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.
This is a responce to Martica’s post. ARE YOU NUTS, A CURVES INTERNATIONAL EMPLOYEE OR A GARY HEAVIN MOLE. It’s obvious you are one of the above. Curves has so many legal problems right now that you would be nuts to even consider buying one. The issues that predominate the group lawsuit are over-saturation of the market, lack of support/services, under-estimated initial investment costs and wrongful representations made reqarding break-even and profitability. Almost every Curves owner has these complaints and you would see that if you would read the other posts. The clubs are closing at a rate of 2 per day every day three hundred and sixty five days a year and have been for the last several years. If you don’t believe that go to the UFOC filing on this web site. While we all have opinions most of us base tem of facts unfortunatly you don’t. Get real girl before you make the bigest finacial mistake of your life. Take care RL
Does anyone have any updates on the status of the group-action lawsuit?
Here’s an article about a Maine Curves that reopened after having been closed for more than a year. God help the new owners . . .
BELFAST (July 21): On a breezy summer morning, light was flooding in through Venetian blinds on three sides of the workout room at Curves on Searsport Avenue.
The new owners, Cat Perry and Jaime Maresh, were calling it a “new day” for the fitness center that closed over a year ago but reopened July 7 under their management.
http://waldo.villagesoup.com/Business/story.cfm?storyID=121341
I had to comment on a few things I know to be untrue:
1) Making sure struggling franchisees can only sell through their broker,—this is not true at all, you can sell your club to whomever you choose(assuming they pass the financials), there is no requirement that McCord handle the transaction, they are just one approved broker(I assume because they are the brokers to sell franchises). How I “know” I contacted McCord to evaluate my Curves to sale it and asked, secondly, a Curves in our area recently sold without McCord’s involvement(or any broker).
2) Not allowing franchisees to sell their equipment (I’m told they must donate it to a women’s prison)—According to my Franchise Agreement, the original 8 are the property of the Franchisor. What I have heard from a club in my co-op is that they allow you to sell them at a discounted rate to other clubs and use that money to re-pay any pre-paid memberships. Any other equipment(the additional 5 pieces owners may purchase) are yours to sale.
3) the $10,000 failure fee Curves allegedly demands from failed franchisees, —-this one I can’t confirm or deny. My franchise agreement states that I am responsible for the payment of the royalties and ad fund fees for the life of the agreement—so there may be some buyout figure depending on the remaining years on the contract. The only club owner I personally know that closed a club did not have to pay a fee.
4) Lack of field visits and on-site assistance for troubled clubs,—CI uses the Area Directors—-in my 2 1/2 years of business I have seen the AD in my club 4 times. She communites via e-mail weekly. Is that too much? Too little? My AD has responded to every request/question I have, so I have no complaints.
and 5) the fact that interviews with Curves representatives when stores close exhibit lack of knowledge of and an indifference to the failed franchisee.—–that one appears to be true from the articles I have read.
In closing, I am neither a great devotee of Heavin or a great detractor–the business has a niche but it’s not going to make me rich in this economy. Heavin didn’t take me by the hand and force the franchise down my throat. To the contrary, I find I can make a little money with my 175 members following Heavin’s Business 101 principles for the franchise.
ACurrentCurvesOwner: Thanks for your opinion. It seems to me that you have been blessed with a good location and market, perhaps, and built a successful out of 175 member base – an accomplishment.
However, 4 out the 5 things you said were untrue are not, even in your words, untrue.
1) Making sure struggling franchisees can only sell through their broker,—this is not true at all…
This was a complaint by a Curves franchise owner, but there are Curves for sale on other broker sites so that franchisee may have been mistaken. So it could be untrue.
2) Not allowing franchisees to sell their equipment (I’m told they must donate it to a women’s prison)—According to my Franchise Agreement, the original 8 are the property of the Franchisor.
So you cannot sell the circuit equipment – which you paid for. So this is not untrue.
3) the $10,000 failure fee Curves allegedly demands from failed franchisees, —-this one I can’t confirm or deny. This is a policy implemented in February, 2008. Also not untrue.
4) …I have seen the AD in my club 4 times… Is that too much? Too little?
