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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View Comments
angry curves owner wrote ...One owner in my area acually commited arson and burned his club to the ground last sunday because he was so desperate. what a shame, he got caught and probly going to prison. This was on the news....
http://fdphotos.net/?c=125&a=1243
http://www.newsday.com/news/local/ny-lifire2112674946apr20,0,4313753.story?track=rss
Do you have a link to a story that says the franchisee was arrested?
Sad that somebody's dream literally has gone up in smoke.
owner from Pa,
I can not believe your comments. You are totally out of line to place blame on the owners. Certainly we must all accept some responsibility for our failure but to leave the impression that Curves International and Howie Heavin have no responsiblities in any of this is nuts to put it mildly. Reread all the posts and this time listen to what the opwners are complaining about and what caused them to close. Most of the horror stories have to deal with the population size of the territory that curves sold them. In the rural areas they sold areas with as little as 1200 people for a poulation base. Heavin knew that these would never be profitable centers and it was greed that motivated the sale. While the owners certainly have some responsiblility it was Howie who was the "expert in fitness" and he knew full well what he was doing. There is recourse for this type of behavior and of course that's the courts and many of the owners are turning to that option. Have a good day owner in Pa but I hope you will think about you rude comments about the owners who have lost everything because of the lies, dishonest, unetnical, and immoral business practices of Howie and his rat pack friends of lawyers.
Tonight I filed complaints against Curves International with the BBB, The TX State Attorney General and the TN Division of Consomer Advocates. I'm asking for my franchise and equipment purchase price and all royalties paid to them to be refunded on the basis of lack of support to the franchisees and for selling supplements that were going out of date and over selling franchises. I'm asking that all demands for money from CI cease.
Tonight I filed complaints against Curves International with the BBB, The TX State Attorney General and the TN Division of Consumer Advocates. I'm asking for my franchise and equipment purchase price and all royalties paid to them to be refunded on the basis of lack of support to the franchisees and for selling supplements that were going out of date and over selling franchises. I'm asking that all demands for money from CI cease.
Owner from PA, join us. You lost everything. WE lost everything. You blame yourself. WE blame Curves for selling far too many franchises. Contract Zarco and Einhorn law offices in Miami Beach and join the rebellion!
Ginger,
We are proud of you for taking the corecct steps against Curves International. All owners need to stand up and put a stop to this greed by howie. If we don't speak up he will turn around and sell these closed area to other unsuspecting buyers thus continuing the rip off. we all understand what a hard decission it was but you have taken the right steps and we are all proud of you.
Karin,
I have read all the past comments on closing a fitness franchise. I myself have a Curves franchise and have found Curves International of no help at all. I sent numerous emails to the resale department and got no reply.. Im at my witts end now . My family life is failing also.We been my husband and myself have put our lives into this club but it has failed miserably since this recession has started . Firstly members try to reassure you that they wont drop off but you can see the struggle in them . My members are dedicated and have been with the club for over 6 years , but now are starting to drop off .We dont have the membership to keep the club opened . Financially we just cant deal with it .
My question to you is , if i decided to close my doors what happens to the equipment, where does it go , who does it belong to . do i have to wait for another person to purchase the franchise, my landlady doesnt know where she stands can she rent the floor out again or does she have to wait for us to have dealt with all the paper work . We as young owners dont ahve the money to be wasting now especially with a new baby coming in August . We have moved from a mortgaged home to a rental in order to keep the club afloat. We now know we cant do this anymore . Im so afraid I really dont know what is going to happen to me .
My nights are restless and my days are long trying to sort out this mess . Everyday my life is full of anxiousness not knowing what is going to happen to me ! This is the type of stress I dont need ..
I have read a few articles on the closures of others club and have just felt awful for those owners who had to go through all that on their own ,now im in exactly the same boat as they were and dont know who to turn to as Curves International have been slated by almost every Franchisee. I can understand why though ! No reply to emails , Everyone is impossible to contact but im sure they wont forget to put you under the pressure when you need to pay up to get out ! I dont have the money for all this .. what am i to do nobody t turn to in anyway.. nobody to let me know that there is help at the end of all this ...
Belinda,
Email resales and CC your area director and tell them you are shutting down. Give them a specific date. Don't ask them if you can shut down. Tell them you are. Tell them you have documented emails you sent to them and that you received no reply. Tell them you are contacting your attorney. Print the letters and send them to your attorney.
After you do this, you will receive the Curves BS letter of having to pay them 10, 000 to shut down and then they try and bill you for back fees. DON'T give them any money. Get in touch with Robert Lay. Email unhappyfranchisee@gmail.com and give Sean your phone number to give to Robert. He will contact you.
My husband and I shut our Curves down Feb. 7, 2009 and filed Chapter 7 bankruptcy. If you go the bankruptcy route, Curves CANNOT force you to pay any money and they CANNOT put a judgement against you. We have been in your shoes and now we have been free and clear of CURVES for 3.5 months and it feels great to be able to get on with life.
In terms of the equipment, they will tell you to donate it to a women's prision, send it back at your expense, or try and sell it to another club. We left everything in the place we rented from. tell your landlord to do as she pleases with it.
If you ask anyone on this board, women's prisions do not want the equipment.
You are more than likely going to have to involve your attorney. As I stated in the beginning, email resales and CC your area director and tell them you are closing down. Don't ask for help cause you wont get it. They dont want to hear you dont have any money. They dont care. Clubs are closing down like wildfire. After you email resales and your area director, have your attorney draft a letter to resales and legal.
Rid yourself of this albatross as fast as you can. After you email Curves and give them an exact closing date, change all your phone numbers including your cell phone so they don't harass you. That's the last thing you need with a baby on the way. Any documents you get in the mail, ignore them. You can either join the group lawsuit or file bankruptcy. We chose bankruptcy and now are free and clear of debt and Curves.
Hope this was of help.
Belinda.
You are not alone and yes we can help you get through this. Please send an e-mail to sean kelly at unhappyfranchisee@gmail.com asking him to forward it to me with your phone number and e-mail address. I will call you asap once I recieve that.. Take a deep breath and calm down, Everything will be ok and remember it is not your fault . You were behind the 8 ball so to speak from the beginning. Untill I hear form you take care and give that new baby a big kiss for us .
We Closed our doors a couple months back...took care of all our Members (stayed open and extra Month with no Drafts) and are still working with other area Clubs on Transfers. Resale sent us the Letter with Closure instructions, wanting the $10,000, telling us what we had to do with "My Equipement theta I paid for". I ingnored the letter and they sent out another via e-mail stating if we did not fill out the closure packet, send the $10,000.00 with in 10 days, they would be forced to send to Legal Department. I responded to the e-mail "why wait 10 days" have at it...Now I have just recieved Legals demand for $29000.00 plus Ad fees, demanding equipment, all documention, so on. LOL...I have sold every piece of equipment so that we could pay off venders, rent, utilties, etc...Yes Bankruptcy Lawyer has been retained. It's a terrible thing for all the owners that are going through this as well as the fantastic folks that supported the Clubs while they where finacially sound.