CURVES DISCUSSION: Benefits of a Franchisee Lawsuit?
Curves franchise owner positive-healthy asks:
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.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
We keep hearing rumors that Curves is selling out to Diversified… Can anyone confirm this or is it just wishfull thinking??????
Selling out to Diversified is wishful thinking?
You obviously aren’t familiar with Diversified or Roger Wittenberns and never talked to anyone whose chain was bought out by DHF. Plus, Diversified wouldn’t have the juice to take on Curves. Their chains only have 10 or 20 units each that they can get for free. Big time chains like The Zoo (10 maybe) or The Blitz (1 location). Small time bottomfeeders.
It won’t be long before curves is a small time bottomfeeder.
my comment sounded kind of rude to you unhappy. didn’t mean it to, sorry. it’s just that next to Roger Wittenberns, Gary Heavin has low self esteem. His braggingly has pictures of his expensive cars, boats and garish house posted on his website. He makes heavin look downright classy.
anon.
no offense taken and I didn’t see it as rude or out of line. Glad to have you post !!!!!
Just closed my Curves after 7 years. I was curious, has anyone been sued by CI for the remainder of their agreement and the 10k closing fee? I would really be interested in finding out. I ‘ve tried to work with Curves and McCord to sell it or give it away for the last two years without any luck. I finally tossed in the towel, that’s all I have left the money is gone!
This is a reply for Freckles. I broke my contract after two and a half years of losing
thousands of dollars. I lost over $8,000 the first six months after being told
this franchise was showing a profit of $10,000 a year. Ha Ha but the joke is
on me now. They CI gave me the “golden opportunity” of paying the $10,000 to
get rid of them. However, I chose not to comply. Well, now I received a letter
suing me for $25,000. I got the letters on Tuesday and they want my decision
by Friday. That’s giving me alot of time to seek advice of a lawyer. I should have
read the contract better. They really cover all bases. Every little avenue is covered. Has anyone beat their lawsuit? Does everyone just pay the $10,000?
What has happened with previous closed curves? They must have lawsuits
pending everywhere. Does anyone have any advice?
Sad in WV-Closed Curves Dec. 31, 2009
Debbie,
CI are a bunch of crooks. The red flag should have been for all of us that they claim to do this in the name of God. LOL! Who are they kidding? My husband and I lost so much money and had so much debt after 2.5 years that the only way out was to follow Chapter 7 bankruptcy back in 2009. If you file bankruptcy, they cannot sue you. If you choose not to pay what they want, they will put a lien on your property. If you dont own property like my usband and I, they can put it on future property. Gary Heavin is all about money between corning franchisees with scare tactics or having his cronies do his dirty work. They give you that quick deadline so you can’t contact an attorney. That’s their game to cause fear and back you into a corner. Take your time and call an attorney. Don’t pay them a dime. If you have a ton of debt like we did, Chapter 7 may be your best bet. I can’t even understand how CI is still open. There was an article recently where I think it was the president of the corporation said they were making money and having franchisees shut down territories was part of their plan or something to that nature. I forgot the exact article. Ask someone on here. In any case, life is too short. Do not live your life by what CI wants. You take your time and make the decision that is best for you. Best of luck. :-)
Here’s the article Former Owner is referring to:
CURVES Franchise Owners React to Comments That They’re Being “Pruned”
CI has a Facebook page now LOL – A lot of people still drinkin the Heavin Koolaid.
If you file bankruptcy on your Curves, what happens to the workout equipment and the Curves Smart? Did you just leave everything in the facility or were you required to liquidate the Curves assets during the bankruptcy?
We left EVERYTHING in the facility. We were advised to by our attorney. Our attorney told the landlord, do what you want with it. The place has since emptied so I am assuming he tossed it or sold it. My hunch is tossed it.
The fact that CI wants you to sell it or give it to a women’s prison is the dumbest thing ever.
Former Owner — were you a Curves Smart facility? If so, did you just leave the Curves Smart computers attached to the machines and the Kiosk as well? Also, did you have all 13 of the machines and the stepper? It was my understanding that the additional 5 machines and the stepper are yours once you purchased them, that only the original 8 machines belonged to the “franchise” aka Curves. Could you not try to salvage those other 6 pieces and recoup a little bit of money or did you just not want to mess with it and just be done? Also, when you say you left EVERYTHING, did that include all your supplies and such or just the equipment?
