Is Curves for Women a Good Franchise Investment?
March 7, 2007 by Sean Kelly
Filed under Business
Do you own a Curves for Women franchise? Have you owned one, or know anyone who has? What are your thoughts on this franchise?
Curves For Women is one of the fastest growing franchise companies of the decade, having now topped 10,000 locations. I know in our area the concept seems to have passed the test of time. However, according to Franchise Pundit, 8% of the current Curves franchise locations are for sale.
What’s the inside scoop on the Curves for Women franchise opportunity?
SHARE YOUR INSIGHT. LEAVE A COMMENT.
No Sean if you sell your franchise you do not owe the closing fee as the club will stay open. But you are right its’s not right that owners sell to unsusspecting buyers but many of the owners have no other choice. Most should just close and join the lawsuit. As far as a person joining or becoming a new member they should really think about it first. The majority of clubs are closing so I would highly recommend that if you do decide to join a curves facllility make sure you dont pay in advance as the liklyhood that it will be closed after the first of the year is very high. So Mellissa why don’t you go to the nearest curves facillity and join and be sure to pay for a year in advance. You will get a ten percent discount which I’m sure you could use for christmass. But keep in mind if they do close before your year is up you probably won’t get a refund. Do you even have any idea how many women have been screwed by just becoming a member of curves only to see their location close. Sorry to be the one to inform you Mellissa but there is no Santa Clause and the tooth ferry died years ago. Join the real world and get a life. Better yet go to every curves club in your area and inform them of the lawsuit because that way we as owners may have a chance to change around curves international and save our business.
Unhappy, you are telling me to get a life!!
I have just one thing to say.
I understand where you are comming from , my sister lived to tell true a closing of her franchise
but when she was in fury with GH she did nothing good for herself , when she understood that mooving ahead was her only option she then started to live again, got a job , bounded with her family and freinds, and promisse to herself that she will never get into a business like this again, so believe me that I know wath i am thalking about and that I understand you , but still if you think that you can make a difference by saying to every one not to join a curves, and that you are convince that you are not shooting yourself in the foot at the same time ..well you are right who am I to give advice , you know better, greed and hate will always prevails..
I wish you a Mary X-Mass and a happy new year
God bless you and your family.
Mel
Mellissa,
Your sarcasm shows that you have no understanding of the problems that Curves international has inflicked on its owners. I actually don’t hate curves Mellissa as I know and have seen the wonderful results that most women have by working out at least 3 day a week. I will be the first to admit that I was wrong in suggesting for owners to sell their franchise asap as Sean so brilliantly stated it is just passing the buck to the next person. But I do believe that members thinking of joining should be aware that most of the curves clubs are having very serrious financial problems and are closing all over the country as fast as you or I can blink. While my clubs are still profitable I still have quit taking pre-pays as I have talked to many members of other locations which have closed and had no recourse to get there money back. Some clubs have taken a years per-pay with in a week of closing. In our clubs we allow those members to fullfill their contract here but I can tell you that many of the other locations don’t. Curves Internationals postion on this is non existance. If a member calls them to request how to get her money back they refer them to their old location and explain that each franchise is owned by an individual. They won’t and don’t even try to get the nearest club to accept the member. All that policy does is hurt curves more as you can imagine how the member feels and word of mouth spreads fast in any city.
Furthermore Mellissa, if you really believe that greed and hate win out in the end you are one sick puppy. You should go and live with Gary and Diane as with that attitude you will fit right in. I hope you have a wonderful Christmas and a Happy New Year Mellissa and for god sake give your sister a big huge. I’m sure after what she has gone through with curves could use one. Take care and God Bless.
I am looking into buying a curves that is established for 15 years and seems to be doing well…now I am nervous! Help!
Kim:
Can you provide more information?
Such as:
What are the current sales?
What were they in previous years?
How many members does the club currently have?
How does that compare to recent years?
What is the competition? Is it increasing?