I’m sure the clubs that are closing with little to no assistance would have a clearer opinion on this. I’m sure that few in franchising would say that 4 visits in 2.5 years does not consitute impressive support. So this is also not “untrue”
and 5) the fact that interviews with Curves representatives when stores close exhibit lack of knowledge of and an indifference to the failed franchisee.—–that one appears to be true from the articles I have read.
Indifference to failing franchisees is an overall indication of franchisee’s well-being, isn’t it?
Put yourself in the place of a failing franchisee, one who followed the rule and procedures and not only receives no assistance, but receives an indifferent, even adversarial response when in need of help. Of course you don’t need help when you’re doing well… hopefully you won’t have to experience the other situation.
“2) Not allowing franchisees to sell their equipment (I’m told they must donate it to a women’s prison)—According to my Franchise Agreement, the original 8 are the property of the Franchisor.
So you cannot sell the circuit equipment – which you paid for. So this is not untrue.”
Sean–I think this one is a matter of interpertation….my agreement doesn’t spell out that I paid $xxxx.xx for the equipment. It says that I paid $29,900.00 for the franchise plus a delivery fee of the equipment. Yes, included in that franchise was the equipment, but CI claims proprietory rights to it. I guess that is splitting legal hairs, but you can’t sale what you technically don’t own.
“3) the $10,000 failure fee Curves allegedly demands from failed franchisees, —-this one I can’t confirm or deny. This is a policy implemented in February, 2008. Also not untrue”
Implemented in what? Franchise agreements that are signed after February 2008? If prior agreements specifically spell out the consequences of termination–the change can’t be retro-active if it increases the buy out. Again, the only owner that I know personally that closed after February 2008 did not pay a $10,000.00 fee.
I am neither blessed with a good location or market….it requires work and commitment. It is not a “get rich quick” deal.
While I feel for any franchisee that fails, I am not sure one can place all of the blame on the franchisor. Even Sadderbutwiser admits that a lot of their problems were complicated by a bad economic climate.
To further clarify, we had a terrible 1st year(new club not a resale), we lost about $15k the first year. I sought advice from several people, including CI, other owners, and my AD. With their input–and other non Curves connected people–we have pulled it out of the red. So I have been there, and I did get help.
I would encourage any owner that is struggling to ask for help. No one will write you a check for what you lost, but they will give you advice. If you can’t get help in one avenue go the next. Try your AD, try your original mentor, try CI, try your local co-op, try looking at the Business 101 model.
If this lady has only 175 members she only has approx gross sales a month on $7000,00
Either she has very low rent, or she is barely making money. I cannot figure why someone would want a Job that pays minimum wages unless to brag ” I own a Curves to everone in the SMALL town. I think I would close up shop if I only had 175 members. I would not brag about that or even consider it a good thing.
ACurrentCurvesOwner:
If you’re happy in your business, that is great. That’s what this is all about… surviving and thriving as small business owners. I certainly don’t want to be in the role of talking someone out of contentment, and I’m glad to hear a positive voice.
I fear that your positive experience is going to be increasingly rare from the vibes I’m getting from the Curves community. I think there’s going to be a lot more backlash and legal action in the months to come.
It’s only fair to point out that the main problems of saturation, too much competition, dropping prices and renewal rates are by no means unique to Curves. The postings from Contours Express, Butterfly Life, and others in the segment are experiencing the same struggles – or worse. It’s just disappointing to not see the industry leader showing more franchise leadership – and a bit more concern for those who feel like they’ve been abandoned.
Doesn’t ANYONE have a 400-member club any more?
I do sadderbutwiser, and growing monthly, even in the summer I sign up new members. I have over 450 women and my I am not sure how many men to date. But i have more women then men. I have 200 Students also.
You only have 175 members and you’re in the black? Not by much I’m sure. Your profit margins must be razor-thin.
What’s your rent? $1,200 or less? How many hours are you working? 60? 80? Do you have any employees?
A student becomes the owner of a now-failing Curves that once had 573 members . . .
CHARLESTON, W.Va. — A group of University of Charleston executive masters of business administration students turned a project into a real-life opportunity for one member.
“We wanted to be able to make a difference in a business … I knew that Curves [of Sissonville] was failing,” said Debra Whanger, who is now the official owner of the all-women gym in Sissonville.
“I was just so inspired to keep it a viable business. UC and the EMBA have given me the tools I need for the business.”
http://wvgazette.com/News/Business/200807260354?page=1&build=cache
“UC and the EMBA have given me the tools I need for the business.”
