• Report: #1133678

Complaint Review: Nrgize Lifestyle Cafe franchised by Kahala Corporation

  • Submitted: Tue, March 25, 2014
  • Updated: Thu, May 15, 2014

  • Reported By: Nrgize Lifestyle Cafe Rip Off Non support from Kahala Corp — Mesa Arizona
Nrgize Lifestyle Cafe franchised by Kahala Corporation
Kahala Headquarters 9311 E. Via De Ventura Scottsdale , Arizona USA

Nrgize Lifestyle Cafe franchised by Kahala Corporation WARNING DO NOT BUY THIS FRANCHISE!They will not show you real earnings the training location makes a good deal of their earnings from training not actual sales!We bought a franchise from Kahala corp for a new location in Mesa Az for 135K. We ran into pr Warning! Do Not Franchise Nrgize Lifestyle Cafe Scottsdale, Arizona

*Consumer Comment: La Fitness scam

*Author of original report: aspartame Hidden dangers

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We bought a franchise from Kahala Corporation in a newly constructed LA Fitness for 135K. We had probems right away with the Staff. They were already bonded to One Stop Nutrition who had opened two months prior to our opening. The inexperienced revolving door training staff would wear One Stop t-shirts, pass out their coupons. They also drank One Stop Water and smoothies. I complained that it was a breech of contract to promote an outside competitor while I pay royalties and rent to LA Fitness. 

I asked the trainers to have loyalty to the inside business and their response was, "If I could give them free merchandise then they would stop". I told them I could not afford to give them free, but I could do at cost if they would stop promoting an outside competitor.

I compained to Kahala and LA Fitness corporate with no resolution. How could I gather member loyalty if the staff would not, I was in a no win situation. [continued below]....

..... 

I hired Coyote Cheerleaders thinking perhaps they would be loyal with attractive staff, all that accomplished was harassment from the trainers towards my staff. Again I complained to Kahala and LA Fitness, nothing happened and they considered me a complainer!

To make matters worse Kahala autherized Cold Stone ice cream another one of it's franchises to sell Nrgize smoothies. My contract stated that another Nrgize could not be sold within a 5 mile radius, but Cold Stone was across the parking lot another breech of contract. I could write a novel on the unethical behaviour I witnessed at LA Fitness and the lack of concern by Kahala their only concern was rent and royaly payment.

I was duped by the earnings of the training location, most of their earings are from training new franchisees not actual earnings! DO NO INVEST IN THIS FRANCHISE!


This report was posted on Ripoff Report on 03/25/2014 11:44 PM and is a permanent record located here: http://www.ripoffreport.com/r/Nrgize-Lifestyle-Cafe-franchised-by-Kahala-Corporation-/Scottsdale-Arizona/Nrgize-Lifestyle-Cafe-franchised-by-Kahala-Corporation-WARNING-DO-NOT-BUY-THIS-FRANCHISE-1133678. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

La Fitness scam

AUTHOR: Mike - (USA)

sorry to hear about your issues with the companies. We own 3 of these places located inside LA Fitness and we face the same issues just like you do on a daily basis. It's gotten so bad that local supplement stores are literaly advertising inside our places, setting up booths, giving out free shirts to the la staff to wear instead of their work uniforms(even the customers made comments about this) and LA Fitness does NOT care at all. All they care about is their money and once they get it, that's all that matter to them. we tried to talk to everyone from LA Fitness corporate to solve the issue which should be of their interest(since they are getting paid for this) but they just kept ignoring us. Our sales we really good when the LA Fitness employees weren't connected in a business way with supplement stores next door to our locations but that was only the first couple of years. We've had our stores for many years and it's getting worse every month. We've calculated that the monthly loses per location are over $5.000 gross. there is simply NO solution for our issues with their employees because the company is ran by very unproffesional people. There's been cases when LA Fitness employees were sending us anonimous letters to scare us, also numerous times they've been caught stealing products from our coolers and none of that resulted in terminating these employees.

 It's more than obvious that LA Fitness is a joke if they can't control their own employees. We had plenty of conversations with their managers, vice presidents and so on and again NOTHING changed. Btw it only gets worse, it got to the point that a couple of their managers "worked" at one of these nutrition places next door to the gym while being employed by LA fitness and as you can imagine most of our customers left us. We also tried to feed the la fitness staff and that didn't change anything but it increased our expenses. It's funny and sad but when we cut out the freebies since it produced no results and they kept promoting the next door stores, we had a series of "roid" rage scenes from their staff at our counters even in front of our customers, we kept most of the surveillance tapes from these "situations" in case we decide to take them to court one day.

 Oh, I almost forgot, if you start advertising outside the gym you have a better chance of making loyal customers since the LA staff can't really talk to them, which is what we've being doing lately. The 2 of our juice bars are doing way better using the outside advertising to bring business but the third location, we face real problems bringing people in because of the operations manager who is there 9am-5pm. He is a real piece of work, he openly reminds us that he is "the KING" as calls himself and openly states that he "would do anything possible to shut us down because he doesn't like the idea of having an outside business inside "his" business" as he claims it to be. At first we thought he has a personal problem with us but later on we realized that he has some kind of mental disorder which involves a strong behaviour of showing how powerful and mighty he is. That same manager also has a side income like the others as he had told us with no regret, a local nutrition store pays him 5% on all of the business he brings to them. If LA fitness employee tells you to pay them so they can stop "working" with others please don't do it, they won't stop, instead they will collect from both of you while you will be paying LA fitness corporate to have an "exclusivity" as they call it inside their clubs.

 Last year a lawyer(he said that he also purchased a juice bar insdie LA) who reached out to almost everyone of the juice bar owners(previous/recent) as he told us and he wanted to know our experience with the company. We've talked for over 4 hrs and explained him our issues(way more than the ones mentioned here) with the company, he said that he's been in touch with most of the owners of these juice bars and ALL of them reported the same issues.

 I know it sounds crazy but there's not A SINGLE thing that LA Fitness does right and the only reason we still operate is because we've borrowed $500.000 from the bank thinking it will be a good idea to run a turn key franchise business inside the gym. The moment we pay it off is when we'll take our business elsewhere(anywhere just outside the gym), until then our whole family will continue to work for FREE to get through this. I feel really bad for any future owner that might decide to open a juice bar inside LA fitness. 

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#2 Author of original report

aspartame Hidden dangers

AUTHOR: Nrgize Lifestyle Cafe Rip Off Non support from Kahala Corp - ()

Aspartame is the sweetner used in Nrgize smoothies. I would advise doing research on this sweetner if you're consuming on a daily basis. 

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