Diversified Health Offers Help to Struggling Express Clubs

Sink or Swim: Some struggling express club franchisees are getting a lifeline from a new company that pledges increased franchisee support.

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Harper-Simonsen, who now runs her own franchise coaching company in the San Francisco Bay Area, says she still hears from former franchisees who are still running Liberty Fitness clubs. Those franchisees are concerned about the future of their clubs and about Diversified Health's involvement, she says.

“They definitely are worried that Diversified might not be the right company, but maybe they just need to give it more of a chance,” Harper-Simonsen says.

Harper-Simonsen says she likes the direction that Diversified Health is going and hopes the company and its franchisees are successful.

“I think the plan sounds fantastic,” Harper-Simonsen says, “although I just hope that their focus truly is to continue to help those existing franchisees. Is their primary focus really to help women, or is it to make money? Unless they can truly say helping women is their first focus, they won't be successful. They have to make sure that that's where their heart is.”

The question for Diversified Health may not lie in where its heart is but on the foundation of its business acumen. As Wittenberns knows, with every business move, risk is involved. Diversified Health's move into the express club market may seem risky to some, but not to Wittenberns.

“I've never really evaluated the risk aspect,” he says. “To us, we see it only as an opportunity to take existing brands, consolidate them all and build another great company. We're certainly not in this to fail. I wouldn't be making an effort to fail.”

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