In the Curves International 2010 Franchise Disclosure Document (FDD) issued March 25, 2010, 28 civil actions were disclosed in the Item 3 Litigation section.
5 are individual or group actions by Curves franchisee owners alleging such things as breach of contract, fraudulent inducement, negligent misrepresentation, etc. on the part of Curves International.
7 are lawsuits by Curves members allegedly injured on pieces of equipment or on premises.
5 are by vendors, employees and a competitor (Weight Watchers) against Curves International.
11 are lawsuits by Curves International against its franchisees, most seeking recovery of damages (non-payment of fees) resulting from their alleged “abandonment of the franchise.”
Curves International, Inc. Settlements With Franchisees Who Sued
The mandatory disclosures of litigation in the Curves FDD make public the following “confidential settlements” between Curves International, Inc. and the Curves franchisees who sued them. For more information on the allegations and court venues, consult the CURVES International 2010 Franchise Disclosure Document (FDD).
Healthy Directions Northwest, Inc. v. Curves International, Inc., George Blaine and Sandy Blaine d/b/a Curves.
“…A confidential settlement between the parties and this case was dismissed by the court on 4/9/09 in which We [Curves International] paid $5,000 in full and complete settlement of all claims.”
Linda G. Woodward, Susan Taylor Harper, Lydia S. Romero, Jeffrey P. Kalbfleisch and Stephanie Kalbfleisch v. Curves International, Inc.
“…We paid $3,500 in settlement of all claims filed by said plaintiff [Woodward], and her claims were dismissed from this lawsuit by the Court on 2/13/08. Confidential settlements have been reached between the 4 remaining plaintiffs and Us… execution of the settlement documents and dismissal motions are pending.”
Kareen Lay v. Curves International, Inc.
“On 3/20/09, an action was filed against Us by a franchisee seeking recovery of damages in an undisclosed amount for alleged breach of the franchise agreement by an alleged failure to mediate. As of the date of this Disclosure Document, this case is still pending.”
Kinnie Gibson v. Curves international, Inc.
“On March 9, 2010, an action was filed against Us by a former master franchisee in Germany… regarding the franchise relationship. As of the date of this Disclosure Document, the case is still pending.
Momentum Sales & Services, Inc., et al. v. Curves International, Inc. and Howard Gary Heavin.
This is the largest group action lawsuit by franchisees against Curves International, Inc.
17 plaintiffs’ claims were dismissed with NO payments being made by Curves International, Inc.
29 confidential cash settlements totalling $204,400 were made by Curves International, Inc. resulting in their claims being dismissed. The average settlement amount was $8,290.
As of the date of the FDD, the case is still pending with 81 plaintiff groups remaining.
| Date Settled | Plaintiffs | Amount CII Paid |
| 2/7/08 | Lori Brickel & Jill Kalatucka | 3,000 |
| 2/7/08 | Jo-Ann Garvey | 10,000 |
| 4/29/08 | Jan Santagate | 20,000 |
| 5/14/08 | Diana L. Dahlin, Peggy Matson | 20,000 |
| 1/13/08 | Catherine Maser | 20,000 |
| 3/20/08 | Angeline Bednar | 17,500 |
| 5/14/08 | Carol L. Rooney, Jaclyn A. Rooney | 7,500 |
| 5/14/08 | Jamey Kirchner | 25,000 |
| 6/11/08 | Sheree Corde Carter | 5,500 |
| 5/8/08 | Denise Alabach, Diane Schneck | 5,000 |
| 6/27/08 | Judith Haddad, Tringo, Inc. | 10,000 |
| 5/13/08 | Sandra L. David | 3,500 |
| 3/11/09 | Karen Wilson | 7,900 |
| 3/11/09 | Pauline Snowberger | 8,000 |
| 5/19/09 | Gloriously Fit Inc., Janet & Russell McTier | 1,000 |
| 6/24/09 | Akute LLC, Royce Makil, Gracy James | 6,000 |
| 6/24/09 | Doobly Ventures LLC, Doobly Ventures III LLC, Deborah B. Myers | 7,000 |
| 11/20/09 | Carol Riedel, Marie Fitness Inc. | 12,000 |
| 1/8/10 | Betty J. Boyd | 2,500 |
| 2/2/10 | Geralin Inc., Linda Coughlin, Geraldine McClary | 4,500 |
| 2/24/10 | S&P Wolf Inc., Peter & Sarah Wolf | 3,000 |
| 3/5/10* | Karen Costner Leighton | 24,000 |
| 3/5/10* | Melinda Rowe | 2,500 |
| 3/5/10* | Keeno Lampman | 5,000 |
| 3/5/10* | Fitness etc. LLC, Yvonne Samuels | 2,500 |
| 3/5/10* | RM&R Fitness Inc., Mary Stark | 2,000 |
| 3/5/10* | Elaine & Robert Taylor | 2,000 |
| 3/5/10* | Sandy Harrington | 1,500 |
| 3/12/10* | Treetoad LLC, Teresa Soderberg | 2,000 |
| TOTAL | $240,400 | |
| Average | $8,290 | |
| * Agreement date. Settlement pending. | ||
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Pat, Im worried for you...I was told that if I didnt comply with all their demands, I would be penalized, that they would start charging fines for every month you are not in compliance. I know the threats will not stop, and they are not satisfied with compliance on some things it has to be all or nothing!! Not only will they continue to ramp it up against you, they can close you down. It seems illegal for them to remvove you from the locations list when you are still paying them, but you are not the only one they are doing that to all the curves who havent fully complied!! I saw that here on the west coast and talked to a few that they did this too, they were shocked, and I was shocked that they can get away with this!!! If at all possible talk to an attorney, regarding them removing you from the locations list. I am concerned that we have only just begun to see what they are planning to do! I am watching this site to see if anyone has any help from an attorney, and I am in contact with someone who is currently battling them with an attorney and I am waiting to see what happens. I am sorry for all you are going through, keep in touch
I am glad I found this cite. We are having to close our gym. We still have 3 1/2 years on our FA. Wondering what we should do, if contacting an attorney would be best as well.