What are the fixed costs? (rent, utilities, etc.)
Variable costs?
How much is the owner spending on advertising?
Why is the owner selling (I know, health issues. Family reasons.)
Why is the owner really selling?
Ask a lot of questions and post the specifics here. You’ve got a lot of educated eyes here to help you read between the lines.
You also should definitely be working with an attorney with franchise experience.
Nervous is good.
Kim,
All of the suggestions from Sean are good and of course in general it is good advice and infomation one needs inorder to make an informed decision on whether to buy it or not. You need to proceed very slowly and make sure that the owner is telling you the truth about the actual members numbers. Compare that with how many members they had last year. Make sure that the deposits each month match up to the number of members they say they have in a given month. Also beaware of all the lawsuits that are on going against curves international as they may or may not affect cuirves in general. Also keep in mind the economy at this time as for most people its not a good time to invest in any business. Good luck if you buy it but please think twice before doing so. Keep us informed and Merry Christmas and a Happy New Year.
Dear Kim ,
As I said before my sister had a Curves and failed with it but when she understood the reason why she failled she wasent mad at Curves anymore, She was making 30 to 40 hours a week at her location , had 1 manager at 13$ an hour 40 hours a week , 5 part time employees ,and she was not that good as a salesperson, the other thing is that in a mather of 4 months she had dropped 30 pounds , was happy with 450 members and when she started living the good life taking vacation for 2 weeks and not more than 25 hours a week so she hired 1 more staff
she was now paying more than 140 hours a week in wages !!! she was a terrible owner , then the members started to drop out the numbers fell to 225 she then had to let go 3 staff and do 50 hours a week by that point it went down…
she lost it all because of her bad work (she admited this to me because I had to make her see the truth) I tell you all this because I you are ready to work your but out , if you are ready to make sure your costumers becomes your freinds by taking care of them , if you understand that a club like Curves needs and on management and canot be run by employees because your members need you , then if you a ready you will make it , but with that said I need for once to agree with Unhappy and Sean do your homework dont leave any stone unturned ask questions,dont be shy you will be the one living with your decision, have a Lawyer present
before singing anything, ask arround next door business are a good start, the landlord also , if they did not make payment every month ask why , Did you check the direct competition (30 minutes centers) arround , how are they doing
and a final advice .. Unhappy will be happy lol, make sure Curves is right for you and that it is not a fading company..
the UFOC document should list all the closings in the past years with phone numbers ..call a few.. make sure you have a good trainning , ask where , when and how you will be trainned.
Ho dont forget ..Location Location Location .. if your are not pleased with it ..dont buy ,
Mel..
I have been very successful with my Curves location. The fact that Unhappy is profitable in her Curves says quite a bit. If my attitude were as bad as hers, and I was making money, imagine what I could do with a positive attitude. Unhappy if you ever decide to sell and live in a warm climate let me know. My youngest daughter is graduating in May and wants to own a Curves. I am sure you members would love a new owner. My guess is that you don’t manage the club or it would be losing money. Unhappy, I very much doubt you own a Curves. If you do then your attitude would ovbviously prevent you from being as successful as you should be. You say you own a profitable club, but tell people here they shouldn’t join. You tell owners to sell ASAP and buyers not to buy. I read above where you wanted to sabatoge Curves from getting an affiliation with Silver Sneakers. Well, in spite of your sabotaging efforts, Curves has managed to gain a very valuable affiliate that is paying for Curves memberships. You are so full on contradictions is is laughable. The fact is for whatever reason you DON’T want Curves to be successful and will do anything you can to contribute to that. I just read most of this thread and it didn’t take me long to see right through you.
Us owners that want to be successful are happy that Curves is succeeding in building a strong wellcare program. These members are recession proof as most don’t pay anything out of pocket. As for lawsuits, name me one top 20 franchise that has been open 10 years or more that doesn’t have lawsuits. Lawyers are bloodsuckers.
