Franchise Pick

45 opinions for Troubled Fitness Franchise Butterfly Life Lowers Franchisee Royalties

• Troubled Fitness Franchise Butterfly Life Lowers Franchisee Royalties at PIGASYS
  Dec 20, 2007 at 8:12 pm

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• BD
  Dec 20, 2007 at 10:01 pm

  OK, you’re a cynic. Or maybe a clairvoyant! Of course if you had met Tom you would know he is nothing more than a slick talking salesman. Which means as long as his lips are moving he is lying, but he’s really good at it so you probably will want to hand him all the cash in your pocket when he is done talking.

  As others have stated, Mark is a completely different piece of work. Let me tell you a story……..

  One day about six months and approaching $200K in losses into our Butterfly adventure we got a call from Mark with an opportunity of a lifetime. He was willing to credit our entire franchise fee back to us provided we send them a check for $70K to purchase three additional territories. Oh what a deal! We already had one club with losses in excess of $5K a month and we could triple that amount by taking him up on the offer. He made it sound like a personal offer because he was so impressed with us. We never even met him and it was clear he didn’t do his homework before calling. Did I mention they require marketing, membership, telephone inquiry and other stats that should give them a crystal clear picture of how each club is doing?

  Later we found that he spent the week making such “offers”, or as I like to call it “placing $70,000 phone calls”, to other clubs around the country.

  Hmmmm……. Starting to sound like a Ponzi scheme.

  Sell franchises at any cost and with any means necessary to try and create buzz. Take more money. Franchise sales balloons beyond company abilities, implement Area Rep strategy. Take more money. Keep buzz going by doing focused franchise sales in large cities. Take more money. Franchise and Area Rep sales start to reach critical mass. Take more money. Clubs start failing in greater numbers. Take more money……….

  Where will the story end? Only time will tell.

  BD

• sean
  Dec 21, 2007 at 9:10 am

  BD: That story leaves me at a momentary loss for words (which is no common occurrence).

  Has anyone received these new agreements? What must franchisees agree to in order to get the $200 reduction? There must be something or these would simply be improvements to the system. Are the FAC and ARC members being appointed, or will franchisees & ARs vote for their picks?

  How many members does the AAFD group have? Is it an actual “franchisee association”? I assume the FAC will be the officially recognized franchisee voice by the franchisor.

• BD
  Dec 21, 2007 at 11:18 am

  No agreements have been circulated to my knowledge. Their track record is that no system improvements happen where they can’t pass the cost on to the franchisees. Make no mistake, this is only about money.

  The AAFD has well over 20 members and could potentially double in the next 30-days. The AAFD in a normal situation would not be used in the manner the BFL Chapter has needed them for. That is because typically the franchisor is REALLY interested in working with the franchisee to improve the system. The AAFD in that situation can help foster long lasting and healthy francise systems. They have an accreditation program for franshisors, member benefits in the form of markting, financial and legal support. This list goes on. It is unfortunate that two individuals at corporate and their band of miscreants are leading the company down this path of destruction. The emotional and financial devestation they leave in thier path is tragic.

  BD

• Just The Facts
  Dec 30, 2007 at 1:34 am

  Why would BFL Corporate allow the club next door(25 ft away) to de brand? Of course, a “shut up ” release was involved and who knows what else. Could it be that the club they said they would never release, (after all it is their back yard) is not an issue anymore because they will not even have a backyard soon.
  Read the financials for 2007(10/19/2007). Losses of $800K+!! yikes! Who would buy into this franchise or do they caare and is Mr. Gergley just doing clean up from the scam.
  Goggle (caleasi) the California Dept. of Corporations website for the filings of businesses. You will find BFL’s initial filing for the Offering Circular for 2008. DOC are you really goning to let them do this?
  Area Reps are you really still drinking the Kool_Aid or do you even remotely want to address this situation.
  You have heard BAD things about the AAFD but at least let the organization get you in touch with those who do NOT endorse these business practices. Mr. Gergley is in a just don’t talk about us mode. Can this company be saved? NO! The name is dead.
  Caleasi, search database type Butterfly Fitness, the whole history is there.
  Why is there no amendmet to the list of franchisees and closures from September 2006 forward. A material change occured, and they didn’t want anyone to know. Check it out!

