CURVES: Negotiating Curves Closing Fees

322 thoughts on “CURVES: Negotiating Curves Closing Fees”

• You can email me at UnhappyFranchisee[at]gmail.com

  Thanks,

  ADMIN

• We decided to close our club, but don’t have any idea of how to do it.
  Does anyone knows how is the new management dealing with closing and with the future royalty fees?
  My agreement will expire in 2 years and as everyone here we are closing because we dont have money, so what should I do?

  Do I have to let them know beforre closing? Do they hold the wellness payment?

  Please Help!

• Hi,
  The curves in my town is closing before her 3 year agreement is up. I know the owner and she thinks I can take over the location and get rid of all the curves equipment and put in my own cardio equipments and strength training machines and should still be able to retain members and also increase them.

  I’m seriously considering it but still not sure if this will work. My town has a anytime fitness center near a grocery store already and so that will be a big competition.

  I’m not sure if this will work, what do you former curves owner think?

  thanks.

• We are getting ready to close at the end of the week. Curves is saying now you can’t donate equipment that you can only sell to another Curves or donate to another Curves or scrap it. Has anyone scrapped their machines? I’m just trying to figure out a way to say I scrapped them and keep them. You would think you could donate to a retirement home or senior center. This makes no sense. I will be so Thankful to be done with Curves!!!!! Worst decision we have ever made.

• 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!
  Dee Dee Cooke
  12 year owner, Ellisville, MO

• Could someone give me some info. or help. CI has a collection agency calling trying to get me to pay $21,000 to CI. They agreed to drop it to $7,500. Should I pay it, or refuse?

• Could someone give me some info. or help. CI has a collection agency calling trying to get me to pay $21,000 to CI. They agreed to drop it to $7,500. Should I pay it, or refuse?

• Shanna, I think I have been given your phone number and I will call you. I wish the owners who posted earlier with questions about closing had updated us on what happened….makes me feel like no one can discuss their deal with Curves after they make it. Do they sign some kind of agreement??? I am closed as of yesterday and don’t know what is in store for me just yet.

• Hi Shanna and Karen, my last day was yesterday also….and now I am waiting to see what will be next. I have had contact with a few owners who have closed…those who didnt use an attorney, closed and were eventually offered a lower amount like you Shanna, one isnt paying and is waiting to see what will happen, one paid. Another went through an attorney and ended up paying curves even with the attorney, however if they use an attorney they cant discuss anything about it, so they dont post, in fact I think anyone who has settled cant discuss anything and probably sign papers. There is an attorney who posted on this site who is looking at the curves complaints, and wants owners to get in contact with him, thinking maybe to see if a class action is possible…? With the new changes at curves I think we will be seeing many more clubs close, its overwhelming for owners who are already under water. In the meanwhile I am waiting to see what is next and watching the posts here also. I wish you the best and that 2014 will be a better year!

• I am looking at buyng a well established Curves Franchise but after reading these post I have concerns. The Curves has been around for 10 years but losing memebrs due to the current ownwers losing interest and looking to retire. The price is low but current memebership basically covers all cost. I have worked there part time for a year and really believe in the program and how it helps people lose weight. What advice can anyone give me? Thanks!

• Hi Linda, I bought a curves that had been in business for 10 yrs and it was the worst decision of my life. You need to make sure you have a lot of money to help with all the business expenses and to meet new franchise requirements each year. My club was basically paying for its rent, payroll, utilities….but it wasnt enough, and I ended up losing a lot of money!! You also need to see how many people are regularly working out….there were many members being drafted but werent working out and they eventually quit or didnt renew or I had to stop their drafts because they had been on the books way beyond what was morally right. I didnt realize until I bought it that there were members being drafted for years and they hadnt even worked out for 2 yrs! It was wrong, so I dropped them which resulted in my losing a chunk of monthly income right off the bat. Your only as strong as your base of members who are really working out. Insurance aka wellness members only bring in money if they work out…they have to work out 8 times a month to bring in the top amount paid by the insurance company which even then is still less than what other members pay. You need a strong monthly draft base of dedicated members and money in the bank for the extra expenses that the franchise demands. My advice, dont buy!!!

