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.
A mere pittance paid by Curves.
Perhaps the settlement amount is not the whole story. I am assuming that a part of the settlement is that CI will not seek “abandonment” fees and future royalties.
has anyone been able to keep their curves equipment to donate it to a non profit
(not a prison_after closing their territory at the end of the lease term?
Am closing on August 31st. Am a 24/7 club. Anyone out there interested in a class action over CI’s policy against all 24/7 clubs?
[redacted]
Look, anyone looking to sue Curves again is a fool. I don’t like Heavin either, but the lawyers are the only ones who win. Zarco took the franchisees for a long miserable ride in the first suit and he is the only winner. When are you people going to get it? This is a legal racquet.
I have been trying to move on with my life…but, …..I closed my club October 15th, 2010. Of course we received all of the threatening notices saying we owed them thousands of dollars. We have lost everything, and have struggled to do everything to stay afloat and not file bankrupcy, we have a huge amount of “unsecured debt” put on our credit report by Curves, that has pretty much ruined our credit at this point……now, yesterday my husband & I received a law suit, served in person by a civil server….summons and complaint from Curves International. They have filed a law suit against, me, my husband, and my LLC..all for the same amount…We are so confused, a while ago we received a copy of a letter from a collection agency addressed to Curves International telling them not to accept any paymnets made by us to Curves, that it is now in the collection companies hands…..so now Curves is sueing us??? I don’t have money to pay them all of what they say I owe or even hire an atty…..the amount is nowhere near what our remaining royalties and ad fees would have been. Has anyone else gotten to this stage in their process? They are suing us here in MI, I really don’t know what to do? Anyone have any experience or advice…would be appreciated…thanks, Still Haunted!
Still haunted, I am shocked that after all this time you are still in this curves nightmare! I talked with one attorney who in the past was successful in getting curves to greatly reduce the money they were demanding…infact its ridiculous for curves to charge the highest fees if your club was never paying that amount to begin with!! I know this attorney had success with the previous curves legal before the new takeover…I am waiting to hear what happens with the new team at curves…if curves has ruined your credit already, can you get free from this by claiming bankruptcy? Seems like if your credit is already ruined you may as well be free if possible. Im am so sorry for your loss and stress, there are so many in your shoes. I pray God helps everyone of us in this nightmare
Still Haunted,
We live in MI too and just got served papers last week. We closed in March of 2010 and basically have the same story as you. What has happened in your case so far? Feel free to contact me at [redacted].
Thanks. Carolyn
Still haunted and Carolyn, please post how this process is going so we can keep everyone informed, and support each other if possible. How much are they suing for, how long did you have on your contracts? There are many today who are not sure what to do, some have closed and are waiting to see what is going to happen, some are sitting on the fence and closing could be in their near future. We are all concerned and feel so alone in our struggle, we need each other. I am so sorry you are going through this, its heartbreaking to know it has continued this long. I pray that answers, solutions, and a way of deliverance for all of you, and hope your lives can be filled with peace soon. Take care
I own the curves in Carleton MI and apparently everyone thinks I am closed. The reason is I opted out of this new launch Curves Complete because I know my people will not pay an additional 12.95 a week for excercise, nutrition and motivation when I have been giving that to them all along. Plus the new computer system is not afforable for me. So CI took me out of the advertising completely, thats right you can’t even pull me up yet i am still paying my AD dues? What the heck does this make any sense oh yeah and I am cleveland certified as they made me pay for that and get certified. so where is this BS really going…..Should I even bother contacting a lawyer? Help
Pat, Im worried for you…I was told that if I didnt comply with all their demands, I would be penalized, that they would start charging fines for every month you are not in compliance. I know the threats will not stop, and they are not satisfied with compliance on some things it has to be all or nothing!! Not only will they continue to ramp it up against you, they can close you down. It seems illegal for them to remvove you from the locations list when you are still paying them, but you are not the only one they are doing that to all the curves who havent fully complied!! I saw that here on the west coast and talked to a few that they did this too, they were shocked, and I was shocked that they can get away with this!!! If at all possible talk to an attorney, regarding them removing you from the locations list. I am concerned that we have only just begun to see what they are planning to do! I am watching this site to see if anyone has any help from an attorney, and I am in contact with someone who is currently battling them with an attorney and I am waiting to see what happens. I am sorry for all you are going through, keep in touch
I am glad I found this cite. We are having to close our gym. We still have 3 1/2 years on our FA. Wondering what we should do, if contacting an attorney would be best as well.
Thanks for keeping us up to date.