• Sunshine
  Dec 31, 2007 at 8:23 am

  JUST THE FACTS wrote: Why would BFL Corporate allow the club next door(25 ft away) to de brand? Good question!!
  It would seem to me if one club is allowed to de-brand, they have opened the gates for others to follow. Thank you BFL……I will be more than happy to pass the word on to the other failing clubs who would love to be able to do the exact same thing.
  However, I am wondering “how” this club ( if ever) will be listed on their offering circular. The one now available on the DOC website is full of cracks that several franchisees seem to have fallen through. Where is Barbara, Henry, Rose and the list goes on…………..

• More Damage Control from Tommi & Markie Poo
  Jan 9, 2008 at 11:41 pm

  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.

• Fool me once
  Jan 10, 2008 at 3:08 pm

  Happy New Years to All! Back from the Holidays and full steam ahead!!!!!!!!! Sean said on 12/21/07 regarding signing new agreements: “There must be something or these would simply be improvements to the system.” You’re right…in order to take advantage of their “offers” you must sign a release that includes a non-disparagement clause. Our attorney definitely warned us against signing the modification. Looks like they want to take away everyone’s first ammendment rights. No talking or writing about anything that would warn others to protect themselves and due their due deligence before getting involved with this group of “show me the money” people. Hopefully, all franchisees and AR’s attorneys have advised them accordingly. This also prevents anyone from joining the AAFD in order to obtain restitution in the future, once they realize their money is long gone and will never be recuped. It’s a great modification for the franchisor but does nothing in the long run for the franchisee. To answer your other question, “is the…AAFD…an actual franchisee association.” Absolutely, and has been for almost 3 years. Those who started it originally saw trouble in the very beginning…we should have listened to them…but we are now!!!!

• Vice Versa
  Jan 10, 2008 at 8:25 pm

  Fool me once - in addition to the non-disparagement clause, the royalties which prior to this agreement required BFL to spend 40% on advertising seemed to have changed. Now BFL can pocket all of the royalties and are required to spend zero, zip, zilch on advertising. This means that from day one of this agreement, BFL is making an additional $200/mo. per franchise because there is no requirement to spend any money on advertising. If I am reading this correctly, this is very interesting. I love their generosity, always thinking of the franchisee and the area reps who are getting hit even harder!!!

• Linda
  Jan 14, 2008 at 9:42 pm

  Wanted everyone to know that an action was filed by the Butterfly Life Chapter of the AAFD with the American Arbitration Association against Butterfly Life, and Mark Golob and Tom Gergley individually on Jan. 11th. This was on behalf of one of our members defending themselves against a ridiculous action filed by BFL. They were trying to recoup their losses and support their family, since “almost” breaking even wasn’t putting food on the table. As importantly, a group action was filed against BFL and Golob and Gergley, which could potentially represent all franchisees in the BFL system. More information will be coming shortly. Stay tuned…

• In the Know
  Jan 15, 2008 at 12:59 am

  In the Know
  Jan 15, 2008 at 12:55 am

  Kudos to More Damage
  This latest offering is no more that a Release and Hold Harmless for the price of $2400. If you are in the market to sell your club you best beware. Unless you disclose to your potential buyers, the counter claim, the environment and the true reality of being a Butterfly, you too could be held accountable. Don’t worry, the market isn’t beating down doors to become a BFL.
  Area Reps, you sign and later when you are wondering where your ROI has gone you will just have to be quiet and not take action.
  Franchisees beware of the wolf in sheep’s clothing. How much have you invested ,how did you get here and how much do they want EVERYONE’S SILENCE! ALOT! You sign and you are agreeing that everything you were told during the sales process, pre purchase was correct , true and something you can live by and pay rent. Can you? If Corporate wants to help, why do they need a release, Mark/Tom just help your franchisees and build your Company as you have publicly stated is your desire. Or is it? Or are you praying that everyone doesn’t get it.
  Where is the final 2007 Franchise Renewal?

• In the Know
  Jan 15, 2008 at 1:02 am

  To Sean
  If BD’s comments leave you speechless The Ammendment should make you grabbing the O2!
  Ok everyone lets just sign and let them get away with $$$$$! We love you Tom, thanks for the $2400 , What a deal!!!

