IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE?
We sent out emails to fitness franchise owners, managers, employees, and customers asking which fitness franchise is best, and why. Our first responses were regarding a fitness franchise called “Butterfly Life.”
Deb, from Burnsville, MN, said:
Butterfly Life is the hottest new fitness franchise to hit since Curve’s… With all 3 aspects of health and wellness under one roof. Diet, Exercise and Well-Being is the combination to SUCCESS!!! Join the movement to make Butterfly Life the #1 Fitness Franchise across the Country!
Phil Gerst said:
The best fitness franchise for Women’s Fitness is Butterfly Life. We’ve been open for 8 1/2 months and have signed over 200 members. Our members are seeing results - losing weight and inches, feeling better and having more energy. The excerise equipment is designed by a women for women and use stacked weight with 12 levels - not the cheap hydraulic stuff. The members really like group exercise classes - and with more than 40 different classes - including step, dance, kick/box, and ball - cardio classes, Pilates and yoga classes and sclupting classes - there is something for everyone. Add BFL’s excellent diet program and nutrition counselling and you have a winning formula for members’ success and ours.
WHAT DO YOU THINK? IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? LEAVE A COMMENT AND TELL US WHAT YOU THINK!
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253 opinions for IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE?
Susan in NYC
May 19, 2007 at 11:34 am
I am hearing from insiders that Butterfly Life is in trouble financially and is looking for a buyer. If you’re buying you should check this out in DETAIL. If they can’t find private investment, Curves or Contours Express might just buy them out and shut them down as a way to appease their own franchisees. this is my opinion.
leigh
May 29, 2007 at 12:11 pm
Run, run, run away! I am an experienced business owner and recently decided to purchase a Butterfly franchise to add to my portfolio. While the concept is good, this company is trying to grow way beyond its current capacity and I have been so disappointed in the competance and professionalism of the corporate staff that I have now decided not to open a club.
Wait a year or two and let this company catch up with its own growth before you put your money on the line.
Mary
Jul 9, 2007 at 2:42 pm
I know there has been a claim filed with the Dept. of Corporations in California against Butterfly Life regarding misrepresentation. It was filed by the AAFD (American Association of Franchisees and Dealers). The AAFD is a national organization and has been in existence for 15 years. Anyone looking to buy a franchise should contact the AAFD before making any decisions. There are many people who have purchased a Butterfly Life franchise that are sorry they did so. The original President and Director are no longer there, unfortunately. You are right Leigh, the corporate staff has always lacked competence and professionalism from the beginning. It is unfortunate that the UFOC doesn’t have all the contact information of the original franchisees. Although, I think you can get this information from the AAFD at 800-733-9858 ex 101. Be wise and call before pursuing this venture!
Kathy
Aug 28, 2007 at 6:20 am
Run far away and don’t look back. Corporate makes this look like a really sweet deal. They leave you with the impression the you will breakeven in six months. There are many clubs all over the US that find a year or two later they are not even close to breaking even. Most of these clubs have closed are in the process of closing. Corporate will tell you for an extra fee they will come take over your club and you can walk away. This off course on top of the money you have already poured into it. Great deal for corporate they haven’t had to spend a dime opening a club. You on the other hand will have probably spent close to your life savings. Talk about you money pit!
Claire
Aug 28, 2007 at 12:28 pm
I agree RUN, RUN. This group is a slick con moving across the country. I have heard of so many closures and personal bankruptcies from former franchisees. The sales pitch to get you to buy does not come close to the reality of the deal. They take your money and ignore you!! Don’t go there.
Linda
Aug 29, 2007 at 11:05 am
WARNING!!!!!!!!!!!!!!!!!!!
Save yourself a lift time of debt and hearache. Before you purchase a Butterfly Life franchise please please PLEASE contact the AAFD, http://www.aafd.org, to get pertinent information about those who run this franchise, especially Mark Golob. His morals and values are definitely lacking…….he only believes in money and gets it by harrassing potential franchisees with verbal lies that can never be proven since the Franchise Agreement contains all the legal mumbo jumbo that is needed to protect him.
Phil Gerst
Aug 30, 2007 at 5:09 pm
The best fitness franchise for Women’s Fitness is Butterfly Life. We’ve been open for 8 1/2 months and have signed over 200 members. Our members are seeing results - losing weight and inches, feeling better and having more energy. The excerise equipment is designed by a women for women and use stacked weight with 12 levels - not the cheap hydraulic stuff. The members really like group exercise classes - and with more than 40 different classes - including step, dance, kick/box, and ball - cardio classes, Pilates and yoga classes and sclupting classes - there is something for everyone. Add BFL’s excellent diet program and nutrition counselling and you have a winning formula for members’ success and ours.
sean
Aug 30, 2007 at 5:21 pm
Great, Phil. Which location do you own?
Kathy
Sep 4, 2007 at 7:00 am
Phil has to say that he is an area representative! Just how much do they pay you PHIL!
Sandra
Sep 4, 2007 at 7:27 am
Great PHIL! Are you making a salary for yourself? How much in debt are you? Did you spend your life savings? I think you are in denial.
Pam
Sep 4, 2007 at 4:56 pm
Hi, We opened our BL in July. Very far from breaking even but it’s still early and we really want to make this work! If anyone would like to contact me or my partner (Ada) please send us an e-mail [email withheld] or phone us in Mountain View, CA.
Mary
Sep 6, 2007 at 10:04 pm
Hey Phil!
Your blog is the same ad you posted before. Where are you located……would love to make contact with you regarding your profitability. You should contact Ada in Mountain View….she’s on the Butterfly Life website……….I’m sure you know it well. Again, what state are you in?
susan
Sep 10, 2007 at 4:38 pm
Our experience with corporate has been very positive. Jeanne Spatola has been with us 100%. She always has a “fix” for whatever is not going as we would hope. She is available 24/7 - I don’t know how she does that. We love her and wouldn’t be where we are without her.
Cathy Galli is also the best. She is so responsive to our requests and questions - we count on her for just about everything. If she doesn’t know the answer, she gets it for us.
The postcards have been great, as well. Our only problem with them was that we need more than $29/month to make it. A lot of our members signed up for the special, and with the “No Enrollment” and “No Processing” for charter members going at the same time, we just weren’t making any money. We have raised our membership dues to $39/$49/$59 and members haven’t flinched. We do get good responses to the postcards, but we also get responses from some small local magazines/newspapers/flyers. I guess my only complaint is that corporate could have been more realistic about how much money we needed to start up, how long it takes to build a member base that will pay the rent, the differences in rents in different areas (ours is particularly high at $6700,) and how the promotions are going to affect clubs with higher overhead. I think you are already taking steps in your training with the conference call meetings prior to u niversity training. Spending more time on marketing and sales is essential. Jamie and I weren’t prepared for all that has to be done in that area. We are learning as we go, and Jeanne has been so helpful in that department, but I wish I had been better prepared for the onslaught of advertisers who bombarded me with stuff that is essentially worthless. Part of our situation, of course, is that Jamie and I have never owned our own business and should have studied up on it before we plunged in. However, we are doing fine, and loving every minute of it.
So, bottom line, 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.
Sincerely,
Susan Hackett and Jamie Hoover
Butterfly Life Folsom
sean
Sep 11, 2007 at 12:02 pm
Susan:
Good to hear your franchise experience is positive. Not being realistic with start-up expenses or the amount and intensity of marketing necessary are common complaints in the fitness franchise area (and other areas as well).
Do you have much direct competition in Folsom? Are you area representatives as well as franchisees?
Sandra
Sep 11, 2007 at 2:33 pm
Just wait Susan and Jamie……..it will all come tumbling down……….you’ll be so far in debt you won’t know which way to turn.
Kim
Sep 11, 2007 at 2:48 pm
Are you kidding Susan? Corporate is going tell as little as they can get away with. They just want to sell a franchise to start colllecting their monthly franchise fee. They don’t a care where you put you center as long as they are getting there monthly fee. They sure as heck don’t care if you succeed otherwise they would be putting the 40% of your franchise fee into advertising so people know what the heck BFL is. They tell you they use part of your franchise fee for national advertising; however I haven’t seen a commercial in over a year. Oh yeah and they are gonna have a TV show. Well they have one alright if you remember to watch it. It is on for 5 minutes in selected markets…..if you blink you miss it.
cynthia
Sep 11, 2007 at 5:01 pm
My name is Cynthia Schmidt. I opened my Butterfly LIfe club in Dec 06. I so love my business. I have the greatest employees and also the greatest members. This is one of the most satisfying jobs and/or businesses I have had.
