CURVES Franchise Lawsuit Settlements
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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WHAT DO YOU THINK? SHARE A COMMENT BELOW.
Faith thanks I will call you!!!
Don’t stop communications now….There are still owners out there who need your support..What do ya all think about the new changes coming??
MY QUESTION IS DOES IT MAKE ANY REAL DIFFERENCE IF YOU CLOSE BY FOLLOWING CURVES PROCEDURES OR JUST SHUT YOUR DOORS??
I have over two years left on my contract….will it make any significant difference if I drag out closing by jumping through curves hoops vs just closing it down??
PLEASE SHARE YOUR EXPERIENCE WITH WHICH WAY YOU CLOSED, WHY YOU CLOSED THE WAY YOU CLOSED AND WHAT HAS HAPPENED…..
THANK YOU, WE NEED TO HEAR FROM YOU!
Hope, no it doesn’t make one iota of difference if you close down their way or just shut your doors they will still haunt you for the money. I closed down the “CI” way and it didn’t make any difference. I closed a year ago 4 years shy of my 10 year agreement. I have not heard from CI for over 12 months and have not paid them a cent and will not be paying them anything. They made my life hell and nearly left me bankrupt. Do not let them bully you into anything.
Thank you aussie Z for sharing your experience!! What a nightmare…..
My heart aches for you all!! My club is closing tomorrow and curves is holding my wellness!!! They promised to send September’s out 2 weeks ago…never did!!! Give me a good attorney!! I have full filled my contract!!!
I
Amy, Yes, they will withhold Wellness until they are sure you have complied with all closing requests. Just mention you are seeking legal counsel and that will speed things up on what is owed you. There is a wonderful life waiting for you, now.
Welcome back everyone….I got my settlement amount but said “sorry I don’t have it” so will see what happens and will let everyone know. Did everyone see the required changes? I can’t believe what they think owners can come up with in regards to money. Of course they will finance it. Ha Ha, more money for them!! I think they should let everyone out who wants out and resell those areas to people who want to buy. They would make probably make more money and leave us alone.
Oh, by the way, someone actually read their contract and it does NOT say we have to donate or scrap the equipment. Lets all actually read it, maybe there are other loop holes we don’t know about.
RE “Did everyone see the required changes? I can’t believe what they think owners can come up with in regards to money. Of course they will finance it.”
Can someone post the required changes and the costs?
Or, better yet, email them to me anonymously at UnhappyFranchisee[at]gmail.com?
Thanks.
ADMIN
Hi to all. we also need help and advice. Wew just recently closed our club in Ottawa Canada and we complied with all CI requests except we donated our equipment to an all girls Ringette Association team, but CI said it was non compliant to their closing agreement. They are also “demanding” that we comply and submit almost $20,000 in owed fees for royalites and advertising which is maximums. we were always paying miminum dur to our club size for the past 8 1/2 years but now they want maximum for the remaining 16 months of our renewed 5 years agreement. they are also threatening legal costs etc. does anyone have any advice. we have good credit ratings and don’t want to cause ourselves any further stress
Hi Ron and Karen,
I am so sorry to hear your story….I have heard that some have gotten an attorney to negotiate with curves regarding the charges, the attorney has stated that charging the highest royalty fee when that isnt what you were paying is an unfair practice…
I wish you the best, let us know
Hi Ron and Karen…I also heard that the US contract does not say you have to turn in or scrap equipment. Read yours carefully. That is just what they want and are saying its a new requirement…not if its not in your contract!!!!!
Have they actually proceeded with trying to collect money, or are these just request for money letters??
Hi Hope… did you get my email??
Admin.. did you get the information you requested??
