Curves Slowing Down?
Curves started with a big bang but many are now shutting down.
Before you open a fitness business you have to consider what the consumer needs. Location- Will this be easy for me to get to. How far is it from my job or home? Does it have cardio and strength training? You should do strength training every other day. Cardio you can do everyday. Taking a day off is okay. Curves circuit training says all you need is three times a week. I did it six times a week. It cost $39.00 a month. It is an investment to stay in good health.
A circuit for women only. Many women hate to go to a regular gym for personal reasons. In our busy society Curves filled a need. Today you see Curve's name on cereal boxes. It has been written the Curves name is just like Coke or Pepsi. Everyone knows their name.
They found a niche. No one at the time had circuit training that was simple enough for women to do. Age wasn't an issue. Women from their teens to their 70's or even older could do the work out.
I joined Curves five years ago. I was a member for three years.
I noticed that many popped up very fast. The only thing wrong was when I worked out at other Curves they were not the same. One club may have more machines than another club. I hated that.
When they first started expanding a Curves franchise didn't cost an arm and a leg. All you needed was a boom box and a woman saying on a tape, "Move to the next station." The equipment was hydraulic with stationary jogging between the machines. The weighing scale is nothing special. To measure fat you held a device in your hands. No whistles and bells. No showers. They had a dressing room and free towel service.
The Curves I went to was a gold mine. Thousands of people had to pass the intersection that led to highway 68 straight to Monterey, California. They had a huge sign that everyone saw. It was close to residential and condos. In a upscale part of town. A great location.
Their marketing was very cheap. I got a flyer that was home made on my front door. The flyer wasn't what made me join. It was that darn big sign I passed by everyday. I heard women talk about how much they loved it. It was convenient. I could work out, gas my car, pick up my clothes at the cleaners plus go to the grocery store in one hour. Location, convenience and it only cost me $39.00 a month..
Has the luster of the 30 minute circuit workout worn off? Time will tell.
I believe the problem Curves has today is they are selling too many clubs. In the city of Redmond, Washington there are two other cities close to each other. I know of two clubs within two miles of one another that went out of business. It is bad enough that there is competition with other fitness clubs but having to compete against each other is ridiculous. This may be the reason they are having problems. They went into business with a big bang and may go out with a big bang..
due dilligence
Bob Rodi, CLP
President
Mount Pleasant Capital Corp.
http://www.bluemaumau.org/a_lenders_advice_purchasing_a_franchise_0
A year or so ago I posted an article on due diligence. The link above will take you to that article. Over the course of the past year things haven't changed. In fact, in this environment I believe this article is even more relevant.
I read these comments on Curves with great interest. About 3 years ago I started to see many opportunities from Curves franchisees who were selling their locations for ridiculously inflated prices. There were a lot of willing buyers out there but in evaluating this finance opportunity we decided to pass. In case after case that I reviewed I saw declining head counts, which fostered declining revenues resulting in stores that were barely operating at break even. Some of these locations were selling for 8-10X EBITDA. I would guess that anyone who did buy a location and pay this kind of price would be a very unhappy franchisee at this time. I do not know Mr. Heaven and I know very little about him. We conduct rather extensive due diligence on a franchise system before we will make loans to their franchisees. Truth be told, because of the data I was able to collect on existing locations for Curves, we never got as far as the part where we check out the owners\officers of the franchise system. The emotional comments about the alleged activities of this individual really have no place on this type of forum. If you bought a Curves franchise and feel you were "over sold" that is on you and not on the franchisor. Some people simply never learn that there is no free lunch and that the only way to get rich quick is to be the 1 in 170,000,000 who hits the power ball jackpot. You probably made an emotional decision rather than a business decision--Big Mistake.
If you are browsing these pages for the first time, in search of info or advice about franchising, your primary goal should be to remain cold and unemotional about any opportunity that interests you. Look at it strictly from the standpoint of the investment you will make and return you can achieve. Decide whether you want a lifestyle or a business. If it's the former you want then consider the lifestyle you will achieve as a large portion of your return on investment and don't be upset if you get the lifestyle but not a lot of money to enjoy it.