Kim, get the owners projection sheets and look at the dues and drafts. Compare that to her bank statements. Verify the dues and drafts. Don’t rely on membership numbers. Not every owner keeps their system up to date like they should but bank statements don’t lie. Look at the last 3 months deposits compared to the dues and drafts on the projection sheets and “new sales”. Also, read the membership agreements. Some states have open ended contracts where the membership automatically renews month to mon indefinately after the initial term and some states require the owner to resign the contact after 36 months otherwise they must stop the draft. If your club is in a state that requires the members to be re-enrolled make sure the owner is not drafting them presently. Otherwise she is breaking state law and you would be too if you purchased the club and kept drafting those members. Just get a copy of the owners membership agreement and see how it reads.
Below is the press release about the silver sneakers program that Unhappy tried to get people to sabatoge. The problem with boards like these is the successful owners don’t have time to get get caught up in the negative hype. People like Unhappy poison your attitude. They are like a bad parent telling you are stupid and ugly all the time.
http://www.franchising.com/pressreleases/9854/?ref=rss
Not Unhappy
Is there really a San Hose Curves?
How apropos.
hey curves owner…geez stop complaining life is too short make the best of what you got….my curves has 203 memebers…its small but fine…also for sale for soley personal reasons…
Finnaly , Tammy and Not unhappy , 2 for two it’s the first time I see someone say good things on this blog it feels GOOOD !! And Sean .. you had to say something like is there a Curves in San Hose? boy only reading bad things about Curves made you so negative that you are not even willing to see where is the good anymore,
I am sorry but attitude like your’s and Unhappy’s have are just sad, you should seek profesional advice maby your having a Burnout or something
and I’m not Joking , when you only see dark maby it’s time to get out in the sun,
I am sure that you are good people and that your intentions are true to your convictions but
why try to destroy what some franchisee are trying to manage, GH will be fine no mather wath you try to say against him but surely you will hurt the existing Curves owner by doing it.
Please find it in you to direct your energy in good things ,
In this difficult economy people are strugling to just keep afloat , go help someone in food banks
for X-mass , give your time you will feel so much better.
I wish you all the best to you and your family.
God Bless
Mel
Mellisa wrote And Sean .. you had to say something like is there a Curves in San Hose?
Mellisa: San Hose Curves Owner stated “Unhappy, I very much doubt you own a Curves.”
I found that amusing, since I very much doubt she could own a business there and not know that “San Hose” is spelled “San Jose.”
As I sais Sean , go get some sun , did you ever
see all the misspelling there is on this blog?
maby she does own a Curves maby not, but she has a good point ..
Oh Mellissa
What point does she make that’s good? Does she tell the truth that curves is in the top 10 worst franchises to buy at this time? That there are hundreds upon hundreds of franchises filling suits against curves international? That the majority of the clubs that are still open are having serious finincial problems and have been having problems since 03 not just recently because of the economy? That three clubs a day are closing each and every day which is up from the two per day in August. That the silver sneaker program she is hopeing will revitalize her club is just another way for curves international to ripoff the owners. That as owners we pay 195 dollars for national advertising to curves international each month and all owners complain that we never see any adds. Nor do any of the owners get to see any type of a report as to how our advertising dollars our spent. Of course we do know that Diane used it for her trip to China’s great wall and her wonderfull mag named after her which we are told to give away to erach member but have to pay for. How about the curves merchandise that we are allowed to sell. Ever since howard bought out the manufacture the shipments are late and the product is out of date. How about when curves international runs a special on supliments like they did this year giving special discount prices to the franchises. Only for the franchises to find out once the supliments arrived that the shelf life was only good for 60 days.