Thanks for keeping us up to date.
Hi Stacy, Sorry to hear you are in this nightmare too. From what I have been observing and hearing is if you dont have a good attorney, curves will still be coming after you for years to come to get their money. It seems like the ones who dont have attorneys are in worse shape...I know of one who is using an attorney at this time, it isnt settled yet but her situation is looking alot better then the others I have seen on this site who havent had attorneys. However Its really important to have a good attorney. Keep watching the site and updates hopefully with be coming soon. Take care
Is there a class action suit against Curves right now? 4/6/13 for abandonment of club? I want in!
I too own a curves that is barely making it(i work almost all the hrs make zero), I am not happy with the demands CI put on us for last ag meeting - required to attend and if we don't - well they treat us like children by taking away our club on the curves.com website, no leads from 1-800 # and no marketing materials they will mail out. I had a representative at the meeting and another required meeting is coming up and they want all staff there. Meaning they want you to close your club so everyone can be there. I'm assuming the same conditions apply if we don't attend. How can they take away something we pay for. my lease is up in dec and I plan on closing I will still have 2 years on my 5 year contract but I cannot keep this up, my health is failing b/c of all of this. life is too short. Any info would help so much. do i contact a lawyer or specific (franchise) lawyer? thanks for any info you can give
Jackie there is a good lawyer in America that is handling some law suit for ex owers and current owners I would suggest you get in contact with him. If you get in contact with me via the admin of this site I will give you his name and number. It seems to me that you are enduring the same bullying tactics that Curves has pulled on many of us. Don't put up with it. I had 4 years to go on my 10 year contract (yes that right we all signed 10 years contracts in Australia) don't know why the term of the contract is different. I was threatened with everything once I told them I was closing down that was nearly a year ago and haven't heard from them since. They did theaten me with an exorbadent amount of money (for future royalties) but I have just ignored them. I'll just sit and wait and see what happens from here.
I would just likee to say that I was the owner of 2 Curves Clubs. I closed one after one year. I got the fee down to $3,000 after I informed CI that I believed that they let me put my Curves in a location that did not have enough population tuo sustain it. My other Curves, I owned for 6 years, the first year was great, made money but after that it was all down hill. CI was not interested in helping the Curves franchises, there was not the support there that was needed. When I sold that club, I took a loss (after all the other financial losses over the years) so I asked CI if they could do something about the $5,000 transfer fee At first they said they would consider it but at the bitter end of it, they didn't. So I ended up that now I am still paying for a Curves business I no longer own. I may end up having to file bankruptcy to get rid of the debt. So what it basically boils down to is that pompous, arrogant big Christian (as he calls himself) Gary Heavin and CI care nothing about his franchisees, only about how he can make money for himself. One day he will answer for it.
I feel for all of you, my husband and myself went into business with my brother and his wife, all the CURVES hype sounded great back when they started. 3 yrs later, 3 locations later, 2 sold for a tenth of what we paid and 1 closed. Close to no support from CI. My husband and I lost everything, savings, our home of 15 years we built ouselves, had to move away from our neighbors whom we loved and considered very good friends, filled for bankruptcy, had to start completely over. It's been a very hard journey for us as a family and a couple. We did not have to get an attorney, but my advice is to get one and get out ASAP! Nothing but heartache and financial ruin! Very misleading and unsympathetic to the franchisees! Money is all CI cares about.
Could someone please provide me with the name of the US attorney who is representing owners who want to close?
Thanks.
JeffP:
Check out Ronald K. Gardner – Dady & Gardner, P.A. in our franchisee attorney directory
https://unhappyfranchisee.mystagingwebsite.com/resource-directory/franchise-attorney/