• BD
  Jan 15, 2008 at 9:54 pm

  Sean,

  Check this recent Forbes.com article. Very interesting.

  http://www.forbes.com/2008/01/15/franchise-mcdonalds-ufoc-ent-manage-cx_ll_0115franchise.html

  Quote from Mark Golob - “Most of the time when a franchisee doesn’t make it, (franchisees) don’t blame themselves, but the franchiser.” “Our mission is to help women all over the country, and we have helped thousands and thousands of women.”

  Here is a quote for you Mark.

  “Most of the time when a franchisee doesn’t make it, (franchisors) don’t blame themselves, but the franchisee, because they have their heads buried in the sand. Or is that money?”

  You would probably be surprised to know many franchisees do blame themselves for their businesses failure. Ultimately it is their business to operate profitably.

  So what responsiblity does the franchisor shoulder? Well according to Mr. Golob they help thousands of women. OK, so they destroy a few along the way, you really have to look at the big picture. Besides most frahchisees pass their qualifications for earning the right to a territory. The check clears.

  Psst! Mark, the women who operate the clubs helped thousands of women and none of those women did that because of the name on the front door or for the money. I think we’ve had enough of your help.

  BD

• linda
  Jan 16, 2008 at 5:18 pm

  Thanks BD - I read the Forbes article. It’s important for everyone to know that the ten class representatives that filed the action are representing a large number of franchisees. Also, the Department of Corporations will be investigating his tactics very soon. And Mark; what’s he going to say with 23 area reps breathing down his neck who each put up $250,000…we’re guilty?!?!?! no,…he’s going to say exactly what he said…”we’ll fight this vigorously…we’ll win.” He says that about all his lawsuits. I haven’t heard of any that he hasn’t settled first. He also told the AR’s prior to mediation with the BLF Chapter of the AAFD that the problems would go away in a few weeks. Wonder what he’s telling them now. He will definitely be surprised when he finds out who is supporting the group. I hear there’s cold, hard facts with plenty of proof in the pudding. At least we know that Waldo’s back. Full steam ahead………

• Sunshine
  Jan 30, 2008 at 4:45 pm

  AND …todays mail holds this for some of the remaining BFL franchisee’s………and the story goes on with more lies to try to protect themselves( Corp.). Did they send out an email to the remaining “open and happy and successful” club owners about the counter suit filed against them..why NO! Wondering why not?
  Read this email sent out today:
  “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.”

  Where the hell was all the support and concern 12-18 months ago? Could it be that all those “disgruntled, bad business people” were smart enough to get the attention of those in command? If the lies were all lies ( and could not be backed up) does anyone think this case would be heading into arbritration? If so, I have a broker that would love to sell you some beautiful sunny white sand beachfront property in San Ramon.

• Panic Control mode
  Jan 30, 2008 at 10:34 pm

  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.

• Fool me once
  Feb 1, 2008 at 12:21 pm

  Rumor has it that BFL is attempting to sell out to Curves, etc. Can’t believe anyone would touch them with a ten foot pole knowing there’s a class action arbitration pending against them. Does anyone have info on this? Read the great article in Forbes…if they followed up with all franchisees (and area reps who need to get their heads out of the sand) they would have great articles for at least a year! I heard coming soon to a neighborhood near you…more articles in Wall Street Journal, IHRSA, Franchise Times…and maybe they’ll finally get their “national branding” on 60 minutes or 20/20 or Primetime!!! Stay tuned!

• sean
  Feb 5, 2008 at 8:18 am

  The list of all FranchisePick.com articles & posts on 30 Minute Fitness Franchise news & issues has been updated:

  30 Minute Fitness Club Franchises: Blogliography

  Links include the Forbes story, FitnessBusinessPro article and links to stories on the Curves franchise, the Contours Express franchise, the Butterfly Life franchise, the 1-2-3 Fit franchise and others.

  Feel free to check it out and let me know if there are links I should add.

• Buyer Beware
  Feb 5, 2008 at 9:19 am

  It is a tangled web those boys are weaving! These guys have spent more time on lawsuits in the last 15 years than they have actually operating a profitable business. From the lawsuit with Linda Evans (which they of course claimed they won but insiders will tell you that it was a hollow victory because the boys got nothing but the ability to keep the name and then proceeded run those clubs into the ground)) and now another lawsuit where someone is claiming that they have done something unethical. HMMMMM….appears to be a pattern here.

