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.
Donna, my comments were based solely on what you said. They were intended to bring out the facts and make you think twice. I don’t have a hidden agenda and I’m not making a dime out of taking the time to give you all this information. My hope was this would jolt you out of the emotionalism that’s driving an investment decision that makes absolutely no sense. You’re supposedly a retired corporate executive. If that’s true, why aren’t you using your business sense and business skills?
And it’s not just me and Jose that are on the same frequency here. Look at Sean’s lengthy comment, and the most recent one by a Curves owner, one of many who are losing their shirts. And the many, many comments above this one. With your 6-figure income, why haven’t you invested $500 to $1,000 or so in sound professional advice from a third party before putting down your deposit?
At this point, I think the answer is obvious – you don’t want to hear anything that goes against something you’ve already made up your mind about. That simply is not good business or common sense. The only one applauding your (increasingly) emotional decision that ignores business reality is Curves.
Interesting to see Mr. Franchise has been following this saga. The following is posted at http://www.franchisefoundations.com/articlesiibuyingafranchise.html#Bookmark1
“And just because you’re a business executive making a 6-figure income now, don’t assume this level will be duplicated in a franchise investment just because the company “approves” your application. One such executive, despite a plethora of negative feedback from current and past franchise owners who’d lost everything, marched forward with her franchise investment in a 30-minute fitness concept. Despite her 6-figure income, she didn’t invest a dime in professional, evaluation advice and stated she was taking a leap of faith, hoping to build her wings on the way down. Sound crazy and suicidal? It is, but this happens all the time. Due to the ploys of the franchise salesperson, too many franchise investment decisions are based on emotionalism. Prior business skills, business sense (and even common sense) are short-circuited. Needless to say, if this business executive made a similar decision for her corporate employer paying the 6-figure salary, she would be promptly fired.”
All of you amaze me! Rather than discuss, you batter. Your communication and business sense leave a lot to be desired. I will no longer visit this site for true, solid information regarding
Curves. The Administrator to this blog should discuss with all of you the meaning of “business”. All of you are dedicated to venting your emotions and anger, rather than disucssing the possibilities or Curves – both and negative.
Goodbye and good luck!
I can’t believe all the negativity there is amongst you people that have NEVER owned a Curves franchise. You have no insite on what happens inside the club but yet you are quick to say don’t do it. I did my research and purchased a franchise. I am just glad I didn’t come across this site before making my decision. I am extremely happy with my business decision and will never regret my purchase. Curves stands behind you in every aspect of the business. They provide you the tools to run your business the best way any business can truely be run. If you are considering purchasing a Curves franchise, please don’t listen to the negativity of these people that have NEVER owned one let alone stepped foot in one. Lord knows they probably need to but are afraid it just may work then they will have to bite their tongues on all they have said. As for the men on here posting…do you really have a clue about Curves? I think NOT!!! Potential business owners…please talk to the current owners that DO OWN one and listen to them. They are the ones that have the insite on the business. Of course you will find ones that have failed, but they were obviously not running their business the “Curves Way” or they would still be in business. As for the comment on not purchasing the “CurvesSmart” it is the most fantastic, awesome, amazing, fabulous upgrade on the market! When you have the opportunity to upgrade…DO IT…DON’T HESITATE OR YOU WILL REGRET IT!
To The Supposed Current Curves Owner:
It’s true I haven’t owned a Curves, but I’ve visited and spoke with over a dozen Curves’ owners. After doing my homework (see my previous comments), I discovered Curves is an incredibly bad investment. Also, there are the many, many comments here from Curves owners saying the same thing. Finally, Sean, the moderator of this site, with over 20 years experience in the franchise industry, has pointed out the pitfalls of the 30-minute fitness concept – it isn’t working in the marketplace (see his box above).
I think the Current Curves Owner who posted above is someone affiliated with Curves. He/she gives no specifics. For example “I am extremely happy with my business decision and will never regret my purchase.” That statement is not even logical. What if he/she is lucky enough to be in the top 5% of the network and is making $4,000 a month (which is still not a great income level these days). Is that anything to be happy about with all the headaches of always hiring and firing staff who are paid minimum wage, working long 50-70 hour work weeks, financial exposure on the lease, etc., etc.
And saying “I will never regret my purchase” is ridiculous. Never, no matter what? What if membership dropped and you’re suddenly losing your shirt, like the 40 other Curves owners noted in a prior post? You’re still not going to regret your purchase? Give me a break.
This mentality (”never regret”) and the religious reference to Lord in the post, are additional hints the poster is from Curves, which is a very religious-oriented company. Finally, the post ends with ‘DON’T HESITATE OR YOU WILL REGRET IT!” A typical franchise sales ploy that’s been tried (unsuccessfully) on me quite a few times now.
ALWAYS HESITATE BEFORE MAKING ANY SERIOUS, LONG-TERM INVESTMENT DECISION, FRANCHISE OR OTHERWISE. That’s only common sense, something many franchise companies program us to disregard.
You are all pathetic! I agree with Russ, I don’t believe that I will visit this site again. MOST of the negative comments about Curves are from people that have never owned one…they did their just so called “homework” and have many opinions that they should keep to themselves not actually being in the position. Quoting Patricia “Also, there are the many, many comments here from Curves owners saying the same thing” From the posts I have read…there are 3 I repeat 3 Curves owners that have posted comments…the others are bogus claims that they know what they are talking about.
