December 22, 2024 • 9 mins
How do you keep afloat when the financial tide is pulling you under? This episode delves into the raw realities and intense pressures of owning a boutique fitness studio, especially when you’re an absentee owner. Join me and a fellow franchisee, as we candidly share the ups and downs of our entrepreneurial journeys. We discuss the mounting financial struggles and the intense competition from both high-end health clubs and budget-friendly gym chains that squeeze the middle market. Discover the shared experiences that unite us, and the profound insights gained from moments of vulnerability and openness.
Tune in to hear how we are navigating these challenging times, exploring strategies to manage stress and expectations amidst financial turmoil. We explore the importance of community and the essential counsel we rely on when contemplating tough decisions like bankruptcy. This conversation is a testament to the strength found in camaraderie and mutual support, a reminder that no one should endure the journey alone. Listen to learn from our experiences and discover why seeking support is crucial in times of adversity.
Tune in to hear how we are navigating these challenging times, exploring strategies to manage stress and expectations amidst financial turmoil. We explore the importance of community and the essential counsel we rely on when contemplating tough decisions like bankruptcy. This conversation is a testament to the strength found in camaraderie and mutual support, a reminder that no one should endure the journey alone. Listen to learn from our experiences and discover why seeking support is crucial in times of adversity.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Happy Saturday.
So today is the test out day,tonight is the 10 week party and
it was crazy.
Got in the car driving to thegym Whoa, excuse me and I get a
text from a fellow franchisee.
He's like hey, nathan, how'sthings going over at your studio
?
Things have been pretty rockysince we last talked.
(00:21):
It's been tough Feel likecatching up at all.
And it's a franchisee I'vetalked to before.
So yeah, man, totally.
So I get it while I'm driving.
I instantly like start typingout a response.
I know I shouldn't, but I'mstarting to type a response.
But I'm gonna call this guy.
So I call the guy.
I'm like hey, man, what's goingon?
Like, yeah, we have, straightup, here's how we've been doing.
We've lost money every singlemonth since the purchase.
(00:43):
I don't know what corporate saysabout us, but if they're saying
like anything positive, it'snot true, because this has been
a struggle since day one andthat's the straight up truth.
So how can I help?
What have you been seeing atyour club?
And so he was like oh, man,like I'm glad you said that,
because ever since this timeperiod they've been going
through so much and we had agood heart-to-heart 30, 40
(01:06):
minutes.
And I'm starting to realize,like it's, that everyone is
going through the same struggleand everyone puts on the same
mask.
It's crazy.
And so I would say like, hey,here's how I'm handling stress,
here's what we're currentlydoing, here's what I've tried.
Here's how it went.
Here's how it went.
Here's how I other thing Itried to work.
He's like I know we tried this.
(01:26):
I was told we'll get thisresult.
I did not get that result, andnow I'm at this spot.
I'm like, bro, I'm so sorry,and so we're kind of
commiserating together, but,like, thinking out loud,
strategizing, realizing likewe're in trouble, like not
saying anything about the brandor corporate, but us two
individual owners, we're introuble.
So I told him hey, I'm notgoing to say too much, so you
(01:50):
can.
You can consciously say you didnot know what was going on, but
, like I'm, I don't know how myclub can stay open for for like
another year given the currentcircumstances.
Like man, I'm thinking I'mright there with you and so I
said, all right, well, here'swhat I've been talking to,
here's the counsel I've beengetting advice from.
It's like, oh man, could youconnect me to that counsel as
(02:16):
well?
Dude, absolutely Based on whatyou're telling me, based on what
I'm telling you, we both needgood counsel and alluding to
certain things.
And so the group fitness spaceis getting pinched.
The big dogs, like the Lifetime, the Equinox, the YMCAs, are
able to offer big box offerings.
The little studios, like PlanetFitness, are able to offer
(02:36):
certain things.
It's the middle space that'sgetting pinched and it's the
boutique, small business ownerspace Because, for better or
worse, the margins are just toothin and neither of us are owner
operators, we're absenteeowners, and we can't afford to
pay someone 60 grand a year fora business to lose $10,000 a
(02:57):
month.
