According to Justin Cooper‘s own statement in writing, the John’s Creek location was allowing him and Miriam to pay themselves $6,500 per month. They had no other instructors.
The $4,500 per month line item made to PBI included $750 towards their Google ad spend budget that we were managing for them, their call center fees, their software usage fees and their 10% franchise royalty.
There is no reason this location should have closed. Miriam Proffit and Justin Cooper were in their 20s and making this kind of money running a business doing something they told us they loved. Neither of them put any money down to obtain this opportunity. It was given to them with the trust that they would uphold their agreement.
They broke obligations to us, their landlord and their investors. They filed bankruptcy not because the studio ran out of money, but because they wanted to get out of all of their obligations.
Upon their departure, they ran up approximately $10,000 worth of client credit cards. We were forced to get involved to correct this illegal action conducted by Miriam Proffit and Justin Cooper. We worked directly with the merchant to force refunds to all of the clients that were charged in appropriately.
No notice or explanation was ever provided to us as to why they all of a sudden decided to do this. Justin Cooper and Miriam Proffit both worked in our company for years. It came as a huge shock to us all that they would behave in this manner.
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