If anybody visiting this site is interested in a Curves Franchise, PLEASE SPEAK DIRECTLY TO CURRENT CURVES OWNERS and get the insite to their business. Everybody has an opinion on everything…and there is NO RIGHT OR WRONG you go with what your gut feeling is.
If I had to close my doors tomorrow for some unforseen reason, I WILL NEVER REGRET OWNING A CURVES FRANCHISE…and YES Patricia..I CAN SAY NEVER, NO MATTER WHAT!
WHY SHOULD I GIVE SPECIFICS TO SOMEBODY THAT IS JUST GONNA DOG ME…AND SAY THAT I AM STILL WORKING FOR NOTHING EVEN THOUGH I AM NOT…You have no idea what my financial situation is, lease, monthly payments, payroll, hours etc….so how the hell can you be so negative! Maybe you should actually go to a Curves and do a workout and relieve some of that stress you have built up, LORD knows you need it!
To: Current Curves Owner
I’m only offering the fruits of my research and passing along other information and insights given by a number of franchise professionals. Funny, they’ve have all given a thumbs down to Curves. No franchise professional I’ve seen has given a thumbs up. Hmmmm. Ever wonder why? Then, there’s also Sean, a seasoned, twenty-year franchise industry executive who agrees. What we’re posting here is information based on facts and research, not opinions and raw emotion.
I can understand the “Current Curves Owner” predicament. The truth hurts, and no one likes to admit they’ve made a mistake (“I WILL NEVER REGRET OWNING A CURVES FRANCHISE…NO MATTER WHAT.”) His/her comment says it all – it’s so ridiculous, yet laden with so much pent up emotion. I’ll bet his/her franchise is up for sale, and that’s often the hidden agenda – preserve prospects for the sale of existing franchises.
I’ve seen this “NO MATTER WHAT” attitude in other franchise owners (not just Curves) who don’t want to admit the reality of their situation. They start out saying they’re very successful, and, btw, their “successful” franchise just happens to be up for sale. Looking at the hard, financial numbers (which they have to show to justify the asking price) reveals a different story. They’re either not making money, or if they are, it’s close to or below minimum wage. I remember pointing this out to one owner. All he did was smile.
Mr. Franchise is right when he quotes a franchise owner who says being successful in franchising often means having to adjust your definition of success. I’m sure there are very good franchises out there – reasonable investments, working hours, profits, market trend, etc. All I’m saying is Curves doesn’t make the cut in today’s market, from the personal research I’ve done interviewing over a dozen owners and listening to experts in the field.
Yes, Mr./Ms. Current Curves Owner, I don’t know anything about your financial situation. You’ve elected not to share that. Instead, you end your prior post with ‘DON’T HESITATE OR YOU WILL REGRET IT!” Another emotionally-driven statement that translates to “misery loves company.” I just don’t think that’s right, or makes any sense.
You’ve interpreted my comments as “so negative,” but I’m only sharing information and insights. Don’t take it personally. The fact that you’re reacting so emotionally shows I’ve said things that ring true in your situation. Don’t get mad at me and say everyone is pathetic. I know it’s difficult, but try to direct your anger towards the real cause.
It is a welcomed Thank You to those who wish no longer to hear the truth about franchising we bid you goodbye but wish you all well. Let me tell everyone why I waited in the background to express what I do and why I am so concerned with those who attempt to buy franchises today without the proper evautional and an exit plan, (should your plan of buying a Curves or any other franchise fail.)
I own a national franchise and in the past have hired consultants that had great sales backgrouds but that was it, the truth is they are all out for them selves. Over the past year these consultants who I will not name, Sold 5 franchises for my company. The first one opened and within 90 days the new owner thought I can run this my way. Having No experience she then began doing her thing and not operating as per UFOC. Well she no longer operates my franchise. She has been allowed to run her own in her own name but she is failing. The second female decided she would pay the franchise fee, lie on the application and then later admit she had no money to open but felt compelled to buy because she liked the salesman. She is not in business now. The 3rd a man decided he after paying his franchise fee, he did not want to do it anymore and lost his money although rumer is he went and opened his own. and the forth the man and wife opened and after 3 months failed to pay any creditor leaving over $450,000.00 debt at Chapter 7 Bankrupcy.
Well I fired all the sales people and decided I would no longer persue selling my company to those who really have no business sense. Because I can make money does not mean I can make others money. I have found that people today want to get rich quick and do not understand there are no promisses in business. you must work hard and you must be willing to have an exit plan. I also realize that no sales person is truely interested in what I was trying to accomplish. I truly intended to help those around me make money by advising them but the consultants found the wrong people and sold, sold, sold regardless of the loss to others.
My company will no longer use these sales sharks! and myself I will demand that any future owners have an attorney to review and insure they are quailified to operate a business.