Keep an eye peeled for the inevitable headline:
UC & EMBA graduate sues alma maters for malpractice; demands tuition returned, plus damages.
Methinks the real education is just beginning.
It seems colleges are teaching spupidity not education. College students are taught how to work for someone else, not work for themselves. Entrepenuers are a rare breed in the U.S. it takes a special desire and confidence to be successful, as well as the ability to get up once you fall and do it again. In this case with Curves, people keep failing doing the same thing. Doing the same thing and expecting different results by definition is- insanity. So keep buying a failing concept and throw money out the window HOPING you can change how Curves INTERNATIONAL is going to run the operation. Good Luck.
I closed mine in April. In the past year there has been at least 10 that have closed in my city. There is a dozen for sale in my state and about 1/2 are selling for $40k or less which tells me they are on the verge of closing. You see the pattern, they keep lowering the price hoping to sell until they have to close. Hey, it can happen to anyone, Starbucks is closing stores like crazy right now.
Don’t do it! They nickle and dime you to death!!! There are so many fees and rules you can’t do anything outside their “winning business model!” They are placed very close together and in small areas with a low population. If you do open one…plan on working every shift to make a penny. Also, only do it in a very large city that don’t have several other “copycat” facilities that are practically the same and much cheaper!
ACurrentCurvesOwner wrote: …If prior agreements specifically spell out the consequences of termination–the change can’t be retro-active if it increases the buy out. Again, the only owner that I know personally that closed after February 2008 did not pay a $10,000.00 fee…
Have you READ your agreement? Do you really think that they can’t add or raise fees, or increase your obligations, after the agreement is signed?
Your agreement holds you responsible for payment of royalties and ad fees throughout your contract, correct? Perhaps the fee is positioned as a release from that liability – not a fee per se, but something you gotta pay or they’ll go after you for the rest. But why not ask your franchisor? Shoot your area rep an email and let us know.
A Curve franchisee emailed me this message yesterday:
“I just received the email from curves telling me that there will be a $10,000 fee to close
one of our stores.
We owned 3, closed one 2 years ago with no payment.
Still own 2.
One has lost money for the last 2 years and we want to close
One is breaking even, but Curves says it may be in jeopardy if we close the money losing one. Any advice?”
The only advice that comes to mind – Don’t Buy a Curves – isn’t helpful. Maybe someone else who has dealt with this has some advice. Is this fee negotiable?
I can really relate to the story of this owner, who is closing her first club because the second club she bought siphoned away too many customers from the first club. The same thing happened to my wife and I. A clear example of the perils of oversaturization.
Women’s gym Curves is closing one of its two sites in Cayman because of falling membership at its Strand location.
The 130 members of the Strand Curves are being asked to transfer to the fitness centre at Grand Harbour from 23 August.
A notice posted at the Strand site stated that parent company Curves International was aware of declining membership numbers and had recommended owners Diane and Robert Musselwhite consolidate the two locations into one centre.
Mrs. Musselwhite said the couple was upset to be closing the Strand gym which she described as their baby as it was the first they opened, in July 2004.
“The decision is based on the fact that there are not enough members to pay the bills. It’s understandable that some of our members are upset, but I’ve been surprised about how many have said it’s not a problem,” she said.
The couple opened a second Curves operation at Grand Harbour in June 2006 after they realised that most of their members lived in the Grand Harbour, Red Bay, Bodden Town and Newlands areas. “Then we lost most of our members at the Strand to the Grand Harbour location,” Mrs. Musselwhite said.
http://www.caycompass.com/cgi-bin/CFPnews.cgi?ID=1032503
Curves is a great concept and works for many women! It is just like any other work out you only get out what you put in. I am a Curves success story and owner. Given that I am sorry to say that Corporate has let us down by over selling territories and selling territories in areas to small to support the franchise. I am in an rural area that is too small to support the club and have lost everything after 5 years of struggling. Curves International is not an ethical company or supportive of there franchise’s which is a shame, because it truly is a great program.
What a strange post, Jen. You’re a success story who lost everything. Curves is a great program but not an ethical company.
So what is it? Do you love Curves or hate Curves?
Yeah, I was thinking the same thing. Her comments are confusing to say the least. Maybe she once was a success story like u Sadder, and then lost everything due to the saturation of her area with other Curves businesses. I don’t know….