One of the great things about my business is that 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. The best part is that almost always the problem or response is something that hellps me alleviate the problem. I really appreciate this.
One of the great things that corporate does is that they send someone out periodically to help train and see that we are on track to making our business succeed. I believe that since I have opened I have had three visits from someone from corporate. Every time after they have come and helped us tweak our program, we have had big gains in memberships. The women who have come out to train have always brought great expertise with them and were considerate of the personalities and feelings of my employees. I have truly enjoyed the times that they have come and greatly appreciated the help and how the training has benefitted my business.
I could not ask for a more supportive enviroment than the one provided by the corporate office at Butterfly LIfe.
Cynthia Schmidt
Butterfly Life, Longview
Kim
Sep 12, 2007 at 8:34 am
Cynthia please…..you haven’t updated your website since March.
sean
Sep 12, 2007 at 9:11 am
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…
Leigh says …run, run, run away!
Yet Phil, Susan, Jamie & Cynthia praise the franchisor and the outstanding concept and support they receive.
Is everybody talking about the same company? Are there two Butterfly Lifes? I’m confused. Someone please explain.
Will the REAL Butterfly Life Franchise Please Wave Its Wings?
Sep 12, 2007 at 9:47 am
[…] For example, we sought out information on a fitness franchise opportunity called Butterfly Life in our post IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? […]
sean
Sep 12, 2007 at 9:48 am
Your comments invited at:
Will the REAL Butterfly Life Franchise Please Wave Its Wings?
Will the REAL Butterfly Life Franchise Please Wave Its Wings? at PIGASYS
Sep 12, 2007 at 10:33 am
[…] For example, we sought out information on a fitness franchise opportunity called Butterfly Life in our post IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? […]
Kim
Sep 12, 2007 at 4:09 pm
I am sure it is workable if you have enough money to sustain you for several years but even then you will never break even. You will have poured so much money into it that it will takes many many years, if that, before you ever get back what you put into it. Corporate leads to believe the for very little money you can make it work and that it is possible for you to break even in six months. Corporate also leaves everything up to the franchise owner as far as their own advertising. They do not do anything to help as far as getting the name branded so people know what BFL is. Everyone is so set in their ways and used to Curves that it is hard to get your foot in the door, so to speak, to even let people know who or what Butterfly Life is. Some people think we are a Christian Book Store or a health food store for women that carrys vitnamins etc. In the long run I don’t think a future franchisee should look at this as a way to earn a living. Make sure you have a good supplemental income before diving into the endevor. It would be a good hobby for someone where money is no object and perhaps needs a write off. Someone who has a spouse with a great income already.
Sunshine
Sep 16, 2007 at 8:30 pm
The concept of Butterfly Life is indeed a great thing.A lot of the comments already posted are true, but not all of them. If you want the real story and truth, go to the BFL website and call at least one club in each state that has a club open and ask the owner’s to share their success and their nightmares. You will indeed find more strugglings clubs while the Corp. people have yet to miss a pay check. Better yet find the 16+ Corp. people recently “laid off” from this growing company and get their stories. To all reading this………”it” is about to hit the fan! And it may possibly turn out to be a “no win” situations for everyone involved.
sean
Sep 19, 2007 at 10:58 am
I’ve asked this on the Contours Express and Curves threads also. Does Butterfly Life and the similar clubs offer personal training for an additional fee? This would seem to be a no-brainer as both a way to increase incremental revenue and retention. Seems like retaining members would be a huge challenge after the initial enrollment period, no?
Pam
Sep 19, 2007 at 11:07 am
Butterfly Life (with the exception of the “previous” Linda Evans clubs) do not offer a personal trainer as an option. In our club we, as Lifestyle Coaches, try to work with each member on an individual basis as much as she needs or wants us to.
Anti Butterfly
Sep 20, 2007 at 12:24 am
I had visits from corporate reps every few months
and followed their advise closely - still no profits.
When I was sold this bill of goods in 2005, Mark Golob must have said “BRANDING” 50 times -”Butterfly Life will soon be a household word”. We’ll have a segment on Oprah and ladies will be scrambling into your clubs. 2 years later I’m wondering “WHERE IS THE BRANDING, THE OPRAH SEGMENT AND WHERE ARE THE SCRAMBLING LADIES MARK????” Too little to late.
Empty promises = bankruptcy for many
of the franchisee’s that bought Mr. Golob’s
B.S. Sales Pitch.
My greatest wish is that all potential franchisee’s check out this franchisor thoroughly and find out the truth. Check with the AAFD like other people have recommended.
My mission is to get the word out.
I admire those of you who are open and keeping on keeping on. Many of you are doing things
“out of the box” from what corporate recommends and that is what it takes. I wish
you all the luck in the world and I hope you can at least break even - I was never able to do that and I spent twice the money they told me I needed. The best thing you can do is call other owners and see what is working for them.
Potential franchisees Run, don’t walk away from
this Franchise until they get their act together.
God Bless
Brandi
Sep 20, 2007 at 7:16 am
Sean: There are not two different Butterfly Life’s. What you have are franchisees that are in the “honeymoon” phase with this company and those who have been plugging away at it for years with no success and eventually no money.
Mark Golob is a glorified used car salesman. They make promises about national marketing campaigns, television shows, celebrity sponsors, and nationally published books and all of the support franchises really need. They simply don’t deliver. I expected my royalty fees to help support national marketing and brand awareness, not for someone to come to my gym and sit across the desk from me and call old leads.
You buy a franchise to get the marketing synergies, brand recognition and economies of scale that you can’t get opening a business on your own. We paid big bucks to be a part of a franchise and we could have done better opening our own gym by ourselves.
Even if they’ve fooled you into thinking they offer all of this great “support” think about how much money BFL franchisees aren’t making. That’s why most people do this. You don’t do it just to meet wonderful members, help women and have great employees. Those are the bonus. Those are the things that make it great. But if you aren’t making money, if you can’t pay your rent, and you’re going into debt…you won’t be there to help anybody anyway!
Don’t let them convince you that there is a “small” group of us who just “weren’t good business people” or “picked a bad location.” From a franchisee who no longer has her club, has sold her house and owes plenty of money…RUN RUN RUN!!
Good luck and best wishes to all who are in it already. Hang in there.
sean
Sep 20, 2007 at 8:14 am
Brandi: Thanks for your comment. Sorry for the failure of your business. You sound like you landed on your feet and will survive… albeit with an expensive lesson behind you.
For those of you who are still struggling to compete, I offer you this advice: Forget about national branding and television campaigns. Demand strong local store marketing tools and grassroots, inexpensive strategies. Your universe of potential members is within a 10-15 minute drive of your location. Buy a local map and a protracter. Draw a circle for a five or ten mile radius around your club and put together a plan for making sure every person in that area knows who you are, what you offer and why they should care.
Like it or not, you’ve got to become relentless promotional marketing experts… fast. Your success will come from word-of-mouth, bulletin boards, flyers, free trial cards, community involvement, direct mail, and maybe even telemarketing or some radio. Give every woman in the that circle a reason to try your club, then give them lots of reasons to keep coming back. If you have a shot at success, that’s how it’ll happen.
Brandi
Sep 20, 2007 at 8:46 am
I hear you Sean. We did all of that and then some. But when you’ve got a Curves doing the same things to target the same women in your circle, plus they have the brand recognition and trust that comes from a truly “branded” franchise you can’t compete with that. There is a top-of-mind status that is undeniably created when you have television ads, Wendy’s partnerships, and banner ads on iVillage. When I was at the community festivals, when I was handing out flyers at neighborhood gatherings and PTA meetings I thought to myself, I could do this without paying the franchise fee.
sean
Sep 20, 2007 at 9:35 am
Brandi:
I understand. I’d imagine you want to scream every time somebody says “Oh… so you’re like Curves?” And your point about the franchise fee is something would-be franchisees need to consider: Could I do this on my own? The simplicity of the concept makes it easy to knock-off, and Curves got a huge jump in the market and got the recognized name.
Too few franchisees realize that the critical marketing is done right in their neighborhood… too few franchisors provide innovative ways to win and keep customers on the local level.
Does Butterfly Life have any meaningful point-of-difference from Curves or the other competitors? Barring national TV, what should they be doing to help out the struggling franchisees?
Brandi
Sep 20, 2007 at 10:30 am
Off the top of my head…
The monthly royalty fee should be based on membership levels or revenues as a percentage instead of the high flat fee that is assessed. You are handicapped from the very beginning before you can start making money. That is what most other franchisors do.