  All of these current attempts to quiet everyone down are nothing more than a smokescreen. The boys are in panic mode…no one is buying franchises, clubs are closing or debranding so the money train has come to a grinding halt!

  I find it hard to believe that Curves would ever have anything to do with any project Mark Golob is involved with.

  A word of advice to all of you that are out these tryoing to figure out what to do next: do NOT sign any agreement of any kind that BL puts in front of you. There will not be one thing in the agreement that will really benefit you and get you out of the situation you are in. BL is not going to be able to re-sell your territory or your location because they can’t even sell new locations right now. Because so many clubs have closed or are attempting to re-brand, this means that BL is not getting an monthly royalties from those clubs so now they are willing to take anything they can get AND the bonus for them is they get you to be quiet.
  Stick to your guns….they will run out of steam and money long before they can do anything to you legally.

• N/A
  Feb 21, 2008 at 8:33 am

  Some thoughts about the 30 minute workout centers. One issue is you have Franchisors borrowing 7 figures and selling unproven business models to Franchisees who are borrowing 6 figures.

  The Franchisees desire to be like Subway McDonalds or even Curves, but without the name recognition of said companies, it’s a tough road to hoe.

  Franchisee realizes it’s way more work(and money) than they ever imagined and Franchisor isnt as helpful and supportive as they were before the sale.

  Franchisor cant sell more Franchises because none are profitable, so the name recognition Franchisees wanted never comes to be.

  I liked the question up above as far as “what responsibilty does the Franchisor shoulder?” what rights do the Franchisees have when the concept they bought into majorly changes a short time into their agreement?

• Breathe
  Mar 17, 2008 at 8:19 pm

  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. Does anyone know what is going on with this company, it seems they have no employees due to an almost empty parking lot. 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.

• sean
  Apr 26, 2008 at 7:08 pm

  Here’s a current Butterfly Life franchise offer posted for your input:

  Butterfly Life Franchise Offer: 10 Franchises for $65K.

• dink
  Jun 4, 2008 at 8:53 am

  is anyone still chatting on this site? I would like to contact an ex-BFL owner.

• dink
  Jun 4, 2008 at 8:55 am

  Is anyone still talking on this site? I would like to contact an ex BFL owner.

• BD
  Jun 4, 2008 at 10:49 am

  Dink, contact the AAFD and ask to be put in touch with one of the Trustees who oversee the legal fund against BFL. I’m sure they will be more than happy to provide you with a very long list.

  American Association of Franchisees & Dealers
  (toll-free) 800-733-9858

  BD

• Fool me once
  Jun 4, 2008 at 11:32 am

  Dink, many of us are now posting on other sites or other BFL articles on this site including international ones to protect the overseas victims. There’s a huge number of ex owners out here and I’m sure we would all be glad to talk with you. What would you like to know? You can contact us directly through Sean who runs this site. As stated by BD, the AAFD would also be able to put you in touch with the trustees
  who are in charge of the arbitration against BFL. Hope you are doing your due deligence…..or are you too becoming an “EX”?

• breathe
  Jun 4, 2008 at 5:51 pm

  I just noticed on the BFL website; Cheryl Hokes’ profile and photo have been removed. Wasn’t she the last sales person at BFL Corporate?

• sean
  Jun 5, 2008 at 4:53 am

  Cheryl Hoke is (was?) Director of Franchise Sales. Until recently, the BFL franchise application page read: “Download the Online Application (6.5mb PDF) and fax to the attention of Cheryl Hoke @ 925-743-8820.” Now it reads: “Download the Online Application (6.5mb PDF) and fax to 925-743-8820.”

