Will the REAL Butterfly Life Franchise Please Wave Its Wings?
September 12, 2007 by Sean Kelly
Filed under Business
(FranchisePick.Com) Read interviews with Butterfly Life franchisees at UnhappyFranchisee.com
Finding reliable information on a given franchise opportunity can be a challenge. Sometimes you have to sort through wildly conflicting views and accounts.
For example, we sought out information on a fitness franchise opportunity called Butterfly Life in our post IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE?
The comments seem to be describing two different companies.
Mary Says: …the corporate staff has always lacked competence and professionalism from the beginning.
Kathy says: …There are many clubs all over the US that find a year or two later they are not even close to breaking even.
Linda says: the owner only believes in money and gets it by harrassing potential franchisees with verbal lies…
Claire says: I have heard of so many closures and personal bankruptcies from former franchisees… They take your money and ignore you!! Don’t go there.
Leigh says …run, run, run away!
However…
Phil says: The best fitness franchise for Women’s Fitness is Butterfly Life… a winning formula for members’ success and ours.
Susan & Jamie say: …we are very grateful to corporate for all the support you have shown. I feel that you care and want us to succeed and are doing everything you can to help us make it happen.
Cynthia says: … if I need something or have a problem I know that I call or e-mail someone from corporate office and I am going to get a response right away, often within the hour… I could not ask for a more supportive environment than the one provided by the corporate office at Butterfly Life.
Hard to believe these people – all supposedly franchisees – are talking about the same company. The lesson is that if you only speak to a person or two you may be getting only one side of the story. Hear only the negative, you may miss out on a great opportunity. Hear only the positive, you may buy into a financial nightmare.
The moral of the story? Keep asking and keep digging until you get a sense for the truth of the situation and the opportunity you’re considering.
ARE YOU FAMILIAR WITH BUTTERFLY LIFE OR SIMILAR FRANCHISE OPPORTUNITIES? HAVE YOU EXPERIENCED CONTRADICTORY ADVICE ON FRANCHISE OPPORTUNITIES? SHARE YOUR EXPERIENCE; LEAVE A COMMENT.
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Dear Sean,
I regret to inform you that Miss Pedagogue has spoken against you in spite of your English degrees. Based on American Heritage Dictionary,” “IIPII?” was correct to infer that whether it was your intention or not, your posting dated December 3, 2007, at 9:33 a.m,. was an admonishment, per second definition:
2. To counsel (another) against something to be avoided; caution.
Miss Pedagogue can be such a boor at times, I know, but if it’s any consolation, she agrees with you that revealing ones desire to “pee” on someone’s head or referring to the CEO’s as “pond scum,” “curs,” “dregs,” “rabble,” “riffraff,” “reprobates,” etc., although accurate, diminish the cause. Furthermore, your admonishment is well taken by me, especially since you’ve bolstered your position by reminding us all that the shadow dwellers are disturbed by the light being shone upon them through the vital forum you’ve provide for us. I will strive to maintain reasonable standards of civil discourse upon it to ensure its continued, uncensored existence.
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?
Be Sure you research the principles and the current staff of this company, They have been together for along time under a variety of names.
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?
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 than the DOC need to take a look at this company. Good Luck to all.
Sherleylock Holmes said: Dear Sean, I regret to inform you that Miss Pedagogue has spoken against you in spite of your English degrees. Based on American Heritage Dictionary,” “IIPII?” was correct to infer that whether it was your intention or not, your posting dated December 3, 2007, at 9:33 a.m,. was an admonishment, per second definition: 2. To counsel (another) against something to be avoided; caution.
Sherleylock, I regret to inform Miss Pedagogue that she needs to spend a bit more time keeping her resource library current and a little less time nipping at the Baldwin Sisters’ “Recipe.” Quoting from the American Heritage Dictionary results in a severe caning and possible censure at my morphology club. The only officially recognized dictionaries of FranchisePick.com are 1) Bierce’s Devil’s Dictionary (admonition n., Gentle reproof, as with a meat-axe. Friendly warning.) and 2) the Argumentum Verbosium Situational Wiktionary. I possess the sole copy of the latter, but will be happy to quote from it if ever my infallibility is in doubt.
And remember, it was Miss Pedagogue who told you Butterfly Life really had wings. (as did Icarus)
Prison & Investors said: You asked, “If they [ARs] were to openly acknowledge the problems [with their territories], their investments would be lost, correct?”
