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.
Curves owners past and present,
It should be obvious from this site there are serious problems with the way that Curves International has enter acted with their franchisee’s. No one can argue the fact that Curves health and fitness clubs are closing at an alarming rate. The closing of individual franchisee clubs is not limited to just the locations in the United States but is going on world wide. The results of the closings are the many group action law suits that have been filed against Curves international and Gary Howard Heavin, for over saturation of the market place, over estimation of profit potential, under estimating the operating costs and lack of franchise support. While some might try to argue that the lawsuits are just sour grapes from bad owners who should have never been an owner, they are plainly wrong. It makes me doubt that they even own a club but rather a Curves shill. Furthermore her suggestions on how to be successful is right out of the Curves manual. If you for one second think that all the owners who have closed or are facing closing haven’t followed the “ spokes of the wheel” you are either nuts or in need of psychological help. Curves International’s business decisions have been very detrimental to franchisee’s include but not limited to the lack of advertising which the franchisee’s pay monthly for in the tune of 30 million dollars. Be honest you hardly never if ever see national adds any more for Curves but you sure do for the other health and fitness clubs. Howe’s supposedly new Smart Technology was to revolutionize the fitness industry. What a joke it doesn’t even work, the cylinders leak, and it’s ten years old. To make matters worse, Howe’s way of stopping the lawsuits is to charge a 10,000 dollar closing fee. He than pretends to care by lowering the fee as long as you sign a release preventing you from joining a lawsuit. If you don’t he sends you a termination letter stating that you abandoned your territory and than threatens you with a lawsuit demanding up to 49,900 dollars. Well let me tell you something. Its not legal in Texas for him to do that so owners need to take action by first writing a complaint letter to the BBB in your area as well as Waco Texas. Than secondly they need to write the Attorney General in their state as well as the state of Texas. Thirdly they need to write a complaint letter to the Federal Trade Commission and than they need to talk to a lawyer in Waco Texas. What Curves International is trying to do is morally, ethically, and legally wrong in the state of Texas.
Unhappy,
It is very apparent that there are ‘Corporate Shills’ posting on here. In fact, I made that claim a few days ago in one of my postings on this site. We have also shown that CI does monitor this site.
Curves owners, past and present, need to be aware of this. The Corporate Shills will try to distract, defect and deny any responsibility of the failure of your club and the Curves system. In turn, these Shills will try to convince you that you alone are to be blamed for you the failure of your club. There emotional tactics will include, embarrassment, guilt and attempts to make you feel stupid. Just read though some of these posts, their information is nothing more then a regurgitation of Curves Corporate vomit.
Howard Gary Heavin is a gold toothed greedy soulless pimp and his staff is a bunch of worthless mechanical minded trolls.
A quick question.
How many Curves currently operate in the US? I see the figures from several years ago but was curious to how many exist today.
The numbers are in question as Curves International won’t tell how many are left although we do know it will be less tomarrow than we had today as clubs are closing at an alarming rate.
and we believe this why because you said it who are you. Why should anybody believe you.I bet you sit all day bashing curves and other business. Did you ever even own one.CI does care about the clubs that make them money not the ones that fall on there face. that my friend is business. keep whining like a little girl you have know facts on what you say.clubs that have closed in my area are sold right away for whatever the price is maybe for a steal, but if the right person gets in there they will build that club up and make it work and if the club is good that gets around too. you keep repeating youself over and over you and your little group of naysayers need to move on your only hurting yourself. Internet is great. there are no faces and anybody can post. If you spent as much time on growing your business you would be a success try become a lawyer they love to argue until the cows come home. I know what is to be true and dont have to prove it to anyone curves is great and will be around a long time.the best bang for your buck.I am glad I bought my business and so are many other club owners. I just spoke to a friend in the business, she said its wasted time to post here useless energy better things to do and never anything good comes from negitivty
I’ve been with curves since nearly the begining and most of the owners here know me but we don’t know you and we know that you are spreading nothing but lies. The truth will always win out in the end as will our court cases. Do the research on this company and open you eyes and just maybe you will see the light. If you are doing so good maybe you would like to buy a couple more franchises. There are certainly enough of them for sale. If you will tell us where you are located I’ll gladly post a list of ones that are available. If you don’t like all the negitivity why don’t you go to the yahoogroupcurvesowners site. I’m sure you would try to put a spin on all of their negitive comments about corporate and what is happening to Curves. As far as how many clubs are left wait until the new UFOC filling is posted in March. By law it has to list all the franchises that have closed in 08. I will bet you that more clubs will close in 09 than closed in 08. The sad thought is that Howie will try to sell those terriiories again knowing that they failed before and in all likyhood will fail again. That my dear is called churning and Curves is an expert at it.
