More than 1/3 of the domestic Curves fitness club franchises have closed in the past 3 years.
In 2009 alone, more than 1000 Curves franchise owners lost their dream businesses… along with their savings, retirement accounts and, in some cases, their homes.
But there’s no cause for alarm, according to Curves International President Mike Raymond.
According to Raymond’s comments in the Wall Street Journal, what may be the largest mass-closing in franchising history is all part of Curves International’s master strategic plan:
Franchisees and industry experts point to a failure to keep up with changing trends—including more flexible hours for busy working women—cheaper competition and the tough economy as major reasons for Curves’ decline.
The company disagrees with its critics, contending that much of the club closings were intended as part of a plan to “prune the system,” according to Curves President Mike Raymond. Some owners had bought into Curves for the wrong reasons, he says, “they were motivated primarily as investors rather than owners.”
No Cause for Concern. Corporate Profits are Up!
Sure, thousands of club owners may be devastated and their club members forsaken, but there is a silver lining: Curves International actually increased earnings as a percentage of sales, with 2009 earnings of $16.4 million on revenue of $84.1 million.
So the story has a happy ending after all… unless, of course, you are one of the prunees.
Unless, of course, you are one of the thousands of franchise owners who actually believed Curves International when they said that, as one of their franchisees, you’d be going into business for yourself but not by yourself.
To be fair, if Curves International had stated that their franchise would give owners the opportunity to be, say, superfluous twigs to be eventually pruned from their corporate money tree, Curves never would have become the fastest growing franchise in history…
Now would they?
CURVES FRANCHISE OWNERS:
Share your feelings, opinions and experiences with founder Gary Heavin, President Mike Raymond and the board of Curves International, below.
Contact us at UnhappyFranchisee[at]gmail.com
Also read:
CURVES: 1000 Franchise Clubs Failed Last Year (More on the WSJ article)
Robert Lay’s Story (Featuring 850+ Curves franchisee comments)
Curves Posts on UnhappyFranchisee.Com (Directory of posts & discussions about Curves)
photo credit: stefano lubiana wines License: creative commons
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Gary and Diane Heavin will be featured in a one-hour prime time program on the ABC titled “Secret Millionaire”. Secret Millionaire is a one-hour alternative series that follows some of America's wealthiest people for one week as they conceal their true identities while they live and volunteer in some of the most impoverished and dangerous communities in America. Surviving on welfare wages, their mission is to discover the unsung heroes of America—deserving individuals who continually sacrifice everything to help those in need. Throughout this incredible experience, the Secret Millionaires will attempt to remain undiscovered, coming face to face with extraordinary and amazing people battling the odds every day of their lives. On the final day, in an emotional and dramatic climax, they reveal their true identities. Ultimately, the millionaires will each give away at least $100,000 of their own money, changing lives forever.
Gary and Diane’s episode has already been filmed. They spent a week in Houston’s Third Ward, living in a run-down row house with no air-conditioning. For 15 hours a day, they worked with social-service organizations helping AIDS patients, kids with incarcerated parents, and other at-risk groups. At the end of the week, they made a charitable donation that Diane says was “quite a bit more” than the $100,000 the show calls for.
Curves took the franchise world by storm in the 1990's with their circuit training, but today they are failing all over and as a fitness professional I can tell you why. One reason their franchise development is failing is because as a franchise I believe Curves made the decision to accept any perspective franchisee with the funds to open a Curves rather than picking qualified franchisees. A truly successful franchisor picks franchisees who both have the funds and the ability to be successful within the business model. I think Curves can turn this around, but they need to change their franchise practices.
David,
Bite me.
Does anyone know the numbers? Out of all the clubs closing, how many are resales?
David,
You stated, "One reason their franchise development is failing is because as a franchise I believe Curves made the decision to accept any perspective franchisee with the funds to open a Curves rather than picking qualified franchisees."
What qualifications should a Curves owner have?
This is the problem. Curves International is responsible!
Read at EveryJoe.com
http://everyjoe.com/work/is-curves-for-women-a-good-franchise-investment/
Story By Di
36 days ago BE SCARED. DON’T BUY!
I am an unhappy consumer. In 2001, I joined Curves and signed what was designated as a 12-month contract. I found that it wasn’t worthwhile for me, so I did not “renew.” The real problem is that it is now 2010 (almost 9 years later), and I just found out that I have been paying for my monthly membership all of this time as a result of new ownership!!!!! ...