In response to a current Curves owner HOGWASH! I was forced into a sale by John McCord’s office after I had decided to close July 31. A buyer came to the table and was coerced by Curves to not come back to me to complete the sale for $10k. They forced the buyer into McCord’s office and was told that they could handle it for her. Unbeknownst to her they were taking $5k of the $10k for thier fee. I did not list with them. Curves automatically forwarded everything between the closing dept and McCord’s. They forced me into this sale, with the promise of release from my agreement. After the dust settled, and fees were paid, ( $1k for transfer fee and $1800 escrow), and still I had not filled out any paperwork, on my end I was told that they did not need it, and processed the sale without my signature. So I decided to stick with my original plan to close on the 31st. I moved EVERYTHING out including machines and locked everything up. I paid for everything and they expected me to walk away from EVERYTHING, computers, programs etc for a paltry $5k NO WAY! They found out what I did and provided her with machines last week and she reopened Monday. Is that fair to all the rest of us that paid our money, and she got it for $5k. Curves is desperated to keep the income coming in. I was down to 125 members, so now they have her sucked in for 5 years. So don’t tell me that they won’t do this, they have. I won’t give back the machines, I’ve paid for them, and will eventually sell them off. And they are coming after me for over $42k in royalties and advertising fees, so they think. They can’t pursue it, they have already sold the franchise. I loved Curves while I was in the family, but events from the last two years have turned me off to the franchise. I will seek legal remedy, fortunately I did not get to the point of bankruptcy and made a sound business decision to close before it was really too late. I have other stories, but will limit my response for now.
Hi and sorry in advance for the long post. I know we are just one of many unhappy ex-owners but hopefully our story can prevent others from going down the same path. And to those happy Curves owners that still making money – congratulations, you are rapidly approaching the other side of the bell curve.
Here it goes: My wife was a successful business woman when we got married. After having our second child in 2001 she abandoned her career and stayed home with kids. After second pregnancy, my wife started to gain weight and decided to join the hottest women’s health club on earth – Curves. She loved it, but being a business oriented woman that she is, she noticed some inefficiencies that negatively affected the club she was in. So she came to me one day and asked me what do I think if we were to buy one, so she could implement the ideas she had while doing exercises and making extra income. I suggested that she get a part time job there first to find out first hand of what is involved. She did that and coincidentally, 6 months later that club was offered for sale for $320K. It was 1 year old, had 180 members and with $7K/mo rent at a brand new shopping center. I could not understand how current owner came up with this futuristic price and requested a meeting with him. He was extremely confident and his only justification was future profits and historic sales prices of other Curves. They had owned 2 other locations – one with over 800 members and another with over 600 members. After running some #s, I had offered him to buy all 3 for 650K. He did not even return my call. In a meantime, my wife was becoming anxious to own one. It was early 2004 and no new territories existed in our state or even US I believe. The only Curves one could purchase would be a resale.
We started to look actively and eventually found one for sale within 30min driving distance from us. It had 300 members with $2K/mo rent making about 60K/yr. It was offered for $280K. After some hesitation we decided to buy it for my wife. I figured that the worst case scenario would be that we sell it 5 years later for ½ price and would still come a little bit ahead plus a health benefits to my wife. Oh, how naïve I was!
We went to Texas for training and came back with elevated spirits thinking that we will make a world of difference in our area. My wife eagerly started implementing her ideas and actively participating in all community events. However, the problems began almost immediately. First, we discovered that we did not really have 300 members. The ex-owners that sold us the club had another one within the 2 mile radius. Mysteriously, right after we purchased the club, many members transferred to that other club. We have suspected the foul play but could not prove anything and instead decided to concentrate our efforts on growing ours. It’s been said on this board many times that Curves insists that all their clubs are working as a team, helping each other. Nothing is further from truth. This was a cut-throat competition with devious techniques of luring members to your own club, secretly complaining about other neighboring clubs to Curves Legal, spying by sending friends and relatives to neighboring clubs pretending they are new members and bad-mouthing other clubs in the area to members and other people around.