like I said before on and on how many hundreds of posts are you. do you spend your day trashing this company. One club is all I can handle right now thank you anyway do you own a chain maybe thats the problem cant handle all those women ypu must be a man. or curves police. your all about faikure do you hear yourself do I need another post like this one I think not I am a women that works hard and loves to exersice and can and do make a difference. do you hate all gyms or just curves. you must have been burned bad.I do feel sorry for you. There are lawsuits for all big companys big deal. that is business, nothing is perfect and maybe you can change some things I dont know but one thing I can say and you should agree unless you are truly a fool. women and men need exercise to stay healthy that is why I chose a 30 minute workout that works for me and many others. by the way I am not a shrill or whatever you called me just a women that believes in what I do. If you dont believe it wont work
beware of this site as it seemed to be controlled bya jerk who thinks he knows all about everthing It seems as this is entertainment I f you want to know about curves walk in one speak to the women working out and then the owner thats the only way you will get the truth. these writings are written by deranged or should I say demented people read between the lines then walk away
…beware of this site as it seemed to be controlled bya jerk who thinks he knows all about everthing…
Amen! Jerks who act like they know everything are are annoying to those of us who truly do know everything! ;)
Sean,
I think she was talking about me which is fine as she has refused to address the real issue. Is Curves a good investment and why? At this time it is not a good investment because of the way Curves International treats it’s franchisee’s. there underhanded business tactics make it hard to succeed for any franchisee. She obviously believes in the circut and I do too as all owners have witnessed the results from our members and how we have changed lives over the years. But with that said not once did she ever mention how dissatisfied she is with Curves International and the way Howie run his business. There is not one single owner that I know of that will stand up for Howie or try to show him and Diane in good light. They have even tried to rewrite the history of Curves. It’s just such a shame that they don’t get it yet. The one positve thing about haaving her post here is that we are moving on up as the Jefferson’s would say. More owners are begining to log on, the word is getting out and the increase to the yahoogroupcurvesowner site has been two fold thanks to this site. Remember owners to effect change with in this corporate structure it will take a lot of us to join the fight so keep up the complaint letter to the BBB’s of your state and Texas, to the attorney general of both states and the FTC. Our one little snow ball is turning into a huge snowman so lets keep it up and just maybe change will come.
I Did address this issue CI has only given me a vehicle, Its up to me to drive it. I dont give a hoot about CI. only my business. and yes for me I am glad about my investment it has been a wonderful experienc and alot of hard work. I pick and choose how much of there laid out plan I wish to be involved with. mostly all exercise and over time I speak with the women about diet and how vital it is in weight loss, first and formost is the habit of exercise that we all need, no lieing involved just plain simple truth and an upbeat pleasant atmosphere professionally run. I am glad I got involved but this is not for everyone. I trusted my gut and saw the numbers new I could retain members and make them grow. I have nothing to do with howie. He does not have anything to do with how I run my business and a fee at the end of the month for use of the name. I am a small privat gym with members that like to be there. They pay me a fee for my sevice period. Many middle aged women would never exercise if it werent for curves. why is that a bad thing. Your talking about coporate until they pay me a salary I could give a hoot of what goes on. I picked my location carefully and went over numbers then negotiated the sale no regrts here. not all is bad except that too many got involved when really shouldnt have. I really do feel bad for them but life is a learning lesson and busuness is hard work.Remember anyone can file a lawsuit against anyone question here is it justified time will tell
AMEN–Another Curves Owner!
