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Post by determined1 on Nov 29, 2016 20:27:20 GMT
Indentured servitude was outlawed a long time ago and what you decide to do on your own time is your own. Now, if you were volunteering and bringing over corporate secrets or confidential information that would be different. However, I challenge anyone to provide something in the snap model which is unique to snap. Oh, wait, there's the $8.95 program, which no one else offers. (Wonder why?) I guess we just won't offer that with any new venture.
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Post by davesnap on Dec 12, 2016 17:48:28 GMT
If i decide to close my gym and transition out, how do let snap know when you plan to close? Do I just be direct and tell them I am closing or what?
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Post by snaplongtimer on Dec 13, 2016 20:53:32 GMT
Good question. I suppose it would help if you had records showing financial/membership issues keeping the doors open combined with heavy competition. Of course, the first thing they are going to insist is for you to try and sell the club. That would be a tough sell if you weren't doing well at that location. Every situation is unique and to just close the doors because one isn't having fun anymore might have a few hoops to jump through. If you are direct with them and tell them end of month my doors are locked suddenly you will have a conference call scheduled with multiple people peeing on your fire and reminding you about your contractual obligation. At some point you have to call their bluff for if you truly had a difficult time keeping your doors open, I sincerely doubt they would crush you financially after the fact when obviously you are taking a loss already. To bow out early from your contract you are supposedly obligated to pay them the monthly franchise fee for the remaining of your contract. If your club is bringing in good money and you close/break the contract with Snap, they may have good reason to go after that money. Best scenario...your end of contract is near and you do not renew.
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Post by greenergrass on Dec 13, 2016 21:50:04 GMT
Do you know for sure, is the franchise fee the only thing that needs to be paid if one closes before the end of the agreement?
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Post by snaplongtimer on Dec 13, 2016 22:34:34 GMT
I had a meeting with my attorney once and that would be the thing I would be on the hook for if they chose to pursue it. He said that was typical for franchisees to be responsible for. They can pursue that or they won't. If it were just that, I would think that is enough for me to think about before making a decision to close. I would have to pay him to review the contract in detail to see if there was a way out, but I chose not to. I am relying on the fact that other snap clubs have closed without penalty. I would only consider closing if I struggled financially to keep a club open. In consideration of that and also the fact that I made a valiant attempt to sell the club with no takers, I would not hesitate to close. Can't squeeze blood from a turnip...
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Post by supercool on Dec 17, 2016 16:10:31 GMT
Hell, I've heard of Snaps closing in the middle of the night, literally without any warning. Next morning equipment is gone and members confused/angry with little recourse. I've never heard of corporate actually suing any of these operators.
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Post by determined1 on Dec 17, 2016 21:36:08 GMT
Personally, if I was under water, I'd do the following: 1. Figure out what may be owed to members. (Anyone who joined within 6 months I'd refund them any sort of sign up fee they paid) 2. Shut my doors 3. Sell my equipment 4. Email all of my members. 5. Remove all of my members' billing info, so Snap can't bill them 6. Dissolve your LLC, company or what have you 7. File for personal bankruptcy 8. Tell Snap to go fuck themselves I've read of Snaps having financial difficulty and Snap continuing to go after them for franchise fees. No first hand experience, but I believe it was on the site: www.unhappyfranchisee.com/snap-fitness-franchise-complaints/
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