With respect to fitness franchises in general, I had made a decision not to lend to any of them about a year ago. Anticipating the bad economy, watching commodity prices rise, and housing slow down to a crawl, I simply reasoned that health, fitness, tanning, etc. are "luxury" industries. The fact that it's only $39 per month will not enter into the buying decision when one person in a two earner household loses a job and people have to make the choice between putting gas in their car, paying utility bills or the mortgage, or buying food. You can have the best location in the world however if your target demographic group finds that its disposable income has diappeared, the business model is not sustainable.
Mindset of a health club member
Bob,
Read the latest issue of Money Magazine. Fitness memberships is the top thing people are not willing to give up. People who think this are not members of health clubs. No offense, but I'd bet 100.00 you aren't a member of one.
Americans place maintaining good physical health (97%) and keeping up their physical appearance (91%) among their top personal priorities. Fitness American Style/Roper Starch Worldwide
Recent research by Roper Starch Worldwide has confirmed that the reasons people join clubs have changed. With the population aging, membership is perceived as more of a necessity than a luxury.
Consider the fact that nearly a million people join fitness clubs each year, pushing membership to 41.3 million people nationwide*. This number is likely to grow as more people commit to an active lifestyle, often spurred by the increasing number of corporate wellness programs and health insurance incentives.
*Source:www.IHRSA.org/American Sports Data Health Club Trend Report.
Read this article:
http://workplaceculture.suite101.com/article.cfm/buff_obama_will_boost_fitness_industry
I bet your bottom dollar that part of Obama's reducing health care cost involves tax credits for health club memberships as a form of preventative health. I know lobbiest in the industry that feel very good about this possibility.
While your decision is of no consequence to me, you seem to have a disconnect that health is perceive as a necessity and not a luxury, especially with the baby boomer population. Even insurance companies are paying for memberships now. Blue cross did studies and found claims cost were reduced 17.8% and ER visits were reduced 38.7% with their health club Members. Silversneakers.com pays $4.00 everytime someone walks in the door of a healthclub. They do this because they know it saves them money in the long run.
Sure when gas prices spike to unrealistic levels alot changes. I shifted from porterhouse to sirloin. I put 89 octane in my car, but I would never give up my health club membership. I did change clubs from a big fancy club 8 miles from my house at $100.00 per month to a Snap Fitness down the street for $35.00, but I am not going to get fat and have high blood pressure and risk a heart attack or stroke becasue gas prices go up. I want to be alive to drive.
Tom Garmon
Tom Garmon is still trying
Tom Garmon is still trying to sell suckers dying Curves franchises. If you go to his site, he's had no more than 16 clubs for sale since he broke away from McCord Business Brokers over money issues. He can't get any clients, yet he still thinks that health clubs will do well during the Bush-Cheney mini-Depression! Who is he kidding?
He's been banned from spouting pro-Curves propaganda at just about every site out there, so now he slinks over to BlueMauMau to talk more nonsense. Ignore this snake-oil salesman! Curves will be gone soon enough, and then Garmon can find another money-draining franchise to sell to poor saps.
Response to NayBob
I don't know you NayBob, but I love the fitness industry. I don't just sell Curves, and I don't need 100 listings either. I am happy servicing my clients whether I have 2 or 12. Everything I cited are independent studies. I'm not making up this stuff. I sell Curves, Snap Fitness, and big box clubs. I don't know where you get off assuming I sell only Curves. You are misinformed. Perhaps you are just looking at one of my site. Besides about 1/2 of my listings are not even on the website. Most buyers are members, not passers by on the internet anyway.
I love fitness and believe in the franchise system. I have owned my own health clubs and know that a franchise brings a lot to the table. Did you know that gyms are 2nd to restaurants in failure rates? Anyway, you should stick to Sean Kelly's gutter site for haters. This site is about INTELLIGENT, civil discussion. You wouldn't fit in. You work for the lawyers suing Curves anyway trying to add to the measly 180 litigants out of 6200 domestic franchisees suing Curves. When it is all said and done the only winners will be the lawyers.
Watch What You Say
I would refer our anonymous guest to read our posting guidelines. Calling individuals "crooks" without proof is not allowed, although we understand in some circumstances that hyperbole and sarcasm are being used.
Our culture on Blue MauMau is one where we speak with evidence about the merits of a company and small business issues, rather than about persons.