My wife’s cheerful demeanor slowly evaporated. She became more aggressive, stressed, tired and exhausted as days passed. She had to let go previous employees who turned out to be still working for previous owners as they have been sabotaging business when my wife was not there by loudly complaining about her to the members and openly encouraging them to leave our club and go to the other Curves the ex-owners had. When one of the members told about it to my wife – she became furious and fired them. Then she discovered that those employees had given away hundreds of coupons for free Curves products that were reserved as a reward to those women who achieve their goals. Over 100 members had 5 or more coupons that they said were given them as rewards for their exercises. Fearing that we may loose more members if we try to revoke them, we had to spend several more thousand dollars buying expensive Curves sweat shirts that everyone wanted.
All that set us behind considerably and created a lot of tension, but we were determined to make it work. Over the next couple of years we saw that despite of our efforts, we were not gaining new members and have had problems retaining old ones. Our expenses had increased – rent, advertisement, salaries for employees, with revenues steadily falling. We have tried to talk to our Area Directors but received no support, we have complained about it to Curves Int. but received no response. We tried to work with other Curves, participating in co-ops and sharing local ad costs, but it did not bring more members, while we were spending more money than ever. On top of that, Curves Int. asks its franchisees to fax the worksheets that determine the dollar amount of monthly franchise and ad fees. If they do not receive the fax in time, they charge you maximum fees allowed. On more than several occasions, even though we have faxed everything on time (and have proof of that), we have been charged the maximum fees that overdraw our business account and result in overdraft bank fees of $40 for every transaction after that. Then it would take a number calls leaving messages and faxes to get the franchise fees reversed and corrected, but Curves never reimburses you for the bank fees that result from their mistakes. In 2007, we have paid over $1500 just in overdraft fees due to Curves mistakes.
Slowly but surely, from a profitable club we became a club that sucked money at the rate of $2K-$5K/mo. Several non-Curves competitors in the area started to pop up offering the same thing for 19.95/mo. I have not seen a single Curves TV ad since 2005. In a meantime they continue to collect money for a “national advertisement”.
Finally, 3 months ago we were forced to shut down the club, refund prepaid memberships to several members and terminate our lease contract.
Several clubs in our area are listed for sale in the $30K-$45K range – a far cry from 2004 prices. I am sure that those would eventually be shut down as well.
Curves Int. is trying to collect the $10K from us but our club was purchased by a Nevada LLC where my wife is a single member rather than my wife personally, so they will have a hard time going after our assets and we have no more money to donate them.
Overall, this is by far the bitterest experience that we ever had in our lives. I am just glad that our family was strong enough to endure it. We had another family addition last year that helped us be together. Now, 4 years and $370K later, our efforts are concentrated on putting this all behind and moving on with life. It had mostly eliminated our hopes for early retirement and good colleges for our kids.
While some folks here say that it is all our (ex-Curves owners’) fault. I know for myself that it is not us but Curves Int. and those who run it that we have to thank for that. Their extreme corporate greed, total disinterest in Franchisees and, sadly, total lack of any concern for women they say they want to help (because it all trickles down to members that at the end are disillusioned, hopeless and no longer have a convenient place to go to)
– that is what is at fault. It is very much reminds me of Enron and I sure hope that it will end similarly.
Thank you Gary. Remember – what goes around, comes around.
And I thought it was just the members getting screwed.
I have a just a couple of questions for any one out there in the “know”. I sublease from a Curves owner for my skin care business. In the last year she has set up a tanning business in a room off of her workout area, begun to sell purses ans boutique items, an sutomotive road side assitance program and has now broken out lease agreement by offering a skin care process that is governed in out state by the board of cosmetology. We signed an agreement to no inhibit or interfere with the others businesses or represent the others business in any way while abiding by ALL laws and regulations that would govern our independent businesses. Since she has begun to now hurt my business via her greed for monwy bu offering this skin care process and the products to support it I have contacted CURVES INT. I was under the impression the franchise owners were NOT allowed to offer ANY types of services or products or businesses from beneath the franchise facility of CURVES. Has anyone had this type of problem? I figure she must really be hurting for funds if she has sunk so low as to break our lease agreement as well as indanger my business in the process. I did receive contact form CURVES but I feel that is all it will amount to. I replied to their inquiry and have yet to hear anything back. She has since begun to harrass me professionally and personally. I have had to contact legal counsel on the issue. Does anyone here believe CURVES INT will actually take note of this owners obvious break with their own franchising agreement against operating outside businesses? By the way two of these businesses are MLM opportunities. Thanks for any feed back..
