We bought a franchised unit from Kahala Corp, the name of the franchise is Nrgize Lifestyle Cafe, these units are primarily in La Fitness gyms, when we bought ours you could not have a smoothie juice bar in a La Fitness without buying an Nrgize franchise. They charged $130,000 for the franchise fees and equipment, the breakdown went like this Kahala took $50k, La Fitness took $50k, and they charged another $30k for a couple of coolers and a cash register and signage. Their training at the corporate office went very well, Lynette which is no longer with the company did a great job, but as soon as the store was opened it went down hill from there! The regional rep did not train the staff the correct way from the beginning, the food suppliers they required us to use constantly messed up orders and did not show up, shipments from their owned supplement supplier were constantly messed and late. Eventually we fixed these issues internally, problems we could not fix ourselves were and still are ignored by Kahala and La Fitness, we eventually stopped paying all franchise fees, and only then did Kahala contact us to find out what was going on. We asked for a reduction of fees and explained that the clubs memberships had dropped to the point that the fees they were charging could not be paid. Kahala claimed to have contacted La Fitness to ask for a reduction of rent from them, their claim was that La Fitness denied a reduction due to the number of “check ins”” were high enough to charge what they were charging. That was it
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