Gold's Gym Franchises Splitting With Parent Company Over CEO's Donation To American Crossroads

[LynneSin]

Before you start boycotting Gold's Gym, check to see what your local Gold's Gym might be doing to combat this. Here are 4 in the SF area that is taking the boycott seriously....

http://www.huffingtonpost.com/2010/10/25/golds-gym-franchise-american-crossroads_n_773693.html

Gold's Gym is facing a backlash from LGBT activists over its CEO's $2 million donation to American Crossroads, the conservative political group affiliated with former Bush adviser Karl Rove, and its four franchises in the San Francisco Bay Area are now leaving the brand over the controversy.

On Monday, Don Dickerson, the director of operations for Gold's Gym Bay Area, distributed a message through its Facebook page saying that it will be leaving the Gold's Gym brand:

We were as surprised by Mr. Rowling's action as anyone but because our company believes in and lives up to the ideals of equality for all we are going to take the following actions:
1: Our contractual obligation with Gold's Gym expires on September 15th, 2012 and on or prior to that date (our legal counsel is reviewing our options) we will leave the Gold's Gym brand. It is a major initiative to create a new brand and leave Gold's Gym which has been our identity for over 20 years but we will begin that process today.

2: For every dollar we pay Gold's Gym in franchise fees we will donate an equal or greater amount to LGBT charities. While we donate much more than this to charities and community groups that support the LGBT community we want to make a commitment to match or exceed this amount until our relationship with Gold's Gym can be severed.

3: Our management and staff will continue to support LGBT causes in every way possible and we will use our business as a platform to fight for change and equality for everyone. We have always taken great pride in being a leader in the LGBT community and we will continue to.

[DirkGently]

1. Way to put the money where the mouth is.

[Bonhomme Richard]

2. Mr. Rowling is so typical of eguity firms.

They are so disconnected with the product invested in that they don't have a clue how their actions affect the company overall. It is only about immediate return on their investment and this may just bite him in the ass. Do you think that a real hands on CEO would risk alienating a large customer base over politics...of course then there are the Koch brothers that are betting on their names remaining in the background (that's over) and their products not being connected to them. There are exceptions like the Koch's but they too are probably far removed from the daily operations of their business.