It appears that the reason Curves is charging the 10,000 dollar closing charge is to get owners to sign a release so that they can’t sue CI for losses. I know of many owners who have had CI lower the fee to 5000 than 2500 and down to 1500 as long you sign the release form reliveing Curves International(CI) from being sued. My advice— do not sign anything —-until you talk to a lawyer perferably the ones that are handling the group lawsuit case.
As for the McCords personaly I would stay away from them as it’s obvioulsy has CI as a backer and makes underhanded deals. It is not in the best interest of the owners but rather curves international.
It’s been said here that the 10K termination fee was introduced in Jan/Feb of 2008. I checked our 2004 franchise agreement and it clearly does not have it in there, and modification clause clearly states that all modifications must be in writing and signed by all parties. So unless you signed a modified franchise agreement you should not be liable for it.
Also, in regards to the return of original equipment to Curves or Prison facility – our 2004 franchise agreement does not have anything about it either. In fact, it has quite opposite – that Curves Int. reserves an option to purchase all equipment in case franchisee is in default.
As for initial franchise fee, it says that 16 pieces of equipment are included in the initial franchise fee. So as far as I can tell (and I am not a lawyer), we own this equipment and have no obligation to return it to Curves, Prison facility or any other such nonsense, unless you own money to your members or Curves. The only caveat may be, is that they are also seem to be saying that in case of default we owe them the franchise fees from closure date until the end of the contract. But again, I could not find that to be specifically said in our contract and if it was added later, we did not sign it.
One more important, in my opinion, thing is that in the contract it clearly states that all notices are to be in writing and be sent to you (or from you) with regular or certified mail. To me that means that any email notices are not official notices and as such you don’t need to react on them!
You are so right Scrdbycurves. No were in the franchise agreement is any of that written but that is how they try to indimitate owners to stay out of the lawsuit. Have you contacted Zarco yet?
A clothing shop is replacing a defunct Curves in North Dakota.
An upscale resale clothing shop will open next week near Ralph Engelstad Arena.
The shop, called indigo, will cater to college students.
It will replace Curves, which is closing, in a strip mall off Columbia Road and south of Gateway Drive in Grand Forks.
http://www.grandforksherald.com/articles/index.cfm?id=84366§ion=Business
Is there any other site that talks of Curves like this? I recently talked to a curves owner in Montréal QC when on vacation there and they where scared crasy about the situation there
whith the competition and the closures
they told me that basicaly Swan fitness is taking all their business , so I am thinking is curves failling because of the competition being what it is or from the lack of support from CI .
Is there any other site that talks of Curves like this?
One: Unhappy Franchisee at http://www.unhappyfranchisee.com
There are many reasons why they are closing but most relate to how the franchiesor is mismanaging the franchise. The number of owners suing CI grows daily. Check out unhappyfranchisee.com to see the real picture.
Here is what I know about these transactions with McCord.
If you are closing your Curves location you have to pay a $10,000 closing fee. There is a franchise agreement in place and franchisees are obligated to it. If you go to Curves and provide them notice to close they offer you an alternative to go through McCord as a last resort. You then sign a power of attorney with Curves for a month, giving them the authority to take control of the sale of your Curves. I cannot understand why somone on here is complaining about getting $5,000 for a sale when they were looking at forking out 10k for closing the club. Sounds like an emotional decision and not a business decision.
Any Curves owner can sell through anyone they please. If I am not msitaken McCord was a former executive with Curves; hence the endorsement. My friend in Georgia used Tom Garmon and was very pleased. When my wife and I sell that is who I am calling.
Alex
The reason people are complaining is that this $10K fee was tacked on in February. It is NOT part of the original franchise agreement. Curves noticed the growing trend of clubs closing and came up with a new way to squeeze money out of struggling owners.
BTW, Tom Garmon is no longer with McCord. He’s started his own Curves-for-sale brokerage.
