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Good afternoon, everybody. 
Welcome to a special edition of 

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the Spin. 
Some news just came out from 

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CrossFit to the affiliates. 
Have you guys gotten the e-mail 

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yet? 
We have I just. 

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Skimmed through it very quickly.
Yeah. 

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So that for those who may not 
know, CrossFit sent out an 

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e-mail to the affiliates and let
me let me read a little bit of 

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it here for you guys. 
But thank you for being part of 

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the affiliate community. 
Affiliates are and always will 

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be the lifeblood of CrossFit and
we have immense gratitude for 

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your continued support. 
We previously shared our goal of

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growing to 30 million members by
20-30. 

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To do that, we need to innovate 
and reinvest in the business to 

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ensure we're attracting more 
people to CrossFit, driving a 

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greater number of leads into 
your gyms, and protecting and 

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preserving the brand in multiple
ways. 

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Despite inflation in higher 
costs, which have risen by an 

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average of 74%, CrossFit has not
raised prices for 11 years. 

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In order to sustain a healthy 
business and invest in resources

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to achieve our goals, we need to
increase our affiliation fee. 

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So before I get into it, if you 
guys aren't aware, we have 

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CrossFit Bolts owners Matt 
Mccraney and Rebecca Fusilier 

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and we have Jamie Free who is a 
co-owner of CrossFit Trivium 

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here in Nashville. 
Initial reaction. 

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I guess first, have you guys, do
you guys have any insider rumors

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going around about possibly a 
affiliate fee going being 

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increased? 
Start with you, Matt. 

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No, other than kind of I got 
word. 

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I think I first saw it from Seth
from Jump Ship when he posted 

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the thing about the the survey 
they said that that he received 

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and I dug back to my e-mail, 
kind of looked through that and 

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kind of went through it too, 
just to see what it was about. 

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And that was the first thing 
where I saw that there was some 

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idea or thought behind this. 
Yeah, Jamie, what about you? 

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I actually, I hadn't, I hadn't 
heard from about it at all. 

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So you know, the fact that it 
comes out in an e-mail and not 

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some sort of like town hall that
they put together to actually 

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address some of this, that's 
it's a little frustrating. 

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Yeah. 
And Jamie you said you would 

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you're you're obviously driving,
so you haven't been able to read

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it. 
Another aspect of this is in 

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addition to that piece, as gym 
owners renew their their 

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affiliation fee in 2024, two 
things happen. 

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You get a A1 time $500 credit to
apply to AL1 or L2 for you or 

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somebody in your gym and all 
existing and new CrossFit 

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affiliate owners have 12 months 
following their renewal to get 

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sort of get their L2 
certification. 

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So I guess I'll start with with 
Matt and and Rebecca does does 

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the 4500, you know the increase 
from 3000 to $4500, is that 

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concerning to you? 
How do you feel just, yeah, gut 

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reaction about the increase. 
Yeah, we're actually go that 

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we'll actually go from 2000 to 
4500 older affiliate. 

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So yeah, that's a, it's a 
significant increase, right. 

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It's more than 74% the number 
that they quoted of inflation. 

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So it's significant for us in 
some ways and just that you know

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it's $2500 and you know there's 
a lot of things in here like 

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they mentioned cap and I know a 
lot of people like cap and it's 

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a great resource for some, but 
it's not something we really use

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And we kind of that's something 
that sets us apart as our 

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programming and kind of doing 
things uniquely and taking into 

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account like cool things we have
in our area or equipment that we

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have that makes us maybe not 
follow that exactly. 

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And so there's like there's 
portions of offered with that 

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and is it something that we find
valuable and that's the that's 

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the real question is obviously 
love CrossFit been doing it a 

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long time we're about to be 
thirteen years and so you know 

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always want to fly that banner 
but also we're we're we want to 

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be seeing the value and what 
what we're getting from it as 

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well. 
So I don't know, do you have any

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I I kind of, I don't dislike the
level two thing. 

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Like I do feel like if you're 
engaged in coaching and now I 

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understand there's different 
roles that people have as far as

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being business owner and coach 
and all that stuff. 

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But I don't like if you're about
CrossFit. 

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I don't have an issue with that 
being a requirement for an 

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owner. 
So what about you, Jamie? 

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Yeah, I mean I don't I I I agree
I I don't have any issue with 

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the L2 being a requirement. 
I believe both me and my my 

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co-owner are both L2's anyway, 
so it doesn't really affect us. 

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We're a long, long standing 
affiliate as well so. 

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But we were. 
We're a little bit younger than 

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you guys. 
So we paid 3000 and now so 

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bumping it up 1500, The first 
thought in my head is like 

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anytime we raise rates, how are 
we providing value, you know, 

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and same thing with the cap, we 
don't, we don't use that. 

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It's it's not something that we 
have a relationship with. 

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We do have a relationship with 
our programmer and that's who we

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use. 
So, and I think this is this 

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business is all about 
relationships. 

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So, and I don't believe that 
CrossFit has actually spent any 

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time trying to build 
relationships. 

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They just make these changes and
then it's like, all right, 

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should we still be an affiliate?
You know, where is the, is there

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a draw there? 
Because they're not helping us 

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with SEO, they're not helping us
with any of that. 

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There, it's that's all on us. 
Yeah. 

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When, when did you guys 
affiliate? 

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It's been you're close to 10 
years, right? 

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So we were Brentwood Hills 
prior. 

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So we had to, I think we're on 
like 10 or 12 years, but we had 

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to re we changed the name. 
So we ended up having to pay a 

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little bit more when we we did 
that. 

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Got it. 
One of the things they do talk 

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about is the ability to pay over
12 months rather than a one time

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sum. 
Is that something that you guys 

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would find valuable or is that 
just doesn't really matter? 

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I mean, I think it makes a 
difference. 

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Doesn't make. 
Yeah, it doesn't make a huge 

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difference. 
Yeah, I mean I'm, I'm assuming 

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it will for some like the the 
struggling affiliates that want 

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to hold on to it. 
I'm assuming it will. 

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But for us and I'm assuming you 
guys, well it's just all right, 

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it's just deferring cost that we
have to do anyway. 

