Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Hello, hello, all right.
Well, it's been about a weeksince the last update, so here's
.
Here's where things are at.
It's been kind of fun or fun,interesting, probably more
interesting than fun.
Um, but yesterday had thehearing for the meeting of the
creditors.
Basically, what happens is youmeet with your trustee, so
someone who oversees your, yourbankruptcy case, and figuring
(00:26):
out like what to do with it solike the judge, if you will, but
it's not quite a judge, butthey're the trustee.
So we're in a zoom room with Idon't know eight or nine other
people, half of them probablyattorneys, half of them probably
folks, uh, pursuing bankruptcy,and then they say someone
else's name.
Then they say our name and thenour gal says oh, we're missing
a statement from this stockaccount that we have like three
(00:47):
thousand dollars of stock worth.
I need a statement for that.
I need to see like the historyof that.
So we're gonna reconvene yourcase and from three weeks from
now, and that's it next case,and then we're done like that's
it.
So nothing really happens,which is kind of surprising.
We've provided like 30statements to them about
different accounts over severalmonths and apparently one
(01:08):
account.
That it's kind of surprising.
And then what else.
So that was it on that side, onthe gym front.
So this is just kind ofinteresting.
I'm more curious how thisunfolds.
So we closed the studio at thestart of the month and it was a
surprise to everyone corporateas well as the members and
unfortunately that had to bethat way, since we needed to
(01:30):
have our personal bankruptcyfiled before it even makes sense
to close a business.
So that's the order we did, andso corporate's been asking for
some help, some support onaccessing the studio and whatnot
.
So I've been working with themon that.
Uh, my lender asked for youknow the landlord contacts so
that they could visit theproperty, start collecting and
(01:53):
seizing assets, and then they'llprobably like sell them or do
something with liquidating themfor for cash, and so get working
with them on that.
But anyhow, back to the the thestory of the gym and how this
has unfolded so far.
So go to the gym at the startof the month the first couple of
days and then, from what itlooks like, the recent
(02:15):
management team about a weeklater found some space about 3.1
miles away from the gym andstarted running out space and
equipment and saying hey, somemembers, you know, come, keep
coming here for some of yourworkouts and we'll we'll keep
things going.
So that's something thatthey're promoting on their
personal pages.
(02:36):
It's not something that they'reusing like business space for.
So I didn't know about it andthat's fine.
And so, looking at just likesnooping around and looking at
their personal Facebook pages,uh, it looks like about 30 or so
, maybe more, members havetransitioned away from the gym
into this scrappy startup thatthe management team did, and
(02:58):
that's great.
I it's honestly pretty cool,like to have a plan B up and
running so quickly.
That's really fast and that'snot easy to do and they did a
really great job that theykicked ass.
So really well done.
Um, and just looking at it,there were those are like some
very committed, long-term,long-time members and they kind
of like banded together, stayedtogether and now they're still
(03:20):
working out together like threemiles away and in general in the
gym world people say to marketto folks that live within a
three mile radius, so they'rejust outside of the, the
industry norm for like a, a, ageography space, and so they're
not like next door but they'rethey're the neighbor across the
(03:40):
street kind of thing, and so, uh, there's that side of things.
So they've been up and runningfor like three weeks at this
point, or two weeks, three weeksof things.
So they've been up and runningfor like three weeks at this
point, or two weeks, three weeks.
And they have, of my fouroriginal managers, they have
three of them like the coremanagement team.
Three of the four are there.
One of them, I think, is justtaking a life break from gym
(04:06):
leadership, which is great.
That's totally fine.
And then about two or three daysago, you know, for the past
week, corporate has been askingus to give them logins,
permissions over social mediaaccounts.
So we're doing that, we'resending out invites to be like
admins of Facebook groups,facebook pages.
And then yesterday probablylike eight people got added to
be admins of multiple Facebookpages the public page, the
(04:29):
members page, everything.
So it looks like the transitionis nearly done.
They kicked my wife and me outof the Facebook groups, so we
don't really know what's goingon anymore, uh.
But lo and behold, lo andbehold, uh, about two days ago
in one of the pages it wasannounced by one of the
instructors that the originalmanagement team from six months
(04:51):
ago they are back and they willbe managing the studio, it's not
.
The folks have been doing itover the past.
I don't know four months or so,four or five months, three
months, but the most recent teamit's going to be the team that
disbanded months ago One of thepeople that got fired and
someone who quit because theywere upset that I fired that
person and they're coming backand, uh, that'll be interesting
(05:16):
because the, the recency, thevibrancy, the, I guess, the
popular people at the gym,they're all working out three
miles away now and they're at.
