CURVES: 1000 Franchise Clubs Failed Last Year

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• We paid $175,000 five years ago per club and we paid too much. This is our story http://everyjoe.com/work/curves-franchise-resale-buyer-cries-fraud/. We have discovered recently that we are not alone, and the same thing has happened to many other resales. Regardless of what JD says, there was no way for us to know these women had cancelled and the owner didn't process the cancellations. We thought we were buying a profitable club, with members who knew they were paying. Yes, some had not been in for 3-6 months, but Curves International said this was normal and they might return if we called them and invited them back in. So we called them, and they said they had cancelled. We told them they were still paying and we didn't have a cancellation letter in their file. They didn't see the draft coming out so we had them bring in their bank statement. It didn't say Curves, so we changed the drafting system because we didn't think it was right that these members didn't know they were still paying Curves.

  Curves International is responsible for our financial demise, because they set up the guidelines the owners were supposed to follow, but didn't make sure they were being followed. A national survey of how many women continued to be charged by Curves after they sent in a letter of cancellation, and how many didn't know they were being drafted by Curves, would be very interesting.

• http://www.walletpop.com/2011/03/09/abrupt-curves-closures-lead-to-consumer-refunds

  Curves International sent the following statement from company President Mike Raymond to Consumer Ally:

  “When it was brought to our attention by the Attorney General’s Office that certain of our independently-owned franchisees were not treating members in the same spirit of fairness we pride ourselves on, we took all necessary steps to ensure that such was corrected. We look forward to working with the Attorney General to prevent our members from being harmed by any rogue franchisees in the future and helping all of our members on their path to health and wellness.”

  • Do you think that means that if Raymond becomes aware of instances - even in states other than New York - where "independently-owned franchisees" are "not treating members in the same spirit of fairness" Curves prides itself on, that they will take "all necessary steps to ensure that such [is] corrected"?

    Or does the Curves "spirit of fairness" only apply in states where the Attorney General mandates it? ;)

• I found this story at http://www.consumeraffairs.com/health_clubs/curves.html.

  Brandi of Canyon, TX May 11, 2010 wrote:

  Mr. S closed his Curves franchise (April 30, 2010) with only a two week notice and never talked to any of us members. He had his employees (Kristen & Georgia) writing down our questions and they informed us that he would personally call us to answer them. They also promised (per Mr. S) that no more accounts would be debited and full refunds would be made to everyone who was paid after April. Accounts were debited less than two days after being told they would not be, and less than a week before closing and not a single refund has been made to any of the members. He left no way of getting ahold of him either. We live in a very small town, and you just don't do people that way. He neds to be repremanded and refunds need to be made. I was paid through July 4, 2010 by gift certificate from a friend, and so he not only cheated me, but her as well.

  I don't know what Texas Business Law states, but if these members lived in New York, Curves International would be sending them a check.

• Questions. I have been reading the comments and it sounds like Curves franchisees are not allowed to reduce the fees unless approved to run a special program. Is that true?

  What kind of turnover rate are you experiencing?

  So many are for sell in my area. Are the members 'dropping like flies'?

  Someone on this board said you can't make a profit with less than 250 members.

  Is that true?

  Thanks!

• Did CURVES President Mike Raymond Get Pruned?

• I have a client who bought a "resale". The previous owner owned the equipment outright and never leased the equipment. My client purchased the equipment from the previous owner completely. Since Planet Fitness moved in nearby, her membership has suffered. CI wants her to close, telling her she has to 1) destroy all the equipment, or 2) sell out to someone else. What I understand about the law is that she owns the equipment. How does CI believe that they can dictate what she does with equipment that she owns? All they really own is the name am I right, and has anyone else ran into this problem? What did other franchise owners who closed do with thier equipment?