  There are a lot of bios recently deleted from the management page, including:

  TAYLOR GOLOB Vice President
  CARLY GOLOB Director of Corporate Marketing
  CHERYL HOKE Director of Franchise Sales
  MIKE BRANDT Director of Business Development
  MIKE CARROLL Director of Area Representatives
  JULIE STORM Marketing Manager

  Franchise Counselors: MARGARET WELCH,YOLANDA FAGEN, PENNY CROOK, TAMMY JACKSON, HAKAN DEGIRMECI, EMILY LUTZ, JENNIFER EGGERTS, JULIE SCHEIBNER, TERRI KUEBLER, MELISSA LEE, LESLIE PETRIE

  AUNJULI ESPERSON Cust. Svc Mgr, KEELY HOLMAN CSR, MEGAN McCARTY CSR, MARY MONTES Controller, RACHELLE PARKS Contract & Compliance Administrator, ANNA POMAZANOVA Franchise Operations, STACIA WESLEY Administrative Assistant, ELIZABETH YOUNG Corporate Marketing

  Anyone know why?

• Vice Versa
  Jun 5, 2008 at 11:03 am

  Just a guess….but it sounds like they’re sinking like the Titanic! Hopefully, some of these corporate people have morals and values and left BFL out of guilt knowing they were taking advantage of innocent victims and ruining so many lives! If anyone of them has pertinent information that would be helpful in our class arbitration, they can contact the trustees through the AAFD at 800-733-9858. It would be greatly appreciated. We are fighting for justice for all franchisees and will not give up this fight until restitution is achieved. It’s amazing how Golob and Gergley continue to show such a lack of professionalism, ethics and integrity!!!!

• breathe
  Jun 6, 2008 at 4:55 pm

  The 2 groups of people I feel the most empathy for are: Area Reps and Franchise Owners. They seem to have been fed empty promises with lack of follow through from corporate for these 2 groups to acheive success. I don’t feel any empathy towards the defunct BFL sales group, they all had the attitude and idea of “Money is Green”, they could have cared less who they were selling to just as long as that comission check had their name on it. So many heartbreaking stories of financial devastation. What next? I just hope the ex franchisee’s get some sort of finanacial restitution in the end of all this.

• sean
  Jun 7, 2008 at 8:45 am

  breathe wrote: The 2 groups of people I feel the most empathy for are: Area Reps and Franchise Owners.
  breathe: I agree with you.
  In some ways, the Area Reps are in the ultimate rock & hard place scenario are they not?

  In order to recoup any of their investment, they’ve got to accept the company line, support the franchisor’s position, and somehow justify selling a concept that just ain’t working?

  At least individual franchisees can commiserate, and know that even if they fail, they never conned anyone.
  Area reps in a situation like this must feel like their souls are being sucked out of them as quickly as their cash is being sucked out of their bank accounts or the equity is being sucked from their homes.

  Unless, of course, they were in alignment with the FR from the beginning.

  Just a hunch.
  What do you think?
  Any Butterfly Life Area Reps willing to comment?

• Sunshine Weeks
  Jun 12, 2008 at 12:06 pm

  Sean,
  The eastern coast heard today from the western coast that Jeanne Spatola is no longer with BFL.
  Anyone know if this is a fact or fiction? Personally speaking she hung in there longer than most…..but then being a single mother living in Calif. can not be easy. Atleast Jeanne has personality and good ideas…..well she did a year ago……who knows what her today is like.

• Sunshine
  Jun 12, 2008 at 12:08 pm

  Sean,
  The eastern coast heard today from the western coast that Jeanne Spatola is no longer with BFL.
  Anyone know if this is a fact or fiction? Personally speaking she hung in there longer than most…..but then being a single mother living in Calif. can not be easy. Atleast Jeanne has personality and good ideas…..well she did a year ago……who knows what her today is like.

• Sunshine
  Jun 12, 2008 at 12:40 pm

  OMG………..has anyone out there been to the “new” BFL Women’s Fitness Center’s web site lately? Or am I just behind the times………has any one read the BIO’s for the handful of a few that are still part of “the team”. If not and you decide to chance the reading……..get out your pepto or maalox first….it is guaranteed (in my opinion and everyone has one!!) to make those of us that know better……SICK!

• dink
  Jun 12, 2008 at 1:41 pm

  in response to sean. It is fact. an e-mail from corporate was sent to BFL owners of the news that Jeanne Spatola is not with the company any longer.

• dink
  Jun 12, 2008 at 1:42 pm

  oops, that is in response to sunshine

• sean
  Jun 12, 2008 at 2:09 pm

  What was Jeanne Spatola’s title? Why wasn’t she listed on the website?