So to those Curves owners or sales people. “It is about the money in the sales business, not about the client”. If I had to sum it up I would advise caution today when considering a franchise. any franchise. Do not listen to those ads that claim ( fastest Growing. or the newest craze, or entrepenuer magazines top 50 franchises to buy.) We franchisors love to place ads into these magazines to get your attention and convince you mentally that we are the best. We may not be the best for you! but for some we may. Franchising is expensive and hard work, so invest in a managed money account for security for you and your family.
Then once your family is safe borrow to buy a francise. But remember there is a risk and you MUST have an exit plan!!!!!
Only then You will win!
Stay away from any womens only 30 min franchise at this time the are volatile!
Jose: Your story is very common for young franchise companies and most don’t survive the initial lesson that you have. Most new franchisors feel they need experienced franchise salespeople to help them quickly sell and recoup their initial investments. I argue against it, and advise them to be involved in and take responsibility for the process themselves. New franchisors want salespeople who will work off commissions and then are surprised that they do whatever it takes to get the commission. Also, there are very few decent salespeople who will work with a start-up franchisor.
It’s critical to be sure that you are accepting the right candidate with the right expectations, and that you know they haven’t been allowed to have unrealistic expectations or provided with earnings claims or cost projections that turnout to be inaccurate. You have your work cut out for you overcoming the stigma of those early failures.
I have decided not to “buy” the franchise that I work at mostly because I wanted a full service ladies gym to begin with.. I want to get into personal training, to offer classes and other things Curves does not offer or allow a franchisee to offer. I thought Curves would be a great way to enter the market and get experience mostly because the owners at the Curves that I work at are giving it away to someone who is willing to take over expenses. Yep, they had been trying to sell it for months (since September) and have resorted to just giving it away. As you can probably guess it is currently losing money but I thought I could turn it around and I still think I could have but it would require a lot of time and marketing… My plan was to hang on to it for 2 years and make it profitable then sell it and get into a full service gym. I think Jose is right about Curves being a fad.. they need to change with the times or they will be out of business. The members I work with are asking for more.. for classes like yoga and palates and other things… several of them have a treadmill or elliptical at home and one member actually joined a fitness 18 to step up her game she said she was going to do both Curves and fitness 18 but how long will she pay for two gym memberships??? The personal trainer in me wants to give my members all they need to have a well balanced fitness program. I do like how Curves appeals to women who would not workout if it wasn’t for the 30 minute circuit and I think the new smart equipment might revitalize the current fitness program and make it more valuable (i.e member will get more out of there workout and see better results) which will help the business. I do not have anything against Curves and I have actually enjoyed working there but for me it was not the right investment. I do wish people would stop getting offended so easily and stop making blanket statements about everyone here.. I do feel it is meant to be helpful. I did not like everything people have said either but I am glad this site had both points of view because I really was excited about becoming a fitness center owner and I really needed to see the obstacles because I already had the optimism.
Good Decision Hope. I am a 3rd level Certified Personal Trainer also and feel strongly in the quality care of people. Like doctors we have to earn the trust of people we help. We do no have members, we have clients to which we grow very close too as we train them. Our Clients love us sometimes more than family because we truly understand that we all need help. CPT’s are always there to help, and we pour our heart into what we do. Hope, you will do well in the future to open a club of your own but it will be hard work and not always profitable. I can tell you that I have had many negative cash flow months, but I have had some great positive cash flow months. Your focus has to be on the business or it will never work. Curves is not the fit or the answer for anyone, it is a fad and very risky.
The new smart equipment is simply a devise that reads green for go and red for nogo. It works on the priciple that if you push and pull harder you will do more work. The problem is people, and the fact that the Hydraulic equipment is cheap and offers no negative muscle building potential.
Boring workouts and limited excitement. I think it is a last ditch effort to keep Curves alive. You might call it a defibulator for curves attempting to restart the dead heart.
One last thing. Becoming a fitness center owner will not be profitable in one year so you must put savingS away AND protect your finances. Never, ever spend your retirement or 401 k or absulutely never use your home to finance your business. Insulate yourself from it and protect yourself should it not work. A wise man once said ( Hine site is 20/20 Be optimistic not stupid! Do not let your dreams blind you of the reality. Hard work pays off if one is wise. The quick to get rich soon finds themselves poor.
Wishing you Health and Wealth
JOSE
Four years ago, our Curves once had 1,100 members and was named franchise of the year for the Southeast region. Money was pouring in. Life was good.
Then Curves split our territory. Rather than lose half our membership, we foolishly purchased it, doubling our expenses. Our state also suffered through eight hurricanes and a tanking housing market.
To make a long story short, we were forced to sell the two clubs last July to a relative and former co-owner for a measly DOLLAR to avoid being sued by that relative. We’re $270K poorer and I’m currently filling out bankruptcy paperwork. We’re barely hanging on to our house. We have two young children who likely have lost any chance of attending college someday unless they win scholarships.
The Curves dream became a nightmare for us. Don’t let it happen to you.
Sadderbutwiser,
I am sorry for your misfortune. But there is something wrong with your story.
First of all, Curves does not split existing territories. Either you are talking about a neighboring unsold territory that you took rather than someone else, or you chose to split your territory.
To “make a long story short”, you say it’s all Curves’ fault. If you had 1100 members then, as you said, money was pouring in. Even half that many members is a very successful club. My guess is that you wound up with fewer members, spread over two clubs and twice the overhead.