They're in a rented space.
I don't know what thatcommitment looks like, but
they're now in a rented space.
And so the recent proactive,like positive, uplifting,
magnetic management team they'renow three miles away.
(05:37):
They're not in my studio or thestudio anymore, and now that I
don't know who the buyers are,because their emails were added
as like new admins and Irecognize them I know who the
owners are now.
The owners and the oldmanagement team are now admins
of everything, so it'll just beinteresting.
The club was losing big moneyevery single month, and that was
(05:59):
when I was taking no pay.
Even if I didn't pay my, myloans, I was still losing money,
and so I'm I'm curious how thiswill pan out.
I hope it works out well forthe new buyers or the new owners
.
I don't know where they'rebuying equipment from.
They might be buying it from mybank, because my bank has
seized the equipment, so theycould be buying it used.
Corporate may be saying hey,now that the equipment is gone
(06:22):
you must buy brand new equipmentfrom us for a fee of some sort.
I don't know.
We'll see what happens, and so,either way, new owners are
coming in.
The popular folks have moved upthe street to a rented space.
They're running their own dealfrom 5 am to 7 am.
So I don't know what's going tohappen with this studio.
But this will be the thirdownership cohort in the past
(06:48):
year and a half.
The person who owned it beforeme or the team that owned it
before me, I think they ownedthe studio for like a year and a
half or two years.
I owned it for a year and onemonth before I couldn't keep it
open.
So this will be the third setof owners in two years, and so
I'll be observing.
I guess there's not really muchelse I can do If folks ask me
(07:10):
how to work with the members,how to work with corporate, how
to work with the managers, thenew ones or the old ones.
It's not beneficial for me tobe helpful and it sounds bad
because I'm a very helpfuloriented person.
But if I say something negativeabout corporate, something
negative about managers,something negative about members
(07:32):
, I don't want to be accused ofdamaging someone else's
reputation, their, anythingabout them.
So if there is negativenessassociated towards any of those
folks, I can't I don't believe Ishould voice that.
I need to keep it kind of vague, the way that I have
historically on here.
If it's something positive anduplifting, then I can definitely
(07:56):
say that like that's totallyfine and allowed, but I'm not
obligated to take those phonecalls or respond to those texts
or handle those emails.
I'm being cordial with corporate.
They're asking, like, the loginfor the Instagram page, how do
we access the, the email blasttool, and that's all in the
spreadsheet.
So I can send them thespreadsheet and they're good to
go.
But if folks are asking likehey, can you do a sit down
(08:19):
training session and how to workwith our, our CRM platform,
like, the best I can say is well, no, I've had management teams,
I've been an absentee owner.
I don't know how that works.
You'll have to reach out tothem.
Here's their contact info,their email, their phone number.
I don't know.
I know how like two or threethings work, and everything that
I know how to work.
(08:39):
Other people know how to work.
Corporate sent me adisenfranchisee letter stating
that I'm not allowed toassociate with the brand anymore
or pretend like I'm an owner,which is fair.
But they also said I'mobligated to give them aid and
support and things which I haveso far.
Uh, I have no, there's noreason why I would prevent them
(09:01):
from acquiring the studio andrunning it.
They have everything they need,so they're good to go.
So this will be interesting.
Just, all in all, the newowners have full-time careers.
There's no way they can managea business.
They can manage a gym becausethey have their own.
The owners are twoprofessionals.
One owns their own business,one is a very well-ranked
(09:23):
employee within a company.
So there's no way they're goingto drop their jobs to run a gym
, and it'll be absentee owners.
Whether they're engaged ordisengaged, I don't know, but
it'll just be interesting toobserve and that's all we really
can do.
So I'm learning oh no, what'sthe learning from this?
And then we'll wrap up theconvo.
(09:48):
I'm learning that there is asuperiority complex to being a
business owner.
If you're gonna be involved,then, yeah, you think you have
harder work ethic, moreintellect, more business acumen,
you're better at sales.
There's something that you cando that the other guy didn't do,
or other gal, I guess.
Whoever you're talking to.
And the superiority complex Ihad is, I thought I, I thought I
(10:09):
knew I would not be as good asat people management.
I thought a more hands-offpeople management would work.
It did.
It kind of worked in some areas.
It did not work in other areas,and so that's something that
I'm learning and taking away.
And with the new owners, theyhave more, I imagine.
They have more resources, theyhave more management experience.