These owners that are so worried about what is going on in TX and with Howie are crazy. Just focus on your OWN business–Take care of it, grow it, plant the seeds and the revenue will come.
I find it so funny that most of the negative posts come in the A.M. time period each morning. THIS IS WHEN YOUR CLUB SHOULD BE THE BUSIEST!!! These commenters should not be on the internet building a “case”, they should be working their units and building their business.
It is clear to see why these owners that are complaining are in the position they are in. They focus on problems and not “solutions”. Its the RESULTS, not the effort.
unhappy writes: …Remember owners to effect change with in this corporate structure it will take a lot of us to join the fight…
Do you guys have a list of specific changes you are requesting/demanding?
If they meet your requests, how will it impact your business, sales, etc.?
Unhappiness with ownership, etc. has been communicated over and over, but I’m not clear on the list of demands & their impact.
Can you post them?
Boy!! Rita you will get hammerd by Unhappy and Sean, for saying exactly wath need to be said
But if all was good there would not be any Blog like this one that are used to dimminish, tarnish, the immage of the reality that people are facing
it’s not only Curves it’s all kind of franchises
If a franchisee does well it’s because of him / her if they fail it’s the Big and mean franchisor that is the cause, The franchisor spent coutless hours building a system and did it himself / herself in the biginning , the franchisor did not put a gun to anyone head to make them signed , If the franchisee start to loose members , costumers , they start to tell themself that tey where had by the franchisor , they never look in the mirror and say where did I go wrong it’s so much easier to blame the one person that started it all..
The human natur is to always blame others for their failliures. Except the real business people that are on those hot chair with their own company to manage with no one to blame if they fail, Maby something got to be wrong with Curves but nothing that is said in here could help the franchisee that are strugling.
Why not go 360 degrees and start giving advice from good experience.. The situation here is the same as it is in the news at this moment. All you hear in the news is how bad things are, nothing good all around us, But if you just listen to the bad news you are bound to go jump off a bridge
Try to not listen to any news for 1 week and see the difference it will do you and you surronding
try not to come to this blog for a week and your business will prosper, Focus on the good things
Hey 30,000 Children a DAY are diyng from hunger
Thousands other will die from Aids, Cancer, in the next weeks , So maby it’s not so bad for us after all. Dont ask what franchisor can do for you ask what you can do for the franchise you bought into..lol
awesumly said, This is exactly the same thing you see because your unhappy does not make all of us unhappy we love our busuness and are prepared to what it takes to be a succses that the difference between us. If I drive a lexus does not mean I support lexus I just drive it.There are optimist and pesimists out there . Id rather hang out with optimists any day of the week. And sean take some advise here. truly let it be noted we the strong women of curves love our business and dont regret for one minute getting involved with our own destiny and our business because we are truly an example of the american dream god bless
For every owner like Another Curves Owner, who BTW has YET to post membership numbers, rent, profit margins, etc. there are probably THREE owners like the poor ex-owners here . . .
http://www.mykawartha.com/news/article/36701
Is it me or does ‘Mellissa’ and ‘another curves owner’ have oddly similar writing styles and make similar spelling and grammatical errors as well?
no honey we dont know each other, but do share the same views.spelling was not a forte sorry for that. and no not a master in grammer either. I am going to work now enough of this pity party.Dont need to prove anything to anyone see ya wounldnt want to be you
Mellisa:
Just because someone might be critical of a franchisor doesn’t mean that they think the franchisee is not responsible for their own success. And just because a franchisee may have some legitimate complaints doesn’t mean that they should let it affect the energy they apply to promoting their business. If you’re still in business, you can’t let negativity taint the customer experience or infect the business – as difficult as it is.