Next, they could provide password protected web links, Quark files, etc. at no cost for franchisees to produce lead boxes, flyers, t-shirts, ads, etc. BFL produced flyers at one point and was charging franchisees for them. Just give me the elements and I can have the neighborhood newspaper do it for free.
If franchisees have to do their own marketing and promotions, don’t force us to go through some high-end printer in California and I still have pay for shipping.
sean
Sep 20, 2007 at 3:12 pm
Flat fee royalties: These are used as a sales advantage, but concern me as the franchisor has less financial incentive to boost unit sales. Anyone disagree?
Marketing elements: You should certainly have been given logos and high res artwork to do flyers, though the finals may have to be reviewed and approved.
When we put together flyers for franchisee clients, we may do the customization but will send them a .pdf so they can print themselves or locally. We encourage them to barter with local quick printers (free pizzas and memberships can go a long way in trimming costs).
BR
Sep 20, 2007 at 10:54 pm
Sean, Back again. And Brandi, I don’t know who you are or where, but if you haven’t contacted the AAFD yet you are crazy. The fact is Sean, I could market the “heck ” locally out of my club. do all the gorilla marketing that is warranted but if I am the only point of difference in my market on and individual club owner’s ad budget why not just do it myself. The fact is you won’t find a franchisee out there who did not believe in the concept. It “is” a better Curves. I am a trainer to boot and the Couch potatoes who get off the couch can’t progress on hydraulic equipment. A 30 Minute circuit with stages of progression is great. Having said that, I go back to the business model sold. Is it realistic and achievable. Aren’t those the test points for any strategy. We all thought we had the point of difference. But an individual franchisee should not have to “brand” a product all by themselves. It is layers. The national corporate effort feeds the local and that creates a constant stream of ad impressions where the “brand ” is seen at all levels. A solid base of successful franchises is the best brand building tool and for those of you money grabbing corproate folks the best bilboard from which to sell additional franhchises.
CORPORATE!! YOU WANT ME “JOE FRANCHISEE TO BE SAYING TO MY NEIGHBOR, THIS IS THE GREATEST MONEY MAKING CONCEPT OUT THERE AND YOU SHOULD HOP ON” NOT OH MY GOD WILLTHE BANK GIVE ME ANY MORE EQUITY OUT OF MY HOUSE SO I CAN EEK OUT A FEW MORE MONTHS WAITING FOR CORPORATE TO SUPPORT THEIR OWN BRAND.
At this point forget the workout dynamics. Does this BUSINESS model work as presented!!! Is the true state of their franchise environment being correctly represented to prospective franchisiees No! It does not. and No they are not!
sean
Sep 21, 2007 at 12:59 am
BR: I agree 100% about successful franchisees being the best marketing. We counsel our new franchise clients that they need to do all they can to help their first ten succeed & become great success stories & franchise evangelists. Then they need to do exactly the same for franchisees #11 - #999.
However, expecting “national” advertising support for a small start-up chain is not realistic. A recent BL press release said there are “nearly” 100 units. If each of you kicked in $26,000 you could buy 30 seconds on the Superbowl. ‘Course you’d have to kick in another $10K each to produce the spot. While that’s an extreme example, franchise companies don’t pay for national advertising out of their pockets… it’s paid for by franchisees. Be careful what you wish for or they may implement co-op ad fees (if they haven’t already).
RE: the model… how many members do you need to reach breakeven? Is there an average number across the board? Isn’t the biggest threat simply oversaturation with similar competitors?
Mike
Sep 21, 2007 at 7:22 am
As a former club owner who recently closed, I felt compelled to add my two cents.
Butterfly LIFE as a corporation didn’t fail with the product they put on the table, but rather in the BRANDING of that product and the dishonest approach they employed to sucker you into purchasing a franchise.
I have been in fitness for over 17 years and have worked in every conceivable fashion in the industry. I have done everything from personal training, to customer service, to membership sales, to running a club, to being the VP of Sales & Marketing for 9 clubs. My wife and I decided to look into Butterfly LIFE for our future.
We were impressed with the seminar and even more impressed when we visited a couple of clubs and saw how the whole thing works. It IS the best overall wellness formula on the market for women. I mean you cannot beat a progressive weight stack on the circuit, classes without the hassle of hiring staff to teach the classes and nutrition included.
The product is not the problem. I have read through some of the “pro” comments, and yes, we too had members with amazing results. We had members lose over 50 lbs as well and saw some of our initially apprehensive members catch on and become some of our most dedicated members. Hell, we signed up over 300 members in around 8 months and forced 1 Curves location to go under because we took around half their members away!
The biggest branding problem is their National Marketing approach. We heard about all of these wonderful national TV commercials that were supposed to make our phones “ring off the hook” and this 5 minute TV show that was supposed to “change lives”. First of all, this 5 minute was garbage and a total waste of time and money. It was on at like 8:25AM on TLC. Nobody ever saw it! My wife and I even tried to TIVO it and only found it 1 time even though it was supposed to air 6 or 7 times!
And as far as the commercials went, we MAYBE signed up 3 members from ANYTHING corporate did because the commercials were…
#1 at a time when nobody sees them
#2 squashed at the end of the time slot and most importantly
#3 did NOTHING for branding!
Butterfly LIFE tried to tell the story of people changing their lives BEFORE they ever told the people WHAT Butterfly LIFE was or HOW it could change their life too!! That’s like taking a person off the street and training them as hard as they can to be the best football player they could possibly be and sticking them on a football field and NEVER teaching them how to BLOCK OR TACKLE an opponent! Butterfly LIFE tried tell a story before they told the people WHAT WE DID or HOW IT COULD HELP them! The commercial they made to create an interest in selling their franchises was more impactful!
Also, if you had the best product on the market, wouldn’t you shout it from the rooftops? If that’s the case and having already established that Butterfly LIFE has a better product than Curves, then why is it that…
#1 everyone knows what Curves does
#2 you can find a Curves commercial during Survivor, the Amazing Race, Big Brother etc etc
#3 Curves is on a cereal box?
Answer: BRANDING!
The other area Butterfly LIFE falls short is their absolutely horrific way they sell the franchises. In the seminar we attended, Mark Golob stood up and told the group that you could open a Butterfly LIFE franchise for “about the cost of an SUV”. The inital estimates for opening a club ranged from 50-70K. I immediately asked Mark at the seminar, what does that estimate include, because it surely cannot include everything. He said that we would get “the doors open” for 50-70K.
So, after researching as much as we could and budgeting 100K for start-up because I thought Mark was insane with that projection, we decided to purchase and open a franchise. News flash, we spent over $160K BEFORE the doors were open and the overage ate around 75% of the money we had budgeted for operating capital. Soon after we opened, we found out that MOST of the new club owners were in the same boat we were. So we fought and clawed and did EVERYTHING we could to stay open…even surviving a Workout World franchise that opened a month after we did and sold their charter memberships for $9 a month! But we were doomed from the start because we were out of money BECAUSE of those initial projections. Yes, we were at our break even point by the 4th month, but we had gone so far in debt to keep the line moving, closing was inevitable. Hell, even over a year later, we still closed with over 250 active members even though we had 0 money to advertise for the last 4 months we were open.
I am not here to boo-hoo about our failure. I am here to let anyone who is seriously considering purchasing a BFL franchise what to expect. To quote my wife, BFL does not stand for Butterfly LIFE…it stand for Big F_ _ _ _ _ _ Liars….I’ll let you fill in the blanks.
Anti Butterfly
Sep 21, 2007 at 7:42 am
Sean,
Member Numbers I have heard from franchisee’s is between 300 and 360 to break even. They make sure we are set up in high rent units in
newer busy shopping centers. Most rents for clubs around me I have heard quoted $6300-$7200 for approx 2,000sq.ft. With those costs plus $1000 royalty pmts plus insurance, utilities, mandatory advertising of $1800 and personal costs if you have employees. Makes it hard to break even in 3-6 months or even 12-24 months.
leigh
Sep 21, 2007 at 9:32 am
Has anyone forwarded any of these blogs to anyone of any significance at BL corporate?? It seems like the obvious and right thing to do.
We all agree that the business model is good. It seems appropriate and only fair to existing franchisees to make Corporate aware that there is so much discontent. They may actually surprise you and make some necessary adjustments!
As a business owner, wouldn’t you be much wiser to fix the problem than to contribute to it by tearing down the very business you’ve invested in?
I agree that there are significant growing pains. I agree that the corporate leaders have forgotten that their franchisees are partners and are necessary and can be a terrific asset in growing the company. But these problems could be corrected, to everyone’s benefit.
