EXHIBIT 10.32

FIRST AMENDMENT

           FIRST AMENDMENT, dated as of March 5, 2004 (this “Amendment”), under
the CREDIT AGREEMENT, dated as of November 18, 1997, as amended and restated as
of July 2, 2003 (as in effect on the date immediately prior to the date hereof,
the “Credit Agreement”), among BALLY TOTAL FITNESS HOLDING CORPORATION, a
Delaware corporation (the “Borrower”), the lenders parties thereto (the
“Lenders”), JPMORGAN CHASE BANK, as agent for the Lenders (the “Agent”),
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Syndication Agent, and LASALLE BANK
NATIONAL ASSOCIATION, as Documentation Agent. Terms used herein, but not
defined, shall have the respective meanings set forth in the Credit Agreement.

W I T N E S S E T H:

           WHEREAS, the Borrower has requested, and the undersigned Lenders wish
to consent to, certain amendments to and waivers of the Credit Agreement;

           NOW, THEREFORE, the parties hereto hereby agree as follows:

           1.     Amendment to Section 1.01 of the Credit Agreement. (a) The
definition of “GAAP EBITDA” in Section 1.01 of the Credit Agreement is hereby
amended by (a) deleting the word “and” which appears before clause (ix) and
substituting therefor a comma and (b) adding the following clause (x) at the end
thereof:

and (x) for any period that includes the Borrower’s fourth fiscal quarter in
2003, up to $10,000,000 of charges related to non-recurring year end audit
adjustments.

           2.     Amendment to Article VI of the Credit Agreement. (a) Section
6.12 of the Credit Agreement is hereby amended by deleting such Section 6.12 in
its entirety and replacing it with the following:

           6.12   Interest Coverage. At the end of any fiscal quarter of the
Borrower, commencing with the period ending December 31, 2003, maintain a ratio
of (i) Consolidated Adjusted EBITDA to (ii) Consolidated Interest Expense, for
any period of four consecutive fiscal quarters of the Borrower then ended, equal
to or greater than the level set forth below opposite such period:

  Quarter Ending Minimum Allowed    

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    December 31, 2003 through 1.75x     September 30, 2006              
December 31, 2006 through 2.00x     September 30, 2007             December 31,
2007 through 2.25x     September 30, 2008               December 31, 2008 and
2.50x     thereafter    

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           (b) Section 6.14 of the Credit Agreement is hereby amended deleting
such Section 6.14 in its entirety and replacing it with the following:

           6.14   Total Leverage Ratio. Maintain the Total Leverage Ratio at the
end of each fiscal quarter of the Borrower set forth below at a level not to
exceed the level set forth opposite such period:

  Quarter Ending Maximum Allowed    

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    December 31, 2003 through 6.50x     December 31, 2004               March
31, 2005 through 6.25x     September 30, 2005             December 31, 2005
through 6.00x     September 30, 2006               December 31, 2006 through
5.50x     September 30, 2007               December 31, 2007 and 4.75x    
thereafter    

           (c) Section 6.15 of the Credit Agreement is hereby amended by
deleting such Section 6.15 in its entirety and replacing it with the following:

           6.15   Senior Secured Leverage Ratio. Maintain the Senior Secured
Leverage Ratio at the end of each fiscal quarter of the Borrower set forth below
at a level not to exceed the level set forth opposite such period:

  Quarter Ending Maximum Allowed    

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    December 31, 2003 through 2.25x     September 30, 2005              
December 31, 2005 through 2.00x     September 30, 2007             December 31,
2007 and 1.75x     thereafter    

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           3.     Waiver of Section 7.09(c). The Lenders waive the provisions of
Section 7.09(c) of the Credit Agreement to the extent necessary in order to
permit the Borrower to amend the Receivables Program Documents to (y) suspend
the tangible net worth test in such documents through January 1, 2005 or such
subsequent dates as agreed to by the Borrower and the Administrative Agent under
the Receivables Program Documents, and (z) permit amortization of $5.0 million
per month of the Receivables Program Certificates beginning on October 31, 2004.

           4.     Earnings Restatement Waivers. The Borrower has informed the
Lenders that it intends to restate its financial statements for its 2002 and
prior fiscal years and its interim quarterly reports for 2003 in order to
correct its prior accounting for dues to be consistent with its overall
accounting change for membership revenues made in connection with this Amendment
(the “Earnings Restatement”). The Lenders hereby waive the provisions of
Sections 4.02(b), 5.13, 5.21, 6.03(a), 6.03(b), 6.03(d), 6.03(e) and 6.10 of the
Credit Agreement for periods prior to the Effective Date to the extent, and only
to the extent, that a misrepresentation or Default would occur with respect to
such provisions as a result of the Earnings Restatement.