I’m not a big fan of litigation, especially franchisee vs. franchisor because it’s not a fair fight. You signed a big fat agreement that was not drafted in your favor.
I believe that as long as you think there’s potential for your location, as long as you’re open, you need to do whatever you can to try to make it work. Go door to door if you need to.
I also believe that if you’ve decided there’s no hope, there isn’t. Cut it fast and move on.
Well said Sean. A business owner must do everything possible to succeed; guerrilla marketing, etc. However, with the tight restrictions of a Curves franchise, the most successful franchisees I know must violate their franchise agreement everyday to succeed. Some clubs stay open when they are not supposed to; other clubs offer babysitting or other services, some clubs sell their own products, some clubs have extra cardio equipment, etc. Even Another Curves Owner wrote “I pick and choose how much of there (their) laid out plan I wish to be involved with” and “I have nothing to do with howie. He does not have anything to do with how I run my business and a fee at the end of the month for use of the name. I am a small privat gym with members that like to be there”.
She might like to think that she is in total control of her business, but she is mistaken if she thinks she can pick and choose what parts of their formula she can follow and what parts she can dismiss with impunity from CI. What is the sense of investing in a franchise if you are going to have to violate the franchise agreement in order to be successful?
Here is an example of how CI “helped” a struggling franchisee in Canada who tried to sell her club. They stole her prospective buyer to sell to them direct and left her and her members hanging: http://www.mykawartha.com/news/article/36701
So, in answer to the question, “Is Curves a good franchise investment?” I say NO!
Dear Sean,
It is the very first time I can say you are right 100% nice to hear you give some good and positive advice..
Please keep it this way…
Why Curves Owner dont try to meet all together and find solutions. let’s say that all the 380+/- franchisee joined together and talk about a how they can manage to get out of a bad situation..
It can be done ..they only need 1 person to start the process..
Mellissa,
Not sure where your club is but Curves Owners have formed together. Many areas have Coops that join together in marketing, training and information sharing. However, in many of the urban areas Curves oversaturated the market. Additionally, many owners divided their territories, often with CI encouragement, to the determent of the original club and to their neighbors. In my market, I saw that happen at least six times in which multiple clubs fail.
So, what eventually happens is that these clubs fight for ever member. When a club opens closer to a member, that member will transfer to the new club. The old club delays the transfer in order to get that extra months payment. Members now “travel” twice a week to the club nearby work and everyone fights for those precious dollars in order to survive.
Some owners try to get CI involved to help sort out the mess. What happens? CI ignores the problem and tells very everyone to ‘think positive’ and ‘emit good energy’. In other words, they wash their hands of the problems.
This is a classic case of, “Supple & Demand”. However, the supply of Curves clubs is outstripping the supply of customers. This is the creation of CI and CI alone and not something that CI can wash its hands of.
If you Mellissa have a club in a well protected territory with a good population you can do well. More importantly you might survive this economic depression (yes, I am using the D word here). But, just as you stated, you are altering for the so called official approved Curves Way. Perhaps you are changing up the program, doing a Power Workout, adding a yoga class, jogging machine. Perhaps you are selling other products in your club. Most likely you are in breach of your agreement with Curves. However, if you are quite and your AD is not coming in no one will give a hoot and holler. BUT, isn’t that the very problem here. One, you have to be in breach of your Franchise Agreement to survive. Second, CI is not changing to the market conditions. Third, no one is enforcing the rules as the exist today.
