International Law

What is New with Fitness Franchises?

Some fitness franchises are hitting a wall, Problems for 1-2-3 Fit and Butterfly Life franchisees.

"It sounded so simple. It made so much sense. Experienced, knowledgeable people banked on the marriage of a well-known sandwich chain and a fitness industry legend to create an exciting new circuit club franchise. At another promising company, people counted on the experience of a group of investors that included the founder of the biggest revenue-producing chain in the industry.

1-2-3 Fit, Denver, which opened in 2005, was the brainchild of Rick Schaden and Brooksy Smith, two men who made Quiznos a successful national restaurant chain. Schaden and Smith called upon fitness legend Ray Wilson, whose background includes opening several club companies, to help them with their venture into the fitness industry.

?It was the perfect mixture of franchise team and fitness team,? one former 1-2-3 Fit franchisee says."

This is very odd.

Whatever you want to say about Quiznos, in 2008 you would not describe Rick Schaden as a person "who made Quiznos a successful national restaurant chain."

The Quiznos chain is wracked with lawsuits brought by franchisees claiming everything from illegal vendor rebates to wrongful retention of franchise fees.

I cannot imagine who anyone who can read would purchase a 1-2-3 Fit Franchise once they looked at the Quiznos litigation. As a lawyer who provides due diligence, I would certainly advise my client to take a pass on Quiznos.

Full post as published by Misleading Advertising Law on February 18, 2008 (boomark / email).