Maybe its time to open up a rational, professional dialogue.
sean
Sep 21, 2007 at 10:09 am
Mike: Thanks for taking the time to share your experience and to provide specifics. Your information is very instructive for would-be franchise owners looking at ANY opportunity. Investing with EYES WIDE OPEN is what FranchisePick.com is all about. It’s also instructive for franchisors truly interested in creating successful franchise system via successful franchisees (most do).
Your experience is especially alarming given your extensive background in the industry and skeptical eye. If you could fail with what you know, the newbies may be a highly endangered species.
While all I know of BL is what’s been shared here, I can say that many franchisors’ growth strategy is to get as big as they can as fast as they can so they can gain the critical mass to do the kinds of national promotions they promised prematurely. They somehow rationalize the early franchisee failures as acceptable losses… an opinion I do not share in the least. It’s a lot easier to sell franchises with the promises of tv shows and national commercials than with flyers and doorhangers. So they blow precious ad dollars producing commercials they can’t afford to air… I would have hired a firm to come up with a workable name first.
Anti Butterfly Thanks for your comments and info. Does the franchisor collect and spend the mandatory $1800 advertising, or do you spend that on your own? Where is that spent?
sean
Sep 21, 2007 at 10:27 am
leigh said: Has anyone forwarded any of these blogs to anyone of any significance at BL corporate?? It seems like the obvious and right thing to do…. We all agree that the business model is good… Maybe its time to open up a rational, professional dialogue.
Well said, Leigh. My guess is that BL Corporate is not working with the AAFD in establishing a franchisee dialogue, and zees feel they need to go to outside for help, to express their frustration, or to warn others (anonymously).
My hope is that the discussions here help franchisors understand and address the very real concerns and challenges, that they join the dialogue and take the opportunity to correct what’s not working. Every company discussed here is offered the opportunity to address concerns or rebut inaccurate statements. They can contact me at info[at]ideafarm.net, or at 717-656-2107 x24.
Sunshine
Sep 21, 2007 at 10:38 am
Since Phil will not answer the questions that have been asked of him, I will tell you that as an Area Rep if he “bought into” a 50 club area his investment first was 250,000. In return for each club he promotes/has open in his terriorty he will receive 1/2 of the current franchise fees. ( Which by the way has changed many times in the past, only Corp. knows this week what that amount is) Last reported was 29,500.00. He then will receive 400.00 of the franchisee’s monthly royalty. The AR are responsible for promoting the sale of clubs.There is your 400.00 a month for advertising!!! His renewal for every club open is every 5 years @ 5,000.00.each. Where the club owner has to re-new every ten years at the rate of $10,000.00. Making note that if any club makes ten years, that is 120,000.00 in royalty alone.I am betting the club owners would love to be able to pay themselves 120,000.00 over that period.Now understand these “amounts” were the amounts told by Mark himself when he tried to convince people what a great deal this would be. Second offer: Have a 25 club area for 175,000.00. 1/2 of the franchise fee and 300.00 a month in royality. Then your show case club would be free. Free ONLY of the franchise fee, not the build out. I have heard there is another offer being put out there for AR but have not verified that. As an AR they are also responsible for the advertising and arrangements for the seminars to promote club sales. Corp. has come up with yet another plan to not have to pay for something. If the AR’s would come forward with their own personal stories( truthfully ) we would have just as many different stories about that as we do individual club owner stories.
Kathy
Sep 22, 2007 at 9:13 am
Oh yeah corporate know about this website……..they posted Cynthia’s comment with out her permission.
sean
Sep 22, 2007 at 9:43 am
Sunshine: This is good information. Thanks. For those new to this, “Area Representatives” or area developers are generally a type of franchisee who assists in selling and supporting franchises within a defined area. It is important to know that AR franchisees have a vested interest in painting a rosy picture of their franchise opportunity. In extreme cases, their own stores could be losing money but they are making enough promoting franchises in their area not to let on.
Do BL area reps make claims about potential earnings or the financial performance of their clubs during the sales process?
Sunshine
Sep 22, 2007 at 10:20 am
Thank you Sean, for this site which allows BFL owners and area reps to speak the truth. Truth being the one thing Corp. does NOT want all franchisees to know. (However, I am NOT an Area Rep, nor do I own a BFL franchise.) If Cynthia’s comments were posted here without her permission, maybe that is why “Phil”, who IS an Area Rep never responded to your questions.
If the Corp. people do indeed know about this site, then they are also aware of the AAFD chapter and complaints to the Dept. of Corporations in Calif. and is why many club owners are now receiving Default Letters and Notices of Intent to Terminate. This is how they do business, threaten struggling club owners with intimidation rather than support.
Will Corp. sell your club for you? Sure!! They will release you from your personal guarantee/contract agreement and sell your struggling club to yet another unknowing “want to be” and you walk away well over 100,000.00 dollars in debt. Think: 1,000.00 a month for a 10 year agreement=120,000.00 in royalties. They are going to get their money either way. But every one remember “What goes around - comes around” and now WE are coming around. United we stand!
Sunshine
Sep 22, 2007 at 10:27 am
Sean I did not answer your question about what the BFL Area Reps say when doing their presentations, because I have never heard an AR presentation. However, I have paid for the “expensive” presentation of- HOW GREAT I AM- by Mark Golob.
Franchisee
Sep 23, 2007 at 3:30 pm
Hello All,
I’ve been reading your comments as well as reading everything on the internet about this and other franchises. I am a BL franchisee but I have not yet opened. I think that those who are unhappy may be franchisee’s from the first wave of franchises that were sold in 2005, there were about 18. Hopefully, for my sake and other new franchisee’s, corporate has learned from their mistakes. Over the past 8 months I have called almost 40 franchisee’s and most were positive and gave me great advice. The ones who are struggling, also gave great advice and only 2 thought that corporate didn’t paint a full picture.
Sunshine: The recent lay-offs were only Sales staff. Corporate is focusing more on support staff for new and existing franchises. That may be why i’m hearing more positive things from owners who opened within the past year or so.
As for Curves and brand recognition. I think you all forget that there was a time when you did not know what Curves was. It took years for brand recognition. Lastly, like any business, it takes time to achieve profit level. The research that I did before buying my franchise, on all types of business, said that it can take 6 months to a couple of years to get out of the red.
Mike: I’m not understanding why you closed. you had 300 members at one point, that’s about $12000. per mo on dues alone, was your rent high? I’m sorry for all of you who are suffering and hopeful for those of us just beginning.
Thank you everyone for being so open. And yes Sunshine…Mark Golob is the Pres. of the How Great I Am club. =)
Pam
Sep 24, 2007 at 12:19 pm
Franchisee…….I find it interesting that you have not identified yourself or the location that you will be opening in. Rumor has it that someone from Corporate has been writing here so that it appears that “all is well”. I’m not sure which new owners you have been talking to……we speak on almost a daily basis to some of them. As for Curves and their Branding….they did that right from the start and now they are everywhere you look. They were very smart about getting the name out at the beginning……their product is good but ours is better ~~ the next step if you will, our problem is that nobody knows “what” Butterfly Life is. The reason people go the franchise route is so the branding (among other things) is done for them. We would never have bought this if we had known that all we were paying for is the right to use the name ~~~ we could have started a club under another name for MUCH less money and headaches!!! Wait until you have to dish out a grand every month with or without the members to support that let alone your other expenses.
So, with that said…….who are you and where is your club going to be?
Freaked Out
Sep 24, 2007 at 1:23 pm
I am so concerned about what I am hearing on this web site. It has led to many panic attacks. We have one club in our area that is profitable after one year (so they say). I have purchased 3 locations and am set to open a location by the end of the year. I am torn about cutting my losses and running or sticking it out. I have some loss of confidence in corp. Where is the show, where is the book, and I am told that franchise fees go to putting together templates for marketing and not the marketing itself. Now we are in charge of marketing. So I am guessing that at 1,500 a month our marketing plan will cost us 18,000 this year. F___K! Not sure what to do??
Brandi
Sep 24, 2007 at 1:32 pm
Franchisee,
Your information has to be coming from Corporate, not based on the actual facts. The “first wave” of franchisees was in 2004, not 2005. My club never reached break even let alone a profit and I opened in late 2005, not part of the first or second wave. The UFOC had been revised and the initial franchise fee had been increased at least twice before I bought.
Corporate promotes themselves as experienced franchisees. They say they are the same folks who operated the Linda Evans centers for umpteen years. They know exactly what they are doing. They have gone through the learning curve. They are saying and doing everything intentionally because they think that is how to sell the clubs. Say anything that will get these suckers to sign on the dotted line and give us that money!