I am struggling with the idea of just closing the doors, although my attorney has recommended I do that and file chapter 7 bankruptcy. My heart says I should try to sell the club and not let the current members down, but my husband says I need to do something NOW and it looks like it could be several months, a lot of paperwork and a lot of additional expense if I sell. Did you consider trying to sell?
Also, did you pay back the prepaid members? I want to be able to do that and my attorney says that I have to, so…….any input and guidance you can provide will be greatly appreciated! Thanks and God Bless!
I’ll help any way I can. No, I did not have Curves Smart. No, I did not have to pay back prepaid members because your attorney can list them in the bankruptcy. That’s what we did. Yes, we left everything – computers, stereo, equipment and so on. I did not have the stepper. We tried to sell. I had a woman that my attorney labeled a “tire kicker.” She was one of those push/pull type people. She kept us on the line for 9 months until finally we basically told her we were done waiting and we were going to do what was best for us. CI wanted us to either just give it away or sell it for a penny. NO WAY! I wasn’t going to incur lawyer fees so they could keep getting tehre franchise fee. I know you feel bad but I agree with your husband. Seriously, get out NOW! Chapter 7 is the only way. It frees you from all debts and responsibility from Curves. Let them suffer as you have. Like I said a while ago, how this friggin guy isn’t in jail is beyond me. The Feds need to look into them as they did with “Enron.” In terms of supplies, the woman I had running the place as my manager stole them (paper towls, toilet paper, etc). She’s a whole other story. You will never sell the Curves and it will cost you more money. Just cut your losses and move on. Stop putting your life on hold for a company who doesn’t care about you. As long as THEY are making money, to hell with the owners. I am telling you, please file Chapter 7. Give yourself a fresh start. Credit is easy to rebuild. You are a better person than CI. Just my opinion.
I have read each and everyone of the above sad stories, and I am also experiencing the threats, and bully type tactics of CI.
I have written to the Law Firm who is taking the group action, but before I go any further was hoping to hear from others that have experienced already what I might expect from going down this path.
If anyone can help me with some feedback that would be great.
My heart goes out to all of you, and for those of you that are free from the nightmare, get on with your lives, as I remember the happier me prior to purchasing my Curves.
I wish you all the best…
I’ve posted the CURVES International 2010 Franchise Disclosure Document (FDD)
While you can read them in the litigation section, tomorrow I’ll post a table showing the amounts of the group action settlements as reported. As of the date of the FDD filing, there were 40 settlements determined and 81 plaintiff groups remaining. There are also other settlements apart from the group action.
please include me in the group Curves Franchise Lawsuite and keep me posted through my e-mail Thank You
The results for 46 group action plaintiffs is listed in the 2010 FDD, with 81 actions still pending.
As I read it, of the 46, 17 got nothing and 29 received cash settlements from CI.
Total Settlements: $240,400
Highest Settlement: $25,000
Lowest Settlement: $1,000
Average Settlement: $8,290
Median Settlement: $5,500
Does anyone know what the actual attorneys fees & costs borne by these franchisees are? How many of these franchisees even recovered the costs of their participation in the lawsuit, much less their time and aggravation?
See the list of individual settlements listed in the FDD here:
CURVES Franchise Lawsuit Settlements
Reactions?
PLEASE if you are trying to decide whether to keep pouring money into a losing business or to try and get out and take the chance of being sued by CI, and their $10,000. threats……please please don’t keep draining your pocketbooks, things ARE NOT going to get better no matter how hard you work, believe me I know what I’m talking about.
GET OUT of your franchise agreement, hire a good franchise attorney and GET OUT. The class action suit I can’t speak to, but I would assume it will take a long time and a great deal of money to win. On an individual basis, you have the advantage of being able to act much more quickly and possibly avoid the $10K ‘failure fee’. I was threatened by CI with ‘future royalties’, a ridiculous some of money (nearly $100K) because I didn’t follow their ridiculous closing procedures like donating the equipment to a woman’s prison and giving my member file to Curves (that’s a breach of confidentiality by the way).
