Retro Fitness “Undercover Boss” Keeps Low Profile When Franchisee Comes Calling

Getting a Retro Fitness gym franchise seemed like a good idea to Rich Curran of Manalapan, NJ. He and some partners put up $69,000 as a down payment on a franchise. But they needed another partner. Rich found him. He would bring the biggest chunk of money.

“We came in and one of our partners – there was four of us – and one of the partners unfortunately didn’t sign an agreement on time,” Rich told me. “He was away. Time was of the essence. We had to make decision and we signed our agreement.”

But, the company rejected the new investor. Rich says that only came AFTER the deadline for requesting a refund. And the company provided no reason for the rejection as seems to be required by the contract.

So Rich pressed forward. They got a meeting with Retro Fitness’s CEO, Eric Casaburi. You may have seen Casaburi when he was on a segment of CBS’s successful program “Undercover Boss.” Rich says Casaburi apologized and agreed to accept their other partner. But by that time, the partner wanted nothing to do with Retro Fitness.

Rich and his colleagues were out $69.000!

So we went over to Retro Fitness’s headquarters in Colts Neck. Eric Casburi wasn’t around. But we did speak with the CFO, Rob Sprechman. He said the company was still willing to work with Rich. But he refused the refund. If the investors didn’t like it, they could sue.

I wasn’t done yet. I tried contacting Casaburi myself. Three times I called. Three times I left messages. But the undercover boss must like being undercover. He never had the courtesy to return a call.

There is a good lesson here. Beware jumping into any business opportunity, let alone a franchise, until you have everything lined up.