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Post by Snap NJ on Oct 20, 2018 15:45:52 GMT
I am trying to close my club due to the increased low cost competition resulting in severe loss of income. Unfortunately I am in my renewal contract with corporate. They are being extremely uncooperative and unwilling to compromise on my "contractual obligations". I have been forced to hire an attorney at great expense but it appears that the contract is totally protective of Snap Corp. Do you know of clubs that have closed while still under contract without financial repercussions? Any advice on dealing with corporate?
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Post by cheryl on Oct 20, 2018 21:21:42 GMT
Sorry to hear you're having a hard time with your club. I've read posts from franchisees who have also talked about the lack of empathy from corporate in regards to being faced with the dilemma of whether or not to close a club. I've read snap has little to no compassion for struggling clubs and will fight as hard as they can to get every last dime from a franchisee. This is one of the reasons that peter talking about supporting anti-bullying campaigns is such a joke. A lawyer I ran the franchise agreement by said that based on that agreement they were the biggest bullies he had ever seen. The agreement is basically listing all the ways they can come at you and screw you over. It's very clear that the risk is all on the franchisee with little to nothing at risk for the franchisor.
Other franchisees who have shut down their clubs have talked about being able to walk away and letting snap come find them. If you can move and make them find you that may be a viable option. If the club closes and opens as another fitness center then they'll probably assume it's your new club and pursue you there.
How many years are left in your current contract? Multiply that number by about $6K and that's an approximate cost of buying out of your contract. If you can sell for more than that I'd discuss that option with your attorney.
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Post by Former Snap Owner on Oct 21, 2018 17:19:18 GMT
They will negotiate. Play hardball. Make it clear you are going to close. I assume you have already tried to sell? They require that. After three months of so of no buyers, they will usually "be willing" to settle for something.
If your club is losing money, close, sooner than later. That is my advice.
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Post by Snap RWF on Feb 8, 2019 19:11:01 GMT
To snap NJ, have you closed without any consequences?
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Post by Helpless in NJ on Mar 14, 2019 21:01:54 GMT
After 6 plus months of sleepless nights, I was finally allowed to close my doors without consequence. I was forced to hire an attorney to speak on my behalf which cost me plenty.Good luck to anyone else going through this most difficult process. Remember...franchisees first.
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Post by Snap RWF on Jun 20, 2019 18:51:06 GMT
Can I get you lawyers info and can I ask what you spent?
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