BUTTERFLY LIFE: Interview with Ex-Franchisee Michael Motes

Interview with Michael Motes, former franchise owner, Butterfly Life

Prior to becoming a Butterfly Life franchise owner, Michael Motes of Rome, Georgia had been in the communication business for 30+ years. Michael owned his own radio business for many years before forming a partnership and forming Advanced Communication in Rome. He was part owner and engineer of K-98 radio station also located in Rome.

Newly married to his wife Betty, they discussed owning a business of their own. Betty, who was also a prior business owner, had been a member and employee of Curves. The fitness business was Betty’s desire and dream.

Location: Rome, Georgia

Franchise owned: Michael Motes

Time period of ownership: March’07-Dec. ‘07

Franchise fee: $29,500. Royalty 1,000. Monthly Advertising 1500. Monthly

Total investment to date: $250,000.+

UF: When did you decide you wanted to own your own business? Describe the process you went through to determine which franchise to buy.

Michael: The idea at first was my wife, Betty’s. Having been a member of Curves, where she also went to work part-time, she was able to see and experience both sides of the fitness club. Originally we inquired about a Curves franchise, but there were no territories available. So the search began for “the best” women’s fitness franchise. We decided on a franchise because there would be the support and brand recognition. ( Or so we thought!) The research began and continued for many weeks, each and every time Butterfly Life appeared to have everything we wanted. The concept was awesome-circuit training, exercise classes, weight loss with proper nutrition, motivation, fashion and medical advice from “experts” in the field.

So my wife called Butterfly Life in San Ramon, Calif. to talk with a representative of the company. That call was the first of many we made, along with numerous emails. It was almost 5 months before we made the trip to Calif. for “Discovery Day”. A day at corp. to meet the “team and leaders” and visit operating clubs (we only went to one!) Before going to Calif., we visited what we were told was the first ever club to open in Georgia. (We now know that was just one of many lies we would be told! The club we were told to visit was NOT the first in Georgia-see Jeff Marks story.)

UF: How did you first learn about the general concept? What did you find appealing about this type of business?

Michael: The most appealing part of Butterfly Life was the overall concept. It had more to offer the members than most other “women only” clubs. The plate-loaded equipment vs. hydraulic, the group exercise classes offered all day, the nutrition classes-all combined for one monthly fee.

UF: Describe the company’s sales process and your interaction prior to becoming a franchisee.

Michael: The franchise counselor we talked with was professional, answered our questions as best he could, and stayed in contact weekly. After reading and researching everything we could find about Butterfly Life Fitness, our counselor convinced us to go to Calif. The first trip to Calif. should have been our first and last. Upon arriving at BFL Corp. offices we meet the young man we had been talking with for several months. We were taken to a conference room where Mark Golob would be joining us. Upon Mark entering the room, the counselor made the introductions-and all hell broke lose! Mark slammed his hand down on the table and screamed at the counselor- I told you not to pursue these people. I told you not to bring them to Calif.” Betty and I did not know what to think at this point.

Betty was under a non-compete from Curves until Dec. 06-a fact that BFL had known since the very first phone conversation in February. (We did not intend to sign any agreements before that time.) Mark then turned to Betty and I and said he had to go call his lawyer before talking to us. He told the counselor to take us to lunch and by the time we returned, he would know what to do. Upon returning to the office we all meet in the conference room, and as soon as Mark Golob walked in he turned to Betty and said, ” I will NOT sell you a franchisee-but Michael I will sell you one”. He then began asking me questions about my business experience, why we wanted a franchise, and how we planned to finance it. He told us all about his experience, his ownership of the Linda Evans clubs, and how Mark Mastrov was his former business partner. When I told him I had just recently sold my ownership in a radio station in Rome, Ga. and that I planned to pay cash, his entire attitude changed. All of a sudden “we” meaning Betty and myself would make GREAT Area Reps-all the time I am thinking how he just told my wife he would not sell her a franchise, but now he wants to sell us a 25 club territory because we would be such an asset to the company. He even had a meeting with the current Area reps going on as we spoke-he had to take us in to meet these people and have them give their testimony as to what a GREAT opportunity this would be for us! We left shortly afterwards without making any kind of commitment! That was June’06.

