Welcome to the GGFA interactive Website! I know you are searching for the President Blair McHaney’s urgent and compelling message to the Franchisees. Just click the “President’s Message” on the above tool bar.

If you have not registered for your user/password access, please email us. You will find useful information within this website for information sharing, group purchasing and the new Supplier Partnership Network (SPN).

Be sure to visit the GGFA Executive Team at the 2008 Gold’s Gym International Convention in the GGFA Hospitality Suite – Islander I. We’ll be open with refreshments, internet access and fellowship!

And – call us to reserve your place at the 2008 GGFA Owner’s Conference in Santa Monica, September 25-26th. Our theme is “Yesterday, Today and Tomorrow” and the famous best -selling author, Rajendra Sisodia will be our keynote speaker. Find out more about it at the convention, or click on "About Us" , then "Owner's Conference" above, to register today!  

Ginger Collins
Executive Director
GGFA 

Fellow Franchisees,

The 2008 Gold’s Gym International convention begins the 21st of July. In hopes of addressing our greatest concerns at the event, the GGFA Executive Team submitted a written request asking GGI to give us a clear statement of their strategy for franchising, marketing and corporate operations.

On Thursday July 3rd, we had our last National Franchise Council (NFC) call before the convention. We were told during that meeting that our request for a well-defined strategic direction would be addressed at this convention. GGI will be combining the Big Picture Forum and the Marketing Forum into a single session that will address overall brand direction. We were adamant that our question cannot be answered simply from a marketing perspective. We need to know how GGI/GGF will help franchisees that are struggling. We need to know how GGI/GGF plans to bring increased value to franchisees that are very successful without GGI/GGF’s help or tools. We need to know what GGI sees as this brand’s competitive advantage. While we think the new marketing direction is outstanding, marketing itself is not a competitive advantage. The lack of strategic direction continues to frustrate the GGFA, franchisees and many of GGI’s own staff. Strategy and strategic intent are left to anyone’s guess. As someone at GGI once told me when I asked about strategy; “Someone wants to take the brand somewhere, in some time frame and in some fashion.” This leaves little chance for alignment or enlightenment. Franchisees should know where this ownership intends to take this brand and how they intend to get there. We deserve to know. So, why don’t we?

In the opinion of the GGFA Board, it is because no strategy that has been employed has shown signs of life. Revealing this to franchisees would be an admission that GGI may not have the answers to competitive and strategic questions.

When TRT first entered the picture, they bought into a strategy that had little chance for success. From an operations level, the goal was to build bench strength and grow to 200 (or so) corporate owned gyms through acquisition and green-field. From a franchising standpoint, the goal was to move expiring franchise agreements onto a 3% royalty and a 2% advertising model. Since at the time nothing was really provided to the franchisees, the strategy would be to provide a few value-added services and franchisees would happily convert to the 3/2. Reality is that franchisees have far more answers than the franchisor and franchisees are the value in the system. Moreover, franchisees will collaborate with one another to learn what works and what doesn’t and to combine ideas into new ideas that can drive our business and hopefully differentiate us from other brands.

So why can’t we engage GGI in a meaningful discovery process for winning in the fitness industry game? We formed the National Franchise Council in September 2006 and it has worked well for raising issues and discussing concerns. But even with David Schnabel as the chair, the Best Practices committee (a subcommittee of the NFC) left the starting blocks then hopped the fence somewhere. Why was there so little effort behind this? Why was it launched and ignored? GGI’s answer is that there were more pressing issues, not enough manpower, and many on the subcommittee were less than enthused. Perhaps the launch of the Best Practices subcommittee as a conjoint effort was premature. But one should not ignore the reasons for its fade-to-zero. More pressing issues, not enough manpower and lack of enthusiasm are not problems - they are symptoms of a value system that doesn’t recognize the ridiculous amount of wealth that sits in the minds of the franchisees and their key staff.

GGI does not see the value that franchisees bring to this system. They might read this and disagree but value is reflected by observing where a person or organization uses time, energy, money and other resources. I don’t care how much you say you value having time with your children. Unless you actually take time with your children, something else sits higher in your value system.

People within organizations make bold statements publicly that “our people are our greatest asset” and then treat people like widgets and commodities. Even GGI has made public statements about employees and franchisees being the reason for success. The realization that your ground level employees, and in GGI’s case, the franchisees, hold all of the power and are the reason for any success, comes as a humbling, self-actualizing wake-up call when the concept moves from public spin to a stone-cold realization. You can observe the transition when it happens as it forces the newly actualized to stop pontificating, admit that they do not have all the answers and to humbly start seeking what is not known. Many of us are guilty of the same behavior in our own organizations. The transformation is complete when those with authority cross the threshold from telling those for whom they are responsible – “Here is how I have decided to help you,” to humbly asking – “How can I help you?” With information in hand, resources are directed to give the help that is needed.