Come on Millissa this is only a fifth of the complaints with how curves international run’s it’s business. Before any one buys a curves franchise they should certainly take all of this into consideration as there are a lot’s of other franchises for the same cost that are profitable and that have integrity, honesty, morals, and are truly christain based companys. How you can try to stick up for them after reading the many posts on franchiseepick.com and unhappyfranchisee.com is beyond me. What are you a shill for howard? How much is he paying you. What ever it is it’s not worth your soul. Go back and do your research on this company and you will have a different opinion of howard’s corporate nightmare. If not than I’m afraid there is no help for you, Mellissa because the blinders you are wearing are glued on or you are are durgs. Which is it Mellissa?
you state the truth, We all have been taken advantage of. This company is in a sham and is going down quick. What you can do is bank any money you have, dont fall for buying any products ang let members work out each month until you cant pay your rent then close. Dont worry about CI they dont have a leg to stand on, It is illegal to charge a closing fee and anyone that pays it has been scammed again. call waco federal court they will explain everything
one more thing do not take prepays that would be stealing from your members. It would make you as guilty as the company your complaing about. If you should close your members will have to understand you can no longer pay your bills
You are absolutly right ACO. As a matter of fact if you do end up haveg to close you should refund all prepays that have paid in advance. I realize that is hard to do when your broke but really it is just fair and the right thing to do.
I want to know how Curves can add something to your franchise agreement on Feb 2008 when you signed an agreement in 2006? I NEVER got anything in the mail or an addendum or paperwork to sign that stated anything about $10,000.00 closing fees should you shut down before your agreement is up. How do you just add something to a contract without notifying a franchisee? Sounds illegal.
I want to know how Curves can add something to your franchise agreement on Feb 2008 when you signed an agreement in 2006?
Isn’t the real hook here that the original agreement would hold you liable for the future royalties and fees still left in the franchise term… but that they’ll let you out of it for $10K… and (I assume) signing a release of your right to sue?
Sounds like they have been doing some research into the Quizno’s and Subway franchises and their tactics
If you follow some of the details in their past lawsuits (S and Q)you will find the trail that germinated these ideas
mrfranchiseman
Has anyone thought about taking this to the press? Especially the big markets like CA, NY, IL etc? Expose them for what they are. Get reporters juices flowing about all this. What does everyone think of that?
yea Jersey Curvers owner-that is my question!
If this went to the press I think something could be done about it-why is it hush hush?
I have sent an email to Robert Lay about which media outlets to contact. I don’t know if he is going to do it. I think it needs to be out there and be told to the press by more than one person. Contact your local daily papers and tell them you have a story for them but wish to remain anonyomous.
Here is my other question. I have received and read the copy of the complaints against Curves International. I am sending it to my attorney here in NJ. Waco court sent me the documents. Being that CI has committed so much fraud, why isn’t the FBI or all of the States Attorney Generals offices looking into Gary Heavin? The only attorney general I heard that was looking into it was in MA. Why isnt anyone taking this further? It needs to be on the news and in the papers. The government and FBI needs to know about this and Gary Heavins off shore accounts (I heard that from someone that closed their doors in another state)
Apparently, some of the Curves Owners, such as the above poster, do not understand that, generally, the binding franchise agreement that was signed by them protects the franchisor from charges of fraud in arbitration and the courts.
I believe Seans comment above is corrrect. The buyout offers are in lieu of owed royalties due under contract in the event of the abandonment of the business. I’m sure their attorneys told them these buyouts are legal.
Unfortunately, franchisees don’t understand that the failure of a franchisee’s business and the closing of the doors is “abandonment” of the business under the terms of the franchise agreement. Most franchisees do not in anyway understand this when they sign the boilerplate non-negotiable contract that is packaged with the government-mandated disclosure document wherein the government indicates “TO PROTECT YOU………….”
Law enforcement agencies such as the FBI and even the State AG’s don’t get involved in franchise disputes because when there is violation of the Disclosure Docoment, this is still a contract dispute that is under the purview of the FTC and the State Regulators only when there is a violation of the FTC Rule/FDD. In a sense, there is generally no “fraud” unless there is a violation of the FTC Rule and then even if there is a violation, there is NO private right of action, generally, for the violation and the franchisor is protected under the terms of the franchise agreements signed by the franchisees.