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Yeah. 
Yeah, the one of the things I 

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did, I was able to speak with 
Dawn Fall last night before this

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came out. 
He did mention that as of in 

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2022 they were actually 
crossword was actually break 

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even financially and that was 
one of the reasons why they are 

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looking to do this is to 
basically become financially 

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more stable and you know make 
sure that they can actually be 

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there to support the affiliates.
Does that change your opinion of

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of this increase or you know or 
with that, with an increase, 

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what do you need to see to to 
justify it on your end? 

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Go ahead, Matt. 
Well, I think, yeah, there's a 

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couple of parts to that is just 
that I don't think that they're 

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they're like like was mentioned 
earlier is like if we we want to

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feel like partners, right. 
And if they kind of went about 

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some of this in a little bit 
different way as far as like 

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getting gyms on board or having 
us feel like we're a part of the

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process, it would, it would make
it a lot easier to kind of like 

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build that trust. 
So we kind of, oh, there may be 

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some things coming in and I 
understand this business is hard

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like affiliates understand that 
like we live it every day like 

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you have to make tough 
decisions. 

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But just feeling like a partner 
would be helpful. 

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Like I mentioned that before 
when it came out like the game 

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season and quarter finals 
changes and how that's going to 

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affect affiliates is like if 
they came to US affiliates and 

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said, hey, we need to increase 
revenue and this is how we're 

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going to do it. 
And you might get a little bonus

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or get something for getting 
your people hyped and excited to

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do it instead of us finding out 
at the same time as everyone 

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else. 
That would help build some 

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trust. 
And I would invest time in that 

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to help the company if I felt 
that that was if I felt like I 

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was a partner. 
And so I think there's just 

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maybe some communication things 
that would definitely go a long 

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way to help us feel comfortable,
a little bit more comfortable 

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versus getting a message from 
from Brian, which is awesome. 

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Glad you you threw us on here 
like something's coming and 

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we're like, oh, this is my 
livelihood. 

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I guess we'll see what happens. 
Like that's got crazy. 

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Well, it's kind of goes back to 
like what's laughable about it 

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is like your your first 
impression is literally like, 

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OK, you owe us 225, $100 now and
there was no reason, no 

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explanation before that. 
And now it's just like it's 

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going to take a lot of hard 
explaining and a lot of good, a 

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lot of good explaining to kind 
of like get us to be like, OK, 

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this sounds, this sounds 
something we're going to like 

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something we're going to use. 
Not just like all these all 

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these. 
They're kind of I feel like 

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they're trying to like make it 
look all sparkly and everything.

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Like we're going to give you 
these these things. 

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But the the reality is it's like
we had these things already at 

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our hands for what we were 
paying for and then like we're 

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not really using it a whole ton 
right now. 

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So it's like now you're going to
have to like really like spruce 

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something up for us and like and
and I know like just us over 

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here we're die hard cross 
fitters like we we've been 

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through the ups and downs and 
never wanted to let go of it. 

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But now it's just like you get 
an e-mail titled. 

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You're. 
Being charged this much more, 

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hand it over. 
So I don't. 

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Know. 
Yeah. 

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Seth Page and thanks for joining
on A little late with that 

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Hawaii time, but appreciate you 
jumping on. 

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So. 
Have you had a chance to check 

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out the e-mail? 
My wife just texted me about it,

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and between her and I, we have 
basically 5 gyms that are going 

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to be affected directly by this.
So we are, you know we've we've 

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actually talked about the 
possibility of this happening 

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based on you know the previous 
post we'd made about the 

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possible affiliation changes or 
you know whatever franchise and 

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we talked about you know, how 
much it actually cost compared 

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to other expenses. 
And while this is definitely 

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something that a lot of gyms 
that aren't doing well currently

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are not going to appreciate, and
I don't think they're 

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necessarily giving CrossFit 
themselves giving much value 

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with what they're offering 
compared to what they give at 

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the same time, You know, I think
there's much bigger problems 

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like people not being able to 
pay rent anymore and lease is 

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doubling and things like that. 
So this is just another one of 

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those costs that are going to 
make. 

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You have to be more professional
or be less of a hobbyist as far 

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as your gym goes. 
Definitely not something I want 

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to just give extra money to. 
But yeah, I don't know what to 

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think quite yet. 
Still trying to absorb it. 

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Yeah, you were the one that kind
of brought the survey out to the

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forefront, which then Hiller 
picked up and has been discussed

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about in the community a lot. 
I did ask Don last night about 

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that and his response was that 
they did use that survey as 

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getting a gauge for what the 
affiliates wanted as in from 

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terms of added value and I think
to some degree what what price 

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they could kind of go with and 
that people would be comfortable

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with. 
It's this has been in the works 

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it sounds like for about six 
months or so, but they were able

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to pull the trigger after that 
survey came out. 

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One of the questions I have kind
of go around the horn, start 

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with you Jamie. 
Membership rates, you know, 

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assuming you guys do stay on and
do renew, I mean is, is that 

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something you're going to have 
to pass on to to to your 

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members? 
You know, I mean, so the 

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inflation that we're already had
to deal with, we already upped 

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our memberships. 
So doing that again, I feel like

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that's a disservice to our 
members. 

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So I think we'll probably have 
to get creative and make up that

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money with, you know, different 
programs and things of that 

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nature. 
But you know, passing it, 

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passing this on to our members 
is going to be a difficult sell 

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because there's no added value. 
Like if we're not getting 

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anything extra, we're not able 
to give anything extra, then how

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are we going to justify that? 
Matt. 

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Becca. 
Yeah, I mean obviously it's only

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been a only been a few minutes, 
but I mean is this something 

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that you may have to consider? 
Well, I think that raising our 

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rates is something we've 
considered kind of leading up 

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into the this new year already 
just because like it like 

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mentioned before releases 
everything's gotten more 

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expensive and we we have done 
some things to you know kind of 

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how to put together a plan of 
like adding value to do that. 

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And so I wouldn't, I wouldn't 
say that that this would be 

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something, this would be 
something that would maybe nudge

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us a little bit quicker to like 
enact those things or to make 

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that change. 
But it wouldn't be solely based 

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on this, but it would be kind of
the, the continuing snowball of 

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of making that decision or those
expenses adding up or that we 

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00:14:02,520 --> 00:14:03,600
might make that. 
Decision. 

