LA WEIGHT LOSS: Closing Prompts Franchisee Fingerpointing, Franchisor Befuddlement
October 10, 2008 by Sean Kelly
Filed under LA WEIGHT LOSS
(Franchise Pick) Related: LA WEIGHT LOSS CENTER CLOSINGS (updated 10/3/08)
The post LA WEIGHT LOSS: La Quinta Center Closes Abruptly, Strands Members reports that the LA Weight Loss center in La Quinta, CA closed abruptly, stranding its angry members without notice, without an alternative program, and without hundreds, even thousands, of dollars worth of prepaid products and services they were due.
What else is new, right? This story has been repeated over and over on Franchise Pick and Weight Loss Complaints, where the unofficial LA Weight Loss center closings list has topped 60 recently. However, two new aspects emerged in this story.
First, an LA Weight Loss executive actually participated in an interview regarding the closing (as opposed to the usual unreturned phone calls).
Second was the franchisee - franchisor fingerpointing that has erupted.
The La Quinta LA Weight Loss franchisee blames the LA Weight Loss franchisor
According to the story, “Franchise owner Patricia Gesswein has left a message on her cell phone, telling her customers she will miss them.
‘I got instructions from the corporate office today and I had no notice,’ Gesswein tells callers. ‘This was my job and my life. I’ve never been in a siuation like this.’”
This was my job? A curious statement from the person who owns the business - even if it is a franchise. That’s no doubt what set off Brian Siegel, senior vice president of the La Weight Loss franchisor, based in Horsham Township, PA
The LA Weight Loss franchisor blames the La Quinta LA Weight Loss franchisee
Franchise owner Patricia Gesswein has the corporate office of LA Weight Loss befuddled. According to a story in the Desert Sun:
“We’re as befuddled as the customers are,” Siegel said Wednesday. “Patricia took the customers’ money and shut without notice. Our franchisees are required to take care of customers before they close. This includes proper notice and providing refunds. These are not our operating procedures.”
…Siegel said all he can suggest at the moment is customers call Gesswein’s cell phone number and leave a message. He said the corporate offices “have had trouble reaching her even before this.”
Previous customer Michelle Alfaro of Desert Hot Springs said she was less than three weeks into her 36-month contract for $699. She said Gesswein gave her three payment options — applying for credit, paying cash in advance or making three payments by post-dating checks. Alfaro chose the latter and canceled her two checks still in Gesswein’s possession.
“She really sold it, believe me,” Alfaro said. “She makes excuses on her cell phone message and blames everything on the corporate office.”
Well, Patricia Gesswein accomplished one thing - She prompted someone from LA Weight Loss to speak to the press about one of the many nationwide center closings. She got the Corporate Office so befuddled, in fact, that Senior Vice President Brian Siegel forgot that company policy was to let their weight loss centers close without comment, and to let the phone calls of inquiring reporters and stranded members go unreturned.
Maybe if they stay befuddled they’ll actually correct all the confusion out there about them, their relationship to the bankruptcy and criminal investigations regarding Pure Weight Loss and Vahan Karian, which the media continues to confuse and befuddle.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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MN locations all closed yesterday - I had called just in time to try and rejoin and they told me that they were closing - thankful, at least I got my 56 boxes of bars before 5:00 PM from the St. Cloud, MN location.
I wonder when the entire company is folding? Any disgruntled Franchisee’s out there have any info?
Judy, I was also a client at LA in Charlotte NC that closed w/out notice. Call our local BBB and file a complaint online. If they have enough complaints, the Attorney General will be contacted. Fortuately, my credit card company credited me some on my loss. BBB also gave me francise owner’s name and number. I gave that to my credit card company. I should have seen the writing on the wall. All these national reports should close this entire company and put these dishonest people that own them in jail!!!
Harold and team had these closings in mind months ago, they just thought they could close them quitely!! taking over the Toronto Market was an attempt to take over all of Canada, it represented 40% of the centers in the country and gave them the power to dictate what direction advertising and price would be set at, it was also a “deal” to keep the Toronto group from suing him like the Ottawa group for failing to properly disclose all info as per the Wishard Act of Ontario. (Ottawa is suing for 60+ mil)
As for refunds….if you paid by credit card, call the card company, they can get you some money back, if you paid by care credit, call them, they too can get you some money back, if you paid cash your out!! sorry!
if you are looking to point a finger, point it at the corp office, franchisee’s have been trying to get them to change things for some time with no response, we to have a hard time getting in touch with them.
