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Old 07-30-2012, 06:57 AM   #141
Wayne Riddle
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Corey Linhart View Post
Isn't venture capitalism all about "spin and self interest?" Make as much money as possible, and NOT for us, as Affiliates?
Nope, not at all. Well unless you unless to the Obama administration and they sure seem to have a handle on economics.
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Old 07-30-2012, 06:58 AM   #142
Wayne Riddle
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Chris Mason View Post
I don't think telling people to contact Mr. Kelly makes ANY sense as he obviously has an agenda to protect and it would be in his best interest for the community to feel his company is going to be helpful etc.
And one could say the same about CFHQ and their statements.
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Old 07-30-2012, 07:01 AM   #143
Lynne Pitts
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Wayne Riddle View Post
Nope, not at all. Well unless you unless to the Obama administration and they sure seem to have a handle on economics.
Wayne's going back to time-out land, to join Mr. Norris, since neither can seem to follow the rules. While there, please re-read the AUP: NO politics, NO personal attacks....
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Old 07-30-2012, 07:02 AM   #144
Rick Burrell
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Re: Stop Anthos from Taking over CrossFit

Anthos

Unless Greg Glassman tells the affiliate community he needs your support, which last I checked he is doing pretty damned well, or he needs any assistance from vulture capitalists to execute his vision, your words are crap-brown. Fifty percent (50%) is not a majority, but equal partners means Crossfit Main needs your blessing for everything. We don't want your ideas, your money, your input. Go suck some other company dry. If you were a client at my box - PETN1.66 Crossfit - you wouldn't be now.

Our clients come to the box because of the training and freedom to do whatever the hell we want. That will continue at any cost. PETN1.66 Crossfit will rip the Crossfit name down in 10mins if we hear the Greg's plan is going south. Put that in your pipe buddy!

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Originally Posted by Brendan McNamar View Post
And now I am 100% convinced Anthos is totally full of **** about their motives.

"Dear CrossFitters:

My name is Bryan Kelly and I am a Managing Director at Anthos Capital. As you may have heard, we have entered into a definitive agreement to purchase Lauren Glassman’s ownership interest in CrossFit subject to court approval. I am writing to tell you about us, respond directly to misunderstandings about our objectives, and to tell you that we will be supportive, non-managing, value-add partners to CrossFit, the affiliates, and the community.

By way of personal background, I have been CrossFitting for the past two years and know and love the CrossFit community. Like many of you, CrossFit has had a profound positive impact on my wellness and life. Due to CrossFit, I’m in better shape at 34 than I was at 24 and I hope that I’ll be even healthier at 44 than I am now. Many of my colleagues are also active CrossFit participants, and feel the same way. I developed tremendous respect for Coach Glassman and the Affiliates in revolutionizing the fitness industry. This is what attracted our firm to consider investing in CrossFit.

We got to know the CrossFit team over several years, built a mutual respect, and became interested in the idea of investing. We learned of Lauren’s interest in selling her shares and reached an agreement with her that we believe will be beneficial to all. Our investment accomplishes several things: it provides Lauren with a fair and orderly transition out of CrossFit (consistent with her role of co-founder of CrossFit and her 50% ownership interest), it doesn’t create substantial financial obligations for CrossFit in connection with a buy out of Lauren’s interests, and it results in Greg having a partner who respects him and his vision and will support him in his efforts to further build the company.

Grossly inaccurate claims have been made about our intentions. For clarity, our plan is to help Coach Glassman professionally execute his vision by playing a supporting, hands off role. Greg will continue as CEO and we will be an investor with no managing responsibilities. We will own 50%, not a majority. We will be equal partners. We have absolutely no desire to change the affiliate model by turning them into Globo gyms. Our core philosophy as investors is to be supportive, non-control partners to the companies and teams we back.

I have met with Greg several times. It is my style to brainstorm and throw out a variety of ideas that the entrepreneur can take or leave as he/she pleases. After hearing feedback from several of you affiliates, my suggestion is that affiliates could benefit if CrossFit HQ (or a third party provider) offered optional technology services (website, member billing, member communication) to Affiliates that wanted them – those that wanted to could employ these initiatives, those that did not want to would conduct business as usual.

We raise ideas, but ultimately the decision is Greg’s and we view our role as one that helps, not directs. More broadly, the reason we are attracted to CrossFit is because of its important Affiliate model. We have absolutely no intention or desire to create a franchise model, tell you how to run your business, or force you to sell products you don’t believe in.

We know the affiliates are the lifeblood of the community and are critical to the long-term success of CrossFit – both as a fitness revolution and as a business. In short, why would an investor want to destroy the future of a company in which they invest? We want to do well in the future by you doing well in the future.

As we all know though, a core tenant of CrossFit is the relentless pursuit of betterment. We’re confident that our partnership can help do that.

Best Regards,

Bryan"

If Bryan was a member of my gym he would now be an ex-member of my gym.
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Old 07-30-2012, 07:27 AM   #145
Thomas Davenport
 
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Re: Stop Anthos from Taking over CrossFit

worth a read:

Safe for work . .

http://anthosandcrossfit.blogspot.com/
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Old 07-30-2012, 07:46 AM   #146
Michael Deboever
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Re: Stop Anthos from Taking over CrossFit

The CrossFitters in Quebec, Canada, will rally together. We are against Anthos.
CrossFit must stay the way it is!
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Old 07-30-2012, 07:57 AM   #147
Corey Linhart
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Thomas Davenport View Post
worth a read:

Safe for work . .

http://anthosandcrossfit.blogspot.com/
It's funny...