Re: Mindset of a health club member
Oh my lord Tommy boy is back. What a joke. He was bared from other sites for being a jerk and now we find him here. He was part of the scam of selling curves for McCords and now he is trying to sell them on his own. He is the same as howie a rip off with no moral bases and not one ethical bone in his body. Anyone who believes his crap needs his or hers head examined.
Tom you bring up some good points
What about those that are getting laid off and not able to pay their mortgages? Will they be able to keep their health insurance let alone their gym memberships. Our country is in bad shape financially. I personally do better joining a fitness club. You have to agree that people are loosing their jobs all over the country. They will pay their house payments first before a gym membership. They will have to workout at home go for walks or use the good old DVD workouts.
Once the economy gets better which may be quite a long way off MAYBE things will get better for gym memberships. Pesonally I love working out with people around.
Foreclosures and Fitness
Well that's a good question. My brother recently lost his home, but he never gave up his fitness membership. He's single and wants to stay in shape and exercise helps to manage stress. Now if giving up a fitness membership is going to save one's house then obviously they would give it up. If someone is not using the gym regularly perhaps they would give it up. But if you read the Money magazine survey they give up gadgets, vacations. sporting events and cultural events before anything else and fitness memberships last. That's pretty impressive.
The long term cost of not being healthy are far greater than the cost of the membership; not to mention quality of life factor. Health club memberships are expected to grow 4% this year.
"Just because you've been let go doesn't mean you have to let your appearance go. That's the sentiment many Americans are taking on this year, as total gym memberships are estimated to increase by 4% in 2009, according St. Louis, Mo.-based market research firm Stifel Nicolaus"
The industry has proven to be recession resistant if not recession proof. I guess we will know in the near future is if is recession proof.
Lean Times Bring Workouts Home
As if they were watching our conversation, the Wall Street Journal just published an article on how lean times are bringing workouts home.
Here's a couple of interesting excerpts:
But the fitness industry is trying to be flexible to be more recession resistant.
Great comment Tom!
I totally agree with your comments! You are a very intelligent man.
Although, I hope you are correct.
Thank You
My mother would agree, and my wife might debate it.
Curves
Call the Waco Federal Court. They are charging 50 cents a page to have the lawsuit info mailed out. The woman on the phone told me the case is huge but it is public information. They have two groups suing.
If someone is losing money because of the location, the economy, or whatever, they should be aloud to shut it down without being penalized. Curves wants to charge $10,000.00 and have you sign a waiver that you wont sue them. If you refuse, they sue you for back royalties for the remainder of your agreement.
I have owned my resale for three years and never made a dime. I did numerous promitions (internal and external), gave the members things the former owner never did, cleaned and painted. I have lost way over $40,000.
The members don't care if there is a recession currently. It is unacceptable to them when you have to make cut backs.
I had to go and get a full-time job 13 months ago because Curves never provided me with an income. Between my husband and I, we were putting $1,000 of our own persoanl monies in a month just to keep it afloat. Now I lost my job and am on unemployment. We can't fund it anymore and do not have $10,000 to shut it down.
Curves is a fad. Its time has passed.
Many of the women that work out at my gym are there for social hour. They don't want to being their friends in or get weighed and measured every month. They want to talk and have social hour.
Curves International does not care about their franchisees. Since I have owned my club, the Area Director has changed 4 different times. They don't return emails and do not pick up the phone. They don't care if you are having financial trouble. Their answer if you happen to hear back from someone is "BUY more Curves products and sell them, BUY Smart Equipment, etc" They want you to inflate their wallets. How can you spend what you don't have? You can't get blood from a stone.
In addition, ANYONE that manipulates people for money the way Howard Gary Heavin does and claims to do it for the Lord is a hypocrite. You do not announce your religion and say "Look at me! Look at me! I am a Christian!"
Curves 2009 Regional held in Detroit, Michigan March 21th
We attended the 2009 Curves Regional at Wayne State in Detroit, Mich. We were told ahead of time to bring our own bottled water. So, we did, only to find out we couldn't open them in the theater. Then we were told that "if we filled out this survey we would get a gift" when we turned in our survey. A member of our group got ill and we had to leave at about 2:00 p.m. (we arrived at 8:30 a.m.), we turned in our survey only to be told by a women sitting there eating cookies that she was told not to hand out the water bottles until after 3:00 p.m. Well, I think the whole thing was cheap, cheap, cheap. I think anyone that gets up in the morning to go listen to a couple people tell us how we can make them richer deserves a little better treatment than that. And the box lunch was full of a bunch of empty calories. The box was worth more than the lunch. They preach about the Curves Weight Management Program? Why not serve what you preach and put the exchange count on the box. Let us make the choice!
