Curves franchise owners are trying to figure out what impact their parent North Castle Partner’s acquisition of Jenny Craig will have on them.
UnhappyFranchisee.com posted news of the acquisition here: CURVES Owner North Castle Partners Acquires Jenny Craig and the company press release here: CURVES: North Castle Partners Press Release on Jenny Craig Acquisition.
Curves CEO & President Monty Sharma sent this email to Curves franchisees sharing his excitement regarding the acquisition.
Curves franchisees are trying to figure out what the excitement is about. Or what this even means.
Sharma makes seemingly contradictory statements that have left many scratching their heads.
First, he states “North Castle Partners also announced its plans to merge Jenny Craig and Curves International to create a one-of-a-kind wellness company that offers consumers an array of diet and fitness tools to meet their individual and varying preferred weight loss needs.”
So it sounds as if Curves franchisees will be able to offer Jenny Craig products and services in their clubs.
Than Sharma states: “Our plans are to operate these two businesses separately and independently since they appeal to different consumer segments.”
Hasn’t North Castle has been forcing Curves franchisees to implement a Curves weight loss program?
Does this mean that North Castle has just acquired a direct competitor of Curves?
Isn’t “Women who want to lose weight” a single – and the same – consumer segment?
If someone can make heads or tails of what’s happening here – and what it means to Curves International franchisees and Jenny Craig operators, please leave a comment below.
Email from Monty Sharma:
Dear Franchisee Partner,
I am excited to share with you that this morning North Castle Partners announced the acquisition of Jenny Craig from Nestle. Jenny Craig is a leading brand in weight management with centers across North America, Australia and New Zealand.
North Castle Partners also announced its plans to merge Jenny Craig and Curves International to create a one-of-a-kind wellness company that offers consumers an array of diet and fitness tools to meet their individual and varying preferred weight loss needs.
Our plans are to operate these two businesses separately and independently since they appeal to different consumer segments. However, we believe there are many things the Curves system can benefit from over time through this merger. We will combine the companies [sic] back end operations to create best in class process and support to you our franchisee partner while looking for ways the two brands can benefit from each other.
Closing of the transaction is expected in a few weeks and thereafter we will begin the work of the merger. As the teams from Jenny Craig and Curves begins to work alongside each other we will keep you updated via the quarterly action group meetings.
I look forward to seeing you this week or next at the Regional Meetings to share with you all the exciting developments and new programs we are launching at Curves for 2014 and the years ahead.
Curves CEO and President
CURVES: Robert Lay’s Story (1100+ comments)
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TAGS: Curves, Curves International, North Castle Partners, Jenny Craig, Monty Sharma, Curves buys Jenny Craig, Curves franchise, curves franchisees