• Linda, I absolutely agree with Hope. You need a MINIMUM membership of 250 to stay alive and at least $50,000 in the bank that you can afford to lose over the next five years. Many owners have lost a great deal more. I honestly doubt your owners are selling and membership is declining for the reasons you have listed. You need to treat this as a smart business decision and NOT an emotional one. Do your due diligence in investigating all aspects of this club before you decide. Part time employment does not reveal the hard work and dedication this takes. It is a 24/7 job with low if any return.
  Good Luck!

• I am also now looking to close our club. We have been trying to sell/ give it away for over a year now with no success. I have spoken with our area manager countless times about potentially closing but instead of offering help she keeps telling me about the money I would have to pay if we closed. I honestly don’t know what to do. Does anyone know if it helps to be a limited liability company when closing? We have a huge company overdraft and owe Curves thousands of unpaid dues but we have no money to pay. Any advice would be much appreciated.

• Dear almost bankrupt, there is an attorney wanting to hear from owners… you need legal advice, please see contact info…….

  Jane says:
  January 19, 2014 at 12:17 pm
  I am sorry about all of your circumstances with Curves. There is a law firm, the Law Office of Jonathan E. Fortman, LLC, which is preparing/reviewing a class-action case against Curves on a CONTINGENCY basis. They were successful at winning against Contours Express after the company was purchased by a private equity firm. You potentially could collect 3x the amount of monies afforded to franchise & advertising royalties, equipment, and build-out expenses.

  I realize many of you may have signed a mutual release with the settlement you arrived at with Curves, however, this would not exclude you from participating, and you may remain anonymous as a plaintiff, if a case goes forward. I believe it would be well worth investing some time to call Kelly at The Fortman Law Office regarding your situation. Her contact information is listed below.

  From their website:
  If you wish to join the potential lawsuit, please fill out and return
  the questionnaire along with the following:

  *your franchise agreement(s)
  *FDD/Franchise Disclosure Document
  *any written correspondence, letters, emails, any notes, advertising, etc.
  *anything you deem important to your case

  *AND the attached questionnaire (Be as detailed as possible!)

  The link to our Curves blog and questionnaire is
  http://fortmanlaw.com/curves-request-for-information/

  The sooner you can get the documents to us the better. You may email,
  fax, or mail them to us. We also have access to Dropbox if you would
  like to upload your files there.

  Our contact information is at the very bottom of this email. Should
  you have any questions or concerns please do not hesitate to contact
  us. Thank you and we look forward to working with you!

  Our website is http://www.fortmanlaw.com

  We are also on Facebook & Linkedin!

  Paralegal
  Law Office of Jonathan E. Fortman, LLC
  250 Saint Catherine Street
  Florissant, MO 63031
  (314)522-2312 x 103
  (314)524-1519 Fax
  kms@fortmanlaw.com

• Has anyone had to deal with demand to pay “future” royalties to CI after having to close? If so, what was outcome and any suggestions on fighting this or negotiating the amount?? Help! Thx.

• Has anyone had to deal with demand to pay “future” royalties to CI after having to close? If so, what was outcome and any suggestions on fighting this or negotiating the amount?? Thx for any help and input from anyone who has closed and had to deal with this!

• Alan, when I had to close I still had 2 and half yrs left on my contract. I was told I could face paying 28,000 but if I followed their closing requirements it would be possibly lower….so I followed their closing procedure and waited to see what would happen….they came back with a final offer of 6000 but with terms that I had to pay it then or face it going back to 28,000. I borrowed the 6000 to get them off my back and they released me. I know others who didnt pay anything because they didnt have it or refused to and are getting continued threats from them. Some are fighting with attorneys…..if you read through the posts there is an attorney who is taking on a group lawsuit, Fortman….you could contact them also. Good luck!