I really hate to hear all the bad things about Curves
I personally loved the work out. It worked for me. I have to admit I didn't go around only twice. Three times. I put more into it and It is the only club I stayed with for a long period of time. I enjoyed the women there and made some good friends.
If only Gary allowed protected territories. Let it be a warning to future fitness owners do not sign an agreement that states you cannot have a protected territory. Even if the salesperson says you do and the FDD says no territories it means just that. Put an addendum in asking for a protected territory. If they don't ,say adios amigo.
I'm going to be in Detroit for a week starting April 4th, and
Paul and Michael can tell you the food and wine are great at my shindigs.
No one has ever consumed any water - bottled or otherwise - at any of my sponsored events.
Seriously, though, I will be in Detroit then for the first birthday and Baptism of my grandson. Should anyone wish to meet and greet and talk about something that might be worth looking into, just send me an email or call.
If you play your cards right and have a deep pocket, I'll even introduce you to my ex wife. She is living off the earnings of her settlement with Little Caesars Pizza who, so she claims, took her identity when they adopted the slogan "Hot and Ready".
--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Hot and ready
You crack me up Richard.
Curves Franchise
To the New Jersey Curves owner. 3-4 years ago, what people were willing to pay for Curves franchise was outrageous as Curves was the "visible" new rage - all overpriced. Many of those people never considered the other costs of operating a business such as rent, utilities, accountant, down to toilet paper...it is not cheap. Those people that bought then will spend a lot of time before they recoop their investment (if it is possible). See 3-4 years ago every women had to join Curves, just like when a new product comes out everyone tries it and sales are higher. Then reality sets in, what is the "real" market?? Today the resale value is much more inline with what a Curves is really worth (2x their net profit). Curves International had no responsibility in forcing anyone to buy a Curves and their franchise contract clearly states the all royalty and advertising fees that will be owed them. That said, having owned a Curves 6 1/2 yrs, I am not a big fan of Gary Heavin as he is not the same man I originally met 6 1/2 yrs ago.
But I will say, I do not expect Curves International to run my business, that is my responsibilty as with any business owner! Have they sucessed in making sure the brand is recognized - asked any woman on the street what Curves is and they know and most men do as well - that is what I pay for franchise fee for BRAND RECOGNITION!
I have all types of people at my CurvesSmart Club and they all come to exercise, even if it is simply moving slowly because that is all they can do even that is better then sitting around. They can simply go to the restuarant 2 doors down from me if they wanted to only socialize! The majority of my members work out hard with the CurvesSmart system which is a great system and work out darn good if not on CurvesSmart. Our members want to - demand to be measured each month!!! Curves is not a fad, just like any gym, it gets the person outside the home (and in our case into a accepting, comfortable, supportive environment) where all of us can find something to do but exercise.
I find it interesting that you feel Curves is always making you buy something, no one can force you. Yes, somethings I get through Curves, but prizes that I give out are cheaper and more personal if I go bargain hunting after the holidays and what fun it is.
That all said, this is America, Gary's (Curves International) contract with the franchise is straight forward. You cannot blame Curves International ...yes probably I assume the initial investment, location, economy somewhat although reports say this is one of the last things a person will give up, expenses that were not considered, initial investment and did I mention initial investment have all played a key factor.
Curves Lawsuit
Uh, I could give it to you for $2.50.
Michael Webster, a franchisee attorney in Toronto, Ontario, who publishes a website on business opportunities and franchises, called "The BizOp News"
PACER filings
That is in Canadian money, which works out to about the same 50 cents. Plus the last time I sent money to a Canadian, all I got was a few shares of a gold mine on Baffin Island.
Recognizing the public demand for these filings, I am now awarding franchises to a select few groups who will be taught my proprietary method of typing the letters "P-A-C-E-R " on a specially-designed ergonomic keyboard (available thru the mandated sole-source supplier) and for a slight additional fee, I will award a dual-concept franchise and show you how to pick up dog poo.