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So, yeah, Seth, any any initial 
thoughts of that? 

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I mean, does it, does it matter 
between I think you're at well 

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you're in Hawaii and at least in
Arizona? 

241
00:14:16,000 --> 00:14:17,600
Yep. 
Yeah, between a couple islands 

242
00:14:17,600 --> 00:14:21,200
in Hawaii and Arizona. 
But no, I mean when you're 

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looking at a business, it's the 
overall, you know the the 

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00:14:24,440 --> 00:14:27,160
overhead total, right. 
So this definitely adds to our 

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overhead in in different ways in
each businesses. 

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00:14:29,240 --> 00:14:30,640
Some will affect more than 
others. 

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If we make a membership rate 
increase, like it's not based on

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00:14:34,160 --> 00:14:36,320
one thing changing like just, 
you know, a rent. 

249
00:14:36,400 --> 00:14:38,200
Most people get rent increases 
every year, right? 

250
00:14:38,200 --> 00:14:41,520
And they're not necessarily 
increasing their membership 

251
00:14:41,520 --> 00:14:43,040
every year. 
You, you look at where this, you

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00:14:43,040 --> 00:14:44,960
know, you find your tipping 
point in your business and then 

253
00:14:44,960 --> 00:14:46,760
make a decision whether it makes
more sense. 

254
00:14:46,760 --> 00:14:49,160
And then one of the things we 
try to do knowing that there's 

255
00:14:49,160 --> 00:14:50,480
always pushback and rent 
increases. 

256
00:14:50,480 --> 00:14:53,400
No one likes that whether it's 
your Netflix subscription or 

257
00:14:53,400 --> 00:14:56,480
your gym membership. 
It's like we have to provide 

258
00:14:56,480 --> 00:14:59,120
like 1 type of value add to 
like. 

259
00:14:59,120 --> 00:15:02,920
So from one of our locations we 
added 24/7 open gym and then we 

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00:15:02,920 --> 00:15:05,800
didn't even increase the 
membership, we just made that an

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add on for one of them. 
So that kind of those sort of 

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00:15:08,280 --> 00:15:11,280
tactics like offset and maybe 
brought in a little extra 

263
00:15:11,280 --> 00:15:13,320
revenue, things like that 
instead of just doing like a 

264
00:15:13,320 --> 00:15:16,480
flat increase which you know you
probably do have to do every 

265
00:15:16,480 --> 00:15:20,360
handful of years, but every gym 
will be treated different as all

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00:15:20,360 --> 00:15:22,200
you guys gyms I'm sure are 
different with that too. 

267
00:15:24,640 --> 00:15:30,320
Yeah. 
And you know what I was told was

268
00:15:30,320 --> 00:15:33,280
that the churn rate is basically
at an all time low. 

269
00:15:33,280 --> 00:15:37,840
It was around 12% in 2022, now 
it's about 6%. 

270
00:15:38,440 --> 00:15:42,760
Don does expect that to to 
increase most likely from gyms 

271
00:15:42,760 --> 00:15:45,200
that are probably already 
struggling a bit. 

272
00:15:46,240 --> 00:15:50,200
And the ones that do want to 
invest, you know he he, I think 

273
00:15:50,200 --> 00:15:53,920
his hope is that it it does the 
cream rises to the top. 

274
00:15:53,920 --> 00:15:55,880
You're going to have the best 
gyms out there. 

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00:15:57,880 --> 00:16:01,040
Jamie do you think I mean do you
agree with that like if maybe if

276
00:16:01,040 --> 00:16:03,520
some gyms that are struggling 
that are kind of just hanging on

277
00:16:03,520 --> 00:16:05,800
that aren't putting enough 
effort and work in it. 

278
00:16:06,520 --> 00:16:10,000
If they, you know potentially 
could be hurting the brand if 

279
00:16:10,000 --> 00:16:13,320
they drop off. 
And what's left are those that 

280
00:16:13,480 --> 00:16:17,800
really support CrossFit the the 
methodology and are good 

281
00:16:17,800 --> 00:16:21,280
stewards of the brand. 
Is is a good thing or is more 

282
00:16:21,280 --> 00:16:25,720
gym, it's always better? 
I I think for me, I think that 

283
00:16:25,720 --> 00:16:27,160
there's always been bad 
affiliates. 

284
00:16:27,320 --> 00:16:31,720
So there's always been those 
people that don't do enough to 

285
00:16:32,120 --> 00:16:35,000
coach better or to provide that 
value. 

286
00:16:36,880 --> 00:16:39,640
But like, do I think it's better
that they're not. 

287
00:16:39,640 --> 00:16:41,640
I mean, it's kind of 
contradictory if you think about

288
00:16:41,640 --> 00:16:44,840
it because they're trying to get
more affiliates, but then this 

289
00:16:44,840 --> 00:16:49,600
is going to shave off X amount 
of affiliates, X percent 

290
00:16:49,600 --> 00:16:51,120
affiliates that just can't pay 
it. 

291
00:16:51,840 --> 00:16:53,840
So it's like one of those things
where it's like kind of a catch 

292
00:16:53,840 --> 00:16:59,520
22 for them, but you could have 
gyms similar to mine that you 

293
00:16:59,520 --> 00:17:03,000
know start to purchase other 
gyms and I think there's 

294
00:17:03,000 --> 00:17:07,040
opportunity there to to really. 
Grow your. 

295
00:17:07,040 --> 00:17:10,000
Business in this, in this, in 
this increase. 

296
00:17:12,280 --> 00:17:16,720
Yeah, Matt, Rebecca, any 
thoughts on you know maybe some 

297
00:17:16,720 --> 00:17:20,520
of the gyms that can't hang on 
they they close or DE affiliate?

298
00:17:21,079 --> 00:17:22,400
I feel. 
Brand in general. 

299
00:17:22,720 --> 00:17:25,400
Yeah, I mean in our area I feel 
like that already happened quite

300
00:17:25,400 --> 00:17:32,640
a bit post COVID significantly. 
And I think it's kind of it 

301
00:17:32,640 --> 00:17:36,960
could be a double edged sword. 
You know just because depending 

302
00:17:36,960 --> 00:17:39,720
on you know is this something 
that's going to be an increase 

303
00:17:39,720 --> 00:17:42,640
over time or as we add we get 
these add-ons. 