Meilissa and ACO,
You will probably be surprised to hear that all of my clubs have been successful and the ones we still own are still profitable. I have nothing against the Curves concept or the workout. It works and all owners have seen the individual results within their clubs. My problem is with Curves International with what I believe is their unethical, unmoral, dishonest and unchristian like business practices that have been getting progressivly worse since 03. I think our misunderstanding is that you feel I am against all Curves. I am not against Curves owners as I am one and I certainly want and pray that we all succeed but with how the franchisor is treating it’s franchisee’s its a wonder that the whole chain hasn’t closed. As an owner you should be outraged by what is happening. Don’t tell me that your not upset at the way our advertising fees are being spent. That the curves bars which we all promoted in our clubs can be bought cheeper at discount store’s than we can buy them. That the wieght management program is being nationally advertised as being free is a sham. No matter how you want to rationalize it the members are required to buy the book. The fact that AARP program can now be bought on the internet Curves site thus taking away our intial sign-up fees and a percentage of the month fee as well. The fact that the now members can buy curves vitamins and supplements on line through Curves Complete which takes another income streem from the owners. The fact that in meto areas the clubs have been over sold and that franchises have been sold in areas that were under 6000 in population and could not support a facility. I could go on and on and if you own a club you know what I’m talking about. Up to now are complaints have been voiced by many of the clubs but no one is listening at Curves International. If we put enough pressure on them they will have to start taking action on our complaints. If they don’t more and more law suits will be filed until they get the message.
FYI: There were two comments left here recently saying that this site is placing some sort of spying program on visitor’s computers. This is nonsense.
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I don’t know if the commenter was intentionally trying to kill participation in this conversation or not, but if they got something it didn’t come from here.
Be sure to use a good antivirus anti-adware program that automatically updates itself continually.
unhappy but getting happy
If Curves is not responding to your request and you realy feel like you have been forced to split your territory with other curves owner maby they just dont have enough pressure.. I have seen many on this blog say that curves wont be ther for long , that curves is closing a lot of clubs , that CI oversold the territories , However I never read anything about facts.. and I meen numbers.. how many clubs are still in opperation
how many are profitable, how many other 30 minutes clubs other than curves are around you
is ther realy a good lawsuit against curves ? and if yes why?? did CI realy did something compleatly illigal vs your franchise agreement, are they realy in breach of anything ?
Other than the franchisee on this blog that dont make $$ or that have lost it all are there anyothers that can analyse the Fitness market in the US and say since 1996 the market did not change.. Curves where the very first to open (by themself ) a 30 min concept , but since that there is about 25 different copy cat of Curves some of them like Lady Express, Contour , Buterfly life have been quite succesfull in taking a huge chunk of the market once reserved for Curves, Do any of you think that GH made all the sales of all the 10,000 clubs!! get real.. no one can manege to sell 19 + clubs a week for 10 years .. He had salesman all over making deals
they where selling Curves while 25 other companies where selling there own concept..
there is one word only to describe this ..GREED
it’s alway’s the same as soon as someone has any kind of succes there always will be someone to copy his / hers concept and it will get so much diluted that every one will have trouble making money.. that is sad , we like diversity as consumer but when will enough be enough
look at Circuit City.. and many other that barely survive.. We where happy to let the Japaneese car gat in the US 25 years ago , now it’s our very own American Car company that are in danger,, Did you ever ask why there are vitualy no American car in Asia?? Why Toyota makes more profit than all the Auto makers reunited!!
Mc donald just annonce their plans to Open 1000 + new restaurant in the next 2 years .. I am sure that other Owner are happy about that.. what about Starbuck!! 300 more closures ..
If curves sold 5000 franchises it would have made no difference because there would just have been more franchise sold with other names.. then 5000 would have been to much anyway..
If CI did something wrong life will make it right in the future, at this point it is useless to try to go against the franchisor.
Make the best of wath you have
And GOD bless you all
This was my last comment on this Blog
It has been a pleasure.
Mellissa
Another sad tale of Curves members donating $600 to help a struggling owner stay open . . .
http://www.pioneerlocal.com/norridge/news/1388237,no-curves-012209-s1.article
Melissa,
I was going to anwser your questions but since you are gone forget about it. I gusess she hadn’t heard that health care industry usually does good in a down economy. well at least it’s good to hear some people are still on the corporate greeds side of any argument.