The media joins the status quo of the law and policy as presenting franchising as a means of achieving the American Dream and will only publish negatives about franchising if they think it is in their best interests and their readers willl be interested.
Robert Purvin of the AAFD and Susan Kezios of the American Franchisee Association have indicated that the fatal flaw of the FTC Rule is the failure of the FTC to mandate that franchisors disclose or make available the unit financial performance statistics to new buyers of frasnchises. They believe and I believe and I think Sean believes that this omission of historical financial performance statistics on a unit basis to new buyers is misleading. Robert Purvin of the AAFD goes so far as to “personally” indicate to the FTC that the promulgation of the FTC Rule that took franchisors out from under the common law fraud statutes of the states was for the purpose of protecting franchisors from charges of fraud from failed franchisees.
Just wanted to share my understanding with you Curves victims. Good Luck to You!
Well, there has to be a reason there are so many cases filed against this corporation. According to the court clerk, CI tried to have the cases dismissed on Dec 17 and the judge said NO. If you read the first 47 pages of the complaint as I have, you would see. In addition, why is Gary Heavin transferring monies to an offshore account in the Carribean?
This lawsuit has basis. Too many curves were opened close to one another. The franchisor offers NO help to the franchisees unless it is spend money they dont have on their products or to “pray” and hope things get better. In the 3 years I have owned the club, an Area Director came ONCE. She wasn’t even the NJ Area Director. That justifies a 5% fee? They also take 3% ad fees. Curves advertising is non-existent. From what I understand, they are funding Diane magazine with franchisee monies.
Third, since when you can you ad something to a contract like the $10,000 failure fee? That is not in the agreement and not one franchisee was notified of this until they tried to shut down after Feb 2008.
This company claims to be a Christian based service. That’s BS. If you know passages in the Bible you know that you don’t brag about being religious. You don’t manipulate people for money in the name of God.
If the lawsuit had no basis, people would not be winning their cases and the judge would have dismissed it and thrown it out. The court clerk said it is a huge lawsuit and it’s still growing.
The appearance that franchisees are winning law suits has not been substantiated in any of the case law that I can find but I hope for your sake and mine that you are right.
I would hope that fraud in the inducement and in concealment of material facts could be proved outside of the actual contract that, together with the FDD, appears to protect the franchisors from fraud charges most of the time. We don’t know what has been happening in mediation and arbitration these past 30 years but I believe reliable research presented to the Congress indicates that the franchisors are more often the winners and that the contract and the government disclosure document protects the franchisors. (Read the history of the
Coffee Beanery case on Blue Mau Mau for a demonstration of federal regulatory policy in action)
I am not an attorney or a researcher but rermember that there has to be an appearance that franchisees can aproach the courts but remember that the courts generally protect public policy and regulatory goals in the end, and the binding and adhesory franchise agreements with the acknowledgement and reliance clauses allow the courts to do this. You can’t buy a franchise unless you sign this non-negotiable contract that generally protects the franchisors from charges of fraud in the State Courts.
In view of the fact that many franchisors go public and many have borrowed money under securitizations of the franchise agreements and royalties, the courts now, more than ever, have NO incentive to undermine the contracts, and thus undermine the Commercial Paper traded in our markets —– and the Supreme Court of the US has indicated that the Federal Arbitration Act is supreme and that arbitrators have the duty under franchise agreements with arbitration clauses to determine whether the contract was fraudulently induced, etc…
Regulatory policy and the FC Rule was developed to protect the franchisors and the successful franchisees and to prevent unsuccessful franchisees, the failures, from destroying whole franchise networks with successful lawsuits for common law fraud, etc… The government regulatory rationalizes this policy in which franchisees are merely resources for franchisors as serving “the greater good.” That is, if only 50% of the franchisees survive and feed the economy in terms of jobs and revenue, this 50% is vital to the economy and the 50% of failures must not be allowed to destroy the 50% who succeed.