304
00:17:42,640 --> 00:17:45,320
Is that going to be like an add 
on to the things that they're 

305
00:17:45,320 --> 00:17:48,520
promising something you pay more
for and the really successful 

306
00:17:48,520 --> 00:17:52,480
gems that can pay for this might
not be really concerned or be 

307
00:17:52,760 --> 00:17:55,200
looking into all those add-ons 
that they're that they might be 

308
00:17:55,320 --> 00:17:58,360
offering. 
So at some point too it's it's 

309
00:17:58,520 --> 00:18:04,720
those the the more successful 
affiliates over time may feel a 

310
00:18:04,720 --> 00:18:07,080
little bit like hey I'm paying 
this but I'm not really using 

311
00:18:07,080 --> 00:18:09,080
any of it. 
My business is already set and 

312
00:18:09,080 --> 00:18:12,680
running how I want and so I 
think it it's I can see both 

313
00:18:12,680 --> 00:18:16,160
sides of it and kind of how they
they go about communicating that

314
00:18:16,160 --> 00:18:20,920
and what those benefits or add 
add-ons are and how they how 

315
00:18:20,920 --> 00:18:24,800
they play out and they could 
could go either way. 

316
00:18:25,200 --> 00:18:28,480
Yeah, I could definitely see, 
like, I mean, big believer in 

317
00:18:28,480 --> 00:18:33,200
like quality, not quantity. 
And of course like we want like 

318
00:18:33,200 --> 00:18:34,960
more great gyms out there and 
everything. 

319
00:18:34,960 --> 00:18:38,720
But if there's had been too much
in the past few years, there's 

320
00:18:38,720 --> 00:18:41,680
been a lot of damage and not 
enough healing to like really be

321
00:18:41,680 --> 00:18:45,800
promoting like this increase in 
like we're just just talking to 

322
00:18:45,800 --> 00:18:48,600
you guys. 
We're like we got two affiliates

323
00:18:48,600 --> 00:18:52,400
right here that for sure don't 
use like the cap programming and

324
00:18:52,440 --> 00:18:54,600
like at all. 
Like, I mean, we'll let you 

325
00:18:54,600 --> 00:18:57,040
glance at it every now and then 
and take some notes a little bit

326
00:18:57,040 --> 00:19:00,120
from it, but not like really 
implemented in the gym And then 

327
00:19:00,120 --> 00:19:04,240
now like we're not like there's 
two successful gyms that are not

328
00:19:04,240 --> 00:19:06,120
using that. 
You can't just be promoting that

329
00:19:06,120 --> 00:19:08,320
and you're going to pay more for
this even though you don't use 

330
00:19:08,320 --> 00:19:09,800
it. 
So there's just there wasn't 

331
00:19:09,800 --> 00:19:14,040
enough healing to really take 
the blow of the price increase 

332
00:19:14,360 --> 00:19:18,640
like. 
Yeah, Seth is is less, more in 

333
00:19:18,640 --> 00:19:23,960
this case. 
Well, I just think that, you 

334
00:19:23,960 --> 00:19:28,200
know, CrossFit as a company has 
let business owners develop 

335
00:19:28,280 --> 00:19:30,520
their business for the last 20 
years, right. 

336
00:19:30,520 --> 00:19:33,160
They have not had a blueprint 
for a business. 

337
00:19:33,160 --> 00:19:35,800
They've had a blueprint for how 
they think you should coach your

338
00:19:35,800 --> 00:19:38,720
classes, which I don't think 
even most people use that. 

339
00:19:39,160 --> 00:19:43,680
And so now there are probably a 
lot of third party companies 

340
00:19:43,680 --> 00:19:46,760
within the CrossFit space that 
have better systems, think 

341
00:19:46,760 --> 00:19:49,320
Crossfit's going to be able to 
offer you for whatever they want

342
00:19:49,320 --> 00:19:51,440
to charge for IT. 
So people probably aren't going 

343
00:19:51,440 --> 00:19:54,600
to use them anyway. 
And on top of that, the more 

344
00:19:54,600 --> 00:19:57,240
they start to try to integrate 
their systems into your 

345
00:19:57,240 --> 00:20:02,000
business, the more you start to 
lead down to that franchise 

346
00:20:02,000 --> 00:20:04,080
direction, right? 
Because now they're controlling 

347
00:20:04,080 --> 00:20:06,200
bits of your business a little 
different than you would have 

348
00:20:06,200 --> 00:20:08,160
maybe done it. 
So I think anyone who's 

349
00:20:08,160 --> 00:20:11,120
established at this point has 
survived all the things you guys

350
00:20:11,120 --> 00:20:13,840
have talked about. 
We're pretty confident in how we

351
00:20:13,840 --> 00:20:15,840
run our business businesses. 
Can we all be better? 

352
00:20:15,840 --> 00:20:19,120
Yeah, for sure. 
Is CrossFit HQ, the new CrossFit

353
00:20:19,120 --> 00:20:21,760
HQ going to be the people that 
are going to lead my small 

354
00:20:21,760 --> 00:20:24,080
business that? 
You know, out of all the gyms 

355
00:20:24,080 --> 00:20:26,760
I've had over 15 years in the 
next direction, no they're not. 

356
00:20:26,880 --> 00:20:30,200
There's going to be other people
with other experience in the 

357
00:20:30,200 --> 00:20:33,160
CrossFit space specifically 
who'll provide more value, I 

358
00:20:33,160 --> 00:20:34,960
think, than HQ. 
So we're just going to be paying

359
00:20:34,960 --> 00:20:38,480
essentially rate increase, at 
least from my perspective, for 

360
00:20:38,480 --> 00:20:41,720
nothing gained. 
I'm still only paying because I 

361
00:20:41,720 --> 00:20:44,880
feel allegiance to the CrossFit 
name, the methodology, what Greg

362
00:20:44,880 --> 00:20:46,360
built. 
That's why I'm still here. 

363
00:20:46,360 --> 00:20:49,560
I don't even really use the 
CrossFit name a lot in my gyms. 