We talked to various local lawyers who were no help at all, but then we WENT TO A FRANCHISE ATTORNEY. That’s my best advice, ladies, find an attorney who SPECIALIZES in franchise law, it’s easy to do, use the internet, and tell them about your franchise agreement. Remember that you probably signed a personal guarantee as part of your franchise document, that in itself will limit your options (i.e., you can’t just declare business bankruptcy and think Curves can’t come after you). They can still come after you personally!
BUT….if you state your case clearly and show that you did everything you could to save your business, and you are BROKE, you can clearly show that with your P&Ls and use a franchise attorney to spell it out to CI, and you CAN get your life back (and you DON’T have to pay those future royalties they threaten you with if you STAND UP to them!)
GOOD LUCK TO ALL OF YOU, my heart goes out to you I KNOW what it’s like.
We filed personal and business bankruptcy BECAUSE OF the personal guarantee. If you file bankruptcy, you must file two suits – one personal and one business.
To Former NJ owner (and anyone else interested):
It’s so sad to hear you had to declare bankruptcy. I know how that feels….we looked into it, too. We were lucky to AVOID going that route. That’s what my post was all about.
And yes, certainly filing business bankruptcy alone will not get you out of trouble if Curves threatens you with a huge lawsuit. You’ll have to go the personal bankruptcy route as well, as you saw yourself.
But by the same token, I don’t think you need to necessarily put in for bankruptcy if you FIGHT BACK, with a good attorney, as we did. It’s a little scarier, yes, but you DO have a chance. Don’t let Curves intimidate you! There ARE laws in this country, and Curves is not as blameless as they want you to believe. If you feel you haven’t been trained properly, if you feel you’ve been misled, if you feel your cost estimates fell far short of the mark (due diligence aside, CI KNOWS better…they do know what works in terms of a monthly budget and what doesn’t….and approving a new franchise who has NOTHING in her budget for say, local advertising, or liability insurance, or even Curves PROMOTIONAL items, is LYING, plain and simple), then you have a legal case.
What I’m trying to do here is to give those who are still struggling with the ‘what to do’ question, that are losing money month after month and want OUT… some HOPE that there ARE options other than bankruptcy. Curves likes to think they’ve covered all the bases legally, but there are franchise laws about inducement, about lack of training and support, about misleading potential franchisees, even about suing and confidentiality and what constitutes a legal franchise document and what doesn’t. The laws vary from state to state so I recommend you look for a good franchise specialist in your particular state. These laws can help you if you get a good attorney who specializes in franchise law and knows your particular state. Do a search on the web for franchise attorney – your state name. It’s a very simple way to get started. And yes, lawyers cost money. But you’re going to have to pay one way or the other, anyway. Either a bankruptcy attorney (or file yourself, I understand it can be done for as little as $300.) or some sort of payment to Curves…the question is, who would you rather pay? And will you let Curves just get away with their threats, scot-free? Or will you at least TRY to fight back?
This intimidation factor that CI perpetuates is something that is very powerful, and unfortunately those who settle cannot talk about Curves in any detrimental way whatsoever. Curves COUNTS on that when they settle. So what you get are just a bunch of vague warnings and few specifics when you really need facts. And I’m just as guilty as everyone else. I will not be able to speak out once my situation is legally resolved due to the gag clauses inherent in any release agreement. And since I hope that will be soon I have to apologize in advance to anyone who hopes for a response from me. All I can say I’m saying herein. I give the unhappy franchisee all the credit in the world for having the guts to keep his website going; and I wish I had his nerve, to be honest. But I don’t.
But I had to speak out one more time while I still could! Because more and more women are losing their businesses, their financial futures, and their dreams. You may have stopped Curves from getting its ‘future royalties’ from you (by declaring bankruptcy or whatever), but you can bet if someone else comes along and wants to buy a club in that same territory (naively not knowing the pitfalls no matter how much due diligence they do, because again, gag clauses prevent the full true stories from being told), Curves will do this again. They will tell themselves ‘maybe the population will change’ or maybe the new person will do something different to turn things around….but the end result will be the same.
Because the business has changed and Curves refuses to change with it.