What a great question!! Isn’t it kinda like those inside trader guys who have knowledge that a certain stock is gonna plummet, so they dump it on unsuspecting investors before the bad news surfaces & the bottom drops…
I don’t know… the website shows 23 Area Reps listed, each of whom paid, I believe, $250K for the right to sell 40-50 franchises? The website lists only about 88 locations open. Could ANY of them recouped their investment? Certainly, they don’t seem to be in a position to be making a killing with clubs closing or never opening. It reminds me more of cartoon characters who run off a cliff and keep running out into the air… they don’t fall until they look down and realize where they really are.
It seems like a Catch 22. If the franchisor halts franchise sales until they get the unit economics improved, the ARs would scream that they can’t recoup their investment – possibly sue. Seems to me, though, that if the problems aren’t addressed they won’t be selling many franchises nor recouping their investments anyway.
Dear Sean,
I call for a truce, not because I concede your points, but because we on the light side get very nervous when mentions of arsenic and meat cleavers are brought into the conversation. I will no longer ask Miss Pedagogue to proof read my posts. Instead, I will try to summon the spirits to open the gates of your esoteric knowledge, Oh “Great and Infallible One.”
You wrote: It seems like a Catch 22. The complexity of the situation can be simplified with the addition of two vital, missing components: TRUTH & HONESTY. The lies and deceit the company is built on make a very unstable foundation. Regardless of everything, TRUTH and HONESTY are the solutions to the ARs predicament.
If corporate is contractually obligated to allow ARs to continue to offer franchises, then ARs should be allowed to continue to offer franchises. However, what ARs should NOT be allowed to do, is to LIE and DECEIVE when doing so. If all the lies and deceit are eliminated from the sales pitches, the potential buyer can make an informed decision. People who want to open gyms will know that there isn’t any empirical data to support claims that the franchise is a good business model (or a “turn key” business), and they will know that they will need at least $500K of expendable cash to spend. They will know the risks.
When ARs find that they can’t sell any franchises when they tell the truth about their product, then they have to decide whether or not they are victims of this bad company, too, and proceed from there. But they are not exempt from having to be truthful just because they risk their investment if they are. They either tell the truth (and this includes the elimination of “lies of omission,” too. And no more telling potential franchisees to “call corporate” when confronted with “difficult” questions!!), or they join us in our battle to force corporate to tell the truth!!
We want truth so the free market can work, allowing businesses to thrive or die naturally. Unscrupulous, lying scoundrels are serious threats to our entire economic system. That’s why the California Department of Corporations is so interested in Treacherous Tom, Maniacal Mark, and their pompous, complicit entourage. A prohibition against the offering of franchises will only come in the form of injunctive relief.
If there is a Catch 22, it is that the free market has been regulated to ensure that it remains free.
And for the record, I know Miss Pedagogue and Miss Pedagogue is no Icarus!! I gave a franchise attorney a lot of money to tell me (unlike Daedalus) that the wing wax was solid … sheesh …
Sherleylock Holmes said: Dear Sean,
I… concede… Oh “Great and Infallible One.”
Your apology is accepted, and your sin forgiven. Rise now and stand tall. I am powerful, but also merciful.
Let’s pretend for a moment that not everyone is as motivated as you and I by TRUTH & HONESTY, but that they are motivated by self-interest. Let’s say, hypothetically, the FR just wants to sell franchises. Let’s say the ARs aren’t scammers, but came in as prospective franchisees and were told: For $250K upfront you can help others own their own businesses and make a few million in the end. Let’s say their houses, retirement, savings, reputation, is on the line, too, like the franchisees.
And when things got bad, lets say they were told: This is just a sales problem… if we can get as big as Curves we can provide all the support and marketing THEY do. We can sell through this, despite a few casualties along the way… mostly those who don’t follow the system!
That’s a tempting illusion, because what’s the alternative? If they look down, they fall into the canyon and become a puff of cartoon smoke.
In this hypothetical scenario, these two groups won’t be motivated by altruism, truth or justice, because it may not be in the one’s nature, and the other can’t afford such a luxury.
Is there a solution? Maybe. One solution would be if the ARs realized that there was room for one 10,000 unit chain and Curves got there first. Time to rethink. The ARs need to realize that they’re never going to recoup their investment unless they all work together to make clubs successful on the local level. Closed clubs don’t pay royalties and selling franchises is tough when the franchisees are pissed off and/or on the warpath.