364
00:20:49,560 --> 00:20:51,920
It's always jump ship X, 
whatever it is. 

365
00:20:51,920 --> 00:20:54,680
And that's how we brand it. 
Because if CrossFit ever goes 

366
00:20:54,680 --> 00:20:58,240
really far down a road that I 
can't tolerate anymore, I can 

367
00:20:58,240 --> 00:21:00,200
cut that name out and I still 
have my brand. 

368
00:21:00,200 --> 00:21:02,200
So I think that's really 
important. 

369
00:21:02,760 --> 00:21:05,480
You know, I'm with, I still want
to be a part of CrossFit for as 

370
00:21:05,480 --> 00:21:09,920
long as I can. 
But, you know, I'm just kind of,

371
00:21:10,480 --> 00:21:12,520
I don't know what else to say. 
It's like it's weird. 

372
00:21:14,880 --> 00:21:21,920
Yeah, the do you do you think 
maybe cap is beneficial for new 

373
00:21:21,920 --> 00:21:25,560
affiliate owners, You guys have 
been doing it for so long that 

374
00:21:25,600 --> 00:21:28,440
you know you have your systems 
in place, you know what works 

375
00:21:28,720 --> 00:21:31,800
for you, Is that a good starting
point maybe for some of these 

376
00:21:31,800 --> 00:21:37,400
guys? 
I mean, I I don't. 

377
00:21:37,560 --> 00:21:40,800
I I mean I'm I'm old school. 
I do it the way I do it. 

378
00:21:40,800 --> 00:21:42,480
You know, I I program for our 
gym. 

379
00:21:42,480 --> 00:21:45,600
I've been doing it for forever. 
And I think that's one thing 

380
00:21:45,600 --> 00:21:48,880
that I always thought was cool 
about CrossFit is that like I 

381
00:21:48,880 --> 00:21:51,480
understand their business and 
they're trying to systemize 

382
00:21:51,520 --> 00:21:53,760
things or bring up the quality. 
And you know there's there's 

383
00:21:53,760 --> 00:21:59,440
been that that quality control 
discussion for a long time and 

384
00:21:59,440 --> 00:22:01,400
so some people might find it 
helpful. 

385
00:22:01,400 --> 00:22:03,760
I mean how they layout class 
plans and stuff definitely 

386
00:22:03,760 --> 00:22:07,320
there's there's methods they use
that you could find beneficial 

387
00:22:07,320 --> 00:22:12,360
in your affiliate. 
But you know I feel like as a 

388
00:22:13,200 --> 00:22:16,800
someone who's engaged with our 
people every day and trying to 

389
00:22:17,120 --> 00:22:21,840
have our own brand of what we do
and and just really program to 

390
00:22:21,840 --> 00:22:25,360
our clientele and program to 
what they like or or just our 

391
00:22:25,360 --> 00:22:27,280
style. 
You know, and that we attract 

392
00:22:27,360 --> 00:22:33,200
the people that come for our 
style is is something unique and

393
00:22:33,480 --> 00:22:34,640
definitely don't want to lose 
that. 

394
00:22:34,640 --> 00:22:37,440
If there was a, if there was 
ever a push down that path of 

395
00:22:37,440 --> 00:22:41,000
like all CrossFit doing the tap 
programming we'd be out in a 

396
00:22:41,000 --> 00:22:41,720
second. 
So I. 

397
00:22:42,320 --> 00:22:46,040
Think it's like with regards to 
like newer, like newer 

398
00:22:46,040 --> 00:22:48,080
affiliates. 
So I mean I I think it could put

399
00:22:48,080 --> 00:22:51,880
like some some really good 
training wheels on on some 

400
00:22:52,040 --> 00:22:53,640
affiliates. 
But we're kind of in like this 

401
00:22:53,640 --> 00:22:57,840
unique spot of like what we do 
and like the limitations that a 

402
00:22:57,840 --> 00:23:00,600
lot of gyms do have. 
Like you started in like this 

403
00:23:00,600 --> 00:23:03,920
teeny tiny space and everything 
and now eventually grew to this 

404
00:23:04,280 --> 00:23:07,600
this big space. 
I think it's like it's it's 

405
00:23:07,600 --> 00:23:11,600
difficult for like don't have a 
lot. 

406
00:23:11,600 --> 00:23:14,120
When you start, you really don't
have a lot. 

407
00:23:14,600 --> 00:23:18,640
And I mean, I think you learn, 
you got like a group, like the 

408
00:23:18,880 --> 00:23:21,880
the community is full of like 
all these these hustlers that 

409
00:23:21,880 --> 00:23:25,480
really like when you love it and
start like a gym like this, like

410
00:23:25,480 --> 00:23:29,280
you figure it out, right, Like 
by playing around and tinkering 

411
00:23:29,280 --> 00:23:32,200
with with these little things. 
And I think if they do start 

412
00:23:32,200 --> 00:23:35,520
with like something like cap, 
you'll move away from it really,

413
00:23:35,520 --> 00:23:38,680
really quick too. 
At least I I think you might 

414
00:23:38,680 --> 00:23:42,480
move away from it really quick. 
Yeah, I think this comment here 

415
00:23:42,480 --> 00:23:45,240
from Matt, right, like they're 
talking about cutting the week 

416
00:23:45,240 --> 00:23:50,600
in this and and but the question
is some of the best coaches can 

417
00:23:50,600 --> 00:23:53,800
be the worst business people and
vice versa, right? 

418
00:23:54,120 --> 00:23:58,200
Like it feels like to me, I'm 
not an affiliate owner but they 

419
00:23:58,200 --> 00:24:02,160
focus everything on how to best 
program, right. 

420
00:24:02,160 --> 00:24:08,200
Like here is how to here's cap 
programming, here's how to be 

421
00:24:08,200 --> 00:24:12,880
the the you know the the 
programmer move well. 

422
00:24:13,800 --> 00:24:17,760
But the business side of thing 
is not always on the forefront. 

423
00:24:18,440 --> 00:24:21,080
Is that been your experience, 
Seth start with you? 