Hi Stacy, Sorry to hear you are in this nightmare too. From what I have been observing and hearing is if you dont have a good attorney, curves will still be coming after you for years to come to get their money. It seems like the ones who dont have attorneys are in worse shape…I know of one who is using an attorney at this time, it isnt settled yet but her situation is looking alot better then the others I have seen on this site who havent had attorneys. However Its really important to have a good attorney. Keep watching the site and updates hopefully with be coming soon. Take care
Is there a class action suit against Curves right now? 4/6/13 for abandonment of club? I want in!
I too own a curves that is barely making it(i work almost all the hrs make zero), I am not happy with the demands CI put on us for last ag meeting – required to attend and if we don’t – well they treat us like children by taking away our club on the curves.com website, no leads from 1-800 # and no marketing materials they will mail out. I had a representative at the meeting and another required meeting is coming up and they want all staff there. Meaning they want you to close your club so everyone can be there. I’m assuming the same conditions apply if we don’t attend. How can they take away something we pay for. my lease is up in dec and I plan on closing I will still have 2 years on my 5 year contract but I cannot keep this up, my health is failing b/c of all of this. life is too short. Any info would help so much. do i contact a lawyer or specific (franchise) lawyer? thanks for any info you can give
Jackie there is a good lawyer in America that is handling some law suit for ex owers and current owners I would suggest you get in contact with him. If you get in contact with me via the admin of this site I will give you his name and number. It seems to me that you are enduring the same bullying tactics that Curves has pulled on many of us. Don’t put up with it. I had 4 years to go on my 10 year contract (yes that right we all signed 10 years contracts in Australia) don’t know why the term of the contract is different. I was threatened with everything once I told them I was closing down that was nearly a year ago and haven’t heard from them since. They did theaten me with an exorbadent amount of money (for future royalties) but I have just ignored them. I’ll just sit and wait and see what happens from here.
I would just likee to say that I was the owner of 2 Curves Clubs. I closed one after one year. I got the fee down to $3,000 after I informed CI that I believed that they let me put my Curves in a location that did not have enough population tuo sustain it. My other Curves, I owned for 6 years, the first year was great, made money but after that it was all down hill. CI was not interested in helping the Curves franchises, there was not the support there that was needed. When I sold that club, I took a loss (after all the other financial losses over the years) so I asked CI if they could do something about the $5,000 transfer fee At first they said they would consider it but at the bitter end of it, they didn’t. So I ended up that now I am still paying for a Curves business I no longer own. I may end up having to file bankruptcy to get rid of the debt. So what it basically boils down to is that pompous, arrogant big Christian (as he calls himself) Gary Heavin and CI care nothing about his franchisees, only about how he can make money for himself. One day he will answer for it.
I feel for all of you, my husband and myself went into business with my brother and his wife, all the CURVES hype sounded great back when they started. 3 yrs later, 3 locations later, 2 sold for a tenth of what we paid and 1 closed. Close to no support from CI. My husband and I lost everything, savings, our home of 15 years we built ouselves, had to move away from our neighbors whom we loved and considered very good friends, filled for bankruptcy, had to start completely over. It’s been a very hard journey for us as a family and a couple. We did not have to get an attorney, but my advice is to get one and get out ASAP! Nothing but heartache and financial ruin! Very misleading and unsympathetic to the franchisees! Money is all CI cares about.
Could someone please provide me with the name of the US attorney who is representing owners who want to close?
Thanks.
JeffP:
Check out Ronald K. Gardner – Dady & Gardner, P.A. in our franchisee attorney directory
http://www.unhappyfranchisee.com/resource-directory/franchise-attorney/
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
Hi everone in the US. I closed my club down end of June 2012. I had 4 years to go on my agreement. Over hear we all signed up for 10 years (how stupid)/. I received 3 letters of demand one was for $64,000 whic I replied I couldn’t pay, the next was for $17,000 (go figure) again I said I didn’t have the money, then I received another one and the figure had gone up to $64,000 again. I DID not reply to that one and have not heards anything since and that was 12 months ago. Recently another ex owner told me she had received a letter from a collection agency working on behalf of CI demanding an exorbadent amount of money, she has just ignored that letter. There are quite a few of us over here who are willing to get together and take legal action if it comes to that. We have to stop the bullying from CI there are lots of us worldwide that have been affected by the actions of CI and we need to all stick together. I don’t know how we can do this as I’m guessing the laws in each country are different, We are stronger together and this is a great forum to get to see how terribly CI has treated everyone. We didn’t ask for our clubs to non profitable, we didn’t sign on thinking that we could lose everything, we didn’t ask for CI to hound us until we declared ourselves bankrupt, we didn’t ask for all the health problems associated with the bullying that most of us are getting from CI. It has to STOP and I believe the buck stops with us, we all need to dig our heels in and refuse to bow to CI’s demands.
rkgardner@dadygardner.com. He did email me back and said to call him, so we would establish atty/client relationship.