It seems to me that ARs could recognize that they need to work arm-in-arm with the franchisees in their areas, focus on unit economics, restore faith, demand effective member marketing, retention and sales programs, and focus on getting real results for members. Franchisees and ARs together have the power to create change, especially if the FR is shown how it will lead to greater franchise sales, revenue and system growth in the long run.
Or maybe I’ve been listening to John Lennon’s Imagine too much lately…
New post about a similar situation:
IS SHAPEXPRESS A GREAT FITNESS FRANCHISE OPPORTUNITY?
Sherleylock Holmes
Dear Sean,
I don’t recall apologizing or conceding to you, but golly gosh, there it is, written in plain English: “I … concede … Oh Great and Infallible One.” I’m just a little confused and since I no longer consult Miss Pedagogue, I have to ask you: What do those little dot dot dot’s mean? I remember Miss Pedagogue telling me before, but there’s a penumbra about my brain right now, an eclipsis of thought.
You wrote: Let’s pretend for a moment [dot dot dot}
OK. Stipulated:
• Everyone is motivated by self-interest (except thee and me, of course).
• ARs want to sell franchises and franchisees want to sell memberships.
• Both ARs and franchisees have their houses, retirement, savings, reputation, etc. on the line.
• Neither ARs nor franchisees are scammers.
• Both ARs and franchisees were told by corporate that in exchange for giving corporate X amount of money, they would receive a return on their investment.
• When things turned bad, both ARs and franchisees were lied to by corporate (This is just a sales problem… if we can get as big as Curves we can provide all the support and marketing THEY do. We can sell through this, despite a few casualties along the way… mostly those who don’t follow the system! [Or those who are failing are just “bad business managers.” “You are the only club that’s having problems. Just call your old leads and things will improve.”
Both ARs and franchisees are left with Hobson’s Choice; they are compelled to “keep on keepin’ on.” But then, keepin’ on keepin’ on doesn’t get them across the canyon either; they look down and see the abyss. Both have to change. Doing the same thing over and over again and expecting a different outcome is insane.
We know what the franchisees have done to change. They’ve closed.
What do the ARs do? So far, they have continued to tell people that the business is “turn key;” they refuse to address the issues raised on this blog & by the AAFD (see Help! Dec 3, 2007 at 10:28 am I can tell you that my AR has not said a word to me about any problems - she’s still trying to convince me to open. When I asked her what she knew about some of the stuff I’ve heard, I was directed to corporate with my questions); and they continue to try to sell a loser product.
Some ARs can’t work arm in arm with their area clubs because they haven’t sold any yet. Many franchisees purchased directly from corporate and don’t even have an AR in their state. Also, after investing $100-250K, how many of them have any funds left to implement your suggestions, or enough confidence in the company to spend yet more if they even have it?
ARs are not the solution; they are part of the problem as long as they continue to sing the chorus of corporate’s “blame the franchisee” song. I was told explicitly by the corporate AR point person that if I became an AR, I wouldn’t have to worry about selling any clubs, because “We [corporate] sell them; you [AR] just make sure they run smoothly.” It’s a con, through and through. We have asked over and over again, “Where is the successful club?” The silence is deafening.
Sean, some may say you’re a dreamer, but you’re not the only one. I have a dream, too.
Then they’ll raise their hands,
Sayin’ we’ll meet all your demands,
But we’ll shout from the bow your days are numbered.
And like Pharaoh’s tribe,
They’ll be drownded in the tide,
And like Goliath, they’ll be conquered.
Dylan 1963
Sherleylock said: I don’t recall apologizing or conceding to you, but golly gosh, there it is, written in plain English: “I … concede … Oh Great and Infallible One.” I’m just a little confused…
Your concession, apology and praise is humbly accepted. Those three little dots are known as an “ellipsis” (plural “ellipses”) and they are to me as the thunderbolt is to Thor, the trident is to Poseidon, and the UFOC and FA are to the Franchisor. If I were not the all-merciful Moderator, I could have finished your quote above …I’m just a little confused… since I no longer consult… my brain…
(You don’t want to know what I can do with comment editing.) But your supplication, burnt offerings and timely Dylan reference (within hours of my watching his 1963 performance on PBS) have put you in my good graces. Rise up on your bootheels and wander forth. ;-)
Sherleylock said: ARs are not the solution; they are part of the problem as long as they continue to sing the chorus of corporate’s “blame the franchisee” song.
I agree. My point is that these situations are generally more nuanced than simply good guys vs. bad guys, and to acheive a desired outcome it’s important to consider the situation and the motivation of the other players involved.