424
00:24:21,720 --> 00:24:24,920
Well, I I think, I mean that's 
definitely been the case and I 

425
00:24:24,920 --> 00:24:29,880
think that's sort of how Greg 
intended it early on, You know, 

426
00:24:29,880 --> 00:24:32,400
emphasis on methodology and 
health and things like that and 

427
00:24:32,400 --> 00:24:35,240
really let the strongest 
business people and how they ran

428
00:24:35,240 --> 00:24:37,920
their community survive. 
But I'll just say one more thing

429
00:24:37,920 --> 00:24:39,560
about cap. 
The work out of the day the 

430
00:24:39,560 --> 00:24:44,040
other day was 5 by 5 push press.
There's not that many coaches 

431
00:24:44,040 --> 00:24:46,640
out there that can run a 5 by 5 
push press class and make it 

432
00:24:46,640 --> 00:24:48,600
worth any amount of money to 
anybody. 

433
00:24:48,680 --> 00:24:50,680
I'm just saying that right now, 
it doesn't matter if you bet. 

434
00:24:51,040 --> 00:24:54,120
I know L threes that can't run a
5 by 5 push press class. 

435
00:24:54,280 --> 00:24:57,080
That's I don't care what class 
lesson you give, like you need 

436
00:24:57,080 --> 00:24:58,400
to get people moving more than 
that. 

437
00:24:58,400 --> 00:25:01,240
So if that's still where their 
standard is on programming, 

438
00:25:01,680 --> 00:25:04,000
that's not going to cut it. 
That's first and foremost in my 

439
00:25:04,120 --> 00:25:07,600
strong opinion on that. 
As far as business owners go, I 

440
00:25:07,600 --> 00:25:10,520
think that is one of the most 
beautiful things about being a 

441
00:25:10,520 --> 00:25:15,240
CrossFit affiliate, at least in 
earlier years, is I you know, I 

442
00:25:15,240 --> 00:25:17,800
opened my first one when I was 
22. 

443
00:25:17,800 --> 00:25:21,720
I'm approaching 38. 
I made so many business 

444
00:25:21,720 --> 00:25:23,080
mistakes, I didn't even know how
to start. 

445
00:25:23,080 --> 00:25:25,320
I don't even know when LLC was 
when I wanted to open my first 

446
00:25:25,320 --> 00:25:27,120
gym. 
Like, I have no idea what I'm 

447
00:25:27,120 --> 00:25:32,920
doing and I got an education on 
business by making mistakes, by 

448
00:25:32,920 --> 00:25:35,680
growing, by, by listening to 
other people with experience 

449
00:25:35,680 --> 00:25:41,040
like CrossFit, not HQ. 
But my experience of building a 

450
00:25:41,040 --> 00:25:45,200
business in a brand while 
running the gym, you know, led 

451
00:25:45,200 --> 00:25:47,360
me, shaped me to what I am 
today. 

452
00:25:47,360 --> 00:25:51,320
I don't think a business in a 
box offering if that's kind of 

453
00:25:51,320 --> 00:25:55,320
what HQ is going to start going 
towards, is going to Again, I'm 

454
00:25:55,320 --> 00:25:59,680
not trusting them to know how to
run an affiliate business wise. 

455
00:25:59,680 --> 00:26:05,000
I'm not trusting hedge funds to 
understand how to blossom a 

456
00:26:05,000 --> 00:26:07,320
community and and stuff like 
that which is part of running 

457
00:26:07,320 --> 00:26:10,160
your business. 
And so I don't know I I think I 

458
00:26:10,160 --> 00:26:12,440
wish they'd double down on their
media if they want to take more 

459
00:26:12,440 --> 00:26:15,200
money from me like put it in the
media and advertising and make 

460
00:26:15,200 --> 00:26:18,560
CrossFit super sexy and get 
people in my door and let me run

461
00:26:18,560 --> 00:26:20,680
my business. 
Let me run my programming and 

462
00:26:20,680 --> 00:26:22,320
like that's what I want from 
them. 

463
00:26:22,320 --> 00:26:24,360
I don't need anything else. 
That's that's my opinion. 

464
00:26:24,520 --> 00:26:26,440
But again I have 15 years 
experience. 

465
00:26:26,440 --> 00:26:29,400
If someone's brand new, I could 
see someone starting with cap 

466
00:26:29,400 --> 00:26:33,360
for X amount of time, figuring 
out which coaches work, but 

467
00:26:33,480 --> 00:26:35,280
immediately shifting away from 
that into something that 

468
00:26:35,280 --> 00:26:39,600
provides, I think, more value. 
Yeah, that that leads me into a 

469
00:26:39,600 --> 00:26:41,880
question. 
I'll comment here from Draw Your

470
00:26:41,880 --> 00:26:43,720
dagger. 
He's on year ten of his 

471
00:26:43,720 --> 00:26:47,080
affiliate, not 100% of our 
plans, but I felt that way for a

472
00:26:47,080 --> 00:26:49,640
few years now. 
I pretty much always talk myself

473
00:26:49,680 --> 00:26:52,640
into it each year because I will
always use the methodology. 

474
00:26:52,640 --> 00:26:55,360
I want to leave you with one 
last question. 

475
00:26:55,440 --> 00:26:59,760
Start with Matt and Becca. 
If you were going to talk, you 

476
00:26:59,800 --> 00:27:03,160
know, speak right to Don right 
now in the CrossFit HQ team. 

477
00:27:03,600 --> 00:27:08,480
With this increase, you know we 
talk about maybe not getting the

478
00:27:08,480 --> 00:27:13,640
value that you would hope like 
what what should CrossFit focus 

479
00:27:13,640 --> 00:27:20,080
on with this additional revenue 
in the coming year to justify 

480
00:27:20,080 --> 00:27:22,960
the affiliate fee and and and 
especially the increase? 

481
00:27:24,920 --> 00:27:27,960
I would like to say something 
first, because in kind of 

482
00:27:27,960 --> 00:27:30,600
regards to that question, 'cause
you answered it earlier. 

483
00:27:30,600 --> 00:27:33,000
I was like over the last few 
years when we've been going 

484
00:27:33,000 --> 00:27:35,760
through all of this, the mess of
just trying to restructure 

485
00:27:35,760 --> 00:27:38,040
everything as I was, like, if I 
had one question I could ask 

486
00:27:38,040 --> 00:27:40,440
CrossFit HQ, like straight up to
them. 

