, which is technically correct. It is all semantics at this point.
I can gaurantee the fact that the franchise agreement people signed two years ago is far diffferent than now. The system now, works. There are clubs proving that. No clubs opening under the revised club structure with nutrition and personal training has yet to close to my knowledge. It is these clubs who are making it work. For people like yourselfs, it is too bad you didnt have that. I feel for those who failed.
Perhaps Brooksys’ new career will be as a franchise attorney to attone for his past.
Best of luck!!!
It seems like everthing has to change in order to make 123 fit work. Used to be you got everything for one price, now you pay extra for towels, water, and personal trainer. It proves that they didn’t have a proven system. If it works now, it will be because it was perfected(?) at the cost of the first generation zees and their wallets.
Dave:
You are correct. Most businesses evolve over time to accomodate what works and what doesnt. Any business which does not embrace change is doomed to failure. It is a far better system than when they started, and that is because they have changed.
In fact the towel program you mentioned now just rolled back into the monthly pricing in most clubs.
Charging for water bottles through a vending machine is a great idea with extra earnings potential.
The personal training you refer to is for a one on one 1/2 hour session and is a big profit center for those choosing to adapt it.
They have also added a nutritional progam which consists of two parts. First is a supplement program which quite frankly is bombing and is going away. Second is an online nutrional guidance program called iEatRight. This program is great.
In addition to all this, corporate has changed the number of pieces of equipment needed from 30 down to 20, which makes the breakeven point even easier to achieve.
In all acuality Dave, some of the original zees have changed along with corporate and are profitable, including the original franchise. It just goes to show that clubs from the start have been able to change and become profitable.
There are many reasons for club failures. It is usually a combination of the franchisor and the club owner. Both sides share a responsibility when a club fails, and it all begins when the prospective franchise owner fails to perfrom an adequate investigation before signing a franchise agreement. If all owners had done that, people like Barb would have never signed a franchise agreement with 1-2-3 Fit and she would never have gotten hurt emotionally and financially.
It is a shame, and my heart goes out to anybody who has gone through this experience.
Best of luck!!!