• Hope – thx for the input. How’d you get it down to $6k from $28k?? If offered a settlement amt close to $5 or $6k I might take it. Anyone close 2 or more years ago? What was outcome with CI and pursuing the future fees? I closed about a year ago and now have Cedar Financial, CA hounding for a reduced 1/3 settlement amt – legalized extortion! Cant afford the $10k of the original $30k amt but also can’t afford the threat of the $30 k plus their attorneys fees. This is jacked! I really wish I was parishioner were the Heavins’ go to worship and hold themselves out to be such devout Christians. HA! Someday they will get their reckoning! pls lmk if you’ve had to deal with Cedar Fin, Ca and the outcome? Thx

• What a nightmare Alan! It looks like you are in a different situation than me…from what I know is, right from the get go, if you let curves know you need to close, and then follow their closing procedures then they will offer the 6000 to you and if you pay it then you are released from all fees etc…however if you close on your own and dont follow their process you are hit with all the max fees and there isnt any negotiating! I just closed some months ago and still had 2 and half years left, however I did comply with them during the closing. I know there are other stories of owners like you who closed without following curves closing process and were hit with all the max fees and then eventually collections started coming after them…..they are in the same nightmare as you…they have no money and they havent paid but are being harrassed by collections and they dont know what to do! I am so sorry I cant be more help, I hope someone out there who is in your same situation will have some advice!! I am not sure but I think the attorney Fortman is moving forward with a group on a contingency basis.

• Hello, Hope & Alan,

  My firm, Bridge Management Consulting, helps small business owners who are struggling with debt resulting from a failing or closed business, including future franchise fees/royalties.

  We’ve helped with unearned franchise fees, terminating franchise agreements, and non-compete clauses. We specialize in SBA loans and the Offer in Compromise procedure, and we help settle vendor debt, landlord/lease problems and other financial obligations resulting from a failed business.

  We’ve handled several franchisees who need to get out of their particular franchise hell, and we’ve successfully fought back on behalf of our clients. Don’t give into them!

  Feel free to contact:

  Ryan Lineham, Director of Client Services
  401-390-3800
  ryan@bridgemgt.com

  We offer free consultations to all franchisees on all of these issues. We’d love to speak with you.

  Nancy

• Hope – yes I did comply. Let CI know was prob going to have to close several months in advance and they threatened the future royalties then and said we had to stay open period no matter what. So we closed, sent them an email saying we was and got an email back from CI about closing procedures (ie, taking down Curves signage and sending them pictures to prove signs were down, donated to equipment to a local tax-exempt sports organization for families. We complied. And never heard from CI for 9 mths well actually a collection agency saying Curves had put a debt of $33k with them that I owe. F#*king Bastards!

• Nancy are you familiar with Curves and these demands for future (unearned) royalties they claim we owe? I don’t understand that at all. I’m no attorney obviously, but I did have contracts 101 and thought you had to an offer and consideration to have a binding contract? That’s simple to see while the franchise is operating using the Curves name and paying royalty for that. But how is that legal and binding after the business has to close? Where’s the offer and consideration part?

• Hello, Alan,

  I’m not aware of Curves’ demands for future royalties, specifically, but I can tell you that every single franchisee that we’ve helped, there’s been a demand for future royalties. It’s a standard contract agreement provision.

  And, we’ve successfully negotiated reasonable and appropriate settlements for our clients. Franchisors can – and do – bully individual franchisees. They’re more reasonable when they encounter lawyers or business consultants (that’s us). They know that WE KNOW that they back down when their scare tactics fail against us.

• Thx Nancy for input. They (Curves) says by their estimate (which is maximum monthly amt – which based on income was barely ever 1/3 that) amt owed is $33k but Cedar Financial (a debt collector Curves placed it with) has told me they have the latitude to settle for $9500. I think they are both fried in the head. But, based on that and previous experience you/firm have, what range do you anticipate they may take (little as possible – cause I have no money left) and your fees total about? Thx.

