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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Another one closing....sometimes I wish all of us curves owners could communicate and agree to all close the same day at the same time! A massive closing of our doors and watch corporate fall in a instant! What a sight that would be and deserved, why shouldnt they go down with the rest of us!!!!!! There isnt a day goes by that I dont hear of more closings beyond even whats announced on this sight. Jeff, I agree with admin, I know Ron has helped others close and when I finally get there I will be giving him a call myself....please let us know how it goes for you.
Do we really need a lawyer? What if we just close and not pay them? They would have to sue ALL of us which could cost them alot of money I would imagine. Any way we can all stick together?? Lets pick a date and all just walk!!
How can we organize to get enough clubs on board to do a massive closing at the same time? I think the advice of an attorney would be good before anything, which I dont mind doing...
ADMIN DO YOU KNOW A WAY FOR ALL OF US TO CONNECT?
DOES ANYONE HAVE AN IDEA ON HOW TO ORGANIZE A LARGE GROUP, HOW TO MAKE CONTACT WITH OTHER CURVES OWNERS THAT MAY NOT KNOW ABOUT THIS SITE AND GET EVERYONE ON BOARD OUT THERE?
TO MAKE AN IMPACT WE NEED TO HAVE LARGE NUMBERS AND BE WELL ORGANIZED!
Any ideas out there or legal input??
IT WOULD BE AWESOME IF ALL CLUBS AT THE EXACT SAME TIME AROUND THE US JUST TURN OUT THE LIGHTS, CLOSE THE DOORS AND WALK OUT.
I just heard back from Curves legal. They say I will owe about 40k. Good luck with that, I don't have it!! They say try to sell it....who would buy it?? Will they come after it, sure, but will they proceed with legal stuff?? Will I have to file bankruptcy? I don't want to but I will if they sue.
January 1st sounds good to me!!!
rkgardner@dadygardner.com. Should we email him?? If I have to stay open for awhile, can we turn off OS and go back to go figure so curves won't have so much control?? I don't care if they take me out of advertising, what else could they do??
would I be able to just mail in my franchise fee? They can't say I didnt pay it!!
Faith those are good questions, can you check with attorney Ron? Im not sure its possible to stop OS...how would you change all the drafts? I think we are trapped in the OS I dont know if there is a way out.
I am wondering what Ron would say about a massive closing...I just saw another post from Donna and they are trying to get 64000 out of her, she closed. Something needs to be done on a bigger scale than just one of us at a time, there are so many of us and Im sure more than we know beyond this site, who are dealing with this nightmare, how do we find each other and come together in this battle!!
I'm not sure our contract says we have to use OS. It wasn't around when I signed contract. I could go back to go figure and do drafts. Most of my people pay by debit/credit card or month to month. I do cc's thru quick books.
I emailed Ron but have not heard back, also going to a friend (lawyer).
Also, someone said they were turned over to a collection agency. They use scare tactics, but thats all they do. Never fall for them. Has anyone actually lost a law suit to curves??
Is there any reason we can't put our email address on here. We aren't doing anything wrong are we? We are allowed to be angry and fight back!!
If you cancel OS, I you will have no access to Complete.
And Yes, my contract said I had to use OS. We don't own our franchises, we work for curves