For example, let’s say the ARs are not slick franchise sales sharks, but are regular franchisees who once had access to cash. They ponied up $250K for nothing but the right to sell – and/or to receive revenue from the sale of franchises in their territory. In fact, they are probably contractually obligated to be promoting franchise sales in their territory, and probably contractually forbidden from speaking out in any way that could be construed as “damaging the brand.”
They would be in a very sticky situation.
In many ways, they have the most to gain by demanding change and improvements in the system, and possibly the most to lose if they don’t. If they are helping to sell franchises making untrue or misleading claims and hiding the problems, they could have some serious legal problems in the future. If the franchisees perceive that the franchisor is implementing strategies and providing tools that are resulting in increased membership, retention and profitability, positive PR and franchise sales will gain momentum and they will be rewarded for having done the right thing.
If franchisees want change, they need to have enough of a consensus among themselves or they won’t be heard or heeded.
Sean said: Your concession, apology and praise is humbly accepted …Dylan reference …
I take my cues from Scheherazade, Great Sultan.
Sean said: In many ways, [ARs] have the most to gain by demanding change and improvements in the system, and possibly the most to lose if they don’t.
Bingo! Eureka! E pluribus unum.
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”.
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…
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 ! ! !
I have a couple of relatives who are getting started with a franchise… could anyone elaborate on the lawsuit that is out there? Also, are there actually any successful clubs? Thanks!
so, tom, if you went to a restaurant and got food poisoning and had to go to the hospital and ran up a lot of medical bills and then when you were finally able to crawl out of bed you went back to the restaurant and told them that their food was rotten and then they told you to get lost because after all you saw yourself what was written on the menu and you ordered it yourself and the money’s spent and besides the restaurant has a permit from the health department hanging on the wall so you probably just have a weak stomach because no body else ever got sick except you but the truth is that a lot of people who went to that restaurant got sick but the restaurant decided for no special reason to give you and a few other people who got sick too a coupon for a free order of bean dip the next time you visit the restaurant if anyone decides to make bean dip so go away please go away because even though the food is rotten at this restaurant it’s the best restaurant there is and it’s going to put Olive Garden out of business so see there and the court of public opinion will see what a great restaurant it is because this restaurant has waiters and cooks and a maitre ‘d with years of experience who will go visit anyone in the hospital with food poisoning and that lawyer you people hired will just go away too and don’t forget that the coupon for the expired bean dip expires soon so don’t miss out so, tom, that’s how it is with you, huh? is that just how it is, huh, tom? twisted, man, scooby-dooby
Has anyone seen the additional contract that they want us to sign? What is the catch? I have asked to see it & I have yet to see the thing.
Dear Tom, (Mr. Scrooge) I lost over $150,000 and you think splitting the franchise fee with me after you sell my already failed territory is going to make everything better. Ooops! I forgot I must be a bad business manager. It couldn’t be from lack of advertising on Corporates fault. Let’s see if I can remember correctly and this is an actual qoute “$400 of your monthly franchise fee will go back into national advertising” NOT! Yeah you wasted our money on that piece of SH_T 5 minute segment on lifetime. If you blinked you missed it. Way to go that’ s really some bang up national advertising there Tom. Maybe the next owners will be a better business owners than me. Thank the Lord I didn’t lose my home like some did. Hey maybe they can take that $14,700 by a used RV and raise their family in an RV park, while you live in your precious mansion. Hope you sleep well Tom!
to confused….don’t sign a damn thing. The reason you haven’t seen it is because they don’t want you to.
to concerned….your relatives will lose alot of money if not everything.
Confused, are you talking about the contract where if you go out of business, the company will split the franchise fee with you? I’d like to find out about that as well.
Also, what exactly is the disclaimer at the end of the letter regarding the contract, am i missing something?
Broke, I’m sorry to hear what happened to you. I think I might be seeing that in the near future.
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
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.
Hi everyone,
I wanted to take a moment to remind you that the signed Amendments are due back to me by February 1st. I am here to answer any questions you may have. This is a great opportunity to take advantage of some exciting changes for 2008! You may fax the form initially to [edited]. The hard copy should be mailed for counter signatures.
We have been made aware of the negative smear tactics in the e-mails that have gone out in regards to the Amendment. It’s sad that this small disgruntled group continues to spread lies and negativity designed to hurt your business and the company. It’s a false and desperate attempt to prevent you from receiving major benefits for your franchise business. The truth is they really don’t care what happens to you or the fact that you need to remain positive and upbeat in order for your business to get your quality time and attention.
