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Post by determined1 on Nov 1, 2016 16:46:10 GMT
So if you've gotten as fed up as me you may be considering transitioning to a non-Snap model or selling to a non-Snap owner. So what are the things you have to consider and what are the different options in those areas?
1. Wipe Snap's name from everything. (Equipment, door, phone, signage, etc)
2. New color scheme. This may not be needed if you haven't modernized. Your non-modernized club isn't the "Snap" look anymore
3. Collect all of your members' billing information
4. Select a new billing and club management system. There are plenty of them out there and they're ALL far superior to SHITware.
a. MindBody
b. Shape.net
c. Twin Oaks
d. CACC
make sure your billing/management system will integrate with your door system
5. Security System - There are some really good ones out there, which are again FAR superior to Snap's system and less expensive
a. ProtectionOne
b. ADT
6. Insurance - Several options out these. Our costs for insurance were less before snap took it over
7. If you want to run Silver Sneakers or Silver and Fit call them to set it up. Set a minimum price per user per month. None of this per door swipe BS.
8. Find out what options you have for door access. (eg biometric, key fob, etc) Get these out to your members
9. New website - I recommend wix.com (You can set up a FAR better site, very easily with all the bells and whistles) Far less per month.
10. Find an online training site you like. Some will brand it for your members.
11. Form a Nevada corporation. With a Nevada corporation none of the execs have to be disclosed, only the secretary.
12. Start your own $8.95 program (haha, just kidding. No one's stupid enough to do this if they're not being forced to)
13. Change the name and everything else with your facebook page. If you gave snap any sort of administrator privileges then revoke them.
14. Emergency system - ADT others? Tell nightchicken to go take a flying leap
Anything I'm forgetting? (I'm sure there is) Also, other alternatives for things listed above?
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Post by snaplongtimer on Nov 1, 2016 18:54:40 GMT
I'm curious about the Nevada corp filing if we don't operate the business there. From what I've read there is some foreign qualification in addition to possible ongoing fees of some sort. Do you have any insight into how easy this may be before discussing this as a possibility with my accountant? I have thought about transitioning for some time now and have investigated products online including 24/7 gym software that's been out for a while.
One comment I would make is you'll notice with every snap franchisee contract you'll sign they seem to want to keep you under their thumb and discourage you for even thinking about working in the field of fitness after your snap contract terminates. Especially that 2 year statement in your contracts. My attorney laughs at that because it's not enforceable. If one decides to make a transition to a non-snap model, working there is another risk if another nearby snap owner who loves the snap brand discovers his new competition is owned by the same person who used to own the now closed snap club and is calling it Average Joe's Gym.
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Post by firecrackergirl on Nov 2, 2016 3:12:07 GMT
Im not sure... but i think you cant operate in the same location or wtihin 3 miles or something> i recall that from the FDD. correct me if im wrong
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Post by firecrackergirl on Nov 2, 2016 3:12:24 GMT
Im not sure... but i think you cant operate in the same location or wtihin 3 miles or something> i recall that from the FDD. correct me if im wrong
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Post by determined1 on Nov 2, 2016 12:27:07 GMT
You can set up your corporation anywhere, regardless of where you're doing business. This is why so many companies used to be Delaware corporations. You have to have an address in Nevada and an agent. The agent receives all of your paperwork and forwards it on to you. They also keep track of what you need to file with the state and when you need to file it. I believe the company we used to use before was acorn. By setting it up as a Nevada Corporation you only have to disclose the secretary of the corporation. The burden of proof would be on snap to prove that you have any ownership interest.
If you have a front desk staff then you can handle everything in your club by phone. Front desk staff has an issue, call Joe of Average Joe's gym. Hey, I saw Joe in the club. Joe is our accountant and he's balancing the books. The burden of proof is on them. In court every one of your staff can plead the fifth.
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Post by firecrackergirl on Nov 2, 2016 15:16:26 GMT
Makes sense... Seems like a lot of legal red tape though if you do get caught I guess.
Are you planning on doing this?
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Post by cheryl on Nov 2, 2016 16:30:47 GMT
There's also something I read somewhere about making the Nevada corporation a subsidiary of an Alaskan corporation. I forget what the benefit was, but it required more legal digging to get even an ounce of info on the corporation. Determined, any idea on that?
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Post by snaplongtimer on Nov 2, 2016 16:52:31 GMT
Just reviewing all options at this point. Your FDD..if you are into your 2nd contract (10 year) and after reviewing my contract again, I believe it states that if you leave the snap business, you cannot work in any club for a period of 2 years within 10 miles of any snap location or designated area. You also agree there are many other ways to make a living. lol If fitness is what I am good at, I won't be bagging groceries in place of my passion.
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Post by cheryl on Nov 2, 2016 17:16:13 GMT
Just reviewing all options at this point. Your FDD..if you are into your 2nd contract (10 year) and after reviewing my contract again, I believe it states that if you leave the snap business, you cannot work in any club for a period of 2 years within 10 miles of any snap location or designated area. You also agree there are many other ways to make a living. lol If fitness is what I am good at, I won't be bagging groceries in place of my passion. Doesn't matter, the burden of proof is on them. |
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Post by determined1 on Nov 2, 2016 19:38:17 GMT
Many moving parts and implemented over a long period of time. Once all the pieces are in place we'll pull the trigger. Good luck to snap to try and figure anything out. Also, discussed with other snap owners in my area. We'll all be running the same game plan.
Cheryl, yes there are different ways to make it as convoluted as possible (almost as convoluted as a snap billing report), so that each state only discloses a small piece of information. If you have friends in real estate and real estate law specifically, ask them about this. They'll most likely be able to provide details.
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Post by supercool on Nov 3, 2016 12:28:26 GMT
I doubt they'd even notice if a franchisee opened another gym, or worked in another one. Snap never sends people to visit their clubs...how would they know if you replaced your Snap with "Joe Blow's Gym"?
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Post by determined1 on Nov 23, 2016 16:13:03 GMT
Met with the lawyer last night and discussed a few things. One interesting thing is that there's nothing that can be done about you volunteering your time to any organization. So, keep that in mind when putting together your transition plan.
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Post by Amy on Nov 23, 2016 16:44:08 GMT
determined1...love it!!! We will be setting up a meeting with a lawyer as well!
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Post by greenergrass on Nov 26, 2016 2:54:43 GMT
I already volunteer my time. LOL!
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Post by snaplongtimer on Nov 26, 2016 16:38:43 GMT
Interesting point Determined. I like that word volunteer. May I ask did your attorney read the franchise agreement? In mine it says own, operate, to be connected with, engage in, assist any person or entity in any other fitness club...blah blah blah within a 10 mile radius of plus 2 years from any designated territory. My question is...is it still considered a designated territory after it closes? If your contract is up, then the way I read it there is no designated territory you'd be in violation of unless you are near another snap. The ideal situation I believe. I personally know of another Snap near me that went out of business after their 5 year contract and now I see an independent gym operating there. Hmmm. I will stop in and ask questions how the transition went if there was one. I am pretty positive though the original owners probably washed their hands of the ridiculousness of it all for I remember her crying at the front desk months after she opened it. So sad, but it was not what she expected. I will go see if the machines are red..lol.
One other point...if it involves significant money/damage to their brand, I believe corp will step in and intervene. It's not worth involving their lawyers if it's going to cost them quite a bit in legal fees to pursue any wrongdoing if nothing positive comes from it. I believe that corp will go only so far for all their legal disputes with franchisees go on record for others to read about.
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