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Post by determined1 on Feb 10, 2018 5:25:57 GMT
Anyone have a list of corporate stores? It sees to be a big secret which ones are corporate owned. No transparency? Why is it so hush, hush as to which clubs are corporate owned?
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Post by snaplongtimer on Feb 10, 2018 14:49:06 GMT
If you find a corporate club...
#1 It is most likely very successful.
#2 They purchased it from a zee at the 5 year mark.
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Post by isthisheaven on Feb 10, 2018 18:58:36 GMT
I wonder if we can obtain that list from our BPS team? If they answer and hopefully still new enough that they don't know any better to send it. It's amazing at the lack of training these BPS have. But I guess in away the constant turnover may be useful to us trying to get factual information.
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Post by determined1 on Feb 11, 2018 1:56:04 GMT
This is a great example of one of the big problems with snap, I believe. Honesty. At this point I've been dealing with them for a while and I don't believe I can trust anything they say or do.
An honest company would list all of the different corporate clubs they have and use them as examples of what to do, or possibly of what not to do. If you truly believe in what you're doing you're open about it.
I'm sure all of these clubs have different environments and challenges. If you believe in your product and your game plan then you'd start out by: 1. Listing all of the corporate clubs 2. Creating a blog or something similar to follow the clubs 3. Document changes you're making and challenges you're facing (eg If a low cost club opens in the area document when you found out about it, what you did to be proactive prior to the opening, details about the strategy and how it's working)
I don't think this would need to be time consuming, just another task for the manager of the club. I think it could be a great learning experience. It would also give franchisees an idea of whether those strategies being run are going better than expected, as expected or slower than expected. (eg If you launch a commit to your fit promotion then how is it being received in each club? What percentage of members are getting involved? Are you pulling in new memberships as a result? Are they signing up with no idea of what commit to your fit is?)
If a club fails for whatever reason then document it and do a postmortem on it. What could have been done differently? I feel like snap has a tendency to throw anything against the wall and see if it sticks. There's no concern of whether it sticks or not, as long as corporate is able to make money on it. Personally, this is exactly what this modernization feels like. I don't feel the ROI is there and that money could be better spent elsewhere. We had a company come in and give us an estimate on laminate flooring for our entry area. I'd like to make it look nicer and I believe the flooring done correctly would achieve that. However, the estimate to do this was $3K. I was expecting something more along the lines of $1K. At $3K I decided to put in a new piece of cardio equipment. I believe it's a better bang for my buck. I'm also trying to have electric dropped into a portion of my cardio area in order to upgrade the cardio equipment in that area to much nicer equipment. I'll do it in chunks. That way it's easier on the budget and has me continually improving my club. Blowing everything in one big shot leads to the "What have you done for me lately" questions. Painting walls, putting up more decals, replacing flooring (carpeting? NFW!) will make it look different, but different doesn't equal better. A quote I just heard today "Different isn't always better, but better is always different". I think corporate is confused on this and rolling with it simply because it puts more money in their pocket.
If you have faith in your playbook, then document the process. Show the shortcomings. Show how to get over them. Right now I feel like you're working on theory and afraid to put it into play because you don't have confidence in it. Our club had ideas we put into play several times which didn't work out like we would have expected. In some cases we modified the plans and in others we changed things around completely because they just weren't as successful as we planned. Our employees come up with different ideas. Some work, some don't. However, they're encouraged to come up with new ones. The best ideas aren't going to come from one person, they come from everyone.
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Post by neglected on Mar 19, 2018 19:46:18 GMT
10 year Owner of Two Snaps in the East Filed for Bankruptcy. Closed both clubs.
'Modernized' both clubs a year of so ago.
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Post by cheryl on Mar 20, 2018 2:15:18 GMT
These are still listed as OPEN clubs in New York on snap's page, so it doesn't look like it's updated too quickly. www.facebook.com/snapfitnessjamestown/www.snapfitness.com/gyms/jamestown-ny-14701/1345 (Their facebook page has been removed) Looks like they ran snap's playbook. Modernized, pushed fitpass, digital stack, myzone. So what happened? This should be a good question for the convention. Is this another disengaged owner? So how many other clubs on the list are shut down? Playing conspiracy theorist... Were they doing well and snap found some "issue" with them and sent them a notice of default and now plans to take it over? The only competition I see nearby is an anytime fitness. Doesn't look much better, though their website is 100 times better.