Before I bought into it, I spoke with some of the same people on this blog who warned me not to do it. But, I let Corporate fool me into thinking it was their fault (bad business people, poor locations, etc.). I know Corporate is probably telling a new batch of suckers the same lies about me. I don’t take it personally though. Like Mark told me himself when I needed help and my club was in trouble, “Sorry, it’s business.”
Ted
Sep 24, 2007 at 1:36 pm
Pam, when you say, “we speak on almost a daily basis to some of them.” What do you mean? You harass franchise owners so that they will say something bad, are you do you twist the words around to put the “testimonials” in your favor. I would like to hear some of your “conversations” that you apparently have every day to find out if you are being accurate and the data being presented here is even valid.
ATTENTION EVERYONE: This is an unregulated site that is not controlled or monitored by anyone. I can come on hear and tell everyone that the world is flat and the sky is magenta and nobody can say anything. The people who are in charge of this are all morons. If you want to do research on a franchise, direct yourself to the http://www.aafd.org and speak to a professional. Do not come to a blog b/c all you read is a bunch of unverifiable, unreliable, questionable testimonials that may or may not have any credence to them.
Franchisee-Jackie
Sep 24, 2007 at 2:02 pm
Pam: My identity is not that interesting but, I understand why you want to know, i’m skeptical about these sites too. My name is Jackie, i’m from Southern CA and I don’t have a site yet, still searching. Now about the owners that i’ve talked too, they asked me not to share their identities and I won’t. I continue to call owners when I have time so maybe i’ll talk to one of your friends eventually. As for Curves and branding…I get it and I agree that BL is wasting money on that ridiculous 5 minute “TV show”, I think they are starting to “get it” too, since it’s no longer on tv. Now they need to focus on commercials that target membership. That said, Curves also took some time to be brand recognized, it wasn’t over night.
I agree with you 100%, I bought a franchise for the same reason, Branding. The reason I chose Butterfly Life over the other options is that we have a better product. I’ve talked to several Curves and Contour Express owners and they are having problems with retention because of their equipment and BL moving in the area. I’m not here to argue with anyone or downgrade the fact the some are having a hard time, I just want to hear both sides. When someone post something negative, nobody puts you down, but when someone post something positive, you immediately say it’s corporate. I think that being the first in an area is extremely difficult, those who have opened in an area BL has a presence have it easier. I’m here to learn as much as I can and share what I know. I’m really sorry that you’re having a bad time.
So, with that said…where is your club and when did you open? Is there a chance that with a little more time you will come out on top or do you see yourself going backwards. I’m just trying to figure out if timing has anything to do with an individual clubs success or failure. I mean Corporate timing, I know that clubs who opened befor 06 describe a different Corp. than what I know. Again, i’m sorry it’s not going well for you. I’m just trying to get an objective view…before I sign a lease.
Franchisee-Jackie
Sep 24, 2007 at 2:25 pm
Brandi: Sorry that was a typo. I know that they started selling franchises in 04. They sold 3 that year, in 05 they sold 18 and 06 there were 30+. That’s why I’m wondering if maybe by now they’ve worked out some of the kinks. The owners that I attended BLU with are in contact with me weekly and they’re doing great. I’m only asking questions because I want the option of cutting my losses before I lose. That’s why i’m trying to figure out what % of unhappy owners bought pre 06 because the people that I know and have talked to, that are happy are 06/07. Where is your club? Are there other BL’s in the area? Just curious.
Ted: Slow your roll, we know it’s not perfect but, it is what it is. If we can learn anything and follow up with more questions, even questions for corporate it helps.
Freaked Out: Did you just learn that marketing was up to you? Have you not attended BLU yet or read the agreement? Just wondering. Don’t freak, take a deep breath, you can do it.
sean
Sep 24, 2007 at 2:37 pm
Ted said:ATTENTION EVERYONE: This is an unregulated site that is not controlled or monitored by anyone. I can come on hear and tell everyone that the world is flat and the sky is magenta and nobody can say anything. The people who are in charge of this are all morons.
Ted: Welcome to FranchisePick.com! Thanks for your comment. I am the “moron” in charge of the site. I have about 20 years experience in franchising, have helped launched or worked with more than 150 franchise companies, was an executive with one of the most successful start-ups in the past two decades, and write on franchising for major business publications. And while I may still be a moron, the idea of the site is to foster open discussion and debate. Yes, corporate shills can pose as happy franchisee cheerleaders, and, yes, failed franchisees can blame others for their own decisions. As in any discussion, statements can be challenged (not “controlled”) by the other participants. Verifiable facts have more weight than emotional accusations and vagueries.
If someone says the Earth is flat & the sky is magenta, YOU have the right to correct them. In the end, the reader decides which argument is valid, which poster is advancing his or her own agenda, and which poster is truly a moron.
It’s a neat thing, this free speech.
leigh
Sep 24, 2007 at 2:56 pm
Freaked:
I know exactly how you feel. I purchased a territory in February and it has been an absolute circus trying to lease a space and open ever since. Twice I’ve been told that my space has been approved, only find out there was a “mistake” and approval was withdrawn. And I’ve been pressured to accept inferior spaces, that I knew weren’t good, just to get open. My broker even “fired” corporate and refuses to do business with BL anymore.
It’s absolute Keystone Cops at corporate and the area reps have so much conflict of interest that they often do more harm than good.
ALL THAT SAID… it’s business, it’s complicated, and we shouldn’t expect smooth sailing. Even the “Great Ones” at corporate are just people, no smarter than we are. Probably not as smart, they’re punching a timeclock for someone else. We have to expect and jump those hurdles.
Here’s some good advice: Don’t listen to the pitch of either corporate OR the dissatisfied franchisees. They each have their own agendas. Worry about YOUR agenda. This is YOUR business. Trust your own gut. Do your own homework. Make a good decision, and, once you have, blow off anyone who tries to dissuade you.
If you decide to open, stop visiting this site, it will only distract you and cause you self-doubt.
If you aren’t sure if you should open, whatever you do, don’t sign that lease. That lease is the one thing you won’t be able to get out of. For years. Be absolutely sure first.
I am taking my own advice and not rushing this decision. I’m gathering more information and watching this play out a little before I decide. And I’m documenting everything and have a damn good attorney.
sean
Sep 24, 2007 at 3:10 pm
Freaked out said: I am told that franchise fees go to putting together templates for marketing and not the marketing itself. Now we are in charge of marketing.
Freaked Out: Consumer marketing and advertising is paid for by the franchisees, one way or another, no matter which franchise you buy. Franchisees of larger chains pay into national ad funds, regional cooperatives as well as doing their own local promotions. If this is news to you, you didn’t do your homework.
Franchise owners need to understand that they are responsible for their own success. The franchisor can give you the blueprint and the tools, but in the end you’ve got to build the house. There’s no silver bullet, no magic TV commercial or radio ad that will fill your club and keep it full. Yes, it’s your responsibility to get potential members in the door and to keep them coming back…
sean
Sep 24, 2007 at 3:19 pm
Leigh said:Don’t listen to the pitch of either corporate OR the dissatisfied franchisees. They each have their own agendas. Worry about YOUR agenda. This is YOUR business. Trust your own gut. Do your own homework.
Leigh’s last comment has a lot of good advice.
Sunshine
Sep 24, 2007 at 3:58 pm
Sean,
Again I say “Thank you” for this site. Great job for a “moron”!!! :>)
Ted: what is your real name and what position do you hold at Butterfly Life?? A lot of the things posted here are not right or wrong, but they are the facts that many of us live each day.
Franchisee: Your information is incorrect, not every one “laid” off was in sales.
As for telling everyone to go to http://www.aafd.org and speak to a professional,GOOD ADVICE. It is highly recommended that everyone reading and posting here do the same.
I wish the very best to every one involved. Some will end up winners, others will be losers and I don’t mean in “pounds and inches”.
Hold your head high, do the very best job you know how. That is all we can ask of ourselves.
Franchisee-Jackie
Sep 24, 2007 at 4:11 pm
Sunshine: Apparently you have the answers as to whom exactly was fired from corporate, so spill it. Like I said before, I was told by an outside source that Sales and Sales Support were let go. If you want to help then give me something more to go on. If i’m going to raise hell at corporate I need more info.
Franchisee-Jackie
Sep 24, 2007 at 4:18 pm
I have a question about aafd. I’ve checked that site and the only thing I find is a story about the very 1st franchisees and their complaint from 3 or 4 years ago. I also remember reading somewhere that it was resolved (not sure on this though). I’ve also checked the BBB, nothing stands out, am I missing something?
leigh
Sep 24, 2007 at 4:41 pm
Franchisee-Jackie and Sean:
I’m glad you asked this, Jackie, I’m confused about AAFD, too. A couple of months ago I spoke to a couple of people there who were trying to recruit BL franchisees to fund a pool of money to sue BL with. It didn’t seem to be at all a “neutral” organization, so I limited my interaction with AAFD.