In response to Alex:If I had the $10,000 I would not have had to put in for closing duh! Curves did not offer the alternative, it was forced upon me without my approval or consent! I did not sign any power of attorney or consent for them to take control of anything. Would you walk away from all of your possessions that you put thousands of dollars into so that someone else can walk in and take it over for virtually free? How naive are you? I am not paying them a cent now or ever. It is a business decison, not an emotional decison as you may seem to think. You are not mistaken, John McCord has been, is and will always be affiliated with Gary Heavin as long as they continue to line each others pockets. It is nothing more than manipulation and hostile takeovers of clubs that are failing, so they can sucker some other poor fool into taking over where you leave off. My territory should have been closed and not reopened. I hope that in the future when you do use McCord, it will be an open and above transaction aggeeable on all sides, but be forwarned, I know of one club that was misrepresented through member numbers that were falsified by them and the owner so that they could up thier commission. Do you want to trust someone like that to sell your business? Take it somewhere else and sell it. I have no regrets for closing before the so called “sale” was completed. I am seeking my recovery through other means. I am on the old franchise agreement, they cannot come after me for anything, as far fetched as that may sound to them. It sounds like you have not been burned by Curves during your tenure with them, I have several times. When you get stepped on we’ll be hearing from you as well. Go up on unhappyfranchisee.com and read all the stories, you will find that we are not a minority out here.
…they offer you an alternative to go through McCord as a last resort. You then sign a power of attorney with Curves for a month, giving them the authority to take control of the sale of your Curves…
Please explain this. Why would Curves International need “power of attorney” to help sell a club?
Are the “taking over” clubs to keep them from showing up as closures in the FDD?
Sean,
Why would you give them power of attorney? I never signed one document giving them authority to take this sale away from me. They try to scare you into giving them control when you have notified to close. As long as you don’t sign any documents you are alright, especially if you are seeking relief through the courts. Yes when they take over and re-open, it keeps from showing up as a closing in the FDD. That way they keep the closure rate looking lower than it really is. They don’t offer you anything, they tell you this is how it’s going to be. My buyer was coerced away from the table through the resale dept right in McCord’s office and told that she did not need to come back to me to complete the sale, they would take care of it for both of us. They kept sending me papers to sign by e-mail, but just ignored them. They figured it out real fast, I was not rolling over. They are going to deny all of this, but I was told to sell for $1, so they could get off the hook for no liability. I don’t answer any correspondence from them at all anymore.
Could anyone give any insight on what would be considered all the legitimate reasons that one might be able to participate in the group lawsuit? I’m not sure it would be appropriate to ask to be included solely based on severe downturns in a club’s membership due to being in a small town or because of paying too high of a purchase price for a resale. I don’t think I can blame it on Curves International that there is such a turnover in membership. Sometimes I think that our biggest threat is a woman’s lack of commitment to her workouts and the belief that she doesn’t deserve to have a membership on a long-term basis. I would appreciate any insight into this matter. Thank you.
Dear Positive-healthy
Go to http://www.unhappyfranchisee.com/2008/08/curves-robert-lays-story/ Robert Lay will talk with you at length about your concerns. I agree with you about women getting lazy and not keeping thier committments. That was one of the biggest excuses I had for member dropout. I don’t know where you are in your business. Don’t let it go on too long before you go under.
Is there a way to verifiy how many Curves are in operation I know that there where 10,000 clubs at one point but now how many , are they still selling clubs outside the US ?
Thank you
At last count there were only about 6500 curves clubs and approx 500 failing per year or more. I would bet about 5000 clubs now that are still open but not making money. They are just in it for pride and to save the $10,000. Curves permission to Go out of business fee
WOW !! where it the 10,000 clubs and the 4 millions women ?? how can this happen..
all the Curves where employing over 35,000 people and helping the economy a lot and then
in a mather af 2 years it’s failling big time
is there any hope for the people involved espessialy the franchisee.
JOSE,
How was your count arrived at? Or is that a guess. It would be interesting to see how many are actually still open. And if there were 10,000 or if that was just another lie to help promote franchise sales.
I got the number off the Curves web site and calculated over time how many average closures per year and per month there were, taking into consideration that the closure rate is an exponential curve, opposite of the growth curve. Example: When opening a new franchise it is very important to get at least 10 sold in the first year, the second year you will sell 40 the third year you will sell 75 and 4th year and above 100+ franchises. The momentum and fancy adds stating how you are the fastest growing franchise today excites people to jump on board faster without looking into the opportunity as a good or bad investment.