• sean
  Jun 12, 2008 at 2:12 pm

  Has there been a memo about downsizing/layoffs?
  What happened to all the staff that I listed above, including Taylor & Carly Golob, & Cheryl Hoke?

• breathe
  Jun 12, 2008 at 5:51 pm

  I am in complete shock that people are just now hearing about the consistant lay offs! BFL Corporate started laying people off in July of 2007.

• breathe
  Jun 12, 2008 at 11:44 pm

  In response to Sean: Jeanne Spatola’s title was “Franchisee Trainer”. Her job position required her to travel to newly opened BFL Clubs; work with the new owner for about 1 week and get them started with acquiring clients. The other part of her job position was traveling to clubs that were “in trouble” and help the franchisee owner figure out how the club could become sucessful. What I do know about this job position, it seemed very stressful and unfulfilling.

• Sunshine
  Jun 13, 2008 at 9:50 am

  Sean,
  In response to your previous question:
  There are a lot of bios recently deleted from the management page, including:

  TAYLOR GOLOB Vice President- Daddy’s boy drawing a paycheck-or atleast one anyway-no money coming no pay check.
  CARLY GOLOB Director of Corporate Marketing-daddy’s girl-same story
  CHERYL HOKE Director of Franchise Sales-Why have a director of sales when nothing is being sold….not in the USA anyway.
  MIKE BRANDT Director of Business Development- What business development? Isn’t the lack of why most of us are posting the truth about our situations here?
  MIKE CARROLL Director of Area Representatives- Why have a director when the area reps can’t even sell franchises….
  JULIE STORM Marketing Manager- what marketing? The same old postcard drop month after month..the same old 6 month advertising plan sent to every club. Any student could have done almost if not better at this position.

  Franchise Counselors: MARGARET WELCH,YOLANDA FAGEN, PENNY CROOK, TAMMY JACKSON, HAKAN DEGIRMECI-He left the company on mutual terms because sales were down, no commisions being paid and a base salary of 43,000. a year does not support someone in Calif. It is a shame he did not see the wrting on the wall before getting his mother and stepdad to invest mega bucks in a territory-not to mention the jam up show case club his Mom runs, EMILY LUTZ, JENNIFER EGGERTS, JULIE SCHEIBNER, TERRI KUEBLER, MELISSA LEE, LESLIE PETRIE………..again, my opinion and we all have one. If you get rid of all the unnecessary payroll expenses,that leaves what little bit is left coming in to pay BFL’s legal fees.
  Poor boy’s…….see how it feels!

• Fool Me Once
  Jun 16, 2008 at 8:43 am

  I understand that Hakan’s mother in Colorado closed her “jam up show case club”, as did all area reps and franchisees except one. Unfortunately, that one lonely franchisee had no idea that the area rep who sold her the club was also closing at the same time! Sadly, the area reps will be the ones taking the heat for not disclosing the problems surrounding BFL right along with the “G” boys. Time catches up with all of us……….and it’s almost there for BFL……….if they remain in this country. Don’t worry…..words already out in Japan, Canada, Australia, India, etc. Again, it’s just a matter of time!!!!!

• CAH
  Jun 16, 2008 at 7:12 pm

  What are the other blogs that we are on??? I’d be interested to read and add to those too!

• Fool Me Once
  Jun 18, 2008 at 8:23 am

  Just heard that everyone, including Janet, Denny and Cathy are gone from corporate. Mark and Tom are the only ones left. If ths is true, sounds like they’re jumping ship and letting everyone else drown! Rumor had it that this was in preparation for quite a while. Maybe they’re on their way overseas as we speak….or maybe they’re dumping BFL as they did Linda Evans only to open another franchise and ruin more peoples lives! Do you think this is why they kept delaying their response to the Department of Corporations or answering the arbitration? I wonder if bankruptcy will be their next step. If anyone has more information it would be greatly helpful to all of us who are seeking restitution. The AAFD should do an investigation in support of their members….if they truly care! Seems Purvin was snowed all along. G boys…leopards don’t change their spots

• dink
  Jun 25, 2008 at 6:40 am

  Hi everyone, I have contacted Cathy G and got an e-mail from Denny. I am assuming they are still on board. who knows though for how long.

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