CURVES franchise owners don’t get a helping hand when they fail. No thank you card or best wishes. Just legal threats and a demand for tens of thousands of dollars.
Curves has new ownership, but not much has changed in the lack-of-compassion department.
Curves franchise owners who are unable to save their failing clubs (more than half of Curves clubs have failed) still should not expect a helping hand from Curves International.
They shouldn’t expect a nice letter thanking them for building the Curves brand, for paying years of royalties, for enabling Gary Heavin to strut like an altruistic peacock on national TV and cash out with an untold fortune.
What they can expect is a legal demand for the future royalties they would have had to pay if they hadn’t run out of money and could stay open to the end of their contract.
And they can expect Curves International to tell them they don’t actually own the equipment they paid for, and they should return it.
aussie z wrote:
Well I closed my club at the end of June, 4 years prior to the end of my agreement.
I did everything that CI wanted me to do in regards to closing.
I did not give them my equipment or CS [Curves Smart]I figured that I paid good money for it so I will do what I want with it.
I received a letter of demand for $64,000 to be paid within 7 days (what a joke).
I asked them to review this amount as I had no money, I then got another email telling me the figure was now $17,000, again I explained that I had no money and then a month later I got a letter delivered to my home signed by a person I have never heard of in the 6 years I have been dealing with Curves (must be from the new people who have taken over) telling me that I owe $64,000 again.
I sent an email to this person and have not heard anything since, it has now been a month since I received that letter.
I know that this will not be the last I hear from them but they will not be getting a red cent out of me. The restraints they put on you regarding getting rid of the equipment is ridiculous, there is no brand name on the equipment so what right do they have?
If they want my CS they can pay me the $12,000 I paid for it. I will not let CI bully me into anything and I will help anyone else who is being bullied by them. They need to be stopped.
In Australia we have gone from over 400 clubs in 2006 to 283 in 2012 with still many in the process of closing. I think that Curves has run its course over here and I would encourage any owner who has a profitable club to try and get rid of it before its too late. CI are putting to much emphasis on Curves Complete, I personally think it is a rip off. None of the members I had would have been able to afford the $199-$299.
I am so stressless since closing my club BUT I do miss my incredible members everyday.
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View Comments
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. They have a successful track record, and they are willing to help on a contingency basis. Please go to
http://fortmanlaw.com/curves-request-for-information/ and give them your
story!
Patti, I am a club owner and struggling to keep the doors open. I talked to a Curves rep about closing and was told I would have to pay $28,600 in fees. Did you pay the fee they want? How do they go about collecting it?
Juline.... Unfortunately, that is true. Mine was in the same range. I did not pay and have an attorney now. I haven't received anything else yet except the demand letter. It's now been 3 months. From the owners groups, I understand they have sent collectors after an owner that closes before their FA is up. With this new NCP - I advise you to seek an attorney....
.
I am worried that CI will retaliate against me for saying this but I think all of you should go to jillianmichaels.com and note that she is selling her own circuit training and weight loss program which is in direct competition with us. When I wrote CI about this they informed me that Jillian just developed the workout and is still doing her own thing. None of us seem to be able to do all the upgrades they want since most of us are struggling to just pay the rent but it does not seem to matter to CI. They want all the money they can get from us without any regards to the humans involved. One of the things that attract women to Curves is the personal attention they get and not this sterile environment that CI wants.
Hi guys! I read an (old) article on ClubIndustry.com that quoted a former president of CI, Mike Raymond, stating that "We made it easy for them to decide to leave by announcing a policy that removed any penalties for closing." (See http://clubindustry.com/blog/examining-state-curves) Does anyone know what the *new* policy for closing down franchises allows? Any formal changes in Franchise Agreements beyond 2011 that indicate this policy specifically?
Mzee,
I became an owner in Oct '11. There is no mention of "get out of Curves free" policy. Still remains the same "pay the $795 royalty per month remaining on contract". I just got out of the agreement; I had to pay $6000 and I had 33 months remaining. So I made out pretty well. I followed their requirements exactly and that's what I ended up with. All things considered though I lost money from the very beginning so I never exceeded the minimum royalty payment so I'm sure that's where the adjustment came in... You can ask the admin for my email if you need anything specific.
Hey Team ....... been in the fitness industry for over 34 years and have owned my own gyms and fitness centers in two countries.
I took over an ailing Curves just on three years ago and have built it into a clean, modern and profitable business.
Then along comes Curves with it demand that I now put in new equipment and procedures and ..... wait for it, I have one week to decide !!!! You are kidding aren't you.
I will be closing up shop almost immediately and will take MY members with me
Watch this space as I am sure there will be more to come on this one.
I'm so glad I found you all. I've worked at Curves for 10 years. Our club was sold to a wonderful lady 5 years ago. She is a joy to work for. I have seen her become so overwhelmed in the passed two years over all the changes CI has and is pushing. For a while now, she has been paying out of her pocket to keep the club open. And now the demands to update machines, new mats etc. for the Jillian Michaels workout that 90% of our members are unable to do ( most being over the age of 50 years old with bad knees, backs etc.) She can no longer handle or afford the never ending demands that CI has been pushing on her and will be closing her doors in Oct. This makes us all very sad. Most of our members have been there for many years and have become very good friends. She's always thought she's the only one with all these Curves problems. I've told her I was sure she was not the only one. And here you are. You all need to get together and fight those greedy you know whats.
I agree with everything your saying
We Closed in July 2013, complied with all demands CI wants 28,000. We were contacted a couple of months ago by Cedar Financial out of California. Has anyone heard from that company about demand for payment?