Unless your attorney can find and prove an actual breach of contract, where will you be? Franchise attorneys do not take franchisee law suits on contingency for good reason. They know they have to fight upstream and often will lose in the final judgment.
Please continue to disagree with me and try to prove me wrong. I would like to be wrong but my research reinforces my understanding of the status quo of franchising and the law and I continue to believe that the deck is nicely and “legally” stacked against franchisees who cannot overcome the constructive fraud of the franchise contract wrapped up in government disclosure procedfure, the FTC Rule or the FDD, that legally tricks them into signing away their due process rights.
Ask your attorney to explain this to you and to cite some case law or arbitration in which franchisees were compensated for their great losses because they were tricked into buying a franchise with a high unprofitability or failure rate, etc…. Ask your attorney to cite some case law where franchisees have won in the courts. Regulatory policy in practice appears to permit franchisors to sell unviable franchises at any degree of unprofitability or failure of first owners of the franchises. Churning appears to be permissable under current law ——and there has never been any litigation in the courts that deems that franchisors have any duty to be competent or to sell viabile franchises to the public. Don’t you find this strange!
Carol you sound like you have all the info. Sad but true for us curves owners who are drowning in this legal robbery. Again the courts are set up for the thief not the victim! Buy it for a dollar, did, buy our merchandise and give it away, they will come. I did and they did not. You are stuck with all the advertising because they do absolutely NONE! And just try to get money for a transfer from the SISTERHOOD!
Carol,
At this time I do not have time to make comments about your posts but you negative advice to the owners is not correct and I will be respoding very soon to correct your statements. By the way THE LAWSUIT BY ZARCO HAS NOT BEEN DROPED AGAINST CURVES AND IN FACT EVERY COURT DECISION HAS BEEN IN FAVOR OF THE LITIGANTS.
Unhappy,
It was not Carol who said the lawsuit was dropped, it was someone who posted their name as Genny. Read back on the blogs.
Genny if that is her real name probably works for CI
I have no idea whether the lawsuit was dropped or not!
ZARCO is evidently a very good law firm that does win BIG, apparently, for franchisees because the owner was covered in a Franchise Times Article as one of the STARS of the franchisee bar and he certainly lives BIG.
I don’t understand why some law firms do better with franchise law for franchisees than others. It’s a puzzlement! I’m trying to research this!
Zarco Law Firm is the number one franchise law firm in the nation. It’s all his firm handles and hir reputation is one of winning large settlements and have the ability to collect the money if any are handed down by the courts.
I would not put it past Cuves International to post that the lawsuit has been dropped as I know for a fact howie lied to all the convention goer’s by telling them that curves had won every motion in court so far. In fact curves International has not won one motion as of yet!!!
I thought Curves one the motion to have the trial in Texas. Zarco didn’t choose to take it to Waco. They wanted it in FL.
Just how does Zarco Law Firm win all of these suits for franchisees when all of the attorneys have to work with the same laws and case law that greatly favors the franchisors and protects public policy implemented under the FTC Rule.
I’m trying to understand why there are “Stars” in this field. As I said, I know Zarco lives BIG because they did a feature story on him and his beautiful home in Franchise Times. Of course, his reputastion for winning large settlements is verified by his BIG living and this invites more franchisee clients to give him retainers,
But! how does he consistently win big settlements when other franchisee attorneys have such difficulty? What is the secret of his success? Is he a better attorney or is he so spell binding that the judges use their discretion to give him the upper hand?
Does the Zarco Law Firm tell you that they willl be struggling upstream in the lawsuit when they take your retainer? Or, do they use the usual legal disclaimers about any promises that your claims will be successful?
Zarco Law Firm is great. They seem very efficient and sharp. They are known in the country because they know what they are doing. I was impressed when I talked to them. Just make sure you have plenty of money.