There are ways to cut your expenses when membership drops. It’s hard for me to understand how you could be “$270K poorer” and going bankrupt. Even a failing club has some income and can cover most of the expenses. Your partner problems are probably a symptom of something more to the story. Any legal expenses involved?
– End of direct reply to Sadderbutwiser.
When Curves was booming back in 2003-2005, a lot of owners split their territories or bought an additional one. We did both. A lot of owners also committed to larger spaces and/or higher rents, which made them more vulnerable when things turned down.
Curves has definitely declined financially over the last 3 years. We own four clubs in California, none of which we work in, and are making a very satisfactory living. Yes, it is half what it was three years ago, but that was twice what the two of us had ever made combined in our high-tech jobs.
Our territory split was ill-advised, and we are working with Curves corporate to recombine that territory into one. Even our one unsuccessful club is at or near break-even.
A lot of Curves owners were ill-prepared for the business. It was hard not to be successful during the fad phase. Now that it is hard work and a difficult environment, a lot of owners are struggling. Often that is because of their lack of business skills and/or prior mistakes. No one is guaranteed success in business.
I have been watching the comments on this board that correctly point to the fact that Curves is a lot less lucrative business than in the past. Curves overexpanded, aided by the greed of us owners. It was a fad to a considerable degree. While what Curves offers is good and valuable, the fact is that we’re fighting human nature. People don’t want to exercise, and can always find a reason to quit if they so choose. That’s especially true of Curves’ target market, who are quite the opposite of committed exercisers. At the same time, Curves works if you do it, and our aging population needs exercise to stay healthy.
With the economy turning down, life is going to be difficult in Curves land. A number of clubs are going to go out of business, but many others will persevere. It may not be the most lucrative of businesses, but it has its pluses. If you’re just doing it to make money, do something else.
Final note to those considering purchasing a Curves. The smart owners sold 2-3 years ago at the peak. Clubs go for a lot less now. The accounting for this business is very simple. Everything drives off the membership. Make sure you know exactly how many members the club has, and confirm that revenue (bank deposits) confirm that. Expenses are pretty straightforward. If the club has a clean P&L, you should be able to tell what kind of a profit it is making. If not, find one that does. You can adjust for any changes you will make, such as working in the business.
The key is membership. Overall Curves membership has dropped on the order of half in the last 3 years. With the economy likely going into a recession, further decreases are quite likely. Some clubs have stabilized, some a happily profitable levels, some just making ends meet. If you think you can do a better job than the current owner — specifically at increasing the membership level — test and retest that theory. It may be true, but often is not. Make sure you know what the breakeven point is in terms of number of members.
I think Curves is going through a time of trial that will be very difficult. I also think there will be a better day on the other side for those that make it there. Curves is pretty wonderful in its own way, but it may not make you rich. If you’re looking at Curves as a passive investment, buy a CD instead.
– I will go back to reading this discussion now.
Kunst makes some good points. A few things occur to me.
Kunst wrote: Curves has definitely declined financially over the last 3 years. We own four clubs… and are making a very satisfactory living. Yes, it is half what it was three years ago, but that was twice what the two of us had ever made…
Kunst: you are fortunate to have good locations in strong markets that you could survive a 50% reduction and still be profitable even without working the club yourself. Imagine how difficult it was for those who had average or marginal locations to begin with and then took a 50% reduction. It sounds as if you had a goldmine, then had to settle for a normal, profitable business. They started with a normal, profitable business and wound up with a distressed club or outright failure.
If you had 1100 members then, as you said, money was pouring in. Even half that many members is a very successful club. My guess is that you wound up with fewer members, spread over two clubs and twice the overhead.
Correct me if I’m wrong, but two of the main problems facing not only Curves but all 30 Minute Workout Clubs are member retention and increasing competition and saturation. Just because a club has 1100 members one year doesn’t mean they can count on that the next year, even if they do a great job. 250 of those members are going back to the couch and their new big screen with remote, 150 are going to try out one of the 5 knockoffs closer to their house, 150 are going to Jenny Craig or Nutrisystem, and maybe 100 were so successful they’re moving up to a full service club. So you need constant recruitment just to replace the members you lose… but now there’s lots of competition.
A lot of Curves owners were ill-prepared for the business. It was hard not to be successful during the fad phase. Now that it is hard work and a difficult environment, a lot of owners are struggling. Often that is because of their lack of business skills and/or prior mistakes. No one is guaranteed success in business.
Curves, and all the 30 minute fitness clubs that followed, made (and make) “no experience necessary” one of their main selling points. As Kunst points out, this didn’t matter much when people were streaming in the door, but now that there’s a challenge to overcome, years of experience bringing in and keeping members could make a critical difference. However, its unfair to infer that the lack of industry experience is the franchisee’s fault when they were told over and over that that wasn’t a factor.
Experienced, successful health club owners I’ve had as clients told me that relying on membership fees is one of the major mistakes health club owners make. They contend that the membership fees pay the rent, the eqpt lease, and the utilities, but profitability depends on add-on sales and services: personal training, classes, merchandise, supplements, apparel, etc. They say the 30 minute clubs are doomed to marginal profitability because they’re just not set up for anything but membership fees. What do you think? This would explain the current struggles. A member of a full service club potentially represents thousands of dollars per year in revenue if they end up with a personal trainer, but a 30 minute club member can only represent maybe, what, $600 per year in revenue?