PAST AND PRESENT OWNERS,
Don’t forget to send your complaint letters to the BBB in your area as well as waco Tx. and your states attorney general as well as TX. and the FTC. Here are the links that you can go to to file the complaints.
http://www.bbb.org/
http://waco.bbb.org/WWWRoot/SitePage.aspx?site=40&id=ab5100aa-4c5a-4314-8e1b-f5996973f10c
http://www.oag.state.tx.us/consumer/index.shtml
http://www.ftc.gov/bcp/index.shtml
I have read this entire thread, and I have the year-end statements for the past three years for a local Canadian Curves that is on the market. This Curves is owned by a separate incorporation, and the ‘owners’ are simply shareholders in that company. I am not an accountant, so a number of things confuse me, and I am having trouble figuring out how the profit/loss of the Curves relates to the balance sheet of the owner company.
If the Curves posts a loss, what impact does that have on the corporation? Is the corporation expected to make up the loss, or is it written off? If the Curves makes a profit, how does this impact the corporation?
I cannot find any matching numbers between the two sets of reports, and that confuses me. I am also concerned that the gross income has declined each year, and while the expenses have also declined, the owners have signed a new three-year lease that will cost an extra $7000 per year.
Any suggestions (other than the standard ‘run for the hills’ rhetoric)? I truly want to understand what is going on at this location. I am not in ‘danger’ of buying it so I don’t need to be warned away from it. I simply want to understand what I am seeing.
The one thing that I have noticed with these numbers is that the owners have taken their ‘profits’ in the form of wages from the Curves, not from the corporation that owns the franchise. It seems as though their wages have reduced each year, but they still took over $50000 each year even though the Curves has shown a loss for two years. Is this viable, or are they going to ruin the franchise by running losses? Is this a failing franchise or are there business strategies at work here that I’m not aware of?
Advice related to my specific questions would be greatly appreciated. Answers along the lines of ‘Curves is great, you’ll enjoy owning a franchise’ and ‘Curves is awful, you’re better off flushing your money down the toilet’ are not really what I’m looking for (although I have taken both viewpoints into consideration).
Thank you for your time and attention.
C.
you wont get unbiased anwserers here. This site is for the negative, look at what the year end report tells you minus expenses
this is ridiculous, I cant believe this is going on, when I heard of it I had to check it out myself.wah wah I dont know how to run my curves. grow up
FYI:
We set up a separate site for those wanting to buy or sell fitness clubs and/or equipment.
Buyers:
http://www.yourtownhealthclub.com
Sellers:
http://www.yourtownhealthclub.com/category/sell-your-equipment/
The only time I’ve ever been sued was when I was a Curves business owner. The same frightening scenario can happen to YOU if you buy a resale . . .
http://whyalla.yourguide.com.au/news/local/news/general/curves-in-court-battle/1423335.aspx
Wipedout:
I’m not sure what your point is in regards to this story. It’s a zoning dispute that also involves a non-franchised cafe, and the Curves owner will most likely prevail.
This same situation would likely have occured no matter what business she owned, no?
I’m just noting that your chances of being sued for the first time in your life go up drastically if you buy a Curves. And it’s not a pleasant experience.
The reasons can myriad: angry customers, resale buyers who feel they’ve been ripped off, zoning disputes or even CI itself if you try to shutter your club.
When things aren’t going right, it’s tempting for franchisees to blame everything on the franchisor and the franchise concept. While I’m sympathetic to the plight of Curves franchisees, I don’t think it’s in their best interest not to accept responsibility for the decisions that brought them to this situation, and for their overall responsibility for their success.
1) I’ve seen no evidence that one’s chances of getting sued increase with owning a Curves, and I doubt that’s the case.
2) Complying with local zoning requirements is the franchisee’s responsibility, not the franchisor’s. Owning a franchise doesn’t exempt you from researching & complying with zoning laws, local ordinances, etc.
3) If a franchisee misrepresents sales, costs & profitability numbers to a resale buyer – or allows someone else to do it and gets sued – good. They deserve what they get and are no better than whomever sold them.