Sean, you’re the most learned of us, what can you tell us about AAFD? Have you worked with this organization in conjunction of the other franchises you’ve worked with?
Pam
Sep 24, 2007 at 5:17 pm
Ted: You are way off base. The conversations that we have with other franchisees are on a mutual basis. There is no harassment, the reason for the calls is to get ideas and help one another be successful. I thought that this blog was going to be a good way to find out what was going on in other parts of the country with BFL. I love this product and my partner and I are doing everything we can to make a go of it. We have built several successful businesses but this time we thought that a franchise was the way to go…..it would be basically set up, we would go through training on the equipment and such and that the branding (there’s that word again) would be done by corporate since other franchises do that. I won’t mention Curves……Pizza Hut, McDonalds, Midas, the list goes on. Yes, these companies have been around for years but BFL has been around for a few years now and the message should already be out. We counted on that. We also know that it takes time but when rent is over 7 grand and corporate “takes” 1 grand…..believe me you have to sell a lot of memberships to cover just that. There are several franchisees that are in huge debt trying to get their club off the ground….nobody gave them an accurate estimate for opening costs or pre-sales. THAT is wrong….we were in the same boat but not in debt since we have a certain amount of money and that is what we will work with. Note to Jackie…..$1,500. per month in advertising is nowhere near what you will need since it’s up to you to brand your club yourself. I won’t say more….we love our club and our members…..we were told point blank that Corporate would be there every step of the way and that they guaranteed us 100 members before we even opened….that statement is now “heresay”….go figure…never thought I was naive especially at my age and experience. I getting tired of the cat fights on here…..we should all be supportive of one another…..I applaud the successful clubs and when we reach 350-400 members I will cheer the rest of you on just as I do now. But, when I hear that a club is doing well and they have only 100 or so members I know that they aren’t even breaking even and to me that is not what I call success.
Sean: I normally am in total agreement with you but the whole branding thing I feel is a bit distorted……why else would one purchase a franchise? All we got was the name (no-one has ever heard of) and a manual ordering us to buy items that were overpriced, some impractical and from too many different vendors. We could have pulled this off for much less money and trouble. At our ages we wanted something that would be turn key, easy to get going……something fun that would help others. What we got was a big headache instead!!
Jackie: Do not settle…..make sure that your space is one that is in a great location because half the battle is just that….location, location, location!! We refused to sign the papers until we were secure in a space that we were happy with. They even had to pre-date our paperwork to make it happen because there was no way we would have signed ANYTHING until then! Maybe that should have been our first clue, eh?
Sunshine: We bought a franchise…..if we wanted to do all the legwork (once again) and work extremely hard we would have just gone off on our own and opened a club. Corporate has an obligation to us, we give them a thousand dollars a month.
Good health & happiness,
Pam
Sunshine
Sep 24, 2007 at 6:38 pm
Franchisee-Jackie,
When did you sign on the dotted line? How long have you been looking for a location? When did you attend UT? Who taught UT when you were there? Is that person still there today? Have you received ANY marketing plans? Who were they from? Who was your franchise counsler or Area Rep? Are they still employee’s/associates of BFL? Do you have the LATEST Franchise Design Guidelines? Have you verified the prices in the book with any of the Vendors? Have you checked or verified delivery times? Shipping charges? How many Weight Loss Express Books and Journals do you have to buy at a time? No exceptions! How many posters will you need to cover your walls? Since you don’t yet have a location, do you have any idea how much it will cost to put vinyl on your doors and windows? Have you priced your sign? What do you think of that $350.00 blue rug you are required to have? It may be a good thing you are in Calif. you may save some on shipping. Are you going to pay $8.00 a piece for a work-out towel for your members? And what about the retail line of clothing? Realize that not all clubs are located in Calif. Can a club in Texas, Flordia, Georgia N.C.,S.C., Virginia, Conn. get $60.00 for a pair of yoga pants? $45.00-$50.00 for a matching jacket?
Why would you want to raise hell with BFL Corp. office? Stand your ground. I agree! The final choice for your club location should be YOUR’S not theirs. They are going to get their money every month no matter which corner of the block or side of the street you are on. It is your money you are spending
Contact this person: rpurvin@aafd.org for more information about Butterfly Life.
Pam: I hear the pain and I do totally understand where you are coming from. Don’t all franchisee/ club owners (BFL) wish they could pay themselves that $1,000.00 each month.I believe that was the intent of many people who chose to purchase these franchises. To eventually make a return on what they invested. Break even each month is one thing, making a profit is another.
Lets not fail to mention again the $1,500.00 each month that every club open is suppose to spend on advertising. Lets add this up 100 clubs x 1,500.00 a month =150,000.00 every month that the franchisee’s are paying for advertising? Can any one say just how much BFL Corp. spends every month on “BRANDING” .Lets do that again. 150,000.00 each month x 12 months = 1,800,000.00 per year the franchisee’s are paying. And how much did Corp. spend in 2006-2007 for CLUB MEMBERSHIP advertising?
FYI: There are not currently 100 clubs open and in operation. The club counts are like the memberships, open one this week and next week 2 more will close their doors. Come back to this site next month and see how many of these same people have had to close or lost their clubs.
freaked out
Sep 24, 2007 at 7:27 pm
FYI- I mentioned having to pay for advertising to explain the mixed stories I heard from BFL. Initially it was we are marketing nationally and then it was marketing is up to you. Sean you appear to have an agenda ??? Not sure. But I have done my homework. I guess I was was under the assumption that this site was to help voice opinions, concerns, ect. Maybe the BFL website is a more appropriate place to visit for BS.
BR
Sep 24, 2007 at 8:18 pm
Sean: I think you were too kind to Ted who obviously did not do his homework and researched this website and your background before posting. We are grateful to you Sean for your experience and this forum.
Leigh/Franchisee-Jackie/All: Yes you may be confused about the AAFD where Butterfly Life is concerned. In late 2004, when there were 16 franchises open, yes disgruntled franchisees (promises made never delivered) approached the AAFD seeking help in dialoging with Corporate. That IS what the AAFD does with many name franchisees/ors across the country. The response from Corporate was a resounding slammed door! Twelve of the 16 joined under the auspice of trying to continue to try for dialogue and possibly salvage their investments or make successes of their invesments. No dialogue was ever opened as the door continued to slam! By the way not one of those 16( some who opened in 2003) are open. Many are bankrupt! The AAFD is helping the now many BFL franchisees since 03-04(a great number closed or struggling with a few months left or turning their clubs over after a very short time for a Corporate gain) find a way to re-coup the unbelievable losses from a misrepresented business model. This is not a young company. It will enter it 5th year in 08. If you need two to three years working capital why is that not stated in the sales pitch. is it owner operated or you can keep you day job and run it with a staff. (I’ve heard it pitched both ways) And franchisees expected to spend on local grass roots marketing they did not plan on branding the product except through their success as viable franchise. They were promised TV shows, books vitamins, liason with a National home products “guru” , commercials. (Commercials came but focused on franchise sales not brand or business) None have materialized. If there are start up failures expected what is the rate these days 30% every year sometimes 50% of opened stores. And what is the plan of the franchisor to address these issues. If they are now focusing of the current franchisees, then who will be servicing them, all the counselors and sales people are gone from the website, even prominent university trainers. Not much has changed in the operation at corporate. Except to throuw a great many release and hold harmless agremnets to former franchisees.
After 2-3 years Curves was on Oprah, “the Show” not the 1-5 minutes before. ( I have a friend in Florida who owns 4 Curves and been in the system for 7 years, she is well above breakeven on all 4 and they didn’t open at the same time and was on her 1st club early on). BFL is no Curves.
The question is if you are sold “an expensive SUV(Escalade) and what is delivered is an(Escape) and you try very hard to make it into the Escalade, on your own with no Corporate help and can’t do it because you planned for 2-3x their estimates and that is not enough. When can you state that perhaps the sales pitch completely misrepresented the product and the company behind it and mistated the “State of its Union.
Google caleasi. The DOC”s site for UFOC filings, look at the history.
And Leigh or others if you decide to open be sure you have an out with your lease or the ability to go independent. Yes this is business, big business with a fraudulent sales pitch that entices the signature on the line and the money in their pockets.
To the person who has contacted 40 postive franchisees, let’s match lists or is positive “I don’t have a second on my house yet.”