           5.     Conditions to Effectiveness of this Amendment. This Amendment
shall become effective as of the date first set forth above (the “Effective
Date”) at such time as (i) the Administrative Agent shall have received
counterparts of this Amendment duly executed and delivered by a duly authorized
officer of each of the Borrower, each Guarantor and the Majority Lenders and
(ii) the Administrative Agent shall have received payment of all fees and
expenses of the Administrative Agent and the Lenders that are due and payable on
or prior to the Effective Date in connection with this Amendment.

           6.     Representations and Warranties. The Borrower represents and
warrants to each Lender that as of the Effective Date after giving effect to
this Amendment: (a) the representations and warranties made by the Credit
Parties in the Credit Documents are true and correct in all material respects on
and as of the date hereof (except to the extent that such representations and
warranties are expressly stated to relate to an earlier date, in which case such
representations and warranties shall have been true and correct in all material
respects on and as of such earlier date) and (b) no Default or Event of Default
shall have occurred and be continuing as of the date hereof.

           7.     Counterparts. This Amendment may be executed by one or more of
the parties to this Amendment on any number of separate counterparts (including
by facsimile transmission), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument. The execution and delivery of
this Amendment by any Lender shall be binding upon each of its successors and
assigns and binding in respect of all of its Commitments and Advances, including
any acquired subsequent to its execution and delivery hereof and prior to the
effectiveness hereof.

           8.     Continuing Effect; No Other Amendments. Except to the extent
the Credit Agreement is expressly amended hereby, all of the terms and
provisions of the Credit Agreement and the other Credit Documents are and shall
remain in full force and effect. This Amendment shall constitute a Credit
Document.

           9.     GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

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           IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be duly executed and delivered by their proper and duly authorized officers as
of the day and year first above written.

  BALLY TOTAL FITNESS HOLDING CORPORATION

  By:          

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    Name:     Title:

  JPMORGAN CHASE BANK, individually and   as Administrative Agent

  By:          

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    Name:     Title:

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  Bally Total Fitness Holding Corporation First   Amendment dated as of March 5,
2004 to the   Amended and Restated Credit Agreement          

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  [LENDER]

  By:          

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    Name:     Title:

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  THE FIRST AMENDMENT IS   ACKNOWLEDGED AND AGREED:       BALLY’S FITNESS AND
RACQUET CLUBS, INC.   BALLY FITNESS FRANCHISING, INC.   BALLY FRANCHISE RSC,
INC.   BALLY FRANCHISING HOLDINGS, INC.   BALLY TOTAL FITNESS CORPORATION  
BALLY TOTAL FITNESS HOLDING CORPORATION   BALLY TOTAL FITNESS INTERNATIONAL,
INC.   BALLY TOTAL FITNESS OF MISSOURI, INC.   BALLY TOTAL FITNESS OF TOLEDO,
INC.   BFIT REHAB OF WEST PALM BEACH, INC.   CONNECTICUT COAST FITNESS CENTERS,
INC.   CONNECTICUT VALLEY FITNESS CENTERS, INC.   GREATER PHILLY NO. 1 HOLDING
COMPANY   GREATER PHILLY NO. 2 HOLDING COMPANY   HEALTH & TENNIS CORPORATION OF
NEW YORK   HOLIDAY HEALTH & FITNESS CENTERS OF NEW YORK, INC.   HOLIDAY HEALTH
CLUBS AND FITNESS CENTERS, INC.   HOLIDAY HEALTH CLUBS OF THE SOUTHEAST, INC.  
HOLIDAY HEALTH CLUBS OF THE EAST COAST, INC.   HOLIDAY/SOUTHEAST HOLDING CORP.  
HOLIDAY SPA HEALTH CLUBS OF CALIFORNIA   HOLIDAY UNIVERSAL, INC.   JACK LALANNE
FITNESS CENTERS, INC.   JACK LALANNE HOLDING CORP.   MANHATTAN SPORTS CLUB, INC.
  NEW FITNESS HOLDING CO., INC.   NYCON HOLDING CO., INC.   PHYSICAL FITNESS
CENTERS OF PHILADELPHIA, INC.   PROVIDENCE FITNESS CENTERS, INC.   RHODE ISLAND
HOLDING COMPANY   SCANDINAVIAN HEALTH SPA, INC.   SCANDINAVIAN U.S. SWIM &
FITNESS, INC.   TIDELANDS HOLIDAY HEALTH CLUBS, INC.   U.S. HEALTH, INC.   59TH
STREET GYM LLC   708 GYM LLC   ACE, LLC

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  CRUNCH FITNESS INTERNATIONAL, INC.   CRUNCH L.A. LLC   CRUNCH WORLD LLC  
FLAMBE LLC   MISSION IMPOSSIBLE, LLC   SOHO HO LLC   SPORTSLIFE GWINNETT, INC.  
SPORTSLIFE, INC.   SPORTSLIFE ROSWELL, INC.   SPORTSLIFE STONE MOUNTAIN, INC.  
SPORTSLIFE TOWN CENTER II, INC.   WEST VILLAGE GYM AT THE ARCHIVES LLC

  By:      

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  Name:     Title:      

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    for each of the Guarantors listed above