Thanks for the replies. They have only sent a letter requesting the money within 10 days. they are acting like the school yard bully. Do they think people have $20.000 sittting in a bank account. from what we have read in other posts, they go into a multitude of requests with declining amounts until you pay up and then eventually go back to the full amount with added legal costs. We are wondering if its best to negotiate or just let them vent until they give up? We were going to get a lawyer to lauch a suit of our own for Franchise abandonment and request all of our money back in advertising fees. We can count on one hand how many Curves ads we have seen on T.V. Also we were removed from the Curves database for almost 2 years since we did not convert our club to Curves Complete. we didn’t have the funds to purchase all the added equipment and our ladies could not see the value and could not afford the added membership fees that went with it. We are getting frustrated and don’t know what else to do. Any help would be appreciated.
I and others have gotten that same letter…I have not received another letter yet but have decided to do nothing until I feel I have to….Its up to you but remember, until they have a court decision, it’s just a request. Even collection agencies are just that “bullies”. They can make your life miserable, just hang up or don’t answer. Read your contract carefully!! Is requiring curves smart or complete in it. Does it say you must comply or be removed from database?
Just because they say it doesn’t mean its true…….
I am still willing to bring attention to the media if their is enough support from other owners.. Hang in there!!!!
“Admin.. did you get the information you requested??”
No, not yet.
I have had problems for over a year and a half! Curves is worse than a playground bully. I did have to get an attorney, I’m interested in either class action…. Or going after them for what I spent whatever will yield more… Any suggestions!
Thx
We have lost money since we opened our doors two years ago January 1st. I attempted to explain the hardship buying their “financed” equipment would bring us but they were less than sympathetic to say the least, just said to grow our membership (right). They want 28,600 dollars to get our of our 5 year misfortune. We love Curves but hate losing money every month. Does anyone have a recommendation for a good attorney? or is it even worth it to try?
Has anyone tried to market their club? If so, how did you do that and would a person have to upgrade all equipment prior to Curves allowing a deal to pass through?
I would suggest talking to attorney Ron Gardner. He represented the shortlived Curves franchisee association and many many franchisees. I think he can tell you what to do and what not to do. He knows these so-and-sos as well as anyone.
Here’s his contact info:
http://www.unhappyfranchisee.com/resource-directory/franchise-attorney/ron-gardner/
I have been reading and searching how to close my club for almost a month now. I have 3 years left on my contract. I am absolutely disgusted as to how CI treats their franchisees. I can’t afford to file bankruptcy if CI comes after me for thousands of dollars and I refuse to go farther into debt with all the upcoming changes. To be told to either comply or lose all leads, website acknowledgment, or to even withhold future information on promotions until they decide when to bring you back into the loop is absurd. How can that not be a breech of the contract. It did not state I must purchase new equipment for $16k when they decide to throw out the current equipment. I’m just seriously frustrated as I have drained all funds to make this business work, including never receiving a pay check and for what, another $3600 debt at the first of the year on “their” payment plan! I don’t think so. Is there a current group lawsuit or all individual cases? Any advice would be great, many sleepless nights trying to figure out what to do.
I too have decided to close my club, Dec 31. I do not have the required 550$ for the best buy tv, sound bar
& installation, nor the 550$ for the new mats & the 500$ for products (basic package) that we must sale. All of this must be done by 12/31/13, we must commit to the demands by 12/31/13, and of course the billing begins later. How very nice of them…my members do not buy the products I have. I am a little worried about them coming after me for the money like the horror stories I read here but I will get a lawyer if needed. The final decision came when we were told that we would have to buy new equipment at the tune of 17,000$. Who would go in debt for that.?
Jackie, I’m assuming you are still under a contract? Did you just email CI and tell them your closing? I refuse to sign up for all the upcoming requirements, so I’m assuming my club will be removed from the website an all other information. Does CI give you a closing date or can I just say I’m done on this date and take my chances as to how much they come after for?
I closed and followed the ci closing instructions, they gave me a settlement amount which I will not pay mostly because I can’t. I am waiting to see how they proceed. Once you hire an attorney…game on!!! They have to respond with legal action. Bill collectors and harrassment is just that.
Does our contract say they can leave us out if we don’t comply with new equip, apparel, tv’s etc???
Admin…or Ron is there a way we can get media attention?? I still think we need median attention…. These guys are idiots and we need to let the public know whats going on..