And Leigh if you have the moxy call Bob Purvin of the AAFD and have him tell you that the Butterfly Life Chapter is indeed a different animal for them, not initially, but one they willingly take on. Or read his book about franchise fraud, Sean has complimented on this site.
Franchisee-Jackie
Sep 24, 2007 at 8:20 pm
Sunshine: Take a breath. So many questions, here are the short answers. Signed early 07, been looking for a space since then, i’m very picky. Yes the folks who taught BLU are still there. I never had a franchise counselor or area rep. Yes I have current stuff. I’m aware of what I have to order and have budgeted appropriately. I utilized the UFOC as well as the BL website and contacted owners to find out things such as cost, before I signed anything. And yes, folks here in CA will pay those ridiculous prices for workout wear. I happen to agree with the corporate guidelines for location. If you’re in a busy shopping center where women can do there thing with you and then conveniently run into the local store, your going to see them more.
The reason I want to raise hell is that I agree with all of you that BL needs to get some commercials going again. So…i’ve answered your questions now maybe you can answer mine. Please keep in mind that we are not enemies, we’re here to learn something and help each other. When did you sign and how long have you been open? Where are you located and how many members do you have?
Oh and about the $1500 per mo advertising requirement…that’s for the first 4 months. After that you can decide how much or little to spend.
Franchisee-Jackie
Sep 24, 2007 at 8:25 pm
cont’d…Yes I know, with out BL helping us by Branding as promised, we will need to spend more on advertising.
So Sunshine, if you have info on who was fired or anything else that spells doom and gloom, share it. Isn’t that the idea here. And please stop insulting me by assuming that I’m just naive because I still have hope for success.
sean
Sep 25, 2007 at 2:50 am
Good information and ideas. Thanks for your comments. Sometimes comments come off more insulting or abrasive than intended, so keep your cool. Try to attack the arguments or information, not each other, and the conversation will be more productive. These are important issues.
freaked out said:I mentioned having to pay for advertising to explain the mixed stories I heard from BFL. Initially it was we are marketing nationally and then it was marketing is up to you. Sean you appear to have an agenda ???
As a marketing consultant to franchise companies, here’s my agenda: I push franchisors to develop clear and compelling brand images and brand “stories” that are true, real and integrated throughout the entire organization. I compel them to put together strong, results-oriented promotional program franchisees can implement on the local level (because that’s what works), as well as branding initiatives that benefit the entire system. I compel them to use their ad fund effectively for the sole purpose of driving unit sales, and to disclose every expenditure to franchisees in detailed reports. (My approach does not appeal to franchisors who don’t put their franchisees’ success first) My focus is on franchisee success because in good organizations that’s what drives everyone’s success.
After providing a clear, compelling brand message, a strong strategy and tools, I tell franchisees what they don’t want to hear: The truth. It’s up to them to win their market, to build their businesses, to get customers in their door, and keep them coming back (with friends in tow). Many ad agencies will tell you what you want to hear, but I’ll tell you what you need to hear. My experience isn’t out of a book… it’s the result of working with thousands of franchisees and learning from the most successful of them.
The franchisor has the obligation to provide a strong brand image and the means to communicate it as best they can within the budget they have to work with. If they’re not providing you with the tools you need, you have a legitimate gripe and need to push until you get it. Ultimately, they will listen… but only if you accept responsibility for implementation and are realistic. That’s just the way it is.
Those who have already closed are understandably going to focus on who’s to blame. Those still in the game need to push for solutions and can’t afford to get unduly negative. Those who haven’t signed a lease should study these issues very carefully.
Brandi
Sep 25, 2007 at 6:27 am
As a previous owner of a BFL club I have only one agenda, to let potential franchisees know that you need way more money than BFL says to reach break-even and consequently make a profit.
The clubs I know that reached break-even in the time Corporate says it takes, did so by spending considerably more than $1,500 a month. Please have AT LEAST a year of working capital. GOOD LUCK!
sean
Sep 25, 2007 at 9:49 am
I think you’ll all find this post very interesting:
Franchise Dreams Becoming Nightmares for Many Fitness Club Owners
Nearly 60 Contours Express franchisees are alleging fraud and breach of contract. There’s a link to the Petition for Damages document that has not been circulated publicly until now. They also complain of unrealistic start-up costs and breakeven projections.
Question for those who have opened BF franchises: In your opinion, what is the REAL initial investment number they should be using? What was the actual cost of opening your facility? What was the actual working capital (dollar figure) needed?
leigh
Sep 25, 2007 at 10:06 am
Yes, Sean, I saw that post- facinating and timely! Did you write it?
I’m going to go back and look through all of the Contours Express postings now… compare them. Jackie and Freaked, you guys should, also.
I will say that when I was researching franchises I went to visit a Contours in my town. She had only been open two months and had that serious “deer in the headlights” look. She closed the next month.
leigh
Sep 25, 2007 at 10:11 am
BR: Actually, I have spoken to Bob Purvin, and I’ve sat in on one of the conference calls.
I completely understand the position of the early franchisees involved in this action. But it’s just not appropriate for me to be involved, because I haven’t opened, may not ever, and therefore haven’t yet been injured by BL. The only thing I’m out is my franchise fee, which, if I wanted to pursue “getting whole,” I would have to do independently.
I have no beef with you guys. I think you got suckered.
Franchisee-Jackie
Sep 25, 2007 at 11:26 am
I believe that Butterfly Life has the best product that’s why i’m not going to run away. I am however going to approach this venture differently. I’m going to have to act as if this is a start-up, not a franchise and proceed accordingly. I will definately start by choosing a smaller more affordable space. Those of you who are open…how important is the retail part of BL, how much $ per mo does that bring in? Maybe i’ll go small enough to ditch that whole corner. Opinions? Please share. I will just have to really focus on grass roots marketing and work with what i’ve got.
That said…I need to get back to focusing on finding a location. I’ll check in now and then and hopefully those of you who are struggling are still here and doing much better. Good luck to you and to those of us who are just starting out stay positive. ttfn
Franchise Dreams Becoming Nightmares for Many Fitness Club Owners
Sep 25, 2007 at 12:08 pm
[…] Is Contours Express a Great Fitness Franchise? Is Curves for Women a Good Franchise Investment? IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? Will the REAL Butterfly Life Franchise Please Wave Its Wings? The Contours Express Second Amended […]
Pam
Sep 25, 2007 at 12:12 pm
Jackie: It’s a shame that you can’t just dump BFL and do this on your own! As for the retail part of it….we don’t sell much but according to BFL you are supposed to order $1,200. worth before you open. The list is worked out for you…..I had to change some stuff since it was summer when we opened. Good luck, I wish you all the best!!
Pam
Contours Express Franchise Owners Allege Fraud, Breach of Contract at PIGASYS
Sep 25, 2007 at 3:41 pm
[…] IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? […]
Jackie
Sep 25, 2007 at 5:33 pm
Thanks Pam I wish you the best as well. I appreciate everyone’s comments and ideas, good luck and thanks for sharing.
BR
Sep 25, 2007 at 11:12 pm
Leigh, If you have sat in on the calls you obviously could not identifiy yourself yet in your earlier postings your seem to intimate that this may be a good venture, just young. Then why not stick with it through the growing pains for your greater reward. I give this whole company 6 months. For future franchisees how many franchise contracts have been signed in the last three months. Again how many are successful per the model sold.
And yes we may have been suckers but so are you. You obviously didn’t do your field research or you would know the failure rate and the impending failures or could it have been hidden. Your attitude is different than when you first blogged(contacted). Apparently you have a big pocket of money and 30k is no loss and you have the concscience of those who watch crimes committed and do not have the strength to speak up. This company is not a young start up waiting to organize, it is a failure waiting for the cons who started it to give it up. I have been party to many product start ups in my career and the companies launching have had greater smarts to “know when to fold them”. And I will verify your conversation with Mr. Purvin .
And by the way Leigh, those suckers out there gave you incredible insight and knowledge when you requested it through the website. It is a shame that you speak so negatively of those that helped you with your business decision. You have a grain of sand of knowledge on this franchise. It also is a shame you shun personal interaction afforded to you but prefer anonymous censure. I applaud those who have taken a stand and not just covered their behinds.
Anti Butterfly
Sep 26, 2007 at 12:28 am
BR:
I agree whole heartedly with what you just said!
Leigh would be singing a different tune if she had
just walked in our shoes for the last 2 years!
Many of us have had our own businesses for years. We are not stupid nor are we inexperienced. Our down fall is believing the sales pitch - when I was sold the
regular TV spot on Oprah -He said It was a “done deal”.
I only wish this blog would have been here for me to read because I would have spun on my heel and run.