And this guy is losing more thanme.
I'm losing a lot, he's losingmore than me, and I thought they
were doing a lot better, and soI said, all right, well, it's
looking like I'm going to haveto go bankruptcy.
He's like, hey, I'mentertaining the thought.
I couldn't sleep last night.
You know who's your go-to forthat.
I said, well, I'll connect youguys up this afternoon.
(03:18):
All this to say, um, do notinternalize stress or think
you're a lone wolf, especiallyif you're in.
Do not internalize stress orthink you're a lone wolf,
especially if you're in.
If you're needing help, reachout for help pretty quickly, um,
and so it sounds bad, but likeI can now refer him over to
counsel to give him a strategicoptions so that he doesn't fall
victim to being a victim, but hecan choose how to end things
(03:41):
well for his business.
And I may do it the right way.
I may not, but at least he'llbe one step smarter than me.
And so we were talking likewhat's this exemption, what's
this amount and whatever?
And so what should we tell thecorporate, our landlord, the
sellers that we've made promisesto, like all these, all these
other curve balls?
And I told him like, hey, I'mnot a lawyer, I'm not an
(04:04):
attorney Based on the counselI've received.
Here are the decisions I ammaking.
And like, hey, that's just likemy scenario, that's just like
my scenario, this seems like myscenario.
And I said, hey, definitelyseek counsel first, but here's
the decisions that I'mconcluding.
At the end he's like, okay,sounds good, that's your, and
it's rock and roll.
So that's the summary of theconversation.
We'll see how this all rollsout.
(04:27):
And so I'm like, hey, here'skind of the timeline.
I'm thinking, if you'rethinking the same timeline,
let's have like a big bash andlet's go down in a blaze of
glory.
Together, we'll combine forces.
The last check will balancepaying for a big party for the
members and we'll go from thereSay, hey, I don't know, but that
(04:47):
sounds like fun, I think we cando that.
So you and I we're going tocatch up, grab coffee or steaks
or whatever guys do these days,and tonight we're going to have
a good party.
Went through the challenge wecall it a 10-week challenge so
we're going to do a test outtoday.
It was kind of funny too.
It's the last day of myfull-time GM and my interim GM
(05:08):
is stepping in and it was funnyjust to read the energy levels.
My outgoing GM is like carefree, he's like having a blast, and
he was actually really good athis role.
And then the incoming interimGM.
I could tell he's a little bitmore uptight, a little bit more
unsure, a little bit rocky, notquite asking for help, though he
could have needed help in someareas.
(05:28):
Just see how it plays out.
It's just been interesting.
And so, reading between thelines, I think my outgoing GM we
talked a little bit he said,hey, man, like I'm grateful for
the opportunity.
It wouldn't change a thing, butnow I get to go home and have
peace.
I couldn't turn off the gym, Icouldn't stop people from
(05:49):
texting me, facebook messagingme, instagram DMing me,
spreading rumors about me, likeasking me about their membership
contracts, that they're textingme and like I'm trying to hang
out with my family on a Sunday.
I'm like, yeah, it's wild.
And he's like I get peace again, that's not going to be
happening anymore.
Like I can leave work at work.
And I'm like, yeah, that'sright, we're there with you, man
(06:14):
.
And so he was more upbeat andlike optimistic about it,
no-transcript.
And this interim GM is like, no,no, not true, I'll step in,
(06:37):
I'll make a post about it.
So now he's getting draggedinto the drama because he's
having to squash that stuff justalongside me.
And so I think the interim GMis realizing, oh crap, what did
I sign up for?
So it's just interesting to seethis will be the second time
someone coming in and is overlyconfident, like, hey, I've got
(06:58):
this, I know what I'm doing, Ican run the ship, I can crack
the whip and see the cracks andto realize like, oh man, I'm in
over my head.
That may be the case, I don'tknow.
We'll, we'll see how it allplays out.
But just interesting, um, justfunny, I guess.
Um, funny in the sense thatit's a repeat human, a human
(07:21):
condition, sort of thing.