(10:30):
They might be better at salesand marketing, I don't know, but
we will let them run with itbecause it's their baby now and
there's nothing I can do to helpand support beyond this.
Everything that corporate hasasked for they have received.
They don't need anything elsefrom me Everything that the
owner well, I haven't even heardfrom the owners, they didn't
even ask me well, how much theywere losing each month and this
(10:55):
will be the interesting partEach month, corporate demanded
or required demanded for profitand loss statements and I did
what was asked.
I did not go above and beyond,but I gave them what they
requested and was obligated to.
When talking with the CEO, hewas surprised to see that I had
a business loan, an SBA loan,and that was in 12 months of
(11:17):
profit and loss statements.
So I don't know if theyactually looked at my PNLs or
they just wanted them on hand,but either way, there was
lacking knowledge on seeing mySBA loan and so this owner this
owner could have requested thoseprofit and losses because
corporate had those in theirpossession and corporate I
(11:39):
believe what's possible iscorporate could say yes, we are
not the owners, we don't haveprofit and loss statements, but
they have access to them and so,if it would, they ought to have
forwarded them to the newbuyers.
So the new buyers know rightaway they're going to be losing
six grand a month, day one.
Uh, they may not have an sbaloan.
Let's pretend they paid cashfor everything.
(12:00):
They still have managementteams, they still need
instructors.
They're now down members,likely if everything stayed the
same, but they have no sba loan.
They're losing five grand amonth, day one, and maybe they
want that, maybe they don't knowthat, but I hope corporate
informed them of how the priorowner was doing because that was
(12:22):
in their possession, thatknowledge of my P&Ls.
So we'll see what ends uphappening.
I'll pause there.
I've made the point.
So that's where things are at.
That's where it's going.
We'll end up finding how itgoes months and months from now.
But one thing I learned day oneor month one, I was expecting
to make seven grand.
I lost eight and it took 12additional months to see things
(12:48):
collapse.
And so the new owners.
I will say they lose four granda month just making numbers up.
They have deeper pockets, lesslosses.
So it'll take, let's make up anumber.
It'll take three years beforethey end up folding if they have
the same net worth, and theyprobably have a higher net worth
.
So it may be a long time beforeI find out how things unfold.
(13:11):
But unfold one way or anotherwe shall.
That's all right.
That's where we're going.
Let's rock and roll.
Hello, hello, all right.
Well, it's been about a weeksince the last update, so here's
.
Here's where things are at.
It's been kind of fun or fun,interesting, probably more
interesting than fun.
Um, but yesterday had thehearing for the meeting of the
creditors.
Basically, what happens is youmeet with your trustee, so
someone who oversees your, yourbankruptcy case, and figuring
(00:26):
out like what to do with it solike the judge, if you will, but
it's not quite a judge, butthey're the trustee.
So we're in a zoom room with Idon't know eight or nine other
people, half of them probablyattorneys, half of them probably
folks, uh, pursuing bankruptcy,and then they say someone
else's name.
Then they say our name and thenour gal says oh, we're missing
a statement from this stockaccount that we have like three
(00:47):
thousand dollars of stock worth.
I need a statement for that.
I need to see like the historyof that.
So we're gonna reconvene yourcase and from three weeks from
now, and that's it next case,and then we're done like that's
it.
So nothing really happens,which is kind of surprising.
We've provided like 30statements to them about
different accounts over severalmonths and apparently one
(01:08):
account.
That it's kind of surprising.
And then what else.
So that was it on that side, onthe gym front.
So this is just kind ofinteresting.
I'm more curious how thisunfolds.
So we closed the studio at thestart of the month and it was a
surprise to everyone corporateas well as the members and
unfortunately that had to bethat way, since we needed to
(01:30):
have our personal bankruptcyfiled before it even makes sense
to close a business.
So that's the order we did, andso corporate's been asking for
some help, some support onaccessing the studio and whatnot
.
So I've been working with themon that.
Uh, my lender asked for youknow the landlord contacts so
that they could visit theproperty, start collecting and
(01:53):
seizing assets, and then they'llprobably like sell them or do
something with liquidating themfor for cash, and so get working
with them on that.
But anyhow, back to the the thestory of the gym and how this
has unfolded so far.
So go to the gym at the startof the month the first couple of
days and then, from what itlooks like, the recent
(02:15):
management team about a weeklater found some space about 3.1
miles away from the gym andstarted running out space and
equipment and saying hey, somemembers, you know, come, keep
coming here for some of yourworkouts and we'll we'll keep
things going.
So that's something thatthey're promoting on their
personal pages.