Do you know where I could find more information about the Ottawa group that is suing? I live in Ottawa and am out a considerable amount of money.
Ok, so my wife just informed me that the Ottawa south location is having a “50% off sale!”, with words like “While supplies last” and whatnot. So it looks like the Ottawa South store will suddenly be closing it’s doors soon. They are also not offering 1 year plans, only 4 weeks at a time. Sounds to me like they’ll be closed around the beginning of January. I would say they might be hoping Christmas brings them some business, but not if their reputation keeps getting destroyed on the internet like it is! They seem to think they can do this covert operations stuff, get away with it, and come out smellin’ like roses, so the saying goes. What I’m hoping is someone on this post is in the Ottawa area, knows that the west end locations (Merivale and Richmond Rd.) are closing, or at least some form of update. I’ve been driving by there a lot, but I haven’t gone in to the place in a while due to a very hectic schedule, and I’m wondering if these blaringly obvious signs of closure are happening there too. I would assume so, since I think that the stores in Ottawa are all own by the same person/group. Any help greatly appreciated!
Did you receive any more information about a lawsuit or getting any money back? I just discovered the shut down and am out quite a bit of money.
LA Weight Loss is pulling out of Canada period.
They pulled the same crap with the Toronto market.
First no more 52 week plans..just 26…then no more 26 just 12 and then no 12 just 6 and then no 6 just 4 …and then BAM they said we have decided to close the Toronto markets.
put everything off at 50%….I was the one to close my center and started selling everything at 50%…then I went to 75%…and then was told whatever does not get sold will do in the trash ….I started giving it away….what could they do fire me?…
They know what they are doing, it seems they have been doing this same crap for some time now and have it down pat.
Sorry people everyone that has had anything to do with this company has been screwed…plan and simple.
Very Sad.
Everything she says above is true. LA closed centers in waves so that it would only be regionally covered on the news and National News would not pick up on it. The closings came before all the “bail out” talks around the nation and they used that as their excuse. They had area “closers” that only handled closing down markets while assuring operating markets “they werent closing”. There a few franchises still open, but not enough to financially support the franchisor.
My question becomes, and this is only because I KNOW NOTHING!, when’s my store going to close, when am I going to have to begin the headache of trying to get something out of the company, since they owe money on services that wouldn’t be provided.
YIKES!!! My centre here in London, On is having 50% off everything! Calling it a Christmas Special!
NotHappyClient
If I were you I would start NOW…. You may or may not get anything back from them…. Like former franchisee
and myself have said a few comments back …if you paid by credit card or care credit …you may be in luck…if it was cash …no you will not see anything…. If you bought La-Lites…your center will be ordering enough to cover what they owe clients…BUT only if you have been in the center within the last 4 weeks of your center closing…also if you only purchased 12,6 or 4 they will not refund…if you purchased 52 or 26 they say they will refund.
They started selling less and less weeks because they knew they were closing and do NOT want to do a bunch of refunds in the end…. They will tell you all about the LA on the go program and that your file will be transferred to them so you may continue your weight loss.
If this company really wanted to stay in Canada, they should have took 1 counselor from every center and started up a Canadian La-on the go, so that the clients when they call in for the 15 mins a week could speak with someone from their center, instead of some stranger who does not know them.
I wish you all the luck in the world and am sad that all of our clients are going through this.
Could anyone tell me how i can order the La Lites for myself, now ? They taste great! (Philadelphia PA)
I want to order LA Lites in bulk, anyone know from which center I could place an order and have them shipped to Philadelphia PA. The Lites were a great part of the program. I lost a lot of weight following the meal plans (higher protein/less carbs)
Thanks. they are selling on ebay, but I’d like to try to order from franchises that are still open
As one of the first hires by Graig and Tonia into the LAWL Toronto markey - I can’t say I’m at all surprised by any of this.
What surprises me about “Aleo’s” comment (if it’s the area supervisor I’m thinking it is) is that you were supposed to go to the US to take over a few centres for Craig and Tonia, because they were at risk of loosing the Toronto market 8 months in, for not meeting their store opening quotas…..
