Butterfly Life Chairman Gergley Offers Commissions to Ex-Franchisees

25 12 2007

Butterfly Life Chairman Gergley Offers Commissions to Ex-Franchisees

Posted by: in Networking

Ex-franchise owners of the Butterfly Life women’s fitness concept reportedly got some good news just in time for the holidays: If and when Butterfly Fitness resells their ex-territory to someone new, BF will split the new franchise fee with the failed owners!

Plus, if the new franchisee wants to purchase the failed franchisee’s equipment, Butterfly Fitness won’t even take a cut.

In a December 11, 2007 letter to former franchisees who have closed their clubs and lost their investments, Butterfly Life Founder & Chairman Thomas Gergley (pictured above) reportedly announced the good news.

“Dear Former Butterfly Life Owner,” Gergley’s letter begins. “I am writing to inform you of a change to The Butterfly Life franchise operating system that’ll have a positive financial impact on you.”

“If a club should close,” Gergley states in the letter. “Butterfly Fitness will attempt to resell the territory and will send the shut franchisee 50% of the new franchise fee… To be eligible we expect that you’ll need to sign and return the agreement about January 4, 2008.”

The letter concludes boldly: “This email isn’t an offer which will be made when we send you the termination and release agreement.”

At the current $29,500 franchise fee, that means that those who lost $150K - $200K+ won’t feel bad when they see someone else’s “Butterfly Life Opening Soon!” banner right there in the town where they couldn’t make the concept work. In fact, they’ll be overjoyed, knowing that a check for $14,750 will soon be sent to their home. Or apartment. Or their sister-in-law’s home. Or to wherever it is they’re staying these days.

Hopefully, the former Butterfly Life franchise owners won’t have to sign their commission checks over to their creditors as part of their bankruptcy requirements. At least not immediately.

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