(02:36):
It's not something that they'reusing like business space for.
So I didn't know about it andthat's fine.
And so, looking at just likesnooping around and looking at
their personal Facebook pages,uh, it looks like about 30 or so
, maybe more, members havetransitioned away from the gym
into this scrappy startup thatthe management team did, and
(02:58):
that's great.
I it's honestly pretty cool,like to have a plan B up and
running so quickly.
That's really fast and that'snot easy to do and they did a
really great job that theykicked ass.
So really well done.
Um, and just looking at it,there were those are like some
very committed, long-term,long-time members and they kind
of like banded together, stayedtogether and now they're still
(03:20):
working out together like threemiles away and in general in the
gym world people say to marketto folks that live within a
three mile radius, so they'rejust outside of the, the
industry norm for like a, a, ageography space, and so they're
not like next door but they'rethey're the neighbor across the
(03:40):
street kind of thing, and so, uh, there's that side of things.
So they've been up and runningfor like three weeks at this
point, or two weeks, three weeksof things.
So they've been up and runningfor like three weeks at this
point, or two weeks, three weeks.
And they have, of my fouroriginal managers, they have
three of them like the coremanagement team.
Three of the four are there.
One of them, I think, is justtaking a life break from gym
(04:06):
leadership, which is great.
That's totally fine.
And then about two or three daysago, you know, for the past
week, corporate has been askingus to give them logins,
permissions over social mediaaccounts.
So we're doing that, we'resending out invites to be like
admins of Facebook groups,facebook pages.
And then yesterday probablylike eight people got added to
be admins of multiple Facebookpages the public page, the
(04:29):
members page, everything.
So it looks like the transitionis nearly done.
They kicked my wife and me outof the Facebook groups, so we
don't really know what's goingon anymore, uh.
But lo and behold, lo andbehold, uh, about two days ago
in one of the pages it wasannounced by one of the
instructors that the originalmanagement team from six months
(04:51):
ago they are back and they willbe managing the studio, it's not
.
The folks have been doing itover the past.
I don't know four months or so,four or five months, three
months, but the most recent teamit's going to be the team that
disbanded months ago One of thepeople that got fired and
someone who quit because theywere upset that I fired that
person and they're coming backand, uh, that'll be interesting
(05:16):
because the, the recency, thevibrancy, the, I guess, the
popular people at the gym,they're all working out three
miles away now and they're at.
They're in a rented space.
I don't know what thatcommitment looks like, but
they're now in a rented space.
And so the recent proactive,like positive, uplifting,
magnetic management team they'renow three miles away.
(05:37):
They're not in my studio or thestudio anymore, and now that I
don't know who the buyers are,because their emails were added
as like new admins and Irecognize them I know who the
owners are now.
The owners and the oldmanagement team are now admins
of everything, so it'll just beinteresting.
The club was losing big moneyevery single month, and that was
(05:59):
when I was taking no pay.
Even if I didn't pay my, myloans, I was still losing money,
and so I'm I'm curious how thiswill pan out.
I hope it works out well forthe new buyers or the new owners
.
I don't know where they'rebuying equipment from.
They might be buying it from mybank, because my bank has
seized the equipment, so theycould be buying it used.
Corporate may be saying hey,now that the equipment is gone
(06:22):
you must buy brand new equipmentfrom us for a fee of some sort.
I don't know.
We'll see what happens, and so,either way, new owners are
coming in.
The popular folks have moved upthe street to a rented space.
They're running their own dealfrom 5 am to 7 am.
So I don't know what's going tohappen with this studio.
But this will be the thirdownership cohort in the past
(06:48):
year and a half.
The person who owned it beforeme or the team that owned it
before me, I think they ownedthe studio for like a year and a
half or two years.
I owned it for a year and onemonth before I couldn't keep it
open.
So this will be the third setof owners in two years, and so
I'll be observing.
I guess there's not really muchelse I can do If folks ask me
(07:10):
how to work with the members,how to work with corporate, how
to work with the managers, thenew ones or the old ones.
It's not beneficial for me tobe helpful and it sounds bad
because I'm a very helpfuloriented person.
But if I say something negativeabout corporate, something
negative about managers,something negative about members
(07:32):
, I don't want to be accused ofdamaging someone else's
reputation, their, anythingabout them.
So if there is negativenessassociated towards any of those
folks, I can't I don't believe Ishould voice that.
I need to keep it kind of vague, the way that I have
historically on here.
If it's something positive anduplifting, then I can definitely
(07:56):
say that like that's totallyfine and allowed, but I'm not
obligated to take those phonecalls or respond to those texts
or handle those emails.