By the way -I only sold about half my original $1,200 retail after 20 months in business. No profit there-now it’s in a garbage bag in storage.
leigh
Sep 26, 2007 at 7:47 am
BR:
Wow, I’m sorry if you felt I insulted you; it was not my intent. I thought this blog was to share information and ideas, not attack each other. That’s no way to be successful.
To be clear, I sat in on one call and decided that suing BL was not appropriate for me. I did not criticize you because that’s what you have chosen to do.
As for anonymity, if you have something valid and true to say, there’s no need for anonymity, initials, or made-up names. That’s why I use my real name.
I’ve enjoyed the postings, but it’s deteriorated into a cat fight, which is not productive. I think my time is better spent elsewhere.
Good luck, everyone!
sean
Sep 26, 2007 at 12:10 pm
Sometimes comments come off more insulting or abrasive than intended, so keep your cool. Try to attack the arguments or information, not each other, and the conversation will be more productive.
The combination of highly emotional issues, anonymity & comments that are both written and read quickly can cause some miscommunication and hot exchanges. Let’s not blow the opportunity for good, open dialogue. Let cooler heads prevail. (Remember how graciously I accepted being called a moron? Of course, I get a lot of practice.)
Kathy
Sep 26, 2007 at 3:47 pm
Loan from the Bank to open a club - $120,000
250 - 300 member to break even - $12,000
Another 100 members to pay loan - $1,500
Another 100 members to pay Salary - $1,500
Money to pay for yourself
Kathy
Sep 26, 2007 at 3:48 pm
Enough money to pay yourself - Priceless
Kathy
Sep 26, 2007 at 3:51 pm
Cont’ I am thinking that a salary of $1,500 a month for the 14 hours a day you have to spend
running your club is not a very big salary. You have to ask yourself “Is it worth it?”
Miracle Max
Sep 26, 2007 at 5:53 pm
That might only be $4-$5 an hour, but what about the perks? Like… free exercise!
Anti Butterfly
Sep 26, 2007 at 7:44 pm
Someone else and I have the same first name & already was writing on the blog so I used my feelings to create a name.
Sunshine
Sep 26, 2007 at 8:11 pm
Sean,
Early 06….including franchise fees, build-out according to Corp. requirements, signs, retail racks, clothing, cubbies, lockers, sofa, chair, circuit equipment, rebounders, Life Vision, etc. on the East Coast 139,000.00 which DID NOT include 6 months of operating capital @7,000. each month. Another 42,000.00 not to mention advertising BEFORE you open your club approx. 8,000.00. The first 100 members to sign pay no enrollment, no processing fees. Depending on your market monthly fees on average are 29.00-59.00 a month. Even at 39.00 a month, that takes several memberships (175!) just to cover one month of expenses. Some of the club owners are in their club 12-14 hours a day, where as others take the 2-3 hour break in the middle of the day to “work” out side the club marketing.
Sunshine
Sep 26, 2007 at 8:33 pm
Opinions. Cat fights, insults, hurt feelings, misunderstandings,truths, lies, all of these are part of life. Some of the people posting here are honestly trying to help others-give caution to others. To those that are and have been successful-share your story how you became successful. What “works” for one club in Calif. may not work for a club in N.C. Those that are failing, losing their homes, filling bankruptcy when 2 years ago they had a perfect credit rating are sharing their experiences, their pain, their suffering, their fear of their own future- all in hopes that others MAY learn something from these post. BFL has mislead, misrepresented and out right lied to many people maybe not to all. Some have voiced that here. I have learned a lot from these post- take what you want or need-leave the rest behind. I have gained some very sound advice from the “moron”. Thank you again Sean.
Sooooo Disappointed
Sep 27, 2007 at 7:52 am
What all this boils down to is this: What were you told before you purchased the facility. The cost of opening, and how long it would take before you would break even. I purchased in 05 and was told it will take four months to break even. The cost in the ufoc only had three months of working Capital in it. It also listed only 14,000 - 20,000 for all the other equipment and furniture. (Did not include circuit) Until I went to the franchise university I could not confirm the prices of the couch, desk, lockers, relizon products etc. If you added everything in the book they wanted you to buy it was well over 20,000. I also asked three different times if that 20,000 included the price for the building sign. And I was told yes three times. I was trying to make a good decision based on how much money it was going to take. By the way the sign is not included in the price of the 20,000. My sign cost $5,000. Anyone looking for a sign it’s for Sale. Before I opened Mark had a franchise seminar here and sold me a bill of goods and how the cost was going up. The new ufoc was coming out and the costs of the franchise fee were going to $1400. $1000 royalty and $400 advertising. The new ufoc was in at the Dept of Corporation and it was a matter of days before this would go into effect. So if you wanted to be under the 2nd ufoc you had to hurry. He also told me that when the 30minute TV show hit in June 06 (this was not a matter of if it was to air, but firm June air time) the franchise fees were going to be 59,000. I bought into the lies and purchased three more clubs. After all I loved the club and with the background of corporate… Butterfly Life would be know nation wide. Or so they said. I was told they expected 500 opened clubs by the end of 06. Their numbers are always so far off. When I decided to go ahead they knew I should have had the 2nd ufoc in my possession for 10days prior to signing for the new clubs. But they conveniently let that slide. I found out later they did raise the royalty fee to $1000 but terminated the $400 advertising fee at the end of 05. All clubs who signed prior to 2006 all have to still pay a $400 ad fee. Don’t understand how they can charge some clubs and not others for the ad fee. I tried every type of advertising they suggested and more, did a lot of community shows to promote my business. I circled an area around my club and did outreach. This is a very hard business and trying to maintain members is very hard to do. Even if they see great results and enjoy the club does not mean they will stay. Your always trying for new members and without the national advertising to help most will not succeed. Corporate comes out a couple of times a year during conference calls to let you know about a hugh campaign push. Big national TV push be sure to man your phones, this was July 06. They said they were throwing hundreds of thousands of dollars at this campaign. I received one call and when I called around to other clubs they were experiencing the same thing which was nothing. Corporate would never give the same story on what happened. They new a lot of clubs were in trouble and I think they just tried to say anything to keep you going. They also promised on the same conference call that in September and October 06 they were going to run full page ads in women’s magazines and large ads in National papers around the country. The only thing they ran was a ½ page ad in a franchise magazine to sell more franchises. So what were trying to tell all of the new people who have not yet opened is they will always promise something great to keep you hoping for the next couple of months that things will pick up and that their’s something new in the works. What ever happened to purple door communications (this was five business women who were hired by corporate to promote all the butterflies that were opened) they did start with brand new clubs who just opened in Florida but have never heard from them after that. My business is now closed and I am 275,000 in debt. I can’t tell you how many times I just sat in my club after it was closed and cried. If you do not have large amount of liquid cash that if you loose it’s ok. My suggestion is not to do it until they change their business tactics and give the truth on cost and time and their business plan for branding the name (not pie in the sky branding). How many clubs are at the 400 level of members? Remember break even does not make you money. How many of you have families, I was told one person easy could run this club. I was going to hire someone part time after I broke even. Never made it to that level. When I called corporate to tell them I really needed help all Mark could say (after he mentioned how much trouble I would be in with my landlord if I shut my doors was) SORRY ITS ONLY BUSINESS!! Well I never would have opened the business if the true numbers were in place!!! I do wish the best for all of you still trying, but if you’re running low on money don’t wait on the promises of corporate. Start putting together your exit strategy before it’s to late. The only good thing is the 3rd generation of equipment now has more weight so you might not loose existing customers who plateau on the old machines. I wish the best for all who have purchased these franchises.
sean
Sep 27, 2007 at 11:56 am
Sooooo Disappointed: I am sorry to hear how badly things turned out for you. Thanks for sharing your painful experience; no doubt you helped someone else make an informed decision.
Often, the entrepreneurs who start companies and the sales people who sell opportunities often have the “It’s only business” viewpoint. To many of them, this is just a game, with winners and losers… nothing personal. To most franchisees, it couldn’t be more personal: Their savings, credit rating, credibility, self-esteem, marriages and happiness are on the line.
You will survive and emerge stronger… karma will prevail.
Linda
Sep 27, 2007 at 2:21 pm
Sean - love your thoughtful comments…..you moron you!!!(just joking!) We need you to be our mediator with BFL……..joking again!!! Thanks for bringing everyone back to what’s important….sharing pros and cons and hopefully giving others the tools to make a wise decision.
Leigh - It’s most definitely appropriate for you to support those in the AAFD. “The only thing I’m out is my franchisee fee….” seems like a lot of money to me, and to those who h