CURVES FOR WOMEN: Nearly Half The Palm Beach Clubs Have Closed

First the bad news:  the Palm Beach Post reports that the number of Curves for Women fitness club locations in Palm Beach County has shrunk from 27 to 15 in the past 18 months, a failure rate of 44%.

The worse news:  More more closings expected.

Why are Curves franchises closing in record numbers?  That depends on who you ask.

Curves International, Inc. Denies That Franchisees are Struggling

According to the Palm Beach Post article, Becky Frusher, spokeswoman Curves International, Inc., “dismisses suggestions that franchisees are struggling.”

“I’m sure the current economic conditions aren’t helping, but one of the great things about a Curves is that it was designed as a low-cost franchise and can be run lean and mean,” she says.

Palm Beach Curves franchisees claim:  It’s the Economy, Stupid!

The Curves franchisees quoted in the article blame the economy for the closings:

Curves franchisee Leslie Winer blames the economy. She and her husband recently closed one of three Curves they own, although they still operate gyms in Jupiter and Palm Beach Gardens.

“Although it shouldn’t, your health and well-being becomes discretionary spending when the economy slows down,” Winer says.

Cindy Moore agrees. She recently moved her 1,500-square-foot location in North Palm Beach to cheaper space. “The economy is causing people to clip their gym memberships,” Moore says.

Furthermore, the franchisees say their high-tech Curves Smart equipment keeps them ahead of the competition.

Observers Blame Over-Expansion, Copycats & Competition

The Curves for Women 30 minute workout chain went through an expansion frenzy in 2005 and 2006. Since that time, Curves owners in Boynton Beach, West Palm Beach, Royal Palm Beach, Jupiter and Palm Springs have closed their doors. The most recent casualty:  45th St. location in West Palm Beach which closed Oct. 29.

Cliff Fostoff of Transworld Business Brokers in Boynton Beach blames Curves’ aggressive expansion and the competition that followed from knockoff concepts.

“They opened a lot of locations not far from each other,” Fostoff says. “And there has been a lot of competition. It’s just vanilla box with a few machines, so it’s a very easy model to copy.”

WHAT DO YOU THINK?  IS IT THE ECONOMY, OVER-EXPANSION OR THE CONCEPT CAUSING CURVES WOES?  OR IS CURVE INTERNATIONAL CORRECT IN SAYING THAT EVERYTHING’S FINE?

Related stories:

CURVES FOR WOMEN: Paradise Lost as Hawaiian Curves Franchise Closes

CURVES FOR WOMEN: Business Broker Slams Curves Franchise and Franchisor

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CURVES FOR WOMEN: Business Broker Slams Curves Franchise and Franchisor

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

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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The Grape Franchisor Ushers into Bankruptcy Court

According to the Atlanta Journal Constitution, the franchisor of the The Grape wine bar chain has filed for Chapter 11 bankruptcy protection.

The chain has five Atlanta locations and nearly a dozen in other states.

The Grape has more than $2 million in outstanding debts, according to a bankruptcy filing. Two of its executives are owed more than $140,000 in back pay.

The company is asking for a federal bankruptcy judge in Atlanta to approve debtor financing while the company reorganizes.

A spokesperson for the chain couldn’t immediately be reached Thursday night.

The chain was founded by Jack Mazur in Vinings. Michael Coles, former CEO of Caribou Coffee, is a member of the advisory board.

The star Usher made headlines when he opened a franchise of the Grape in Inman Park. His restaurant is not part of the bankruptcy petition.

The Grape’s is not a low franchise investment, costing between $943,000 to $1.4 million to open a Grape franchise.

Will these franchisees get the support they paid for now that the franchisor is struggling to survive?

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

CUPPY’S COFFEE: Despite Challenges, Cafe Opens in Wilmington, DE.

(FranchisePick.Com) Congratulations to Claudia & Alan Robbins on the opening of their brand new Cuppy’s Coffee cafe franchise in Wilmington, DE!

If you’re in, near or passing through Wilmington, DE stop in, show your support and get caffeinated at:

Cuppy’s Coffee

Millcreek Shopping Center,

4567 Kirkwood Hwy.

Wilmington, DE

The Robbins will be putting together a grand opening with a ribbon cutting some time around the 13th.

It’s been a long, hard road to get open.

Back in March, 2008, on one of the many fakey Cuppy’s promotional blogs (Coffee Knut Insider/ Coffee Real Estate)

James Anderson wrote:

Elite Mgf says Coming Soon: Wilmington DE Cuppy’s Coffee Cafe

Wilmington DE now will have another reason to celebrate. Many pockets of the city are populated by different groups of people with various European heritages. This ethnic diversity contributes to several very popular ethnic festivals held every spring and summer in Wilmington. Now that Elite Manufacturing is working on bringing the new Cuppy’s Coffee cafe up to trade dress, Wilmingtonites will soon enjoy a true Italian experience.

Elite estimates that the new Cuppy’s Cafe should be completed sometime in April. There soon after, Cuppy’s should have their Grand Opening to introduce the citizens of Wilmington to decadent espressos, real fruit smoothies and a whole lot more.

Unfortunately for Claudia & Alan Robbins, the April opening was just one more Cuppy’s Coffee / Elite Manufacturing fairy tale.

Little did they know, the Robbins would have to battle through the change in the ownership of Cuppy’s Coffee & Elite Manufacturing, missed deadlines, broken promises, fallout from a lawsuit against Elite Manufacturing by subcontractor SBT, and the seeming collapse of both the franchisor and its construction arm.

During the process, the Robbins’ reportedly had to seize control of their own building process and oversee their own contractors to get their buildout finished, incurring additional costs and a 7 month delay in the process.

Please join us in wishing the best of luck to Claudia & Alan Robbins and Cuppy’s Coffee of Wilmington, DE… they certainly have earned it.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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photo credits: Cuppy’s Coffee of Wilmington, DE