Well I have contacted an attorney, very helpful and informative! Closing early I’d be facing roughly 28k in fees from CI, maybe get it down to 10 k and between what I still owe on the business and attorney fees. I’m looking at approximately 18k. $18,000 that I do not have! I can’t believe what a nightmare this is becoming!
We closed our club at the very beginning of May and are so happy that we did! What a nightmare this all sounds like with all the new requirements! We contacted Mr. Gardner and he was very nice and helpful but unfortunately we could not afford his services (we couldn’t afford anything) and so have had to file bankruptcy. We are still trying to get the money to finish the bankruptcy. This appears to be the only way out for us which is very unfortunate. It’s still much better than dealing with all the demands of CI and losing money and working all hours of the day and night! I would tend to agree that some media attention would be a great thing but also don’t know how to go about it! There needs to be a suit that would include everyone that they have ruined financially and restitution for all the money that has been lost.
i’am a curves owner .and have had nothing but problems and want something done. i asked them for help so many times.But all they do is send me thing that ont help e or my gym.it only helps them i have had so many 30 days free i dont know what to do. so now am taking action and taking it to the public.so others wont go throw what not only myself but so many others if you need help or want to help me and other curves owners and ladys to come email me at [redacted] im asking for help and giving a helpinh hand together we can stop this is hurting people like yourself. Mentally ,Physically ,And Financially when it was ment to be . Motivating empowering. A way to help others
so if you need help or want to help or know someone that can please contact me
Editors note: We don’t allow posting of contact information in the comments. Whenever possible, please conduct conversations here where everyone can benefit. However, if two parties would like to exchange contact info, each should send an email to me at UnhappyFranchisee[at]gmail.com. Thanks. ADMIN
They always come at you with that 20k figure. Remember, until they win a judgement against you, its just a threat. I will go to bankruptcy if I have to but if they don’t follow thru why pay an attorney or file bankruptcy until you have to. Dawn, Tracy, contact me if you need to talk [redacted]
Editors note: We don’t allow posting of contact information in the comments. If two parties would like to exchange contact info, each should send an email to me at UnhappyFranchisee[at]gmail.com. Thanks. ADMIN
Admin….feel free to give my email to anyone who needs to talk.
Hope…hows it going?
I’m willing to go to Waco and picket!! At lease maybe we would get media attention.
I’m closing my club early next year. Has anyone recently (last 6 months) closed? I’d like to know if CI still negotiates the fees to break the contract. I am not looking to get out of the agreement free and clear since I am closing before my signed contract and am willing to uphold my end of a legal document. However, I would like to negotiate considering I have never paid over the minimum royalty fee for the 30+ months I have been open. I bought a failing club and have never turned a profit. I’m going to seek legal counsel as I want to make sure that once I’m done with CI that I will never be bothered again. Any advice is greatly appreciated.
I am glad I found this website. My thoughts exactly on what is going on with everyone else. I would be interested in a class action suit,. Will be reading my contract again. Don’t see how they can keep “requiring” us to purchase things especially that don’t bring members in, like apparel cases, and apparel and TV’s and the list goes on.
There definitely needs to be some sort of action taken against CI. With all the complaints and the track record of closing clubs, it still baffles me that a current class action suit isn’t being filed against them. That their legal fees haven’t been removed all together. I read that since NCP took over last August nearly 700 more clubs closed down and I would bet anything that number will be close again this upcoming year with all the new requirements and unhappy owners. CI is reportedly down to approximately 2300 clubs in the US. That’s terrible and in my opinion, a very strong statement as to how this company is failing. My assumption is if they pursue a settlement amount out of me, they a re going to be out of business completely here before to long! Then what happens to all the collections they have sitting out there on previous owners? Maybe I’m wrong, but the numbers are enough of a significance to show how this company is going to be out of business. Just a matter of time!
Has anyone successfully closed before their contract date without having to pay them any money?
I have a question for Ron and Karen: When you were removed from the “database” what happens? What would prevent someone from moving their equipment to a warehouse space for minimum rent and just waiting out the contract?