So, heading home, going to hangout at home for a good five
hours, five and a half hours.
We're going to rest with thefam.
Got a final bit of prep workfor the party tonight.
Bring the company card, we'regoing to have a blast.
We're going to I can't rememberwhat it's called.
We're going to a tavern whenthey have like a party room.
We're going to do that Wish.
(07:41):
So wish off the GM.
Well, he's done a good tenure.
A lot of people have thrownshit at him.
Shame on them, but he's goingto go out in a bang of glory.
So we'll have fun, it'll begood and we're going to enjoy
ourselves.
So that's where we're at,that's where we're going.
Let's rock and roll.
Happy Saturday.
So today is the test out day,tonight is the 10 week party and
it was crazy.
Got in the car driving to thegym Whoa, excuse me and I get a
text from a fellow franchisee.
He's like hey, nathan, how'sthings going over at your studio
?
Things have been pretty rockysince we last talked.
(00:21):
It's been tough Feel likecatching up at all.
And it's a franchisee I'vetalked to before.
So yeah, man, totally.
So I get it while I'm driving.
I instantly like start typingout a response.
I know I shouldn't, but I'mstarting to type a response.
But I'm gonna call this guy.
So I call the guy.
I'm like hey, man, what's goingon?
Like, yeah, we have, straightup, here's how we've been doing.
We've lost money every singlemonth since the purchase.
(00:43):
I don't know what corporate saysabout us, but if they're saying
like anything positive, it'snot true, because this has been
a struggle since day one andthat's the straight up truth.
So how can I help?
What have you been seeing atyour club?
And so he was like oh, man,like I'm glad you said that,
because ever since this timeperiod they've been going
through so much and we had agood heart-to-heart 30, 40
(01:06):
minutes.
And I'm starting to realize,like it's, that everyone is
going through the same struggleand everyone puts on the same
mask.
It's crazy.
And so I would say like, hey,here's how I'm handling stress,
here's what we're currentlydoing, here's what I've tried.
Here's how it went.
Here's how it went.
Here's how I other thing Itried to work.
He's like I know we tried this.
(01:26):
I was told we'll get thisresult.
I did not get that result, andnow I'm at this spot.
I'm like, bro, I'm so sorry,and so we're kind of
commiserating together, but,like, thinking out loud,
strategizing, realizing likewe're in trouble, like not
saying anything about the brandor corporate, but us two
individual owners, we're introuble.
So I told him hey, I'm notgoing to say too much, so you
(01:50):
can.
You can consciously say you didnot know what was going on, but
, like I'm, I don't know how myclub can stay open for for like
another year given the currentcircumstances.
Like man, I'm thinking I'mright there with you and so I
said, all right, well, here'swhat I've been talking to,
here's the counsel I've beengetting advice from.
It's like, oh man, could youconnect me to that counsel as
(02:16):
well?
Dude, absolutely Based on whatyou're telling me, based on what
I'm telling you, we both needgood counsel and alluding to
certain things.
And so the group fitness spaceis getting pinched.
The big dogs, like the Lifetime, the Equinox, the YMCAs, are
able to offer big box offerings.
The little studios, like PlanetFitness, are able to offer
(02:36):
certain things.
It's the middle space that'sgetting pinched and it's the
boutique, small business ownerspace Because, for better or
worse, the margins are just toothin and neither of us are owner
operators, we're absenteeowners, and we can't afford to
pay someone 60 grand a year fora business to lose $10,000 a
(02:57):
month.
And this guy is losing more thanme.
I'm losing a lot, he's losingmore than me, and I thought they
were doing a lot better, and soI said, all right, well, it's
looking like I'm going to haveto go bankruptcy.
He's like, hey, I'mentertaining the thought.
I couldn't sleep last night.
You know who's your go-to forthat.
I said, well, I'll connect youguys up this afternoon.
(03:18):
All this to say, um, do notinternalize stress or think
you're a lone wolf, especiallyif you're in.
Do not internalize stress orthink you're a lone wolf,
especially if you're in.