The economy may be bad, but that’s not all of it, and we all know it. The
problem is, getting new members by badgering your existing members to give out phone numbers for their friends is…..well let’s face it, it’s pretty LAME.
Not to mention a breach of confidentiality and privacy we’re all so aware of in this day and age. Relying on word of mouth doesn’t work anymore. And being unwilling to change your workout (by adding an additional, aerobic area where you could have treadmills and exercise bikes, for instance – this doesn’t have to interfere with the original ‘circuit’ but could be an addendum to it), thinking you have to ‘re-invent the wheel’ with the Curves diet instead of partnering with someone who has done it for 20 years (say, Weight Watchers for example? Why the antipathy between the 2 companies? I don’t get it), and all the other innovations that were proposed by my fellow franchisees as well as myself (and were ignored or given a line about how they’d ‘look into it’), while still ripping off your existing franchises to the tune of hundreds of dollars every month with little to no real support (I once asked my Area director for sales help and she told me to wear one of those ‘sandwich boards’ and parade up and down in front of my club with it on. You know, like they wore during the depression-‘work will for 5 cents an hour’?) Gimme a BREAK!
And as more and more clubs are closing around the world, you have an extra ‘mountain to climb’ when trying to work your franchise, it’s the ‘reputation’ factor kicking in. Many would-be members see and hear about Curves’ clubs closing, and they get nervous — will your club be next? Will they be ripped off?
Doesn’t matter if you swear up and down you won’t do it, they are protected, etc. Doesn’t even matter if you stop taking prepays. The horror stories are our there, the empty clubs are still sitting there, and it affects memberships.
Women TALK (DUH! Curves should know that better than anyone!)
Bottom line is I think more and more clubs will continue to close, the economy notwithstanding, because of all the reasons we all know so well having had clubs ourselves…the lack of flexibility on Curves’ part, etc. CurvesSmart is great but it’s underpublicized and quirky and there is not nearly enough proper training. Most of the corporate people I dealt with knew very little about its operation. That’s not good.
There are so many things that could be done to improve, but CI just doesn’t want to listen, they take a defensive attitude and use threats and intimidation tactics to keep the franchises in line (how many of you were told about the $795. ‘maximum royalty fee’ invoked should you fail to submit your projection sheet on time?) There are so many examples, so many horror stories.
And bottom line? Curves gets to cover it all up, and look like they are just victims of a few disgruntled ‘sore loser’ franchisees, and say it’s the economy, because the FAILED FRANCHISEES WHO SETTLED AREN’T TALKING.
They can’t talk – it would open them up to a lawsuit (it’s right in the Mutual Release included in every franchise document-Exhibit F) and held out as a ‘reward’ if you keep your mouth shut and go away forever.
So I got involved on this website, and I wish I could say I will continue to be involved and to share my experience in hopes that it will help someone else, but I can’t. Because as much as I want to help, I will in all probability soon be under a gag clause as well. And that, as they say, is that. No matter what name I use to post with.
I hope I’ve helped someone. I pray for everyone who had the misfortune to get into this business as I did. And as more and more Curves’ close, I have a bad feeling that the stories will get more and more desperate. The few clubs remaining standing when the music stops….will they succeed by being able to become independents with their existing clientele because CI will go under? Or will they be even worse off than those who are in the process of closing (or have already closed) now? Who knows. But I think it’s a safe bet that Curves won’t be around 5 years from now….at least not in the US. Not unless they make some very severe changes in their business and their ATTITUDE. (less defensive! And less ‘know it all’!)
GOD BLESS YOU ALL.