Starting with 10000 clubs is is easy to formula over time given these closure rates that curves will probably have only 500-1000 clubs left in 3 years from today. IF Curves goes bankrupt it it will if the franchisees law suit wins. Curves will close US operations and maintain a presents in Europe for a few years so Gary Heaven can Cash in on this and retire a Billionaire on the franchisees money. YES the OVER 10000 franchises is a LIE. They Now say WORLD WIDE ON THE WEB SITE, NOT IN THE UNITED STATES. WATCH HOW THE WORDING CHANGES.
eventually he will only have a few hundred in the United states and still make the same claims using the numbers in europe to build confidense in his failing brand. The Curves web site if not up to date and still lists franchises that have gone under. If you get a UFOC it must List ALL franchises that have failed since inception. SO anyone on this blog that have a UFOC Please let us know how many have failed. If the UFOC is not correct Curves can face a Class ction law suit for not Filing with the Federal Trade Commision a correct Franchise Agreement. Every Agreement must be updated immediately upon notice of franchise closures, anu UFOCm received without these changes is considered Void. and legally can be challeged. This is the loop hole you must follow to win a Curves law suit. Challenge the UFOC and its illegally binding statements. Example: In Minnissota, New York, Florida and many states have an addendum preventing any franchisor from sueing a franchisee. It is illegal for Curves to challenge the closure of a franchise if certain states by charging a $10.000.00 fee
Here is a list of exibits addendums for states that prohibite Curves from attacking its closing franchisee.
Alberta Canada, Ontario Canada, California,illinios,Indiana,maryland,Michigan,
Minnessota, New York,Ohio, Rhode Island, South Dekota, State of Washinton,
Contact the attorney generals office in these states if you are wanting to close your franchise. Render a complaint to each state in writing and also send a copy to the Federal Trade Commission who regulates Curves nationally. Curves may loose it’s ability to sell in the United States if enough Failed curves ownes Send written notice to the State and Federal policing autorities. ‘
One More thing. Find out if Curves was registered to sell your failed club to you in that stated when you baought it. Contact the State Dept of Labor and Economic Growth and request a copy of the registration for the year you bought your club. If it turns our that they were not registed, you can sue Curves for selling you a club illegally and request all fees, royalties paid plus legal fees, damages for the complete period of ownership. Try it what have you got to lose. Let everyone here know which states Curve sold in and was not registered.
Its time to fight back and vindicate those who lost everything because of the lies Curves promulgated to profit.
Good Luck and God Bless
Ok I have the exact count !! 8336 franchise worldwide
1835 closing between 2007 and now
not a good sign I suppose!!
Is the closing rate of 1,835 just in the U.S. or world-wide? You have to compare apples with apples.
I hired a franchise expert firm to check out a franchise I was considering. Mr. Franchise, who also owned a franchise himself, told me a 10% or more turnover rate is high and a red flag. Just an FYI
It’s Wold wide , 800 of the closures are in the States and the rest are all over the globe,
Melissa, How did you arive at these figures and do you have any email address for the remaining clubs that are open?
UFOC doc’s and entrepreneur.com
franchise500, and I also took 2 hours to count all the existing franchise listed on their web site
starting with the US and then all the other country’s.
Sadderbutwiser,
I used to be a member of one of your Curves. I joined the new Curves you opend up in November of 06. I was so excited about a Curves coming to my neighborhood and couldn’t wait until you opened. I was one of the first members to sign up. I loved the girls working there (Ronnie, Jennifer, Marsha etc…). Once the new owner took over the place really went downhill. She stopped handing out prices, lost (and fired) some of the staff and cut her business hours back. She even got rid of the suggestion box. She wasn’t the easiest person to deal with and a lot of us girls did not care for her. I decided to cancel my membership after my year was up and joined the new 24 hour gym that opened up across the street. I now pay less money for more gym time. I hardly ever see any cars in front of my old Curves and that makes me think that her membership went way down. I have several ex-Curves members at my new gym and they left for the same reasons I did. Which are: price (not cheap), hours (not convenient anymore) and the new manager.
I’m so very sorry to hear about what your family is going through. I only met your wife a few times but I really liked her. You had an awesome Curves and it is too bad that the Curves International treated you that way.
My co-workers wife just bought a Curves in the north part of our county. After reading this thread I’m worried about their future. His wife is so excited about Curves and is putting all of her energy into her new place. I just hope she can make it work.
Thanks for sharing your story. Best wishes.