CUTS Exec: Male-Only Fitness Club Idea Bombed

(FranchisePick.Com)  After stories and franchisee comments began to appear on FranchisePick.Com (see links below), Cuts Fitness for Men managing director Steven Haase has publicly acknowledged that Cuts Fitness for Men “bought out” the franchise agreements of each of its franchisees and shut down its franchise program in June, 2007.  As reported in a previous post,  Former franchisees continue to operate under the Cuts Fitness name, but they cannot open new clubs under the Cuts brand.

(Former Cuts franchisees tell us that corporate “bought out” franchisees by allowing the franchisees to pay thousands of dollars to get released from their agreements.)

An Oct. 24, 2007 story on Fitness Business Pro quotes Haas:

“Right now, I can say that the male-only model was not successful for us from a profit perspective,” Haase says. “Most of our franchisees were struggling getting to break even and that’s a tough environment to be in regardless of how effective the workout routine is. That being said, our franchise network changed thousands of lives for the better, and there is much to be proud of all around although it has been very frustrating for all involved.”

Former franchisees are reportedly better able to compete now that they’re free from the constraints of the franchise relationship and the male-only model.  Six former franchisees have gone coed and some are now open 24 hours a day, seven days a week.

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