Can’t speak for Corp., but the way Craig and Tonia managed their business and treated their employees…….it is no wonder Corp came in and took over.
It regularly happened that staff pays were manipulated…….supervisory staff instructed to lie to employees……. and I even heard rumors that there had been legal actions against them by former employees……..and that was within their first year.
I feel badly for the clients and current employees……..Wasn’t it Tonia’s uncle (can’t remember his name now Thompson??? - but will have to look it up) was the financial backing……..
Yesterday when I went to weigh in (London ON) I saw the sign saying………….75% off everything while supplies last!!! Looks like the end is nearing…down to 2 girls working
First - to SoNowWhat - if you have any product -get it now as yes - this would be a tell tale sign that they will most likely be closing unfortunatley. This franchisee also owns the Ottawa Market so my guess is that that market will not be far behind:(
As for “One of the first Goulding employees” - I am not the area supervisor you are thinking of (I believe you are speaking about Christa or Wendy), but I would probably know who you were as I was also hired when the market first opened and was promoted to supervisor within the first few months of the market opening. While I was working in the GTA market - I can’t say that I agree with your comments re: how Tania and Craig managed their staff. For the time I was there they were nothing but kind and open - I feel the change happened when certain people were promoted to supervisor positions that were not ‘proemployee’ but ‘prokissups’ and this is when the demise occured - i.e when Christa was promoted to Regional - It simply went to her head and she had favourites and would actually give Craig and Tania weekly summarys that were not always accurate. I felt that she put on one front to the employees and then another to Craig and Tania and this is when things started to fall apart. I heard that after I had left - things had started to get bad - I don’t exacts but Vicki getting let go was one of them (Vicki was always pro-frontline). I am not sure how long you were an employee with LAWL so you may have been there longer than I was to have seen the ‘bad’ changes but I know that when I was there (for the first year they were in the market) Craig and Tania tried really hard, they just unfortunately relied heavily on a regional supervisor and a few other supervisors that were not fully equipped to recognize good staff and promoted people that simply should not have been supervisors. I do agree that there were a few supervisors that did lie to the the staff but once again these were supervisors that should not have been in this position to begin with - once again they were promoted due to Christa’s reccomendation.
And - yes it was Tania’s Aunt and Uncle that assisted financially with the franchise and yes it was Thompon - I remember the aunt was Maureen - I am not sure the Uncle as he was never really around when I was there.
Nonetheless, I really feel that the LAWL program was a good one and unfortunatley due to some bad leadership the franchise folded:(
Please let me know your thoughts “one of goulding’s first employees” as I would be interested to hear more about your specific experience with LAWL.
Aleo - Unfortunately, I don’t know who you are…..and I really can’t speak to my specifics. As there were very few supervisors at the time, I am VERY confident I would know who you are also. There weren’t a whole lot of us trained at La Gondola - that stuck around long enough to be remembered. Even then, the churn was really high……and that was well before Christa made Regional.
I really just feel badly for the clients……because as we all know (whether corp or franchisee) it was all about the $$$.
At any rate….for those stung before June 20……if they can’t get something through the Corp, they may at least have a chance with Tonia’s Uncle (financial backing). In fact his Subway Franchise office is probably still in the same place on Bayfield in Barrie.
One of Gouldings first employees - I am sure that we would know eachother as well and I can appreciate you not wishing to speak of specifics. I stayed with LAWL for about a year and it sounds like you were there for quite a bit longer - were you still at LA when the take over happened? On a side note, I can’t believe how good your memory is - I couldn’t remember for the life of me ‘La Gondala’ - Looking back, I guess we should have known how Corp was with how they handled dismissing people throughout training, eh? I remember never knowing if I was going to be the one that was pulled out never to return - were you in the counsellors training or the manager training? I was in the Manager one and I know that it was a nerve racking process for us.
I agree with you - it is the clients and the employees that dedicated the long hours to their centres that lose out in the end and it is unfortunate as LAWL had so much potential and the ‘greedy’ ruined it for everyone:(
eventhough I don’t know who you are - have a great holiday season as I am sure we crossed paths as I was part of most of the GTA centres for the first year.