To see if you qualify for consideration for an award of a franchise, see my schedule of upcoming discovery days and see how much remains in your 401(k).
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Re: PACER filings
You seem to make a joke out of all the curves owners who have lost everything because of the disseptive practises of this particular zor. Your a lawyer why don't you volinteer you time to help them instead of joking about them. Where is you compassion? For christ sakes man what type of a human are you?
WWJD? He would read the FDD!
Actually, the joke was about people paying 50 cents per page with no limit for something that can be had online for 8 cents with a $2.40 limit (and a bonus riff on people wasting money buying garbage franchises).
And why do we still have such foolish people? Because they are too lazy to bother reading BMM (or other sites) which have discussed how to get these filings online.
As to volunteering (or as you put it "volinteering")-- again, we have had these conversations before. People will give a slick-talking salesman a $25K (or more) franchise fee and pay another $250K for a build-out. But they are too cheap to pay for legal advice. Then after they lose their money, they are still too cheap to pay for legal advice.
As to "disseptive" practices: has any court or regulator held that this particular company engaged in a deceptive practice? And did "all" of the zees lose "everything because of the disseptive [sic] practises [sic, unless you are the Queen or Webster] of this particular zor?
A bit of logic might serve you well. Here's a plan:
Try tearing yourself away from "Are You Smarter Than A Fifth Grader?" (btw: if you are in doubt, read your own post) and the next time you log onto the internet, try spending a little less time on the celebrity gossip sites and more time on the franchise sites.
My suggestion as to Christ is that you ask Jim Amos, since he finds the "hand of God" in franchising
(Don't tell Solomon about this post, or he will want to nitpick theology on the question of whether the "hand of God" would encompass the "hand of Christ").
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
The concept of the Trinity is not about polytheism
There are not three Gods in Christianity. There is one God with three personae/dimensions - Father, Son and Holy Spirit - all the same person. The hand of one is the hand of all.
--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Veering off to the deep end
Guys,
The trinity, split personalities, glue and polytheism is related to Curves — how? I suspect this discussion is veering off to a full-fledged theistic debate on the Nicean Creed. In which case it may go on for hundreds of thousands of posts.
Mr. Blue MauMau
I know this was written in Dec.-
I had to comment on this Don, It seems to me that all the lawyers on BMM after three years of giving their fantastic opinions and knowlege have turned into comedians. I don't think they are making fun of hurt zees. I enjoy their humor. I think their the bee's knees. (Aussie slag.)
In fact what Don wrote above was hilarous.
To all the hurt zees. Remember laughter is the best medicine. Keep the jokes coming. I love it.
To all the hurt Curves zees, I wish you all well in court. Go zees!!!
Curves and Religion
Mr. BMM, the found of Curves claims a) to be a devout Christian, and b) the Curves is his mission to assist women.
We just want to know when he speaks ex-cathedra, and when it is merely earthly noise. Just putting the discussion in the proper theological context.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
JC and Hands
The concept of the trinity was designed to explain how God the Father could be immortal, but God the Son died for the sins of humanity.
Bit of a hard problem. But the claim was that the introduction of the Holy Spirit can explain how God the Father is immortal and God the Son died, sort of a glue between two different substances.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael & Stephen
I think that Webster has been hanging around with Giles; this sounds like franchisor logic at the ACCC hearings.
And equating the Holy Spirit to Elsie the Cow ?!!
Once I tell Jim Amos about this, you're in big trouble, buster.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Not My Logic
Paul,
Anglicans don't actually accept any of this, we just report as accurately as we can on the state of the problem. Longer discussions require more gin and tonics.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
You disappoint
Richard: Conclusory argument. But who am I to burst your bubble at Christmastime.
Nevertheless... Muslims (and many Jews) make a cogent argument that Christianity is polytheistic.
If anyone can actually explain the official Vatican position (which in this case accords with other Christial denominations), I will give them a dog poo franchise.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
The arguments of Muslims and Jews about Christianity are worth
about what the arguments of Christians and Muslims about Judahism are worth - little or nothing.
One thing seems to be universal in here. We all suspect anyone who uses religion as a business tool of being a fraud.
On the humerous side, however, some religions lend themselves more specifically to certain kinds of businesses, and to franchising in those specific businesses.
