(FranchisePick.Com) If a franchisee fails in the second year of their 10 year franchise agreement, odds are the franchisor can hold them responsible for the estimated future royalties on the remaining 8 years of the contract.
While rarely collected, the threat of “future royalties” can be a big stick used to demand a reduced farewell “failure fee,” a release from liability agreement and/or a confidentiality agreement (gag order) to make sure failed franchisees go away quietly.
Troubled franchise companies will sometimes offer some or all of their unhappy or struggling franchisees this type of deal… and the chance to buy …read more

(FranchisePick.Com)  After stories and franchisee comments began to appear on FranchisePick.Com (see links below), Cuts Fitness for Men managing director Steven Haase has publicly acknowledged that Cuts Fitness for Men “bought out” the franchise agreements of each of its franchisees and shut down its franchise program in June, 2007.  As reported in a previous post,  Former franchisees continue to operate under the Cuts Fitness name, but they cannot open new clubs under the Cuts brand.
(Former Cuts franchisees tell us that corporate “bought out” franchisees by allowing the franchisees to pay thousands of dollars to get released from their agreements.)
An Oct. 24, 2007 story on Fitness …read more

(FranchisePick.Com)  Part 3 in the Mysterious Disappearance of Hot New Franchise Cuts Fitness for Men series.  See related articles at  Blogliography: 30 Minute Fitness Franchises.
In Part 2 we asked: “A little more than a year ago, Cuts Fitness for Men was a “hot new franchise,” and one of the “fastest growing fitness franchises in the world.”  Today, they’re missing in action.  What happened?”
An ex-Cuts Fitness franchise owner (who prefers to remain anonymous) may have provided the answer.  While this information has neither been denied nor confirmed by the Cuts for Fitness corporate office, the ex-owners account would explain a lot.
According …read more

(FranchisePick) A little more than a year ago, Cuts Fitness for Men was a “hot new franchise,” and one of the “fastest growing fitness franchises in the world.” Today, they’re missing in action. What happened?
An April, 2006 Cuts Fitness press release boasted that the men-only 30 minute fitness company (basically, a Curves for men) had more than 100 franchises open in 5 countries, more than 200 franchises sold and expected to sell 250 more franchises in 2006.
The media touted Cuts Fitness for Men as one of the hottest of the hot franchise investments. Entrepreneur Magazine …read more

(FranchisePick.Com) Curves for Women burst on the scene with the concept of 30 Minute Circuit Training in small women-only clubs, selling more than 10,000 franchises in the U.S. and abroad.
Curves for Women spawned dozens of franchise knock-offs, many targeting slightly different niches. One of the most aggressive was Cuts Fitness for Men, an admittedly male version of Curves founded by John Gennaro. Cuts Fitness for Men advertised their franchise opportunity aggressively, promoted its story continuously through the press and strategic alliance partners, then seemed to go silent all at once.
[Also read Mysterious Disappearance of Hot New Franchise …read more