So while GGI states publicly that the franchisees are valuable and are the passionate operators who will differentiate the brand, a more accurate statement might be, “Our people’s hands and feet are our greatest asset but we sure don’t want their minds.” Henry Ford put humans in commoditized roles on assembly lines and was even quoted as saying, “Why do I have to have the whole person when all I want is their hands?” 

And here is the great divide in this organization and in any strategy that GGI may have. The value of this brand is literally in the intellectual and human capital that is lying untapped in the vast franchisee base. No other brand has this at the level of Gold’s. It is unique to Gold’s. We as franchisees see this every single day when we call each other for help, ideas and support. We see the value the franchisees bring to one another when the GGFA asks for your input and we get overwhelming response. Instead of embracing this wealth of knowledge and support, GGI seems to resent the idea that franchisees are bringing the real value to the system. GGI either doesn’t want our intellectual capital, or, has no idea how to engage us in a way that we will enthusiastically contribute that intellectual capital. It seems they want our hands and feet. They believe that life would be much easier for them if we would just do whatever they asked us to do. In other words, they determine how a club should be run, what a franchisee should receive and we comply with their determination. The truth is, life would be much better for them if they stopped pontificating and started seeking. Seek what the franchisees collectively know. Seek a unifying culture with the franchisees. Seek answers from and with the franchisees.

But that’s not where we are. GGI’s philosophy is that the franchisor should have the answers and will hand them downstream for franchisees to employ. I suppose they see themselves as having diminished value if the answers are coming from franchisees. I have news, most every great innovation in other franchise organizations came from franchisees and great franchisors recognize that.

I encourage you to read the article from Franchising World recently highlighted by the International Franchise Association on how franchising succeeds in today’s world. The key message to franchisors in this article is simple; Stop pretending to be the smartest guy in the room. You’re not and everyone knows it.

Make no mistake, the value in being a Gold’s Gym franchisee will largely be determined by how well and how often you engage with other franchisees. The GGFA is the mechanism for sharing best practices, working with vendors, innovating new ideas, and hopefully, re-engaging GGI in meaningful conversation about where we are going.

Let’s be clear about what we want. We want a clear and intelligent strategy, increased value for our franchise fees, an ROI on our advertising money and to be rid of the “GGI tax” on our equipment purchases.

So how is GGI performing for you? The GGFA will be asking you to take a very short e-survey so that we can report their performance in the eyes of their customers – you – on a regular basis. When you get the survey you will be asked 2 questions. The first is, “On a scale of 0-10 how likely would you be to recommend a Gold’s Gym franchise to a friend seeking a franchise business?” The second question will be, “Can you give us your reason for that score?” We are relying on Net Promoter Score (NPS) research done by Fred Reichheld at Bain and Company as a measure of the relationship capital you hold with your customers. Please click here to the link and read the article by Reichheld from Harvard Business Review, December 2003 (The One Number You Need to Grow). We would also guide you to Reichheld’s book, The Ultimate Question, from Harvard Business School Press, as a source for using NPS in your own company.

We hope that you attend the convention and will involve yourselves in conversations with each other and with GGI. The GGFA will be hosting several Round Table discussions in the GGFA Hospitality Suite (Islander I) and your involvement in any and all of those is encouraged. Stop by the Suite to obtain a schedule of the topics and times.

Most importantly, you should plan on attending the GGFA Owner’s Conference September 25-26th in Santa Monica, California, the birthplace of Gold’s Gym. The keynote speaker will be Rajendra Sisodia, co-author of Firms of Endearment from Wharton School Publishing. His research on top performing companies and how they align with their employees, customers and communities will add new information and knowledge that will give you new ways to see your business and your possibilities. The Owner’s Conference will remind you why you love this brand and give you value for your travel dollars.

In the meantime, let’s be smart enough to not allow the value in our system to lay dormant while we wait for someone to harness that value. Together, we have the responsibility, authority and power to make decisions with GGFA resources that will help us all succeed in our businesses and find balance in our lives. The GGFA is your “company” as well as your collective voice. It needs your commitment and your support.

Stay engaged. Stay diligent.

Sincerely,

Blair C. McHaney
President of the Gold's Gym Franchisee Association

	GROUP CODE LOGIN: JOEGOLD

Online Conversations

Get involved on our online discussions!  An online communication community exists within the website.  In order to view and participate in a discussion on various topics and issues, you must be logged in.  If you are a GGFA member and have already received access to the website, simply login above or to the right.  From the Extranet page, click on the online conversations link and you will be directed into the forum.  To request access for the first time, click on the Register link above or to the right and complete the registration page.  If you are a GGFA member, you will receive an email, confirming your login access is activated.  If you are not currently a GGFA member, you will receive an email, guiding you through the process to membership.  Once your membership is established, your GGFA website access will be activated.