• Hi, Alan,

  The amount that Curves/Cedar Financial will accept as settlement amount depends on several factors, including how your PFS look. Many people assume that a creditor will accept a certain percentage; this is simply untrue.

  I am unable to give you an honest and accurate range here, only because I don’t know what your PFS looks like.

  Feel free to contact:

  Ryan Lineham, Director of Client Services
  401-390-3800
  ryan@bridgemgt.com

• So, are there any previous Curves Franchise owners out there who have had to close their club over a year or two ago to have had time for the fallout of Curves future royalty demands? I’d like your input on your individual experience and the ultimate outcome nd if you beat this (without filing bankruptcy) pls help. Previous Curves owner who wishes he never heard of them!

• My 74 year old mom owned a Curves that she closed 2 years ago. She put all her equipment in storage. ( like 30 machines). I am trying to get rid of the $300 a month storage bill. Any advice on selling this equipment? Mom says she has settled with Curves and has no obligations to them.

  Any and all advice will be appreciated.

  Gary: Sorry to hear your Mom’s Curves closed.

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  Thanks,

  ADMIN

• Dear Hope and Alan, I closed my club in australia 2 years ago. I had 4 years to go of a 10 year agreement. With instructions on how to close my club and working closely with CI it went very smoothly. Then I got a letter saying I owed them $64,000 I told them not so politely that I didn’t have that kind of money. Then it went down to $17,000 within a few days. I again told them I did not have that kind of money now it has gone back up to $64,000. I have not heard from them for about 18 months. When I closed I only had 74 members couldn’t pay rent or utilities but did you think they cared. They based the $64,000 on the maximum royalties they are allowed to charge even though for the 6 years I had my club I never paid anywhere near that amount. They are just greedy greedy bullies.

• I tried to close my Curves 2 or so months ago but became so overwhelmed with what CL told me they would be charging me, that I withdrew my closing. Now I am faced with no alternative but to close unannounced to Curves. I can’t pay my rent, utilities, etc. My membership has dropped due the economy. I had a member cancel today because one of her dogs died and she is having to dedicate her spare time to her depressed other dog. I don’t know what else to do but to close. I am figuring my refunds to members tonight and messaging my landlord tomorrow that I will be out by Monday. Any suggestions/ Has anyone used the Fortman attorney to help them?

• Hi Everyone, I have so many mixed feelings about the breakdown I had yesterday at my Club. I can’t express the tremendous fear I have everyday over being a Curves Franchisee. I have horrible insomnia and am constantly trying to “figure something out” only to no avail. I feel like I am sinking in quicksand and that someone is choking me. I try to put on a front and a smiling face to my members because this in NOT their problem. I feel comfort and a little reassured reading the other posts because I can tell that most of the people on here care/ cared deeply for their members but I realized that as much as I care about them,I would never wish the type of poverty I have experienced being a Curves on anybody! I LOVE health, fitness, and diet I love to inspire and motivate people to become their best, and it is ironic because if I was living my best life it would not look like this. struggling to provide basic necessities for your family is very difficult. anyway thank you for allowing me to vent.

• Lucy, I feel the same as you. I bought my club 2&1/2 years ago and am painfully waiting for my lease to be up(another 7 months!) @ $3040.00 per month. I say painful because there have only been 5 of the last 29 months that I haven’t had to put our personal funds into the club to cover rent and/or payroll or required changes. I have kept up with all of the changes, out of my own pocket, and still I can’t cover all the expenses every month. Every dollar that comes in, goes to everyone else, and all of those fees! There is a fee for everything a human can think of! I bought myself a 24/7 job that not only doesn’t pay me anything, it costs me constantly. I feel so guilty for taking so much money from my family to keep such a loser going. I love my members and don’t know what they will do without Curves. Our club is busy and happy and I’m sure they all think I make a fortune. I would think that if I walked in and saw the activity. We currently have 282 members, still no money. I don’t know what to do, it is so difficult to sell. Who wants to buy a business that shows consistent losses? I guess I bought it thinking I could make a difference, but I would feel guilty selling it to another sucker. I don’t know what to do. It is for sale, but I may also have to close in 2015.