4) If you take prepayments for future services or products, that’s not your money. It’s not your members’ problems that you used it for rent or your car payment; if you take their money, can’t deliver and can’t give them their money back, you stole from them and deserve the consequences.
Wipedout, every example you gave IS the franchisee’s responsibility and not CI’s.
No one put a gun to your heads and made you own your own business.
No one made you decide that 30 minute women’s fitness was a good concept.
No one made you buy a Curves, or accept the terms of the contract you signed.
There’s been a lot written here about how Curves should take responsibility for their obligations.
Shouldn’t franchisees be held responsible for their obligations as business owners?
We just our gym down Feb. 7, 2009. It’s in our attorneys hands now for the bankruptcy.
Sorry to hear that, NJ. There is some good news to take away from this, however. Now you can join the lawsuit against Curves, and your conscience will always be clear because you didn’t dump a doomed club on a new owner.
Actually we are filing Chapter 7 bankruptcy. We will not be joining the lawsuit because of this and because we are a resale. I am so happy to be rid of that place.
You might want to double-check with your atttorney. If you’ve closed your club – no matter if it’s a new club or resale – and filed for bankruptcy, I am almost positive you can still take part in the lawsuit. Notify the Zarco law firm ASAP to be sure.
Honestly, we are so done with Curves. We don’t even want to discuss this franchise anymore. We just want to move on with our lives. Curves was nothing but a cancer and an albatross. I am glad to be rid of it. Plus I dont have $4,000 to give Zarco. We are declaring bankruptcy and moving on. It was a learning experience.
Thanks NJCO for sharing your experience with others.
I hope you do write that book you were talking about. Your experience demonstrates how “churning” also victimizes second and third owners of franchises. I hope you will write or telephone your elected representatives and your State AG and, of course, the bank that gave you the loan to begin with —-and then made you move it over on a credit card.
You can see where the Franchisors are able to continue their exploitive operations because those who file for bankruptcy don’t have the resources to fight them, and then, understandably, do want to forget the whole thing and move on.
Sean’s comments to Wipedout, above, are true. Franchisees do have a responsibility to be proactive in their own interests but Wipedout and others were intentionally NOT provided true disclosure of the RISK involved, in terms of any unit performance statistics, before they put their signature to the contract. This, in my view, is the original sin of the FTC Rule that governs franchising and that enables and excuses fraudulent inducement and fraudulent concealment by the franchisors.
As for lawsuits. Remember that it is government regulatory policy to protect franchisors and those franchisees still standing in the system from those franchisees who have failed out of the system. The signed and binding franchise agreement is almost always upheld by the courts who uphold the federal regulatory scheme that is rationalized as serving the “greater good.”
With the crisis in our economy and the unmasking of giant frauds, the courts will be beseiged by those seeking justice. The only certainty is, of course, that the attorneys on both sides of the issue will win.
North Jersey Curves Owner:
Condolences, and best of luck with all future endeavors.
Out of curiosity, do many Curves owners take out SBA loans or do they self finance? If they do use SBA, any idea about the percentage of zees use SBA to purchase?
I’ve been reading the posts for hours now, but I rather just ask the question myself. I apologize if it sounds redundant. I am interested in a local Canadian club for resale. I’m meeting with the current owner this Friday. Any suggestions about what I should ask about, so I can make an educated decision about this particular club. Are canadian clubs are in the same predicament as US?
Eva,
I wouldn’t do it. Some canadian clubs are going through the same thing.
If you MUST attend the meeting, tell the owner you want the following:
1. Her tax returns for the last two years
2. The igo figure Projection Sheets for the last two years
3. A list of all her expenses and what the costs are
4. Her profit and loss sheet for the last two years out of her Quickbooks application or what ever application she uses to do her books.
I would not buy a Curves honestly. It was the biggest mistake of our lives. Corportae will demand their money and offer you no assistance. Why is this owner selling in the first place? Are they selling it for next to nothing? It was just reported on an AM radio station here that Curves, Subway, and Arbys have had the most closing nationwide in the United States.