I’m not laying all the blame on Curves. We made just about every mistake business owners could make. The No. 1 mistake my wife and I made was entering into business without any business experience. But a family member made an offer we couldn’t afford to pass up. Unfortunately we got left holding the bag when the smoke had cleared.
Curves certainly could have made things easier by NOT offering so many franchises in our area. We had 18 in a 72-mile county: one for every four miles. Had we been able to keep our territory to the west without having to purchase it outright, we’d still be in business today and doing well.
A Curves to our south once sold for $180,000. It’s listed for $35K today and STILL remains unsold.
I feel for ALL struggling Curves owners. We’ve been there and are still trying to overcome the fiscal blow.
A South Florida law firm is assembling a class-action lawsuit against Curves. Hundreds are participating. Club owners who had to close due to oversaturation of the market may still be able to participate.
Hello Sadderbutwiser.
I am not defending Curves, believe me, I do not care for the type of business model they have or how they created more territories than could be profitable for anyone let alone you. Their greed has caused the demise of many wanting to get rich quick Like yourself, but sadly found that it was only a dream.
I understand the frustration you feel but it is not the time to run for the class action lawsuit. Law firms are natorious for selling you the loser a fake dream of becoming rich and regaining your loss, It is a lie, they are the ones who win not you. Take my advise and run from any law firm encouraging you to enter into the class action law suit. SHould you lose and you will!! you will be resposible for all attorney bills as if you had hired them. The legal bill could run into the
1 million dollar range and you will have to pay a portion of the bill if you loose. Remember Class action law suits only benefit the law firm not you. You knew your rights when you bought and did it anyway. You admit that, so take the loss and learn. If you get involved into this litigation you will lose even more. The layers will make up stuff and get you to agree by twisting the truth do not be fooled or you”ll be the FOOL.
Good Luck if you get involved You’ll need it!
P.S. and bring your check book!
Jose,
You have no clue about what you are talking about. Lawyers are hired on a contingency basis so if they don’t win, they don’t get anything. They won’t take a case if they think it doesn’t have a chance of winning in court. Been there, done that.
What planet have you been living on Mr./Ms. Been there? Attorneys only take a case on contingency in personal injury matters. Have an auto accident, slip and fall in a department store, bitten by a neighbor’s dog, sure they’ll take it on contingency – but only it’s a good case.
What Jose is talking about is not personal injury cases, but commercial litigation. It’s strictly pay by the hour, $300 to $500 an hour, these days. Doesn’t matter if its a commercial class action suit. All that means is there are more people to share the high hourly rate. If the underlying contract has a “prevailing party entitled to attorneys fees,” and that side wins, the other side is ordered to reimburse what the winning side has already paid their litigation attorney. But even here, that’s usually reduced by the court if it feels the total fees paid are not “reasonable.” Do a little research on franchise class action lawsuits before you start calling others names and exposing your own ignorance. You’ll learn a lot.
Hey guys, no need to be cruel here. I am a former Curves owner and I was asked to be part of this lawsuit and we are on a contingency agreement with our law firm. They will get a huge chunk if we are successful, but we are not paying anything upfront I assure you. I also successfully sued the gentleman who sold my Curves, for fraud, so there is hope for us in this case.
Hello those of you who think that sueing is the easy way out. In most cases the party that is sued is forced to file bankrupcy due to lack of money trying to defend false or even proper litigation, in which case court reporter fees, deposition and other fees must be paid by both parties regardless of who wins the case.
The reason I posted information on the site was to inform parties interested and sueing that it is not an easy road and there are no garauntees. If you have a lagitimate case against Curves I believe you have every right to seek punitive damages, but if you have made a decision like the women Donna who decided to move forward and buy Curves even after given good sound and researched advise you deserve what you get. I believe you are the dishonest person and a thief if you bring action against anyone or any company because you deciced not to do your homework and seek professional advise. In such cases I believe you will not win. This is the case with class action lawsuits. Many of these suits are filed on behalf of one disgruntled franchisee, the attorney will then call other franchisees who may be haveing a hard time and place doubt into there mind and beg them to get involved. Most of the time this is done as a tactic to pressure the franchisor to give in to the demands for fear they may lose if 20 or more franchisees make simular claims. In fact false claims such as Trademark, UFOC and other such alligations in regards to franchise operations are common in all cases. The federal trade commission is well aware of these false and frivolous suits. A smart business person will always attempt to solve problems and create more by being ignorant. Put your emotiona asise and think what is best for your family. Jumping into any suit may put your wealth and mariage in jeopardy. Focus on your family and you will hvae peace and confidnce to move forward.
God Luck!
As for GT who claims he successfully sued. That is non sense, no one wins and I can tell you 99% on the time he will not collect. To those who want to pay. Send him $50 dollars month for 70 years he will never collect it all.
My wife and I can’t take part in the lawsuit even if we could, because we sold our clubs instead of closing them. (For 50 cents each, plus debt.) Only owners who were forced to close their clubs can participate.