Jane
Would someone please send me the name of the many law firm against Curvers. Is it still Zarco. Thanks and good luck
When we bought a franchise in 2003, there were a few thousand clubs and the closest club was over 5 miles away. You had to have 30,000 or more in population to constitute a “territory”. It does not take many brain cells to realize that when Curves started selling “territories” with as few as 5,000 total population, that a) such territories were not large enough to support a club or b) that existing clubs would suffer member and revenue losses. We went from a purist apporach to selling everything Curves could throw at us (even an overpriced travel service) in order to shore up corporate and club revenues. What was “contemplated by the parties” in contract terms at the time we signed our franchise agreement and what transpired thereafter, were at odds. Also, there was absolutely no quality control and some clubs were little more than slums. This caused a tarnishing of the Curves brand and I had some people tell me that Curves was the “trailer park of gyms”. As the person who sold me the franchise said, they don’t care anything about you or what your are like or what your skills are if you have the money to buy. I was four years into my franchise before I even saw an area director. By that time, we had gone from having one or two other clubs in the area to having six. My membership numbers had peaked at around 600 and, by 2006, were at 300 and falling. My experience with other owners was that some were reasonable business people, but many were naive and had no experience in business. I will never forget my training in Waco. The guy sitting next to me was a chicken farmer whose mother in law had bought him a franchise. As my salesman had said, Curves did not care if you had the money. This guy was a train wreck waiting to happen. By the time I got out of the franchise, three of the six clubs in the area had closed. The Curves disaster is down to corporate greed, lack of quality control and a very poorly run infrastructure. We had briefly looked at Ladies Workout Express and they insisted that we go to their headquarters for a meet and greet session. Lack of care in chosing franchisees impacted the brand. I have no moved back to the Southeast. My local Curves has tacky and cheap paneling that is peeling off the walls, ancient and poorly maintained equipment and (horror or horrors) plastic flowers in plastic vases. The owner is fat, complaining and has the energy of a slug. Am I a member? You answer that one.
I am in Canada, I owned two franchises. I started a new franchise 2006 population <3500, closed Aug 2010,lost savings, incurred debt, this was a retirement project!!!
Bought a resale 2006, paid too much as many of you did, not as many members as indicated,trying to sell, no one will buy a business that is at a loss each month. I have never taken any money from either club, only poured cash in!
I am planning on walking away if not sold by March 31,2011.(huge debt load owing on both clubs)
So much for retirement, my husband and I are both looking for jobs and haven't
ruled out bankrupcy.
My club failures are because the territory is too small, I trusted Curves and ASSUMED they had a formula for determining population needed for a club to be viable and profitable – you are complaining about 300 members, I have 88!!!! Please advise if there is a Canadian lawyer involved in this law suit and contact info,
Thanks to everyone for sharing, its nice to know your not the only one drawn into the web of deceit.
We bought our club in early 2004, at the peek of the high price club sales. We were never visited by an Area Director and received little if any support, or encouragement from Curves International. I feel that Curves International contributed significantly to the failure of our club because of their LACK of Advertising. I know that I and ‘many’ others paid our monthly Advertising fee, and yet we seldom if ever saw a Curves Ad while we were covered up with Weight Watchers and 24-Hour Fitness Ad’s. I now believe the push for on-line software is a grab for ‘your’ data, after they have that, they can directly market to ‘your’ customers and pay you nothing for direct sales to your customer base. THEN they won’t need any of us franchisees at all – they’ll have the customer base and we will be discarded… I would be interested in hearing the details of a class-action law suit against Curves International, especially if we can subpoena their Advertising spending Income / Expense data…
WHAT do we do? I am stalling to hear about what I should do regarding the latest email from CI as follows:
“Thank you for the email. Your information was presented to the committee. Congratulations on successful submission of the closing requirements. You are on the final requirement-the minimum monetary payment. The committee has evaluated your documents and compliance and reduced your financial obligation from the remaining terms of your franchise agreement to $2,500. This payment is due in full by December 20, 2010 and can be made via money order or cashier’s check. I have included the address to mail a payment below. If payment isn’t received by that date, the closing will be turned over to our legal department to handle and possible legal action taken. Thank you.”
.
I am reluctant to pay anything to CI -because- they are a large part of the reason we failed.
Will someone please post the names of the Law Firms that are accepting new cases against CI.
I have been told that some of the outrageous prices we re-sale buyers paid for our ‘used’ clubs can be recovered from CI, because they knew we were being substantially over charged. They knew we were buying a dream that could not possibly be accomplished.
Please tell me who / how to contact the proper attorney and also please tell me not to pay any more fees to CI.
Should I even respond to the above demanding email ???
P. S. I have sent my contact information to unhappyfranchisee@gmail.com and an waiting to be contacted – hopefully before my 12-20-2010 email deadline.