• I’ve been an owner for 2 yrs now this month. I bought the business knowing it was broken but was assured it was fixable because the owner had been out w/personal issues and had to rely on the manager for the last couple yrs., and she showed that a large amount of members were on the role, but neglected to say that about 1/3 of them were not actively working out and just paying dues. So anyway present day, those have cancelled or I wrote them off because it was 2 yrs or more they had been in, I have one sign up for 2 cancels in a town of 8,050 people and 3 any time gyms and one therapy gym in the area. what minor profit I may have one month from a 6 month period takes it back because of utilities or some fee or whatever else has gone wrong that month. so no income from me to my home and at times my husband is very stressed about it, with good reason. I’m considering closing before I lose everything in the bank, but don’t know how to go about it. I am LLC, so I don’t know if that makes a difference in anyway. Any suggestions on what my first steps should be. I’ve had it registered as “For Sale” on the CI website for probably 6 months and of course, no traffic on that. Suggestions welcome!

• I closed my Curves Franchise in 2007. Hired an attorney the same day and he took care of the legal issues i was facing. I too was asked to pay a lump sum of money of which i did not have to do. There are many loop holes in their contracts and i suggest each one of you hire an attorney to handle it for you. I was told by my attorney that after five years of being closed and free of any legal matters that i was free to do what i wish with equipment. Even though it has been past the 5 year mark i am still storing my equipment. The worst decesion i ever made was buying into this mess. I still havnt recovered from it.

• Alan are you still out there? I’m wondering how things are going with CI. Have you closed yet? I would love to hear how things are going. My lease will be up in April, and I will be closing soon after that.
  What about you Pamela? Have you started closing procedures or do you plan to?
  I also have had my club for sale for 6 months…no response. I will be closing with 2 years left on my franchise agreement and am very worried. I just today place calls with Fortman Law Firm and Bridge Management. Has anyone been working with either of them recently? How is it going?

  Sad Curves owner, I would love to hear how you are doing after closing in June/July. Hope you are well.

  Josephine

• Josephine have you heard anything? I am thinking I have to do the same :( I have been a Curves Owner for 7 seven years. There has been ups and downs. We are in a bad down. Terrible economy. I just can’t do it anymore. My members will be so heart broken. I won’t close on a dime…they will all know and anyone who has paid their dues for a year will be repaid.I have thought about selling because I bought it when it was in terrible conditions…someone else might too, but I think times are too bad now for everyone in our area. Please let me know…

• I am at my wits end …I closed my Curves over 2 years ago with 7 years left on my contract. Whilst open I had no support from CI at all. And was running at a loss the whole time . They now have a Debt Collecting Agency here in th UK looking for £29000 from me …I don’t have this amount of money to give them. I feel completely let down by CI and I’m thinking of counter seeing for breach of contract …has anyone else done this ?

• Alan, Josephine, Fran, Christy…any of you there….I would love to talk. my email is [redacted].

  Looking for follow ups to your experience.

  [We encourage follow-ups and updates but please have the conversation here where all can benefit. Thanks. -ADMIN]

• Hi Fran it seems it is the same all over the globe. I closed my club 3 years ago with 4 years left of my agreement. After battling with CI over many issues there was no other choice. They came after me for $64,000, then that was reduced to $17,000 and then after the takeover it went back up to $64,000. What a joke. Haven’t paid a cent and have no intention of, and haven’t heard anything from CI since 2012. I know that in the USA they are putting together a class action lawsuit, don’t know what the status of that is. I think they have come to the conclusion that they have done wrong by so many of us franchisees that they will not persue and persecute us for the monies we owe them. Well thats what i’m hoping anyway.