487
00:27:40,720 --> 00:27:43,400
It's like, how much money do you
actually have? 

488
00:27:43,400 --> 00:27:48,040
And you said that they won't 
even last broke even in in 2022.

489
00:27:48,040 --> 00:27:50,920
So that like answered my 
question straight up, But then 

490
00:27:50,920 --> 00:27:56,840
it's like OK, broke even now. 
I mean something clearly isn't 

491
00:27:56,840 --> 00:28:00,440
working and it just I feel like 
at this point they just like 

492
00:28:00,440 --> 00:28:04,880
keep trying to like repeat like 
help like they're just saying 

493
00:28:04,880 --> 00:28:06,840
like help the affiliates, help 
the affiliates, help the 

494
00:28:06,840 --> 00:28:08,520
affiliates. 
Well you got, you got them right

495
00:28:08,520 --> 00:28:10,520
here. 
And the things that you're 

496
00:28:10,520 --> 00:28:16,000
adding to create value like Seth
said, like we got it, we got 

497
00:28:16,000 --> 00:28:19,440
that part covered. 
Like, like, I would like to see.

498
00:28:19,440 --> 00:28:20,920
I mean, maybe I'm a little bit 
biased. 

499
00:28:21,360 --> 00:28:25,520
Media media does a lot and you 
can do a lot of free media right

500
00:28:25,520 --> 00:28:29,160
now, a lot of free stuff and 
start hustling on that side. 

501
00:28:29,160 --> 00:28:33,000
So pouring into that, like 
Crossfit's awesome. 

502
00:28:33,080 --> 00:28:36,080
Like we're we're die hard. 
Like I said, we're die hards 

503
00:28:36,080 --> 00:28:39,960
like show it off, like brag 
about it a little bit, put it in

504
00:28:39,960 --> 00:28:41,880
a good light. 
That's where I want to see it. 

505
00:28:41,960 --> 00:28:43,400
Yeah. 
One one of the things that I've 

506
00:28:43,400 --> 00:28:47,360
been saying, especially recently
is nobody from the CrossFit side

507
00:28:47,360 --> 00:28:52,800
is from HQ is speaking to the 
methodology like Greg did, 

508
00:28:53,120 --> 00:28:55,840
right? 
There's nobody that's shouting 

509
00:28:55,840 --> 00:28:59,280
from the rooftops of this is 
CrossFit. 

510
00:28:59,280 --> 00:29:00,880
It's going to save your life, 
it's going to make you 

511
00:29:00,880 --> 00:29:02,520
healthier, it's going to 
improve. 

512
00:29:03,080 --> 00:29:05,360
You know, your family's live 
all, I mean all the different 

513
00:29:05,360 --> 00:29:07,920
things that you, you know, you 
would talk about. 

514
00:29:08,600 --> 00:29:11,080
And the only thing we're getting
right now is Dave Castro's week 

515
00:29:11,080 --> 00:29:15,760
in review, which half touches on
the games and half touches on 

516
00:29:15,760 --> 00:29:19,680
his keto and fasting and 
addressing some questions. 

517
00:29:19,680 --> 00:29:21,960
But there's nobody that's I 
guess on the forefront. 

518
00:29:23,280 --> 00:29:26,880
I feel like that that, plus the 
media would definitely go a long

519
00:29:26,880 --> 00:29:31,960
way in driving what CrossFit is 
and getting that excitement 

520
00:29:31,960 --> 00:29:34,160
back. 
Yeah, I'll add to that. 

521
00:29:34,400 --> 00:29:37,760
I kind of touched on it earlier 
but just that feeling of being 

522
00:29:37,760 --> 00:29:41,000
truly partners like obviously 
there's a bunch of us we can't 

523
00:29:41,000 --> 00:29:44,720
have they have to make decisions
and but like I said getting us 

524
00:29:44,720 --> 00:29:46,920
involved with when they make 
changes to the seasons that is 

525
00:29:46,920 --> 00:29:48,520
going to like quarterfinals 
that's going to affect the 

526
00:29:48,520 --> 00:29:51,600
affiliates. 
Getting us you know us finding 

527
00:29:51,600 --> 00:29:55,480
out that beforehand and getting 
us on board and and and I know 

528
00:29:55,480 --> 00:29:57,880
that's difficult because there's
so many affiliates and and how 

529
00:29:57,880 --> 00:30:01,400
you do that. 
But I think it kind of we all 

530
00:30:01,400 --> 00:30:04,480
can say like you like we were 
just mentioning with not having 

531
00:30:04,480 --> 00:30:08,760
like that head of of leader of 
the group. 

532
00:30:08,760 --> 00:30:10,760
We kind of feel like 
stepchildren a little bit you 

533
00:30:11,160 --> 00:30:15,080
know like do they understand us,
do we understand them And 

534
00:30:15,240 --> 00:30:18,040
there's I think that's a big gap
that could be bridged. 

535
00:30:18,040 --> 00:30:20,880
It's just how this, how we 
communicate to each other. 

536
00:30:21,520 --> 00:30:24,360
You know I know they they try to
do more listening to affiliates 

537
00:30:24,360 --> 00:30:27,000
are ways for us to reach out to 
affiliate reps and that's been 

538
00:30:27,000 --> 00:30:29,800
great in some ways. 
But when we get these new the 

539
00:30:29,800 --> 00:30:32,360
news and stuff like that, it 
would be cool if if we had a 

540
00:30:32,360 --> 00:30:35,960
little bit more direct 
communication to affiliates and 

541
00:30:36,240 --> 00:30:39,160
and and. 
It it really feels like the same

542
00:30:39,160 --> 00:30:42,520
thing that we're we're battling 
and I know we have battled 

543
00:30:42,520 --> 00:30:46,040
internally is what we talked 
about earlier is being the the 

544
00:30:46,040 --> 00:30:48,080
CrossFit coaches and the 
passionate. 

545
00:30:48,080 --> 00:30:51,680
I wanna help you live your best 
life and your healthiest life 

546
00:30:51,960 --> 00:30:55,560
balance with the This is still a
business that has to survive. 