Thanks,
Paul
HI, Thelma,
I am sorry for the delay in getting back to you. I was finally able to visit with the committee and here is their offer. We will accept a down payment of $250 leaving a balance due of $3,000 for the Settlement Fee. We will put the $3,000 balance on an interest promissory note for six months with payments of $500 a month. Please respond by December 15, 2010 with your intentions regarding this offer. If there is no response the closing will be turned over to our Legal department to handle. Thank you and I look forward to hearing from you soon.
Our direction is always clear when we follow our principles.
“Dear Curves owner:
“Thank you for closing your club honorably and not joining any anti-Christian lawsuit against us. After speaking to the committee, we have decided on an equitable solution for us. Since we refuse to accept that any Curves owners have no money left and believe instead that owners are closing their clubs simply to hoard profits and cut off Curves from royalties to which it is fully entitled, we will accept a $250 down payment, leaving a balance due of $3,000 for the settlement fee.
“If funds are still a problem – again, due to your incompetence, not ours – please send us an arm and a leg as a down payment. We will collect the remaing limbs and your first-born child within six months to settle the debt.
“Please respond by Dec. 15, 2010 with your intentions regarding this offer. If there is no response the closing will be turned over to our legal department to handle. Thank you and I look forward to hearing from you soon.”
I have keyless entry and according to the email from CI dated 3/2/11 I must be “compliant” by May 31 or be sued. I am closing my club effective that date. Shame on CI for having blinders on. Keyless entry is WONDERFUL and my girls LOVE it. Did I say my girls love it???
However, I won’t be a pretzel for CI. I only had three more months before my franchise ran out, and the CI lawyers did not give me any leeway. It’s be compliant (i.e. the system goes) or we sue.
Hmmm.
Very Christian and charitable, right?
Any other keyless folks out there.
Is a class action lawsuit going on? If so I need in. Curves ruined my life. Very long story. I paid over $50,000 fro my club from a EMPLOYEE of Curves and was told that there were over 300 members but there was actually only a little over 100. Two years later I closed it because I was loosing too much money every month. I tryed to sell it for $10,000 but I was honest with people about the membership issue. My club should have NEVER been resold. I was flat up lied to. The hardships my family went through were huge. It has been 4 years since I closed it and the financial problems from the club are still present.
Please help!!
The owner of our club has been trying to sell our club for a couple of years. Her Franchise ran out and then gave her an extension in order for her to try to get it sold. A new member decided to buy it in November….Curves held it up until December then started strong arming her to do the Curves Complete..the reinvention of Curves..what a joke…$299 to non members for a 3 month program..nothing new…diet, exercise program and movitation…duh, that’s what Curves has been about since its inception…the $299 does not get you a membership, that’s extra, after the 3 months..the prospective owner knew nothing about this Curves Complete Crap. The kept calling her and telling her the club would grow with this program….it’s been advertised since Dec. and we have not gotten a call or walk in wanting to do it. She told them she would not be a participating club…she then recieved a document that required her signature, bottom line a guarantee that she will not close the club and if she does, they will come after her personal accounts. She is not buying the club, but is now stuck with a year’s lease on the property. The present owner is also upset because she now, thanks to Curves, does not have a buyer. Gary Haven gives Born Again Christians a bad name!!! I have been an owner, and got out, without too much hassle, I have been a member since 2003 and am angry that they would threaten, bully and make it so difficult for this woman to buy our Curves. I imagine it will be closed soon..Thanks Curves International for all of your help. (sarcasm)
Why does everyone always bring up Gary’s religious beliefs? Don’t you know these have nothing to do with business.
I would like to have more info regarding any class action lawsuits or attorney to contact in southern california. Please contact me through the admin. I am so sad for all of you who have suffered and are suffering, we need to come together and do what we can, its toooooo scary to be alone in this!
My wife signed up for Curves January 12, 2004, in Yuba City, CA. attended once. Ten years later I discover they have taken 115 $29 payments from her account. The contract did not comply with California’s Health Studio law (Civil Code 1812.80 and following, especially 1812.84 and 1812.85. What did the contracts Curves Int. provided to California franchisees look like. I wonder if they are all bad, or if my wife just hit a Curves with creative writing franchisees. Frank Coats