Yes Aussie, we should stick together and remember, collection agencies get a percentage of what they scare us out of. They are just bullies and may the best bully get the money! But having said that, they can make your life a living hell. The calls never stop. At some point you have to wear them down before they ware you down. Been there……Until they get a court order, they and curves do not win and you do not need to declare bankruptcy.
Attn: clubs that closed….. what did you do with your equipment???
Hi Faith,
Are you going to establish an atty/client relationship or are you thinking of just closing? In the past curves allowed clubs to take equipment to salvage yard and show receipt proof, or donate the equipment and show proof, however now I understand they dont allow you to do that. I have heard they want you to pay the shipping and ship it to them….I have heard of some who have stored it,…its one more thing they will harrass you about. I know some club sell to other curves clubs. Keep your communication with us!
I’m waiting for a response from curves regarding my closing. I requested to be let out of my contract. I have been with them 12 years and feel I have met my obligation. My contract simply got extended because I asked to have my franchise fees lowered. My contract should not have started over but modified!! Thats my argument. Waiting for their response to see which way I proceed.
I check this site daily and will let you know what happens. I will not spend a dime to send back 12 year old equipment which needs some major repairs!!
Faith, you are in a different situation….they really should let you out!! I would not pay them money or send the machines, you have really put in your time! I think you are in a better position than I am, seeing you have given 12 years!!
Hope, would you like me to contact Ron. I will call him again, and will anyway if curves doesn’t let me out. Somewhere above I posted his email. What can I do to help??
Faith, thank you for wanting to help….no need to contact Ron for me, only if you need to in your situation…I will get in touch with him when needed. Dont let curves bully you, you have given them 12 years….they should work with you!!
I heard that there was something on The Frisky that Curves had removed…they said it was false and not said by Aliza Rothman, curves public relations director….did anyone see it? I am curious what that was all about!!
I finally got my closing instructions, should I decide, and when I have completed all instructions, then they will tell me my financial liability. Yes, equipment has to be scrapped with proof, sold to another club or donated. 11 pages with time requirements……
I told them, when I decided, I would let them know
More to follow I am sure!!!!
Closing Dec 1st, actually 11/27 day before Thanksgiving. Wish me luck!!!!
Faith I am so relieved for you! Are you doing this on your own or did you decide to go through an attorney? Please let us know how it goes
I’m just closing. I am following curves closing instructions and after closing, they will let me know what my financial obligation will be. After 12 years and 3 clubs over the years, my obligation should be ZERO. They may see it differently….but I will not pay a dime. If that means getting an attorney, I will.
I read somewhere “why has no one brought this out to the media? ” How would we do that???
More to come!
Has anyone heard what these new requirements are going to be. Upgrades to equipment? Also, just watched October video regarding new changes coming. Already changing the curves complete website!!! What other changes do they have in store for up and how much will it cost????
Just curious since I’m out of here anyway……………..
They are being tight lipped about it all, wont answer any questions, saying that we have to wait for regional to get the details. But it is going to require changes for January…and yes what will it cost, not to mention the time and prep…which of course it will all have to be done in the month of december! So another christmas down the drain, deja vu from last year! And its always the same rah rah, its going to increase our revenue….last years changes were suppose to do that, but didnt, but it did mess my holidays up and cost me money….it just goes on and on…..lucky you Faith, on your way out!! Keep us informed!
This is interesting. Trisha Yearwood (country singer) is in Oprah Magazine talking about how she lost weight. She specifically mentions ‘circuit training, zumba, and diet’. I wonder if she’s the new spokesperson that will be announced at regionals?
There are also stories about her recent weight loss on ABC news and other news sites.
http://www.eonline.com/news/468828/trisha-yearwood-opens-up-about-weight-loss-i-still-think-there-s-no-way-my-clothes-will-fit
If Trisha Yearwood is the new spokesperson, again curves missed a great opportunity. Oprah magazine would have been a great start… Weight watchers already has commercials on prime time. Curves should be hitting it hard before January. Lets hope these new people are better at marketing than Gary. Over the years we had bars, cereal, popcorn, books with no follow thru. It all depended on what WE could sell for THEM.
A famous spokesperson would be great as long as someone sees the commercial!!!!!
I also heard, that if money is an issue to get to regionals, save your money for required changes before january. It would be nice if they would tell you that!!!!
Faith, where did you hear that if money is an issue to save it for changes instead of going to regionals? My AD insists we can not miss regionals, and when I tried to find out if there was going to be costs involved with changes, she wouldnt say….of course I figured there would be, but I wanted answers to some specific questions so I woud know what was going to be required and still couldnt get any answer…..not a good feeling to be hanging on to a thread and no one can even answer your concerns….I am curious what you heard….
Hope, I wish we could talk. Is there anyway we can post our numbers? Oh heck, [redacted] call me