Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
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Snap Fitness is struggling across the country. The reason why is the CEO’s vision of offering “NO CONTRACTS”. The CEO boasts about how “no contracts” eliminates the barrier of entry; however, it does nothing to eliminate the barrier of exit. Franchisees are faced with a never-ending marketing battle where they just don’t win. The interesting thing is that for each new member the franchisor makes a $5 fee plus a $1 online service fee. There is a huge turnover in customers and the franchisee has an extremely difficult time getting an established customer base. In the colder climates, when the weather warms, the members leave in the droves. One location in Utah went from 900 memberships to only 300 in a matter of months. Some locations, go from doing well to going broke. Apparently, the CEO doesn’t understand the principle of securing the stream of revenue with a contract. Isn’t fitness a lifestyle anyway?
There are several issues here.1) Ethics – though your franchisor may not have lived up to your expectations if they are meeting the letter of the law then I am not sure you have the moral upperhand. If you signed on to pay and advertising fee without... […]
it would be leaving early..Its a Franchise that has lost over 30 units in the past few years. and is not living up to what we bought into.. advertising fee's are not being used on anything for the franchisee. and there is no support from the franchise... […]
Quote from: jerichox on February 01, 2012, 08:27:34 AMJust wondering if you guys think its a smart idea for a franchisee to de-identify his store? Also.. Franchises normally have a list of items that need to be changed to the color of ... […]
Just wondering if you guys think its a smart idea for a franchisee to de-identify his store? Also.. Franchises normally have a list of items that need to be changed to the color of the walls to the lights that hang.. How would you go about doing this.... […]
Remember if you approach a franchisor and that franchisor uses brokers you should be able to reduce your franchise fee by the price of the commision they would pay to a broker. You have bargaining power before you sign the FA not after!!!!Moreover... […]
Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Does anyone have any info on SNAP fitness and their religious background and associations?
Snap Fitness is struggling across the country. The reason why is the CEO’s vision of offering “NO CONTRACTS”. The CEO boasts about how “no contracts” eliminates the barrier of entry; however, it does nothing to eliminate the barrier of exit. Franchisees are faced with a never-ending marketing battle where they just don’t win. The interesting thing is that for each new member the franchisor makes a $5 fee plus a $1 online service fee. There is a huge turnover in customers and the franchisee has an extremely difficult time getting an established customer base. In the colder climates, when the weather warms, the members leave in the droves. One location in Utah went from 900 memberships to only 300 in a matter of months. Some locations, go from doing well to going broke. Apparently, the CEO doesn’t understand the principle of securing the stream of revenue with a contract. Isn’t fitness a lifestyle anyway?