If you're needing help, reachout for help pretty quickly, um,
and so it sounds bad, but likeI can now refer him over to
counsel to give him a strategicoptions so that he doesn't fall
victim to being a victim, but hecan choose how to end things
(03:41):
well for his business.
And I may do it the right way.
I may not, but at least he'llbe one step smarter than me.
And so we were talking likewhat's this exemption, what's
this amount and whatever?
And so what should we tell thecorporate, our landlord, the
sellers that we've made promisesto, like all these, all these
other curve balls?
And I told him like, hey, I'mnot a lawyer, I'm not an
(04:04):
attorney Based on the counselI've received.
Here are the decisions I ammaking.
And like, hey, that's just likemy scenario, that's just like
my scenario, this seems like myscenario.
And I said, hey, definitelyseek counsel first, but here's
the decisions that I'mconcluding.
At the end he's like, okay,sounds good, that's your, and
it's rock and roll.
So that's the summary of theconversation.
We'll see how this all rollsout.
(04:27):
And so I'm like, hey, here'skind of the timeline.
I'm thinking, if you'rethinking the same timeline,
let's have like a big bash andlet's go down in a blaze of
glory.
Together, we'll combine forces.
The last check will balancepaying for a big party for the
members and we'll go from thereSay, hey, I don't know, but that
(04:47):
sounds like fun, I think we cando that.
So you and I we're going tocatch up, grab coffee or steaks
or whatever guys do these days,and tonight we're going to have
a good party.
Went through the challenge wecall it a 10-week challenge so
we're going to do a test outtoday.
It was kind of funny too.
It's the last day of myfull-time GM and my interim GM
(05:08):
is stepping in and it was funnyjust to read the energy levels.
My outgoing GM is like carefree, he's like having a blast, and
he was actually really good athis role.
And then the incoming interimGM.
I could tell he's a little bitmore uptight, a little bit more
unsure, a little bit rocky, notquite asking for help, though he
could have needed help in someareas.
(05:28):
Just see how it plays out.
It's just been interesting.
And so, reading between thelines, I think my outgoing GM we
talked a little bit he said,hey, man, like I'm grateful for
the opportunity.
It wouldn't change a thing, butnow I get to go home and have
peace.
I couldn't turn off the gym, Icouldn't stop people from
(05:49):
texting me, facebook messagingme, instagram DMing me,
spreading rumors about me, likeasking me about their membership
contracts, that they're textingme and like I'm trying to hang
out with my family on a Sunday.
I'm like, yeah, it's wild.
And he's like I get peace again, that's not going to be
happening anymore.
Like I can leave work at work.
And I'm like, yeah, that'sright, we're there with you, man
(06:14):
.
And so he was more upbeat andlike optimistic about it,
no-transcript.
And this interim GM is like, no,no, not true, I'll step in,
(06:37):
I'll make a post about it.
So now he's getting draggedinto the drama because he's
having to squash that stuff justalongside me.
And so I think the interim GMis realizing, oh crap, what did
I sign up for?
So it's just interesting to seethis will be the second time
someone coming in and is overlyconfident, like, hey, I've got
(06:58):
this, I know what I'm doing, Ican run the ship, I can crack
the whip and see the cracks andto realize like, oh man, I'm in
over my head.
That may be the case, I don'tknow.
We'll, we'll see how it allplays out.
But just interesting, um, justfunny, I guess.
Um, funny in the sense thatit's a repeat human, a human
(07:21):
condition, sort of thing.
So, heading home, going to hangout at home for a good five
hours, five and a half hours.
We're going to rest with thefam.
Got a final bit of prep workfor the party tonight.
Bring the company card, we'regoing to have a blast.
We're going to I can't rememberwhat it's called.
We're going to a tavern whenthey have like a party room.
We're going to do that Wish.
(07:41):
So wish off the GM.
Well, he's done a good tenure.
A lot of people have thrownshit at him.
Shame on them, but he's goingto go out in a bang of glory.
So we'll have fun, it'll begood and we're going to enjoy
ourselves.
So that's where we're at,that's where we're going.
Let's rock and roll.
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