• does anyone know of a class action suit in the US, I am in Florida and made the horrible mistake 2 months ago to buy….I didn’t know the previous owner had people on the books who had not been active for years, she also misrepresented the number of people on the insurance program. I have “lost” over 2/3 of the membership in less than 2 months, they were never there!!!!!!! We did the audit, but the members showed active, wasn’t until I started to dig deeper when I bought and realized that the receivables weren’t being received. OMG!!!!!!!! I have already paid to purchase, now Curves wants me to honor the 5 year agreement.

  Any info would be appreciated.

• Aussie…Wow you have not heard from them….I have two years left on my agreement and not sure what to do. I am not sure if I can hold out for two more years. It’s a catch 22…if I do hold off…I won’t have to pay all that money….if I can live without paying myself …I don’t know what to do…
  Grisel…I ran into that when I bought years ago. There was no one accountable for all the lies.

• Grisel looks like you have to go after the previous owners for falsifying their records!! Curves Corp doesn’t care about any of their franchisees!! They are just waiting for everyone to close down their clubs before their contracts are over so they can sue!!

• Yes, I know of a case in Oregon where the previous owner was sued over inaccurate numbers at the close of selling. The new owner won. Don’t make yourself distraught, consult with legal experts.

• Sorry, everyone I need to correct my previous statement. The new owner filed a lawsuit several months AFTER the sales closed and won her case.

• I am so upset that there is not a Curves Gym in my area. I loved the gym and it helped me stay in shape like no other gym or program has. I might be interested in buying some Curves equipment if anyone is selling.

• Krista, we are closing our club Oct 1, at the end of our franchise, and I know of at least one other club that has equipment setting in storage. I hate scrapping.

• Hi,

  Im looking at buying second hand Curves machines. If any club is closing down, please contact me on [redacted].

  Thank you.

  Kind regards,
  Noore

  [We don’t allow personal contact information in the comments, but may exchange info if both parties contact us at UnhappyFranchisee[at]gmail.com. Thanks. ADMIN]

• I just found this site within the last few days while researching something for my job. OMG! I am mesmerized by your stories! I closed my one and only Curves in 2007, 3.5 years into my agreement after losing money month after month after month. I think I make a $10 profit one time.

  Boy, did I dodge a bullet! Every one of your stories just breaks my heart.

  I, too, lost a boatload of money on my “investment” I, too, experienced the lack of support and the countless cookie-cutter replies from corporate for assistance. I, too, NEVER saw an AD not once the whole time I operated. NOT ONCE! By the time I closed, my area was just saturated with these clubs. Each new club that opened took members (meaning $$$) from me, either existing members or new ones. CI made it impossible to get ahead or break even and it seems like it has only gotten worse. I’ve never worked so hard for NO money as I did at my club. And I had an awesome place. I was not “required” to buy anything new from CI during my time in Curves hell like you all have been I know now how blessed I am.

  I never told CI that I was closing. I just did it. It was heartbreaking and I cried for days. However, myself and many other francisees banded together, hired an attorney, filed suit against CI and never looked back. We all received the same bully tactics from CI as you’ve described here, i.e., owing a load of future royalties/advertising, send back the equipment at your own expense, wanting copies of ALL member files, send back the computer, sign this paper, yada yada yada. I even refused to pick up their certified letters! I WAS DONE!

  Basically, I gave CI the finger! Immediately closed my bank accounts, told CI they could have the equipment back if they came and got it, told CI they could make an appointment with ME to come copy my files with THEIR printer, paper and ink, and if they didn’t like then they could KMA! I WAS DONE! Once we had our attorney standing behind us, we never heard from corporate again.

  Good luck to all of you. There is life after Curves. You’ve done nothing wrong except believe in the wrong person. I did, too.

• Forgot to add……

  I sold my equipment to an interested private party almost immediately :-)

• I am closing my curves and have a equipment. To the lady that asked on 9/6/15.

• How did you all sell your equip??? Curves has a thing where you have to attach a copy of where it is scrapped…. this lady is broke from Curves and need all the help I can get.