Cheers!
Aleo - You have me confused. If you left in 07 you were there much longer than a year??? Also, my memory may not be the greatest but Wendy and Christa were the only two Area Supervisors…….Wendy did replace a mat leave, and Christa went on to be Regional……and was replaced by someone else (can’t recall their name). Also, if I remember correctly Managers and Counsellor all trained together…..
Anyway - Have a great Christmas and all the best for the New Year…..
One of Gouldings first employees - I Didn’t mean to confuse you by all means - For supervisors there was me, Wendy Christa then Dawn then I think Amanda was promoted to AS, then Heather,Melissa, Deborah (I think were promoted to Sales Specialists? then supervisors) and I think Marianne got promoted shortly after I left and a few others after I left along with her etc… not sure about after that. Also, if you were in the very first training class at La Gondala, I can assure you we trained in different rooms during the same time period but the managers were in one room and the counsellors in the other room - Shannon was the managers trainer and I think the counsellors had some guy…I don’t remember his name?? After training was complete the managers travelled to Ottawa to work at the centres there for a few days while the Am’s and counsellors set up the branches. Then we opened in the market!!
Really, it is neither here nor there…I just wanted to state some specifics so you wouldn’t think that I was full of it!
Cheers!
Thanks - That makes more sense…I remember Shannon.
Have a great Christmas.
I just went to weigh in and sadly, the end is here for London! Doors locked today with a note on the door! Too bad so sad sorry about my luck!
Ottawa Centres have now closed too.
I live in Charlotte NC and I attended the LA Weight Loss Center on Pineville- Matthew Rd. I heard today that they had closed as well. Oh, well another one bites the dust. Hopefully, we will get our rebate of $375.00 back someway, somehow. I keep hearing the ecomony story, so what we all are having to adjust to the ecomony. I’m sure the owners are living somewhere large off of our money. Hopefully, he will find a place in his heart to refund us our money. You reap what you sow. Keep living.
FYI:
If it is LA Weight Loss & you paid with a Care Credit Card or other credit card, get in touch with them asap and request a chargeback. You will have to fill out a form and furnish documentation, but many have been successful with Care Credit. Be persistent. Their contact info and form is posted here.
If you paid cash, can’t get a chargeback or refund from the company itself, you can file consumer complaints with both your state Attorney General and the AG of Pennsylvania. The PA Attorney General was very aggressive in seeking refunds in the case of Pure Weight Loss customers, and will likely do the same with LA Weight Loss. Contact info for all AGs is here:
Contact List of State Attorneys General
Please keep us posted on your progress, and have a happy new year.
Also check out the posts on Weight Loss Complaints
Read about a related case here: Pure Weight Loss Members to Receive $700,000 in Refunds
For all of you who have paid fees and lost out, you can bring your contract to Herbal Magic and they will honor a program for the same lenght of time at one of their centres!!! No Fees! In my opinion it’s a much better program anyway, and you know they’re not going anywhere!
Is this for any Herbal Magic?
I was thinking of joining LA Weight Loss in Calgary, but heard from someone I know that goes to Jenny Craig, that the LA Weight Loss centres in Calgary were closing imminently. Does anyone know if this is true or not. It seems that market after market is closing without any notice. I’m afraid to risk losing my money with LA Weight Loss.
Calgary - Keep as far away from this company as possible! I’ve been doing tons of research on them since I caught wind of this happening while I was on plan, way back in the summer of ‘08. It’s not just markets, it’s the entire chain. They started in the US because that’s where they were hurting the most, and moved into Canada shortly after. They’re creating a “staggered domino” effect, taking out small market, then large market, then medium, back to small, etc. If you’re wanting to know, visit a location and only get some details, say you’re not quite sure yet or getting info for a friend. If they’re not offering 1 year plans, they are definitely closing, and soon.
Calgary/Others:
Read the info here and then decide.
http://www.franchisepick.com/franchise-controversies/la-weight-loss/
Weight Loss Complaints:
http://weightloss.franbest.com/
Nothappyclient,
Yes this is for any Herbal Magic. Just bring in your LA agreement and your services will be transferred
I went to the Mooresville nc store. I just went in on a Friday to weigh and there was a note on the door that they were closed. I had a couple weeks left on weight loss and had not started maintenance yet. I have about 14 boxes of lites still owed to me. What I would like to know is who are the people who are selling the bars for 70% off on the internet and are they the bars we paid for?