Read this:
http://everyjoe.com/work/is-curves-for-women-a-good-franchise-investment/
Curves Owner 2 states:
'Curves International is responsible'
How is Curves International more responsible for this happening than the other parties?
Shouldn't the old franchisee have called the member in say 2003 and asked them if they wanted to continue their membership?
Maybe the member could've figured out what that check draft was for? If I had a continuing $30 charge coming out of my bank statement that I didn't make, I'm pretty sure I would've been trying to figure out what it related to.
But of course, no need to put any responsibility on them, it's all corporates fault.
Curves International should have been making sure the franchisees were following the policy and procedures. I don't know about you, but when I managed a franchise, the corporation we represented would come into our facility and look over things. We had a relationship with our Area Director, and he/she visited our location at least once a month, or bi-monthly. Curves International didn't have this. Area Director. What's that? Now the AD's tell us our businesses are failing because we don't get enough buddy referrals. National Advertising wouldn't help us, just buddy referrals and lead boxes.
JD, do you ask your significant other where they spend every cent that comes out of your account each month? If you do, it's great that you have the kind of relationship that allows you to ask these questions, but many people don't. They would not track down a $30 check. Are you someone who sits down and spends a few hours each month reconciling your checking account, entering each check into a system, and looking over your statement with a fine tooth comb. If so, great again, but the average consumer doesn't do this. This is why it was set up this way. Curves International set it up this way. This is why at club camp they tell you, "You want them to sign up as CD members." Why is that? This is why Curves International was the only supplier franchisees where allowed to use for paper drafts. Any other type of drafting system was prohibited.
It doesn't show as a draft. It shows up as a check wriiten. Sometimes numbered 0000, like when the bank can't read a number on a check. If you don't receive copies of ypur checks, you have no idea it is from Curves. I can understand maybe 10 or 20 members missing it, but hundreds at one club. Obviously this is a problem that needs to be looked into by the Federal Trade Commission.
For your information, I don't reconcile my bank statement, but in today's day and age I look it up online once or twice/week to look at the transactions. If I don't see something on there that looks right, I try and figure it out. I do the same thing with my 3 credit cards, and that's why I was able to notify my credit card company of a fraudulent airline charge on my credit card within a couple of days of it happening.
You make a big deal about CI and it showing up as a bank draft. Until last year, everytime I made a payment on my Best Buy credit card, I would have to put in a check number. When i looked it up online, I would look at it and it would show a check, but not the vendor. I would click on the screen capture and there it would tell me I was paying Best Buy. (Mind you my bank is a small town bank that has maybe 5 branches and they have screen captures, so I'm guessing most banks do)
If you've given someone authorization to take the monthly draft and in the contract it stated 'until cancelled' that person has to take responsibility. Should CI take some blame, maybe, but the franchisee and the member deserve some too.
Jd,
Yes, they signed a contract stating ‘until cancelled’, but assumed it cancelled after 12 months. They did not realize the draft continued past the 12 months, and would continue until the letter of cancellation was brought in. The previous owner of my location would not let her trainers tell the members this, or highlight this part of the contract, which we do now.
Curves policy is to call members who are not coming in and working out. Do all the clubs do this? No, but they should, and as a franchisor Curves International should be/have been making sure the franchisees are/were following the policies and procedures. The reason these owners do not call them is because they do not want the member to know they are still paying (being drafted). Curves International shouldn't let these clubs be sold if this is the case.
How many resales have been put into this position? This new owner paid for members, assumed she would be able to pay off her investment, only to discover she doesn't have the income to do so. Members will be calling her and cancelling by the dozens. She will be left with half of her membership if she's lucky. More then likely, she will lose everything.
Who is to blame? What did she do wrong? What could she have done that you would consider "due diligence" ?
It's great that you watch over everything as you do, but not everyone has/had access to online banking. You would be surprised, but many families do not have computers in their homes. Many of the elderly, which make up a huge percentage of Curves members, do not know how to access the internet.
I'm curious. When you die, what do you think people will say about you? Will they say you were a wonderful person, with a kind heart who thought of others before yourself? Based on some of the comments you make at this site I think not. I think you're a Narcissist. In case you don't know what this is, the description is below.
Narcissistic personality disorder is a mental disorder in which people have an inflated sense of their own importance and a deep need for admiration. Those with narcissistic personality disorder believe that they're superior to others and have little regard for other people's feelings. But behind this mask of ultra-confidence lies a fragile self-esteem, vulnerable to the slightest criticism.