We are committed to adding value and helping you grow your business each and every day. The revenue producing programs we are launching will provide extra revenue to your bottom line and help your members get better results. We will continue to work for you adding great programs and services. All of us staff at the corporate office are here to support you each and every day. Please feel free to contact me with any questions you may have.
Thanks,
Cathy
So, Ms. Cathy Galli, personal assistant to Tom Gergly…..do you really believe that anyone is going to be stupid enough to sign and fax back your amendment? I find it quite funny that you would find the need to issue this email today…..is it because no one has sent them in yet??? Perhaps, they are smarter than Tom and Mark think they are……hummmmmm.
I particularly love the last part where you state that you “are here to support us each and every day.” So, why is it when a troubled franchise owner calls any one of you and leaves a message……that no one ever calls them back. Perhaps, you should be open and honest with everyone and let them know that during this month’s scheduled BFL University training…..it had to be cancelled because there was only one person scheduled to attend. Could it be that the “party is over”? Before you used to have up to 30+ suckers in a class. What happened? Could business be slow these days? Geez….I wonder why.
How much longer can you continue to operate your skeleton crew at corporate when you can no longer sell any more franchise rights or collect any more royalties? Cathy, are you willing to work for FREE? Time will tell…..but, I forgot….Time IS against you.
I don’t have a franchise but I enrolled at a club. I was promised great weight loss results but instead I gained weight. I would not recommend this club to anyone. I am in the process of filing papers to get my fees back
I live in the Fresno/Clovis, California area and noticed both clubs remaining (there was one other that closed last year) have signs up in their windows that says “space available”. Either they are moving to another location or they are closing. I sense the latter is probably true. One has been opened for about a year and the other one has been opened for over 2 years. I knew it was just a matter of time. Sad.
Just FYI..Phil Gerst closed in Turnersville NJ. After all that… Leigh is right “run”
Closed: Cary, NC and Holly Springs, NC
I live in the same city as the Butterfly Life Corporate Office. I drive by the location of the Butterfly Life Corporate office building a lot and each time the parking lot has less and less cars, it appears to be an almost empty parking lot. Does this company have any employees left? Also, has anyone else noticed that Mark Golob’s daughter Carly seems to have left the company due to her picture and profile is no longer on the BFL Website. Maybe she is trying to protect her career and move forward without this ship taking her down.
What is going on? How can we debrand? Does anyone have any info. on if the company is going to survive?
Butterfly Life Clubs are dropping like flies! Doesn’t look good for BFL here in the USA. A little birdie told me they are going to try selling their product abroad at the International Franchise EXPO in Washington DC. I looked for
proof on the web and found the company name on the exhibitor list at this website:
http://www.ifeinfo.com/exhibitorlist.cfm
Guess they are running out of investors who believe in them in the USA so they need to market elsewhere.
SingSong – Ask Sean (the host of Franchisepick how to contact the AAFD and they can put you in contact with those ho have debranded.
Keep an eye on this blog for an update of closures – sadly the list gets longer every week.
When will we see the latest closure list. I’m very interested to see who else is close to losing everything-like us!!!
Did the Arlington, Texas location close?
Here’s a current Butterfly Life franchise offer posted for your input:
Butterfly Life Franchise Offer: 10 Franchises for $65K.
oh my goodness I have been considering purchasing a BFL franchise and now I am definitely reconsidering…what is going on?
If all of this is true this is crazy I am so disappointed actually I feel numb…I was thinking about signing soon Are there any success stories?
DO NOT DO IT! If you find a success story odds are it has nothing to do with following corporate rules. Now Jeannie Spatola is gone..the franchise is going out right behind her, she was the consistant, honest, genuine person at corporate and they let her go. DO NOT DO IT!! Thier idea is right ontarget..they just have no idea how to actually do what they proffess. Call some of the clubs still open, you can find them on line. Call them, they will be more than happy to tell you the truth I’m sure. Unless you get a lying thieving Area Reps club..then you’ll get a bunch of bs..cover your butt..call a few and know who you are talking to.
GOOD LUCK JEANNIE!! WE WILL MISS YOU SOOO MUCH! GOD BLESS
In response to Joanne: You will be completely blind sided and not in a good way if you continue to invest in this Franchise. Run!Run!Run! #1 business rule – Do not give your money to a failing company; Do not give your money to Golob or Gergley (their business history explains itself).
My User name tells the whole story!