Yes- they were bars you paid for! Part of the dimise of LA Weight Loss was Managers that stole product from the centers and resold on Ebay. This has been going on for several years.
ARIE
I’m sure you have heard of Slim fast correct???
Well I was a client before being a counselor for La-Weight Loss….I could not afford the bars and did a comparison with the slim fast bars and shakes to the La-lites the only differance is 200mg of potassium…sooooo
if you wish to continue using a bar just grab some potassium tablets and use the slim fast instead ….I hit my goal NOT using the LA-LITES instead I used the Slim fast bars…they work great I just treated them as I would an la-lite.
So not to worry you can still have your sweet snack.
Good Luck
Rita
The dimise of LA Weight Loss was not from managers stealing product…it was from mis-management from corporate level
You can’t tell me that hundreds of centers or pretty much the whole company will be soon be out of business because managers were stealing product … thats just crazy to think that.
Sean and Tom-
We have not heard much about LA Weight Loss lately? Does anyone know how many franchise locations are still open and what the plan is for the parent company?
Does anybody know if LA peanut butter bars are safe? I did manage to have a few boxes of those before LA shut their doors in Charlotte NC .
Has anyone contacted an attorney to get this issue opened as a class action suit?
If so, I would like to be added to the list.
The centers here in San Antonio, Texas have closed and I am out about $1,000.
Thanks.
Chris
Does anyone have an ideas of how to find out who the franchisee is?
I would like to contact her directly to see if I can get my $ bacK.
Thanks.
Chris
harold katz sold the company to 3 of his senior employees sometime in january. he no longer owns la weight loss.
I’ve been looking through the many frustrated comments from LA Weight Loss customers and I believe I have a solution. My husband and I sell for a company called Freelife. It is a 14 year old debt free company that specializes in health and wellness. The latest and greatest of its products to come out is called TaiSlim. It is a delicious juice that helps you lose weight and has many many health benefits. Rather than go through all of that in this email, I’d like you to take a minute and go to our website to read up on it. My husband has lost 15 pounds in less than two weeks. He has no side effects like fatigue, or hunger, or frustration. It may sound too good to be true, but please go to the site and see for yourself. If you have any questions, please email me at the above address.
Sincerely,
Martha
Herbal Magic is allowing past LA weight loss clients to go on their program for free. All that they wanted me to do is bring in my LA contract & purchase their food plan. The personal health coaches at Herbal Magic are amazing! They honored my 1-year contract with LA weight loss by giving me a 1-year Herbal Magic contract ($780 value) for free. I have lost over 20 pounds since starting with Herbal Magic in December and I am very close to my goal. I am ready to have the best summer of my life and I owe it all to my Herbal Magic coaches!!! No matter how tough my life gets, my Herbal Magic Personal coaches constantly remind me of my strength to reach my goals. They really teach me how to get rid of the weight and most importantly, keep it off. I love the Herbal Magic food plan and I will use it for the rest of my life. This really isn’t a diet; it’s a lifestyle change. I have never felt so great!
I really should have gone with Herbal Magic in the first place. I highly recommend everyone going to Herbal Magic. I am from London, Ontario & I go to Herbal Magic located at: 769 South dale Rd.E. The staff is awesome here! Thank you goes out to my personal Coaches! You are the best!
The Center closed in Wilmington,NC July 2008, while I was on vacation. The programed worked perfect for me. I was very, very sad to discover they closed without any warning. I really need to be on a supervised program, and will definitely check into the abover Herbal Magic program.
As for the Class Action Law Suit, I was directed the the State Attorney General in North Carolina. The case is still open. Also, I filed a dispute with my Care Credit account. All my pre-charged $$$ is suspended until the case is resolved. But, I am still out about $700.oo for sign up fees.
Has anyone tried the La to your door Yet??? After all that happened with the La weight loss centers closing, I am not sure if they have went under.
It’s the same executives masking as a “different” company. Kristi Mckenna, Tim Britt, etc are still in charge. I would not even trust any of them with my credit card number….The are all crooks.