Who, for example, weould ever think of buying a financial franchise from an Irish Catholic? Ridiculous on its face. You buy financial services franchises only from Jewish people. You buy a pub franchise from an Irish Catholic. Auto repair and maintenance franchises should only be bought from Protestants - other than Anglicans/Episcopalians. Jews and Episcopalians never fix their own cars. They aren't suited to it and the pay is too low for them. Anglipalians are good at high end new car dealership franchising,yacht brokerage and resort hotels of the Bermuda/English persuasion.
Beyond those obvious affinities, religion is probably an irrelevant consideration when one thinks of investing in a franchise.
--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Polytheism
Neither the Muslim nor Jewish religion tried to seriously grasp with the central problem of God becoming manifest. The Muslim solution is simply to state the Prophet "heard" the word of God. In order to guarantee the veracity or incorruptibility of the word, some theoretical work has to be done. The Jewish solution is to simply deny that any prophet, so far, has heard the incorruptible word of God. Although there have been a lot of good listeners.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Disclosure regime insufficient?
Well, at least now you don't sound like Giles anymore.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Aristotle and the Christian Church
Aristotle was very important to the Christian Church, up until probably Descartes.
Aristotle's theory of universals/particulars was seized upon by the early Church as a method of explaining how it could be possible that the immutable and unchanging could participate in the corrupt and changeable. A concept you need to have if you want to explain how the word of God can have fidelity. Otherwise, the prophets are mere ranters.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Christ recognized the dichotomy between the sacred and the
temporal in his distinquishing between God and Caesar. All things on earth that are sacred coexist with temporal profanities and remain largely unscathed in the mind of decent people most of the time. We are fallible and human, but we have hope. Faith and hope are our rewards for lerning who and what we are and where we fit in the scheme of things.
But for compelling exigencies, most of us are essentially good people.
--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Amen!
"comment field is required" - I said 'Amen' ...... I thought that enough.
PAC..
You dummy Paul, you let out the trade secret!
We will never be able to set up a franchise without a registered trade mark, will we?
I thought we agreed that you were just going to spot them them the "P", "A", and "C"?
Michael Webster, a franchisee attorney in Toronto, Ontario, who publishes a website on business opportunities and franchises, called "The BizOp News"
Steinberg...
LMFAO - Steinberg, you are freggin' hilarious.
You do not know
if there was earnings claims,misrepresentation or puffing material facts. Yes most of the country was not in the best of state a year ago. Yet in many areas of the country a year ago it was still good. Washington state was still strong until this year. It takes more than simple due diligence. A year ago there was not enough information about many zors out there. Many didn't know of BMM or other franchise sites. There is so much more involved in why people decide to buy a franchise. I assure you it wasn't reading the UFOC that enticed them into signing a franchise agreement.
Today it is a no brainer buying any franchise or business is financial suicide.
Re: It takes more than 'simple' due dilgence
Too true; most due diligence has been 'simple', 'cheap' due diligence .. and then there was BMM to educate people to put their hand in their pocket and understand the LEVEL OF RISK. This is a great thread so I would like to disagree just to get some 'attack mode' venom happening - but anyone that disagrees with this is a “bloody idiot”. Keep it coming!
We know what prospective franchisees are told to consider; but it is usually what they don't consider because they were not advised by someone with a franchising brain that there might be some additional, minor criteria to think about before their safe little investment offering turns into something that rips their life out from under their feet and they get left with a nice little photo of the family they used to have.
Merry Christmas from,
Ray & Cher, 2 Sons, 2 Daughters and 15 Grand-Children [ain't my fault]
curves BANKRUPCY
IS IT TRUE THAT GARY HEAVIN AND CURVES INTERNATIONAL IS FILLING BANKRUPCY? i CALLED CURVES INTERNATIONAL AND THE PERSON WHO ANWSERED THE PHONE REFUSED TO DENIE IT AND SAID THAT SHE HAD HEARD THEY WERE THINKING ABOUT IT AS A RESULT OF ALL THE LAWSUITS AND CLUB CLOSINGS. SHE DID SAY THAT OVER 75 PERCENT OF THE EMPLOYEES WHERE GIVEN PINK SLIPS AT THE END OF LAST MONTH. WOW IT LOOKS LIKE HE FINALLY RAN THIS COMPANY INTO THE GROUND LIKE HIS FIRST ONE. WHAT A LOOSER.