Here’s the law firm info. I’m not sure whether they’re accepting new clients, but it might be worth a try to send them an e-mail to inquire about the status of the case.
Good luck!
Zarco Einhorn Salkowski & Brito, P.A.
Address: Bank Of America Tower
Ste. 2700
100 Southeast 2nd Street
Miami, FL 33131-2193
Phone: (305) 374-5418
Fax: (305) 374-5428
E-mail: Contact Us
Contact Us
Web site: http://www.zarcolawfirm.com
BTW, we were told they were charging about $3,500 per club in up-front fees to participate, so have some cash ready.
GT and (Been there) were incorrect. Please see my argument above. As I said before the Lawers win! not You.
Thank You Sadderbutwiser for the honest Truth. Notice the $3500. retainer X 100 equals $350K for nothing. I checked out the web site and sure enough this Law firm is a Shark looking for fools to make false claims! They admit they specialize if FINDING or more like making up false claims against Franchisors. They can only make money if thery sue. No litigation, No money!
Thanks
I have owned five Curves for 9 years and have had an income of $6,500,000.00 over the last five years from those five clubs. (first four years I owned one, then two, then four, then five.) When Curves was selling franchises, every woman who purchased a territory would have KILLED to purchase another. Greed was rampant. Many potential “owners” were denied territories for various reasons and were LIVID. EVERY SINGLE PERSON THAT PURCHASED A CURVES DID SO WITH FULL INFORMATION IN HIS/HER HAND. Curves is a movement, not just a health club. Of course, it is a “perpetual sales organization” – anyone in their right mind should have deduced that from the beginning. So is a car dealership a “perpetual sales organization;” the difference is that Curves has a monthly generated income.
Where in the WORLD could you make an initial investment like you make with a Curves purchase and IMMEDIATELY have a monthly generated income?
Of course, Curves is a business. Of course, it has it’s operating modality. Of course, it is women’s fitness. It is the PEOPLE who own and RUN the business that make the business. Lots of people bought Curves that shouldn’t have bought any business. That isn’t Curves’ fault; the same people that are suing to blame Curves for their failures would have SUED CURVES if Curves had refused them the territory to begin with.
The world is full of victims and excuse makers. The world is full of failures. ANY business has its history of failures, bankruptcies, and wimps. There may be a Curves shakedown — McDonald’s has had it, Burger King has had it, Hardees, Wendy’s….you name it. Unlike the aforementioned businesses, however, CURVES has changed the lives of millions of women for the BETTER!
It isn’t the “palace” that makes the business; it’s the people running the business that make it work! It is the true entrepreneurial spirit that forges ahead and finds the success through hard work and hard working people.
Curves is one of the BEST enterprises out there! Curves is one of the MOST amazing businesses I know. Curves is low overhead, manipulative expenses and payroll, cash flow business. It would be STUPID not to see it for what it is, and not to understand it from the beginning. Why would any smart person get into something without understanding it to begin with!!?
IF there are Curves’ going out of business, the current, successful Curves owners will scoop them up and RUN THEM! There may be a shakedown, but there won’t be a death!
Curves isn’t going away! Curves is an institution! It is a household name! Curves is a niche in the fitness marketplace that will be around forever.
No other “copy cat” will ever be Curves. No other machines will ever out-do those little miraculous wonders! No other health club can even come CLOSE to the magic and wonder of Curves!!
Snatch them up while you can!! Don’t buy one if you can’t run one!
My husband and I second mortgaged our house to start our first Curves and we paid our second mortgage off in six months. We bought our $350k dream house compliments of Curves, and we both work Curves full time now and LOVE IT! We have 40 employees, and a warehouse. We have amazing members and amazing employees. We have been to Alaska twice and Hawaii once in the last three years.
Businesses have their “ups and downs.” McDonald’s survived the “low carb” craze, and Curves will survive through all phases of business opportunities, too.
Mega health clubs with marble floors and swimming pools go under by the thousands!! Curves, on the other hand, has a bottom line that can be flexible and manipulated through all business trends. Of course there will be times when membership is “low” or “down” from last year. BUILD YOUR BUSINESS!! Do you think that Subway doesn’t have it’s “down” months? Curves is a phenomenon!
Seems like this site has attracted a bunch of whining, complaining, excuse-making losers!! We make the world in which we live!!!
I’ll tell ya what — if there were Curves in my area that were “failing” because they were owned by a whiner, I’d SCOOP THEM UP and polish them up, and go to Hawaii again!!
The successful owners will profit from the fall-out of the whiners.
Don’t mean to sound harsh — I just want you to know the naysayers are always naysayers. The successful businesses are the ones that survive!
Oh, one more thing! I’ll tell you WHY sites like this seem to some from a negative stand: the whiners and excuse-makers have all the time in the world! The successful owners have better things to do than get caught up in this MANURE.
so there!!
Go out and be smart whatever you do, and MAKE IT WORK!!
Vicki,
Congratulations on your amazing success. Wish you lived near us. We would have sold you our clubs in a heartbeat before it was too late.
How many members do you have at each club?
Here’s more evidence that the Curves glory years may have passed . . .
http://www.bostonnow.com/business/2008/01/22/curves-sheds-a-fifth-of-its-fitness-centers
Vicki:
Using my trusty calculator I figured out your clubs would have had to gross $1.3 million a year for the past five years for you to have earned $6.5 million.
