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
Recent developments have left franchisees worried and uncertain about their futures. To advocate for greater…
The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…
PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…
U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…
More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…
Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…
View Comments
Get ready, I have heard a full on documentary is in the early stages of this scam - basically , how some hustlers under the name of God scammed a whole lot of people. Should be done by next summer. I have seen some of the initial treatments and interviews - wow this could be as big as Super Size me.
I am sure they started out with good intentions. They quickly turned into old time preacher tent opportunists. If they could figure out how to sell snake oil they would. No question, the owners and president will pull their money out. And live in their nice houses in Waco .
They live in an isolated thought bubble for innovation and have accepted they basically run a ponzi scheme.
The sad thing is that they cloak themselves in christian values. Give me a break they have hustled thousands of small franchisees who are paying for the owners and management's private compound (which is full of nuts living like the Beverly Hillbillies).
Shawn, who is doing this documentary?
I am looking into purchasing an established CURVES but, after research, have decided against it.
That being said, I would still love to own a similar business.
Do I understand rightly that after you close, you are NOT allowed to sell your equipment?!! So you paid $30 plus thousand dollars and don't own anything? That's insane! If anyone is interested in bucking the system, I am interested in buying.
S*
Anyone out there interested that there can't be more 24/7 clubs???? I am closing mine rather than give it up. PLEASE if you are out there reading this contact me.
Hi
I have to close my club , they want 10 000$ instead of all monthly royalties during 9 years.Is there anyone who did not payed. Did you received any documents from court ? What can I do if I'm out of money ?????
Well the owner that I know that is "being pruned" really did give it her all.
She is in the gym 8-10 hrs a day 6 days a week, when she had the children's hospital fund raising event, she did 75 times around the circuit in 2 days to build publicity in her area. No one could possibly say she was not dedicated enough.
So here is the sob story:
Her husband passed away, leaving her with 2 kids just starting college, she decided, due to location and such that the Curves would be a good option for her, having been a business owner before. She invested the life insurance into this new business.
The old owner mis represented the true income of the gym.
She has never made more than $600 profit in a single month over the two years she has owned it. Many months she has gone negative to pay the fees and buy the promotional items that she is REQUIRED to buy.
Her father takes a turn for the worse with major health issues, her mother gets cancer and needs surgery, her grandmother gets diagnosed with something terminal that I can't spell. All need major assistance and care. She has to now pay someone to sit at her gym so it stays open while she cares for three sick relatives.
If I was hearing/reading this I wouldn't believe it and I would think this HAD to be made up but it is her life.
Curves refuses to waive a single fee, has turned down multiple new buyers for her club because they don't have good enough credit and they are threatening her with a lawsuit if she "abandons" her club.
Is this "pruning"??
I understand, but is here someone who went to court, won, lost, received a warning but did not pay, not paid and something happened ... ???
Did CURVES President Mike Raymond Get Pruned?
WOW. I was a member of Curves a few years back and it actually worked. I lost 80 pounds in a year (I was also on a strict diet) and I felt great, so when I found out our local Curves was selling, I called right away and thought about buying it. I have changed my mind thanks to everyone airing the problems they have had in dealing with Curves. Thank you!!!!
I am so Grateful I found all this info tonite,Prior to reading all of this I filled out a request for info,,,DELETE.