He attempts to take the high road and say he doesn't want to change anything about us Affiliates. Only that it will be "optional."

What happens when that option leaves you high and dry, Mr. Kelly? I don't know of a single Affiliate that will buy into your greed. Your "member billing" and "software solutions" or whatever the hell is already long since been handled by the likes of MindBody Online, ZenPlanner, ConstantContact and several others who I am quite sure will be/are more reasonably priced.

The goal of a VC is to make money. In order to make the, what, 30% ROI that seems to be typical of these companies, they would have to GOUGE prices, and more than likely offer an inferior product to what the Affiliates have been using for years.

That doesn't seem like an "option" to me...it seems more like an underhanded way to force things upon us, in order to make the ROI, or whatever profit they agreed upon.

As I said before, I want no part in it.
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Old 07-30-2012, 08:04 AM   #148
Joseph Vaughn
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Re: Stop Anthos from Taking over CrossFit

Maybe I am in the minority here... but as an affiliate owner I don't understand why everyone is getting bent out of shape over this.

I don't have any experience with Anthos, but you must consider everyone's motive.

Has anyone questioned why CFHQ went on the offensive first to try and prevent this buyout? If I was a CF shareholder, I would be very upset that Lauren sold her shares for such a cheap price. 20,000,000 for 50% is damn near robbery. This places a $40m value on CF, likely 2ish times annual revenue.... which, in my opinion, is a very low valuation. Low valuations tarnish shareholder equity (at least on paper). I think there is much more to the story than we are getting.

If you disregard all of hq's correspondence regarding Anthos and read's Bryan Kelly's message with fresh eyes, his message seems pretty reasonable to me.

"Forcing" affiliate to franchise would be a logistical and legal nightmare, and counterproductive to their goal.

I don't trust anyone's word and question everyone's motive. But having a business background and some VC exposure..... I wouldn't be so fast make judgements without understand all the facts.

JV
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Old 07-30-2012, 08:28 AM   #149
Larry Bruce
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Joseph Vaughn View Post
Maybe I am in the minority here... but as an affiliate owner I don't understand why everyone is getting bent out of shape over this.

I don't have any experience with Anthos, but you must consider everyone's motive.

Has anyone questioned why CFHQ went on the offensive first to try and prevent this buyout? If I was a CF shareholder, I would be very upset that Lauren sold her shares for such a cheap price. 20,000,000 for 50% is damn near robbery. This places a $40m value on CF, likely 2ish times annual revenue.... which, in my opinion, is a very low valuation. Low valuations tarnish shareholder equity (at least on paper). I think there is much more to the story than we are getting.

If you disregard all of hq's correspondence regarding Anthos and read's Bryan Kelly's message with fresh eyes, his message seems pretty reasonable to me.

"Forcing" affiliate to franchise would be a logistical and legal nightmare, and counterproductive to their goal.

I don't trust anyone's word and question everyone's motive. But having a business background and some VC exposure..... I wouldn't be so fast make judgements without understand all the facts.

JV
You know ... "we tried to work things out" but "this was our only option remaining" and "he forced us to do this" if things get ugly.

There will never be a unifed affiliate front. I'm pretty sure since the ballooning of Crossfit at least half the gyms popping up in the last year or two were primarily profit motive driven. So if the older gyms left the fold, there would still be enough that flew the banner and new ones opened. And without the Crossfit name what would differentiate the remaining gyms? Integrity?
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Old 07-30-2012, 08:36 AM   #150
Sean Dunston
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Re: Stop Anthos from Taking over CrossFit

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Originally Posted by Joseph Vaughn View Post
Maybe I am in the minority here... but as an affiliate owner I don't understand why everyone is getting bent out of shape over this.

-snip-

If you disregard all of hq's correspondence regarding Anthos and read's Bryan Kelly's message with fresh eyes, his message seems pretty reasonable to me.

"Forcing" affiliate to franchise would be a logistical and legal nightmare, and counterproductive to their goal.
As an affiliate, you have an annual license to use the CrossFit name.
Each year you must renew that license.
Next year's contract/renewal could look quite a bit different than this year's couldn't it?
Additional terms could be added to the contract that you may not see as favorable to you - or go against your beliefs.
It may not always look like this:
Quote:
Subject to the terms and conditions of this Agreement, during the Term, CrossFit grants to Affiliate and Affiliate accepts a limited, revocable, non-exclusive, nontransferable, non-assignable, non-delegable, and non-sublicenseable license to use the CrossFit name, trademarks, trade names, service marks or logos designated in writing by CrossFit (“Licensed Marks”) solely for the following purposes (“Licensed Uses”):
[edited for brevity]
The business you grew and built under one impression of the affiliate system may not be there any more. What you (as an owner) once thought was awesome, may not look so great.

Some current affiliate owners may agree with the new terms, and that would be fine with Anthos, obviously - and others may not, which would also be fine, since it would then be culling the herd so that only people who agree with the new "party line" are under contract.

I think that is the warning that is being voiced.
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