Each club must have grossed about $260,000 a year to make the $1.3 million total. That’s roughly 550 members at each club. Am I close?
If so, you are to be congratulated for having such high membership numbers and for being able to keep them at around that level for so long.
But please remember that most clubs have nowhere near that kind of membership, and show some compassion for owners who did it the Curves way but were still unable to duplicate your level of success.
I’m not here to whine and complain. My wife and I made our bed. Now we’re sleeping in it. I’m simply here as a former co-owner of one of Curves’ most successful franchises to warn others not to make the mistakes we made, and take a good look at current trends. And right now Curves is trending downward, as the above article indicates.
sadderbutwiser-you speak the truth about what is happening with respect to a person buying into the women’s fitness business. Sure, maybe these people don’t understand that we are told that people with little or no experience are able to run this type of business. That’s what the UFOC states. Usally, people that claim such success are liars, and or in denial, and like to boast of unrealistic success so others will believe that they are successful. I am in a current lawsuit (not a class action lawsuit), that claims fraud, so the franchisor can file bankruptcy, but that doesn’t protect them from legal proceedings. We paid our lawyer very little to begin with and he will only take under 13% of the winnings, so I know more than they think I do. Keep up the pretense people. Good luck!
I think this Vicky must work for Curves because her facts are not indicative of the truth! The overhead and cost of operating her clubs are never taken into consideration nor are the work hours or rent. I think she is making up all this stuff so that others reading this blog will want to buy into the Curves Lie. Trust me when I tell You that the curves name does not have a good response from people. it is not considered a health club and they have not helped Millions because they all quit to go to real health clubs. Sorry Vicki but you should not lie to people. I hope Curves is paying you well.
We just got served our foreclosure lawsuit papers tonight – 8 p.m. on a Saturday with the kids (3 and 5) in their PJs wondering who’s knocking at the door so late and why daddy’s screaming in rage and frustration in the garage after the process server leaves.
Nice timing, jerkoff.
Sadderbutwiser:
We’re sorry to hear about the foreclosure papers being served. Hang in there.
I am also sorry to hear about your foreclosure paperwork. I do not know the debth of the situation but Now you can attempt to sell at a lower price. Sale in Lui of foreclosure. The bank will allow you to sell below market value once a foreclosure has been posted against you. You must list it as quickly as possible.
Curves got me off the couch, which was a great thing. I lost 24 inches. However, I think it’s time for me to move on and take my membership elsewhere.
Lately, I haven’t been that happy with our owner. She pushes all kinds of “quacky” products, to the benefit of her own pocket book. Our equipment is looking more beaten up everyday. We’d love for her to get the Curves Smart equipment (and to fix the existing equipment) but her answer is always “well if you girls get me 100 new members…”
Also, due to the constant repetition of the same muscle groups over and over and over I had to see a physical therapist for my neck and back.
Check out this article. This was OUR story a few years back. WE signed up 800 members our first year. WE were Curves Franchise of the year for the Southeastern Region in 2004.
Today, we’re bankrupt and facing foreclosure, while the relative who forced us to surrender our two clubs for 50 cents apiece plus debt or face a lawsuit is watching membership sink to about 245 at each club. There’s NO way she’s even coming CLOSE to making a profit. We hear she’s stripped staff to the bone and has stopped handing out T-shirts and other freebies.
Luckily for her, she’s got a millionaire daddy with deep pockets who’s probably losing a minimum $10K a month (like we did) keeping those clubs on life support while they desperately look for a buyer.
If I could tell this woman in N.C. something, I’d BEG her to SELL HER CLUB ASAP, before the downturn starts. She even mentions that keeping members motivated is her biggest challenge. That’s the first sign of impending doom. We failed to heed the warnings in time. Maybe this woman won’t make our mistake.
This article also mentions that Contours is predicting successful expansion. LOL! They’re on a death watch!
In April 2003, Goodwin opened her own Curves unit. “I had absolute confidence in the program, and I went to Club Camp to learn how to run a Curves,” she says. In her first year, Goodwin had more than 800 members. And a few years later, she was named 2006 Curves Franchisee of the Year for the Southeastern Region��”and, fittingly enough, older sister Sue Mercier, in Pelham, N.H., won the award for the Northeastern Region.
Today Goodwin says her greatest challenge (and joy, she adds) is keeping her members motivated. “For some people, it takes more than earning Curves Cash and other incentive programs,” she says. “Some people expect a quick fix or the same amount of weight loss as someone else. It just takes time for something to trigger in them, to help them use Curves more effectively,” she says.
One of the biggest factors contributing to the continuing growth of women’s weight loss and fitness centers is the breadth of programs and opportunities they offer to customers and franchisees alike. In addition to diet and exercise programs and equipment, they combine, in varying degrees, lifestyle, wellness, and beauty programs. They also are social centers, fostering community, boosting self-esteem, and giving women much more than traditional gyms and workout centers (where membership and attendance frequently falls off after the novelty is gone).