But-Barb! Just exactly what are they doing that other franchisee attorneys are not doing?
Maybe the Florida law or judges are more friendly to Zarco than other judges in other states, or what?
Florida has some special statute concerning franchise sales — but I read on a DLA Piper site that a Florida judge ruled the portion of the Statute that provided a private right of action for misrepsentation to be unconstitutional because misrepresentation is a crime under the Florida law and this would then involve double jeopardy, or something like that?????
What kind of retainer did they ask you for?
It was alot for zees who have no money. I think many zees would rather put their head in the sand and just forget what has happened to them. It is unfortunate because if everyone goes together in a class action their chances are better. Now because of the internet people are getting educated and I hope will not go out with no money. I stand by the rule of a year for reorganization and legal fees. I just sensed Zarco and Einhorn knew what they were doing. They had a copy of our UFOC in their hand. They are like Solomon and know what to look for.
In the case of Curves you would think the encroachment problems is obvious they no longer care about their zees. They are into selling franchises and not caring that their zees reach success.
Yes! Richard Solomon of Franchise Remedies knows what to look for and what constitutes fraud outside of the FTC Rule and the UFOC but Richard points out that recovery for franchisees after they have signed the franchise agreements does not really save them from their bad decisions because, of course, they aren’t made whole under the provisions of federal regulatory policy.
Richard Solomon believes in due diligence BEFORE you jump into the trap. But Zarco is rich because he gets good settlements for franchisees in arbitration and the courts. Again, why is this?
Can’t you accept Zarco is a killer franchise attorney. He has won many zee’s cases. He also represents zors.
Barb quote:
“Zarco Law Firm is great. They seem very efficient and sharp. They are known in the country because they know what they are doing. I was impressed when I talked to them. Just make sure you have plenty of money.”
Aren’t you the same individual who always talks about “killer due diligence”? How is going by their reputation alone doing “killer due diligence” on this firm?
Barb quote:
“I just sensed Zarco and Einhorn knew what they were doing. They had a copy of our UFOC in their hand.”
Come on now Barb. You sensed they knew what they were doing and were impressed because they had a copy of your UFOC in their hand? Are you serious? Is this what caused you to ’sense’ what they were doing?
For all of your talk here about performing due diligence, you’re falling right back into the same pattern of trust here with some firm that appears to do well against franchisors without actually verifying the facts….And in 2004, Quiznos seemed like a decent franchise opportunity. go figure.
I am not going to go into detail what was said. All I can say is the franchise sector of lawyers is a tight group and practically every franchise lawyer know their name. When their name is mentioned people are impressed. That speaks volumes.
Barb,
I think what these people are impressed with is that Zarco got a couple hundred people to pay $4,000. Then Curves won the motion for venue to be in TX. A conservative, republicans state where they put people to death every month.
Barb and unhappy sound like shills for the lawyers, out trying to drum up more fees for the attorneys. You don’t get this money back.
The laws lean in favor of franchisors. There are many Curves that employ workers, provide a social and health environment.
The supreme court of Texas isn’t going to let happen what Unhappy wants to see happen (total Curves destruction and the tarring and feathering of Gary Howard Heavin. I must say a honey and feathering would be entertaining. Put it on pay per view and send the money to unhappy.
I have learned to go by my gut feelings. They are always right. (Read Michael Webster’s interview on BMM- People wanting to be own boss easily scammed.) Great blog. Michael has talked alot about gut feelings. I also like what he says about time. Take your time don’t let the zor rush you. Time can be a deal killer. Doing business with a bad zor can destroy you.
If Zarco represents franchiSORS as well, maybe he made most of his money representing the franchisors, and the rest from retainers for representing franchisees in the courts and in mediation and arbitration. Have you found any case law where Zarco had big money wins for franchisees or in settlements, etc..that were confidential?