I'm being cordial with corporate.
They're asking, like, the loginfor the Instagram page, how do
we access the, the email blasttool, and that's all in the
spreadsheet.
So I can send them thespreadsheet and they're good to
go.
But if folks are asking likehey, can you do a sit down
(08:19):
training session and how to workwith our, our CRM platform,
like, the best I can say is well, no, I've had management teams,
I've been an absentee owner.
I don't know how that works.
You'll have to reach out tothem.
Here's their contact info,their email, their phone number.
I don't know.
I know how like two or threethings work, and everything that
I know how to work.
(08:39):
Other people know how to work.
Corporate sent me adisenfranchisee letter stating
that I'm not allowed toassociate with the brand anymore
or pretend like I'm an owner,which is fair.
But they also said I'mobligated to give them aid and
support and things which I haveso far.
Uh, I have no, there's noreason why I would prevent them
(09:01):
from acquiring the studio andrunning it.
They have everything they need,so they're good to go.
So this will be interesting.
Just, all in all, the newowners have full-time careers.
There's no way they can managea business.
They can manage a gym becausethey have their own.
The owners are twoprofessionals.
One owns their own business,one is a very well-ranked
(09:23):
employee within a company.
So there's no way they're goingto drop their jobs to run a gym
, and it'll be absentee owners.
Whether they're engaged ordisengaged, I don't know, but
it'll just be interesting toobserve and that's all we really
can do.
So I'm learning oh no, what'sthe learning from this?
And then we'll wrap up theconvo.
(09:48):
I'm learning that there is asuperiority complex to being a
business owner.
If you're gonna be involved,then, yeah, you think you have
harder work ethic, moreintellect, more business acumen,
you're better at sales.
There's something that you cando that the other guy didn't do,
or other gal, I guess.
Whoever you're talking to.
And the superiority complex Ihad is, I thought I, I thought I
(10:09):
knew I would not be as good asat people management.
I thought a more hands-offpeople management would work.
It did.
It kind of worked in some areas.
It did not work in other areas,and so that's something that
I'm learning and taking away.
And with the new owners, theyhave more, I imagine.
They have more resources, theyhave more management experience.
(10:30):
They might be better at salesand marketing, I don't know, but
we will let them run with itbecause it's their baby now and
there's nothing I can do to helpand support beyond this.
Everything that corporate hasasked for they have received.
They don't need anything elsefrom me Everything that the
owner well, I haven't even heardfrom the owners, they didn't
even ask me well, how much theywere losing each month and this
(10:55):
will be the interesting partEach month, corporate demanded
or required demanded for profitand loss statements and I did
what was asked.
I did not go above and beyond,but I gave them what they
requested and was obligated to.
When talking with the CEO, hewas surprised to see that I had
a business loan, an SBA loan,and that was in 12 months of
(11:17):
profit and loss statements.
So I don't know if theyactually looked at my PNLs or
they just wanted them on hand,but either way, there was
lacking knowledge on seeing mySBA loan and so this owner this
owner could have requested thoseprofit and losses because
corporate had those in theirpossession and corporate I
(11:39):
believe what's possible iscorporate could say yes, we are
not the owners, we don't haveprofit and loss statements, but
they have access to them and so,if it would, they ought to have
forwarded them to the newbuyers.
So the new buyers know rightaway they're going to be losing
six grand a month, day one.
Uh, they may not have an sbaloan.
Let's pretend they paid cashfor everything.
(12:00):
They still have managementteams, they still need
instructors.
They're now down members,likely if everything stayed the
same, but they have no sba loan.
They're losing five grand amonth, day one, and maybe they
want that, maybe they don't knowthat, but I hope corporate
informed them of how the priorowner was doing because that was
(12:22):
in their possession, thatknowledge of my P&Ls.
So we'll see what ends uphappening.
I'll pause there.
I've made the point.
So that's where things are at.
That's where it's going.
We'll end up finding how itgoes months and months from now.
But one thing I learned day oneor month one, I was expecting
to make seven grand.
I lost eight and it took 12additional months to see things
(12:48):
collapse.
And so the new owners.
I will say they lose four granda month just making numbers up.
They have deeper pockets, lesslosses.
So it'll take, let's make up anumber.
It'll take three years beforethey end up folding if they have
the same net worth, and theyprobably have a higher net worth
.
So it may be a long time beforeI find out how things unfold.
(13:11):
But unfold one way or anotherwe shall.
That's all right.
That's where we're going.
Let's rock and roll.
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