Franchisors in this segment have high expectations for growth. At Contours Express, with 360 U.S. sites and 600 globally, executives project at least 1,000 clubs worldwide by 2009. Liberty Fitness, with 61 women’s fitness centers in 16 states, predicts 1,500+ units within the next five years.
http://www.franchising.com/articles/371/
This is a franchise that is dying off quick. The drop out rate of members is 2 years so how is an owner to make money with no members. If you are in a small town with small demographic, good luck. YOU WILL go out of business. I owned and independent ladies circuit before there was a Curves club located in California. I have had a huge drop off in clientelle and have had to expand adding a co-ed gym, classes and other things to attract people back to my gym. I’m thankfull I never wasted the money to be part of a franchise that would die off. 10,000 locations HUH? I can almost guess that there are less than 1/3rd of them in business. DON’T DO IT!!!!!!!!
The womens only trend will disappear for another 20 years for franchises and the independent ones may survive. A friend and his wife opened a womens only club called Leading Lady fitness. He told me it just hit the black after 1.5 years. I told him that is terrible. He was flouting his club for 1.5 years and still have not made any money. What I realized is that owning a extremely large or very small club has the same problems. In a large club you have too much overhead. In a very small club you cannot get enough members to be profitable. I believe you need a moderate Club of about 5 k sq ft and go into it with no debt to make any money, but you will still never get rich. The trend is gone. I think if your considering a business get into something with more Cash sales. say Ice cream. Low overhead small and easy to operate.
Curves are very lucrative franchises. Look up curves smart somewhere- youtube preferably. They are the new wave in technology and definately outdoes all other gyms. Most big health clubs are so scared of a curves in their town, they try to copy one in the facility. Nothing compairs to Curves….. Nothing
By the way to ALL YOU NAYSAYERS: If you have neck injuries, they are not from constant motion- I have a chiropracter who is a member of my curves. She would have something to say about that. If you are having financial issues, maybe you are living beyond your means. I cant stand when people bad talk a good pure thing. If you dont like your owner, its not why you need to take your membership elsewhere and say it doesnt work. It does. You have to believe in something completely for it to work. Have a great night!
Many people are wondering why these fitness franchises as well as otehr new one’s are having problems becoming competitive. Here is one reason all must evaluate. Every franchise that sets a low fixed royalty say $399.00 per month sets you up for failure. Here’s why. In order for any franchisor to make money he must increase how many franchises he sells and attempt to saturate the market. This is the only way they can make money with a fixed royalty. This is the reason why the territories are set so close together say 3 miles or in some cases less. Franchises that charge a percentage of total gross sales work for you. They do not set locations to close together or the gross sales of each location drops and so does there overall profit. I most cases it is better for a new owner to buy a franchise that charges a percentage of gross sales, this encourages the franchisor to get involved and market. The franchisor now becomes your partner not your boss.
Think about it and stay away from franchisors that fix the royalty, there is no reason for them to spend money to help you they have nothing to gain.
We had 18 Curves in our county. Seven are currently for sale – for far less than they were purchased – at McCord Business Brokers, which sells Curves exclusively. Two have closed. Another club purchased less than two years ago for $185,000 was listed at $49,000 and recently was sold, probably for less than that.
That’s half of the Curves in our county either for sale or closed.
I rest my case.
Christy, go to McCord Business Brokers and look at the asking prices for Curves for sale. Years ago, people were asking $450,000 – $500,000 a club. One owner in Indiana wanted ONE MILLION DOLLARS for five clubs!
Today you see many prices at $50,000 or less, owners saying “no reasonable offer refused,” etc. You RARELY see a club for sale with price above $200,000.
I saw one club in San Antonio offered for $10,000, even less than the original franchise fee!
Bottom line: Owners are DESPERATE to dump their Curves.
Sadderbutwiser said: Today you see many prices at $50,000 or less, owners saying “no reasonable offer refused,” etc.
And don’t forget that the broker’s fees will be deducted from that amount also.
How does the Curves resale program work? Is McCord Business Brokers owned by Curves or one of the subsidiaries? It looks like reselling Curves is their entire business. Does the franchisor make money off the resale of existing stores? (curvesresales.com).
McCord is Curves’ exclusive broker. They charge an 8 percent commission to sell a club.
I am currently in the negotiating process to buy our local curves franchise. We are in a town of approx 7000. I have been a member for 3 year and have lost 110 lbs and many, many inches. However, I need to make the decision to buy with my head – not my heart. Does anyone out there have experience in owing a curves in a small community? The good thing is there are no other franchised fitness centers in our town and no other Curves.
Jessie:
Check the number of check drafts. Do not go by total membership.
Is membership growing, static or declining?
Curves has always been vague about fair asking prices for clubs. I’ve heard $50,000 per 100 members. A better gauge may be multiplying the number of members by 400.
What is the rent?
Update: Now EIGHT of 18 Curves in our county are for sale, according to the McCord listings, including two of our former clubs. Guess the new owner was wrong when she thought she could do it better than us.
Two other Curves already have closed.
Man the lifeboats! Abandon ship!
Sadder & Others:
How does Curves react when owners close their clubs? Do they hold them accountable for future royalties? Make the sign non-disclosure agreements? Or just let them go away?
…And who owns McCord Business Brokers? Does anyone know?