Franchise Pick features the sad story of the demise and closing of the Curves for Women franchise in Kailu, HI despite the franchise owner’s valiant struggle.
(Read: CURVES FOR WOMEN: Paradise Lost as Hawaiian Curves Franchise Closes)
Franchise owner Robbi Ugini closed the Curves for Women franchise location in Kailua earlier this month, leaving some 270 members in the lurch and her 5 employees suddenly jobless.
According to Honolulu Star Bulletin reporter Nina Woo, “A corporate spokeswoman for Curves did not return calls by press time…” Reporter Woo was able to get a reaction from a local business broker who has been trying to help struggling franchise owners for the past several years.
In Woo’s article, the broker reportedly categorizes the Curves franchise as a fad whose time has passed, and the Curves International franchisor as insensitive and uncaring to the plight of its failing franchise owners:
Mark Heilbron, a business broker at VR Mergers & Acquisitions, categorized Curves as a trendy kind of business.
Heilbron said he sold two Curves franchises over the last three years, but had several listed this last year that never sold.
“It’s a faddish type of business,” he said. “They made a lot of money and then when the trend went out, people who were still in them lost a lot of money.”
While buyers are more cautious in these economic times, Heilbron said they are still out there, with money they’d rather invest in a business than in the volatile stock market.
“Most people get talked into buying a franchise, and you’ve got to realize, depending on who the franchisor is, that most don’t care whether the franchisee makes it or not,” he said.
The story raises many disturbing questions.
Why was Woo allowed to sign 2-year lease for what is assumedly a 10-year franchise?
What assistance did the franchisor provide to keep her from failing?
Will CCI charge Robbi Ugini the $10,000 “failure fee” for prematurely closing her franchise?
If so, will that money be used to repay members who might be due refunds?
Is the Curves website accurate in stating “With a Curves franchise, you’ll be in business for yourself, not by yourself…”?
Read more about Curves at: FranchisePick.Com
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This is definitely a FAD. For the two and half years I have owned a Curves I have never made any money. I have a loss of over $60,000.00 I also had to take out a full business loan. The bank wont refinance or accept a short sale. If we have a sale we will have to move all our debt to credit acrds or they are going to seize the property from the new owner.
If you try to shut it down, the corporation charges you a closing fee in the ball park of $10,000.00 In addition, after you pay those fees, they charge all your back royalties and ad fees for the remainder you had left on your franchise agreement. Mister Heavin calls himself a Christiamn and says he is doing this for God. Since when did the Lord rob from the poor to relish in riches? I dont know how this man is not in jail AGAIN. After all, he is an ex con.
YES its a fad, a very good one, one that has sucked investors into giving over 100k, Does it work NO, I was a curves manager Ladies all joined because it was all new and face it every one wants to look good. When the gym opened in my town I had 750 members in the first 9 months and growing after a year ladies started to drop off and found the it got boring and really do alot. I dont know why people are so free in giving their money to an American Company, the money doest stay in Australia at all. I bought an Australian 30 minute fitness franchise and I just about closed the curves down in the same town. You cannot just close the doors you are locked in for 10 years. my advise is DONT buy an american franchise, just as an interst have a look at the franchise i bought ozi fit ladies love it !!!!! Please some one make some noise about this curves are opening here in town of 5000 people, they are getting gready
The concept is good but the greed of the coporate office took over and ruined the company, It went from a good business to scamming their franchisees out of all their money. They did it to themselves over selling territories so you could not possibly sucseed why because of greed. Did howard really need more than one jet. He cooked his own goose and now will have to anwser in court
AUSTRALIAN CURVES OWNERS - speak up has any one had to close the doors ? its is a trend, you will start to feel the hard times if not now it will happen
Curves corp are allowing very smalll town to open curves when its in the franchise doc that they wont open in a town under 25k, whats happened here ??how has this been allowed to happen?? Take it to the papers people have to be told whats happening.
THERE ARE SOME HERE ON THIS SITE THAT DON’T BELIEVE EVERYTHING IS THAT BAD WITH CURVES. WELL FOLKS IT IS AND FOR THOSE WHO WOULD QUESTION THAT WHY DON’T YOU PROVE IT TO YOUR SELF BY DOING THE RESEARCH ON THE LAWSUIT. HERE IS WHO YOU NEED TO CONTACT.
FEDERAL COURT
U.S. CLERK OFFICE
800 FRANKLIN ROOM 800
WACO TX. 76701
254-750-1501
CASE OR DOC # 07′ CV’ 048
YOU CAN CALL AND REQUEST ALL DOCUMENTS REGARDING THE CASE AND PROVE TO YOUR SELF THAT HEAVIN IS NOT TELLING THE TRUTH TO THE CURVES OWNERS. SEE YOU IN COURT REAL SOON HEAVIN
I closed three Curves in the Cincinnati area after the Corporation put the locations so close together you couldn't get enough business. Gary Heavin should be in jail (again) along with his sales people. He has ruined many lives (you would think he would feel badly for bankrupting someone since he was there himself at one time) but I am just glad to be done with the Religious Right bullshit business called Curves.
Very interesting that the self proclaimed master mind of Curves, Gary Findley, has been forced to abandon the Findley Group in Waco, and is now just a salesperson for Snap Fitness in Minnesota.
How was he "forced to abandon the Findley Group"?
Findley was forced to abandon the Findley Group because of all the people who had become disgruntled at how he handled the franchises they were representing, most notably, Young Chefs Academy and Facelogic, Dogtopia, Showcolate, and Romp n Roll. YCA and Showcolate are not offered on their web site any longer. Findley was simply getting in too much hot water with people by touting his expertise from Curves and not being able to perform.
There is virtualy nobody left at the Findley Group;
Gary Findley is gone
Don Fortenberry has left
Keith Watts has left
Wendy Law is gone
The office on New Road is up for sales.
It was easier for Gary to simply quietly leave town and get a sales job with Snap Fitness in MN.
This question is for Karin Martin from Cincinnati. What happened when you shut your clubs down? Were you charged $10,000 in addition to all back advertising and franchise fees? We want to shut our Curves down but are being told we are responsible for a penalty fee for breaking the agreement ($10,000) and will also have to pay in addition all back ad fees and franchise fees for the remaining time on the agreement.