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Tired Of Being Robbed
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Post by Tired Of Being Robbed on Mar 23, 2018 12:00:49 GMT
Has anyone been able to get out of paying this so-called 'CAD fee'? It's nothing but extortion in my mind. Is this even legal to force franchisees to pay $500 for a design fee that they do not need nor want? There is no rocket science as to changing carpet and entry flooring and painting walls and adding a desk. I'm sending a letter to our state Attorney General as well about this as well as I tire of this constant robbery.
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Post by Dale on Mar 23, 2018 12:32:50 GMT
This fee is a pure money grab. $50-$100 maybe. $500 unethical and pure greed.
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Post by greenergrass on Mar 23, 2018 13:30:08 GMT
Greed and the need to recover investment plus report gains on investment? It's the private equity ownership. They will need to make the financials look good for the next PE firm. I don't expect it to end well. But that is just my opinion.
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Post by greenergrass on Mar 23, 2018 13:36:27 GMT
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Post by cheryl on Mar 23, 2018 15:24:10 GMT
I could imagine how this comes about.
Corporate office: A: We need to come up with about $500K of revenue to break even with last year. B: $500K!!?? How are we going to do that? A: I dunno. It works out to about $500 per club. We'll just charge each club a new annual fee of $500. B: We can't do that, we have to have a justification A: How about a technology upgrade fee to fitware C: How about we bundle it into the modernization. We could call it a design fee. A: Let's call it a CAD fee, that makes it sound more like a tech upgrade B: Ok, let's do it.
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Post by snaplongtimer on Mar 23, 2018 16:50:31 GMT
Yeah, I argued the cad fee. The end product doesn't even look like your gym. It's mostly symbols they put on the image. I cannot display this thing for it won't look like my gym after I am finished with upgrading. What is it good for again? I could use the money toward the $1000 shipping cost. The only thing we can do is keep requesting changes to the image and maybe the cad designer will quit.
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Post by snaplongtimer on Mar 24, 2018 13:58:29 GMT
So if your existing carpet is fine you wouldn't have to replace it, but you will have to get rid of the red. Funny...when I opened, people thought the black/red looked so cool. Now corp believes it was a mistake from the beginning. So you replace the red stripes with black. Paint 2 different colors on the walls. Apply a mural. Tear up your front end and lay down plank. Keep the same equipment on the same carpet. Are you thrilled about throwing a re-grand opening? I can see the excitement if I replaced the entire floor, replaced much of the equipment and added new toys, but since I'm not doing that, why do I feel like I'm going to be holding a deflated balloon when I open my doors?
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Post by greenergrass on Apr 7, 2018 18:26:48 GMT
Interesting, I have not been able to find relevant recent news. This is from 2010. apps.americanbar.org/buslaw/blt/2010-03-04/grueneberg-solish.shtml...Systemwide Change. Franchise relationships are usually long-term relationships that, with renewals, can span generations. As times change, franchisors change their systems to remain competitive: systemwide changes are usually established by changes in the operations manual. Franchisees are not always happy with systemwide changes dictated by the franchisor and this issue is often litigated. Generally, the right of franchisors to make changes in their systems has been upheld. The franchisor's right to change the system may be limited where it directly benefits the franchisor at the franchisees' expense. Antitrust Issues. At one time, the battle between franchisors and franchisees was waged primarily in the antitrust arena. Following the decision in Siegel v. Chicken Delight, 448 F.2d 998 (9th Cir. 1971), which found a required purchase of restaurant equipment to be an unlawful tie, such issues were commonly litigated in franchising. This argument was firmly rejected in Queen City Pizza, Inc. v. Domino's, Inc., 124 F.3d 430 (3d Cir. 1997), where the court held that Domino's could eliminate other authorized suppliers and designate itself as the sole authorized supplier of pizza ingredients without creating an unlawful tie.
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Post by greenergrass on Apr 7, 2018 18:37:23 GMT
What is the difference between an approved flooring and buying exactly the same product from a different, let's seller? The Franchisor mandates the purchase of something at a higher price because they benefit from that transaction? The Franchisor mandates a systemwide change such as MyZone because it financially benefits them?
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