Once we returned home the emails and phone calls started almost daily. They wanted to do a conference call between counselor, the Tom Gergly and myself. Tom Gergly told me at that point that as far as they “knew” my wife did not exist and would not exist until Dec. 06 when her non-compete was up with Curves.

I signed the agreement in Sept. ‘06 after many calls telling me the franchise fee would go up to 39,000. by Oct.1, 06…..which it NEVER did.

UF: How was the company’s training and pre-opening support?

Michael: 5 days of classroom work-approx. 2 hrs. in a gym doing a group exercise class and one workout on the circuit equipment. Pre-opening-they were all about helping you as long as you followed the “plan”.

UF: What about Marketing?

Michael: The same as everyone else…mail out 20,000 postcards every month. Sent a 6 month plan by email of when to send out your postcards.

UF: Tell me about your Grand Opening

Michael: We were sent an email from Sandy telling us when “BFL” had scheduled our grand opening. It was 3 weeks after we opened and Sandy would be there with us. We where told to contact the Chamber of Commerce, the newspapers, put out flyers letting every one know that we would be represented by our “Corp” office at grand opening. We DID-they DID NOT. Instead Sandy showed up the week before for 21/2 days to check up on us-not to train or instruct. She even took promotional items we had ordered “outside the box” back to BFL Corp. and those same items later became something every club could order-from BFL suppliers- at 3 times what we paid for ours.

UF: Was owning this franchise what you expected? Why or why not?

Michael: NO! We were promised (verbally and by email-which I still have!!) national advertising, a T.V. show, a deal with the Oprah Show, spots on Dr. Phil and on and on……but the only advertising BFL Corp did in our area was NOT for brand recognition-it was FRANCHISE SALES. This was the worst (and most costly) business decision I have ever made.

UF: How was the promised ongoing support?

Michael: There was no on-going support. You open-you are on your own!

UF: What were the positive aspects of your experience?

Michael: There is nothing positive about losing $250,000. and knowing you will never recover the investment. However, Betty and I both agree that meeting and being able to help so many women become more fit made the experience better. Our women had some very good results.

UF: When did things start to go wrong? What was it that made you an unhappy franchisee?

Michael: In all honesty things went wrong from Discovery Day forward. I wanted Betty to have what she wanted, so we put up with many things we did not like or agree with because we did believe in the concept. We should never have believed all the things they “verbally” promised. There were so many lies, having faith in BFL Corp. did not last as long as our club, which was in business for 10 months.

UF: Have you tried to resolve your issues with the franchisor? The outcome?

Michael: We tried for several months to get the attention of Corp. and have someone to listen. As has been said in earlier interviews-they wanted to sell businesses-not run them. The outcome was our joining the Butterfly Life Chapter with the AAFD.

UF: What is your current situation?

Michael: I have returned to work in the field of Electronics-working 60-70 hours a week just to pay off the debts.

UF: What would you like to see happen at this point?

Michael: I would like to see restitution for everyone who purchased a franchise. I personally want my franchise fee of $29,500.00 back and the original franchise agreement between BFL and myself null and void.

UF: What mistakes did you make? Looking back what would you do differently?

Michael:

1. Buying a Butterfly Life Franchise
2. Buying a Butterfly Life Franchise
3. Buying a Butterfly Life Franchise
4. Buying a Butterfly Life Franchise

I would have left my money in a CD and been earning interest instead of going further in debt.

UF: How has your franchise investment decision affected your life?

Michael: Instead of retirement at 55, I am now looking at having to work another 10 years to be able to afford to retire.

UF: What advice would you give to prospective franchise owners?

Michael: DO NOT GET INVOLVED IN ANY BUSINESS VENTURE WITH MARK GOLOB AND/OR TOM GERGLEY. STAY AWAY FROM BUTTERFLY LIFE COMPLETELY.

SAVE THEMSELVES THE HEADACHE AND HEARTACHE, NOT TO MENTION A LOT OF MONEY.

UF: What warning signs should they be looking for?

Michael: I checked this company out before I ever signed an agreement. I found what I could at that time, however today there is much more information available about Butterfly Life and its officers. My warning-STAY AWAY.