How can something so good turn out so bad?
I would love to know if this is the truth. Can anyone verify if Curves is filing for bankruptcy?
I am very dissappointed in Gary Heavin that he has hurt so many zees. I guess he got into selling zees more than taking care of the successful ones. He build a great foundation, branded the name and what is next? I wonder if it is chapter 11. Does anyone know?
NO
Have you read their FDD? As of December 2008 they had:
Owners Equity of $69,040,692 with $14,136,945 in cash and cash equivalents
In 2008 their Net Income was $17,172,904
From 2007 to 2008 they reduced liabilities from $21,911,276 to $12,904,389
Does that sound like they are going bankrupt?
Re: Curves Slowing Down?
Posted October 25, 2008
ACCOUNTING MANAGER
Curves International, Inc.
BBA in Accounting with 5+ years of extensive accounting experience. Knowledgeable in GAAP and accounting processes. Responsible for supervising staff, compiling consolidated financial statements, & various projects. Ability to research, analyze financial information, & recommend improvements to processes. Proficient in Excel and other MS applications.
Email resumes to financejobs@curves.com
Re: Re: Curves Slowing Down?
Anyone who would want to work for Howard Garry Heavion would have to be nuts. Go to franchisepick.com or unhappyfranchisee.com to find out the real story about how curves is going down fast because of lawsuits. It's even been reported that he hasn't paid translators for work operformed on his behalf. He is noting but a fraud who will pay someday soon in the court of law.
Curves to highlight success
More successful in 8 years than McDonald's was in 25 (according to the Ft Worth newspaper), Curves will tell the story of how wonderfully successful it is: Oct 23, see article for details .
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Re: Curves to highlight success
Yes it has been successful but it is going down now and has been since 06. Howard heavins rapid growth of curves will only be remembered for his rapid decline and the hundred upon hudreds of lawsuits file against him by franchises. For those who are interested to find out what is going on with curves go to franchisepick.com or unhappyfranchisee.com. You will get an ear full from owners who have been ripped off and lost thousands from what we believe is a dishonest and unethical business run by Howard Heavin.
Re: Re: Curves to highlight success
But don't you love "your" Hot Air Balloon???!!!!
(Sarcasm intended!)
One of the more difficult due diligence issues is that of
endurability.
It was the initial/near term success of Curves that attracted all the follow on fitness franchises. Nothing attracts competition like success stories. The question then becomes one about the potential impact of Curves hyper populating markets
If you posit a market model in which the franchisor tries to occupy available demand, while attracting competition with its success story, the other brands competitors' store locations then quickly become overpopulation. That is one of the more obvious endurability questions.
McDonalds' success had the same impact in attracting competition, but the daily economics of hamburger retailing is different from that of a fitness franchise. You can more easily overpopulate big ticket retail purchase franchise markets than you can low price purchase markets. Fewer people occupy the demand pool for fitness training than for hamburgers.
That means that saturation will occur more quickly in a higher price retail transaction market than in a lower price market. The McD experience is, therefore, not transferabvle to a fitness or other relatively higher transaction price business.
Now you add that lack of analytical sophistication on top of the fact that investors aren't doing any competent pre investment due diligence AT ALL, and you have inescapable intermediate term model failure.
Curves went bust in its investment worthiness because the Curves model is more susceptible to serious negative impact from proliferation than one would anticipate if one were to compare it to another business model's experience in which the comparability only seems to be there but really isn't.--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Curves Succes
Curves is an interesting success story. It had a dramatic expansion phase, and now it is contracting. From what I can tell, the owners don't understand either the reason for expansion nor the reason for contraction.
Michael Webster, a franchisee attorney in Toronto, Ontario, who publishes a website on business opportunities and franchises, called "The BizOp News", at www.bizop.ca
curves
Well I see that tommy boy hasn't taken up the challenge to provide the 300 names of owners who he says he has sold curves clubs to so that we can verify that they are still happy owners. But you know what we who have owned curves franchises already know the answer. Of course they dont because they were lied to when they bought the franchise not only by the franchisor but by the broker also. tommy boy you are a crook the same as howard heavin. Any one looking to but a curves should check this site out first www.unhappyfranchisee.com and dont believe a word that the snake oil salesmem tommy boy tries to tell you!!!!!