Maureen,
The contract says if you change the physical location it must meet the approval of Curves before moving… I thought of doing the same thing.
Traci i am in the same position as you and i am completely lost on what to do. I can not afford to pay the fees to curves if i close down, and i cannot afford to upgrade either. How are you getting out of this? Are you closing on Dec 31st? Should I hire/speak to an attorney? Any help is appreciated, thank you.
Our contract is up end of March. Not renewing. They can’t require us to invest if we are getting out so soon, can they?
I am sorry to hear of all your troubles. I am very frustrated myself with all the changes CI is doing. I am not able to pay for those equipments too and I have deceided to close my club by Dec 31. I have to wait and see when the settlement comes in the mail. what should i do ? Any advice! Because i cannot pay . I am praying for you all.
Hi again just wanted to let you know it I close my club dec 31 the settlement fee according to my calculation would be 45k that’s a lot of money. What a fool I was to get into this mess. During the two years of ownership I have lost a lot of money already no paycheck lots of working hours and for what. CI has not helped me to sell the club at all I have been trying for at least 8 months to get rid of it. In my area where I have club most of the people are unemployed. How can they pay for the increased membership fee. All the fancy equipments and the tv and closing do not bring any me members in. Curves complete did not increase the membership and I believe the new change won’t do it either. Sorry to say. we the owners who are suffering not CI. They do not care if we are making money all they are covered it how to increase they banking account. Sorry I had to vent a little. God bless you all.
I have been talking with attorneys and reading through my contract. When you close CI wants to charge you $795 a month for remaining months of contract, that is maximum royalty fees. My club has never paid more than the minimum amount. So when I notify them I’m closing, I will wait to see what they come with for a settlement. I’m not backing down, I will hire a lawyer if need be, but facts are they do not recieve that money from my club so I don’t think it’s fair they try and charge me that. I will keep everyone posted. Waiting to attend a meeting this week and then my notification to CI will be given. I’m very curious to see the attitude of owners at this upcoming ad meeting.
Hello everyone, I just spoke with Kelly Spann at the Law Office of Jonathan
E. Fortman about our potential claims as Curves franchisees. They want to
talk to as many people as possible. Contingency/no cost. Please go to
http://fortmanlaw.com/curves-request-for-information/ and give them your
story!
Good luck to everyone who is closing tomorrow or soon. I closed the end of Oct and rec’d the letter. Then a lower offer, but I don’t even have that so waiting to see whats next. I am no longer able to get on curves community so something is going on!!
Good luck and hang in there!!!
Today my doors are closed!! Goodbye Curves and 2013!!!! Now I wait and see what is next….I am wishing you all a New Year of peace, freedom, restored health and prosperity!!
Faith you need to email me back! :)
Hope, you must feel so relieved. I close soon and can’t wait. I contacted Gardner and I guess they are getting one to two calls a day from closing clubs. It will be interesting to see how this all goes down…
I, too, plan to close this year, with 8-11 months remaining on my contract now. Hope, I would love to contact you personally or have you contact me at Curves .
Chris, you can contact admin on this site and he will give you my email address, its the only way we can get connected, cant post personal info. Feel free to contact me.
Hi everyone!
I asked Curves in August if there was anything I should know about Curves before I resign my lease with my landlord. I was told all is well with Curves and to go forward with signing my lease.
I signed the new lease and now I regret it! I have no money! My contract with Curves ended in December and I am not resigning! My fear is that I have a 3 year lease and can not get out of it! Does anyone have this same issue?
Thanks,
Trish
Hi Trish, I had a year left on my lease. I settled with my landlord by forfeiting my deposit which was equal to one month rent and then paying 2 months, so a total of 3 months….Is there any way your landlord would be willing to let you sub lease the space or see if they can get it rented while you try and hang on for awhile? Have you tried talking to an attorney to see if there is a way out? I am so sorry you are stuck with 3 years on your lease, I hope you can find a way out.