Why should franchisees have to rely on their gut feelings or what Item 20 references tell them? This is really an artifice. Item 20 is merely a crock upon which franchisees are supposed to be able to do efficient due diligence but anything a franchisee reference tells you has NO LEGAL SIGNIFICANCE. Item 20 protects the franchisor from making any representations about the success or failure of the franchise he is selling within the disclosure document, and if he makes no earning claims in optional Item 19, he is home free in the courts in a safe harbor that protects him from charges of fraud from failed franchisees who feel that constructive earnings claims were made outside of the contract.
Why shouldn’t franchisees receive true disclosure of the risk from the franchisor as represented by the franchnisors unit historical financial performance statistics?
Why should the “bad” franchisors be licensed by the government to lie, cheat, and steal because of government disclosure regulation that was represented at promulgation of the FTC Rule as a means of protecting the buyer of the franchise and disclosing the risk?
We need to do killer due dilligence on attorneys as well, don’t we? How do we do this? and why are there “star attorneys” —-how have they earned their star status?
I have talked to many lawyers in the past year. Did you know that lawyers do not study franchising at all in law school? It is not considered a specialty. That is why they do not have to put franchise lawyer in front of a UFOC. Did you know most lawyers do not know how to tear apart a UFOC/FDD? That is why it took me 11 phone calls before a lawyer referred me to a franchise lawyer. I have to admit my favorites are Solomon, Michael, Paul and Howard on BMM. When I mentioned Zarco and Einhorn even Don said they were well known. Which means they are killer franchise lawyers.
Zors are not suppose to lie, steal and cheat. (Misrepresent, puff material facts or give false earnings claims.) There are some things I will not share because of personel reasons. Did you know most lawyers do not know how to tear apart a FDD? There are inconsistancies in FDD’s. There are certain things that can be used against the zor that can wipe out certain bomb-shell clauses. Zarko, Einhorn, Solomon, Michael, Howard can advice you on this. Did you know that there are good Federal laws that can be used against the zor. I believe because of the securities departments getting over loaded with zees complaints from many franchise systems things will have to change. The courts cannot ignore all the consistant horror stories from many different franchisors. Did you know that some states are going to regulate franchising where up to date information has to be disclosed? I believe it is about time. Not only for all the hurt zees but for the good zors who respect the fact people work hard for their money. I am hoping there will be stiffer penalties for bad zors that are obivious phonzi schemes. The internet has been the beginning of the end of the good thing many bad zors have had for many years. I am hoping the one-sided agreements will be thrown out and replaced with direct, concrete words. Throw out may, shall, should, estimate, projected and intend. I hoping that more people learn to tear apart a UFOC and know they can negotiate a FDD. If it is non-negotiable throw the evil document out and don’t do business with that zor. If a zor says it is against government regulations to have them put anything in writing you are dealing with a rat.
What is curves procedure to close facilities?
What does curves require you to do with your equipment if the facility is closing before 5 years?
What did others do?
You have to email resales at resales@curves.com or Alesha Yankie directly. Tell her you want to shut your club down. She will email you paperwork. What they ask of you is just ridicuouls. I sent it to my attorney. They want you to either sell your equipment or donate it to a woman’s prision. No prision wants the equipment. They also tell you you have to pay a $10,000 failure fee. They tell you they will analyze your paperwork and discuss it with the committee. I guarantee there isnt a committee. Don’t give them any money.
OK, I am terrified to make this Curves purchase. Especially after the new “Smart Curves: thing is happening…
You mean Curves Smart? Don’t purchase that equipment. It’s not worth it. I hire a guy to maintence my equipment (regular not Smart). He also maintences other curves equipment around NY, NJ, & CT. He told me it has a ton of glitches and not worth the $5,000 they charge you to own it.
You are correct in not buying the smart eq. It was sold to the franchisee’s as new technology but in realality it is over 10 years old. It didn’t work than and it does not work now. Many clubs are very upset that did buy it and CI refuses to take it back or to refund their fees that they are charging.