If you buy the curves and then realize you are not making any money, Curves will want a $10,000 closing fee. If you dont pay it, they will put a judgement against you for all back franchise fees. the only way out of that is that bankruptcy which my husband and I are doing.
I’ve heard rumors that hundreds of Curves already have closed this year. I guess January, the BIG month for health clubs, was their make-or-break month, and it broke them.
So how was YOUR January? Is Silver Sneakers having an impact on membership?
Just checked the official Curves location site and found that our county, which had 18 Curves four years ago, is down to 12.
Hundreds of clubs are closing because 1) there are too many 2) people get tired of the idea and 3) memberships drop and CI doesnt care.
Curves was an idea stolen by Gary Heavin. The original is NOT curves, it is in fact Pace exercise founded by Randy Ladue, NOT Heavin. Bt Heavin would lead you to believe he founded the company and the concept. Much the same that apple and microsoft experienced back in the day. Microsoft got its windows idea from apple, simply stole it.
To make it even scarier, Gary really has no clue about exercise. This man said two things that show just that. First he claimed his “curves smart” system is better than using free weights. Being a fitness trainer for 12 years, that is the most obsurd thing I have ever heard. Showing that he really has no clue.
Then he says if you can walk you can squat?! What the hell? Yet again clueless. My 91 year old grandmother can walk just fine, but she has trouble squatting and needs assistance.
My 45 year old in home training mom who wants to drop body fat can walk but can’t squat.
Someone can be a great manager, owner, but have no clue about exercise.
His right hand man, Cassie findley, anther clueless person.
At club camp she says these machines are safe for anyone to use. Granted hydraulic resistance is safe.
However, for her to say they are biomechanically safe for anyone to use is completely obsurd. Suppose I have longer legs and or arms than someone else, I cant use that machine correctly WITHOUTH A CUSHION. In the year 2009 a CUSHION?! What fitness facility uses CUSHIONs to adjust their machines?!
CI takes the franchise fee out each month with no problem, NEVER EVER LATE. Yet when it comes to wellness, we are behind 60+ days which when we look at our bottomline, it effects that. But CI would never be late 60 days to TAKE THEIR MONEY NOW WOULD THEY!?
For those of you that feel since hes a Christian means hes not a crook, get REAL!
In todays world we have priests that are screwed up, let alone a regular man.
His clus are closing, but hes now turned his attention to Europe esentially turning his back on the US.
Its funny how I ask my area director for a tv schedule to see that our advertsing dollars are in fact being used, and she has yet to give me one?!
hmm..or even direct me.
Curves does work, EXERCISE works, doesnt have to be curves. Its a good concept that is flawed, but generally works well for people that need general fitness.
The curves smart machines work well for the women, but they are hevily marketd as being much more then they are..
I met Gary at club camp. Seems to me that he is idiolized, which is a shame beause people are dumb.
As a club we have flatlines, not growing but not shrinking. Does CI help? NO!
Can they really help us? They can they just dont.
Golds gym another franchise allows its clubs to advertise in their particular dempgraphics area in their own way. The are permitted to be flexible and accomote their dempgraphics!
CI will some day face the same that plauged things like Atkins.
Its now quantity over quality.
If YOU are looking to buy a CLUB DO NOT!!!!!
There was time that you could make good money with a club, but those days were about 10 years ago!
There are simply too many, a dated concept and horrendus corporate support.
Dated even with Curves Smart.
Tell me something, HOW is exercise customized when the exercise doesnt change. No different weight, no change in angle, no change in rest time, no change in anyhting, just the speed??
Machines can NOT be adjusted so there fore the “indiviualized” aspect of it is yet again MARKETING.
Dont buy a Curves franchise. Granted its well known and been around for a bit, bt the powers that be have their head up their ***
Go to the McCord Business Brokers web site. The number of Curves clubs for sale has PLUMMETED in the past few weeks. I’m betting they’ve closed.