Joanne – STOP – TURN AROUND – RUN AS FAST AS YOU CAN! I BEG YOU! THIS 2 YR VENTURE PUT MY FAMILY’S FINANCIAL FUTURE IN RUIN.
THIS IS THE WORST FINANCIAL DECISION WE EVER MADE AND IT HAS BEEN DEVISTATING.
I HAVE SPENT COUNTLESS NIGHTS HAVING PANIC ATTACKS ABOUT MONIES LOST AND THREATS I HAVE HAD FROM THE OWNERS OF BUTTERFLY LIFE ABOUT CLOSING THE CLUB AND HOW THEY ARE GOING TO SUE ME.
A YEAR AFTER CLOSING THEY CONTINUE TO MAIL ME (AND OTHER CLOSED CLUBS) INVOICES DEMANDING PAYMENT FOR ROYALTIES.
IF YOU ARE SET ON OPENING A CLUB, DO SOME RESEARCH AND CREATE YOUR OWN NAME AND IF YOU LOVE THE EQIPMENT, CONTACT SEAN WHO RUNS THIS BLOG AND I’LL SELL YOU MINE! IT IS IN STORAGE. GOD BLESS YOU JOANNE AND KEEP US POSTED!
Joanne,
Hard to believe they are still sucking people in… If you can find a successful club-you’ll be lucky! I wish this website would have been around when we started this whole nightmare. Unless you need a huge tax right off, RUN!!! Ask them how many clubs failed in the last twelve months? The numbers would blow you away. Oh ya they leave that part out-all they promise is a profit in 6 months, which is a total lie! Don’t let them suck you in too. I wouldn’ t wish the aftermath on anyone. Landlords suing, creditors calling non-stop, losing property you hold dear, possible backruptcy. You pick up the pieces and try to move on as best you can. Good Luck to you!
Butterfly Life just opened a new location in the Chicago suburb of Wood Dale:
http://www.dailyherald.com/story/?id=206676
I have only received 5 comments back none good and some of the success stories are from long ago I have asked for a report from corporate on the numbers for all of the clubs havent received anything yet
i am so disappointed Is Illinois the only state with a new club?
corporate told me not to pay attention to blogs since these are disgruntled since they didnt do well or they have too much time on their hands I totally defended this blog due to the fact the people who enter info here have nothing to gain from helping me to be informed
so i am still waiting to hear back from corporate on the report of all the clubs
please if someone else reads this please send me your situations info so i can review all of the good and the bad
thanks for being helpful
joanne
Joanne,
Like you said the good was back in the beginning of the 2006-2007 wave when it was all new and exciting, defending the great new concept. Heck I even defended it at first. You won’t get what you want from corporate, because the true facts would make you change your mind. Follow your gut if you have any doubt, then listen to it. The numbers just don’t add up! To get and keep 300+ members??? The overhead for rent, your own and only marketing, and your time and energy to do all the marketing plus run the club (can’t afford to not be there). Not one club is or has come forward. I send my hope and prayers to all that are in the same boat as us. We will survive, with a family, we have no choice. If I only knew what you know, I would have been blessed!
1
Joanne,
Most likely you will never receive the report that you have requested from corporate. They are aware how the product they are trying to sell is failing, for corporate to provide you with a report on each club would mean for them to admit the true facts; and doubtful they will do this.
Corporates excuses about this blog are weak at best. Nobody is hear because of free time on their hands, disgruntled because a club failed, how could a club succeed when BFL Corporate does not help brand or market their own product.
Corporate should be proud to market their concept design for a 30 minute workout for women. I guess they just want to collect royalties as they have rid themselves of all their marketing staff. It just seems marketing their own concept design is not important to them. So for corporate to say “free time” and “disgruntled”, is such a weak argument for this blog. Corporates lack of business development says the truth. Corporates lack of employees (no sales team, no markenting team, no admin team, etc), also tell the true story. Corporate needs to get better excuses for this blog if they want to sound competent.
Everyone hear just wants to help each other. This is an economy were money is nothing to throw away but to value and honor. Do not give money to anyone who does not value how you will succeed in your future.
Breathe,
Very well stated! Thank you!
It was stated on another section of this site that Denny, Cathy and Janet are gone. Does anybody know if this is really true?
As of late yesterday afternoon they were all still there.
If you have equipment to sell, email me at unhappyfranchisee[at]gmail.com
We’re going to promote your equipment here: Your Town Health Club
Sign up for less than $20/mo. here: http://www.yourtownhealthclub.com/sell-your-fitness-equipment/
You can also list your club for sale.
- Sean