Formation History of the GGFA

The need for the unity of the Franchisees became apparent in 1999. In August this year, Gold’s Gym Enterprises was sold to Brockway Moran & Partners and the G Group. Ed Connors called Jerry McCall, Franchisee in San Jose, to advise him the transaction had indeed taken place. Jerry had known of the possibility that became a reality. During that call, Jerry told Ed, the Franchisees need to organize themselves. For the first time, we are heading into unknown territory.

In 2000, led by Jerry, Angel Banos, Mike Epstein, Joel Potter, Sebastyen Jackovics and Tony Calhoun began “underground” phone and email discussions about the motivations of GGI and that if was crucial that the Franchisees move forward with an organized body. With the first order of business….to change the franchise agreement. Also at that time, the newly introduced National Vendor Program was the subject of heated debates.

In the Fall of 2000, Ben Amante was hired as Director of Franchising. Angel reveals to Ben the intentions of the Franchisees to organize. Being familiar with franchisee associations, Ben provided counseling with Angel on the matter. Around this same time, Gene LaMott was installed as the CEO of Gold’s Gym International. Jerry advises him that a large number of Franchisees are concerned over the most recent franchise agreement. Late Winter, David Delehant, corporate attorney for Gold’s Gym Enterprises, is hired by this same group of Franchisees.

February 2001, Peter Brockway agrees to meet with a group from the soon to be Franchisee Association. (Jerry, Joel, Sebastyen, Tom Jackovics (Sebastyen’s Father) and David Delehant meet in this historical meeting at the headquarters of GGI. Gordon Johnson and Phil Sciscione are in attendance via conference call. Those representing GGI are Peter Brockway, Mark Idamueller, Ed Connors, Kirk and John Galiani, Ben Amante and Stuart Hershman . The 2001 Negotiated Agreement is created from this meeting.

In June 2001, at the Club Industry East trade show, the first ad hoc meeting of Franchisees took place. Jerry introduced to the group his concept of a Franchisee Association. Many were fearful and skeptical that forming this legally would bring retaliation from GGI. Emotions run very high, but five people rally to create what would become the nucleus of the Franchisee Association – Jerry, Angel, Phil, Jeremy and Linda Ferrara . The first order of business becomes to form the entity and legal counsel was needed again.

Jerry contacts Darryl Hart of Bartko, Zankel, Tarrant & Miller on June 21, 2001. June 29th, a conference call was held with the Franchisees and Darryl. On the 29th, Darryl is officially hired.

On July 18th, another conference call is held on forming a corporate entity, a Board of Directors, voting representation and payment schedule. August/September 2001 the Gold’s Gym National Franchisee Association was formed with the first Board of Directors: Phil Sciscione-President, Jerry McCall-VP, Linda Ferrara- Secretary, Jeremy Lowell – Treasurer and Angel Banos – Director.

At this time, it is important to note that Jerry financed the entire start-up of the GGNFA for $21,000. A repayment over several months was made to Jerry and he was repaid in full.

Coming soon on this History Page, you will find a Board of Directors history along with important historical occurrences.