547
00:30:55,560 --> 00:30:57,800
Like the only way the gym is 
gonna be here is if we make 

548
00:30:57,800 --> 00:31:00,480
smart business decisions too. 
Is what we're seeing on the 

549
00:31:00,480 --> 00:31:04,560
broader scale and right now it 
feels like the we're being led 

550
00:31:04,560 --> 00:31:09,560
by non believers and one like 
like it just it feels a little 

551
00:31:09,560 --> 00:31:11,160
bit of like bullying a. 
Little bit. 

552
00:31:11,160 --> 00:31:14,200
Here's the here's the thing, if 
I decide to raise my rates at my

553
00:31:14,200 --> 00:31:17,640
gym, I'm not going to just send 
a blank e-mail out to the the 

554
00:31:17,640 --> 00:31:21,520
members, right? 
So they should treat us like we 

555
00:31:21,520 --> 00:31:25,800
treat our members and then we 
push that downhill and so, or at

556
00:31:25,800 --> 00:31:29,200
least that's what I think. 
So there's a there's a 

557
00:31:29,360 --> 00:31:31,520
communication thing that can be 
better there. 

558
00:31:32,920 --> 00:31:35,920
Seth, I'll let you close it out.
If you were talking to Don right

559
00:31:35,920 --> 00:31:41,080
now, what would you say and what
would help add that bring bring 

560
00:31:41,080 --> 00:31:42,840
value to what you're paying as 
an affiliate? 

561
00:31:44,360 --> 00:31:48,720
I I I think it's very similar to
what Matt and Beckett just says 

562
00:31:48,720 --> 00:31:52,440
just CrossFit is a is a 
lifestyle brand, right? 

563
00:31:52,440 --> 00:31:54,720
It's not it's it's that's what 
it is. 

564
00:31:54,720 --> 00:31:57,960
And people have to. 
People that get into CrossFit, 

565
00:31:58,320 --> 00:32:00,200
get all the way into CrossFit. 
There isn't. 

566
00:32:00,320 --> 00:32:02,600
There are very few casual 
Crossfitters, right. 

567
00:32:03,040 --> 00:32:07,120
And so like how you perpetuate a
brand like that is you continue 

568
00:32:07,120 --> 00:32:09,600
to put it in everyone's face in 
this day and age, social media, 

569
00:32:09,600 --> 00:32:14,040
YouTube with actual valuable 
content. 

570
00:32:14,320 --> 00:32:17,000
I mean, even things like you're 
putting out with us today, like 

571
00:32:17,000 --> 00:32:19,720
we're talking from 15 years 
experience, Crossfit's putting 

572
00:32:19,720 --> 00:32:24,880
out overproduced like workout 
demos and old reused like 

573
00:32:25,000 --> 00:32:28,120
movement library stuff. 
Like I don't need that. 

574
00:32:28,120 --> 00:32:31,880
And that's not also exciting for
somebody who's perusing YouTube 

575
00:32:31,880 --> 00:32:33,560
and finds that video. 
That's not getting them in my 

576
00:32:33,560 --> 00:32:35,840
gym either. 
I want things sensationalized 

577
00:32:35,840 --> 00:32:38,280
again like they were. 
I want the methodology 

578
00:32:38,280 --> 00:32:40,920
sensationalized. 
I want, I don't care if you put 

579
00:32:40,920 --> 00:32:45,440
full seminars on YouTube, like 
get people into, get people 

580
00:32:45,440 --> 00:32:48,160
online that are thinking about 
it into a gym. 

581
00:32:48,160 --> 00:32:51,520
Your job is to take the leads 
and start delivering them to 

582
00:32:51,520 --> 00:32:53,880
your affiliates, but you're not 
doing that at all. 

583
00:32:53,880 --> 00:32:56,240
So I don't mind the rate 
increase if they're going to 

584
00:32:56,240 --> 00:33:00,680
step up other ways to build this
lifestyle brand that is CrossFit

585
00:33:00,680 --> 00:33:03,560
and get people excited about it 
again, because I think right now

586
00:33:03,560 --> 00:33:05,680
people are more burned out on it
than anything else. 

587
00:33:05,680 --> 00:33:09,760
And if it gets stale, then every
brand that feels like CrossFit 

588
00:33:09,760 --> 00:33:11,720
is stale is going to move from 
CrossFit. 

589
00:33:11,720 --> 00:33:13,320
And we're still going to do 
Functional Fitness and we're 

590
00:33:13,320 --> 00:33:14,320
still going to use the 
methodology. 

591
00:33:14,320 --> 00:33:15,960
We're not going to even say the 
word CrossFit. 

592
00:33:16,240 --> 00:33:18,840
And a lot of gyms will do well. 
A lot of the ones that already 

593
00:33:18,840 --> 00:33:20,480
aren't doing well will probably 
be done. 

594
00:33:20,720 --> 00:33:22,280
That's going to happen 
inevitably anyway. 

595
00:33:22,280 --> 00:33:25,480
So pushing the lifestyle brand 
to him and telling him that, 

596
00:33:25,480 --> 00:33:27,520
like, literally media is 
everything, and if they could 

597
00:33:27,520 --> 00:33:29,680
blow that up, that would help us
more than anything else. 

598
00:33:29,680 --> 00:33:34,680
I couldn't stress that enough. 
Yeah, leave it with this Matt 

599
00:33:34,680 --> 00:33:35,840
Reynolds. 
I used to watch and read 

600
00:33:35,840 --> 00:33:38,480
CrossFit journal in between 
exercise science classes. 

601
00:33:38,560 --> 00:33:43,480
Make the journal great again. 
Yeah, Seth from Jump Ship 

602
00:33:43,680 --> 00:33:48,160
Training and Matt and Rebecca 
from CrossFit Bolt. 

603
00:33:48,520 --> 00:33:52,360
Thank you guys for jumping on 
short notice and kind of sharing

604
00:33:52,360 --> 00:33:54,960
your thoughts as affiliate 
owners and and on the recent 

605
00:33:54,960 --> 00:33:58,200
news of affiliate fees being 
increased. 

606
00:33:58,200 --> 00:34:02,040
So thank you guys and go to 
thebarbellspin.com for all of 

607
00:34:02,040 --> 00:34:05,240
your fastest news. 
See you guys.