b5media.com

Advertise with us

Enjoying this blog? Check out the rest of the Business Channel Subscribe to this Feed

Franchise Pick

Is Curves for Women a Good Franchise Investment?

by sean on March 7th, 2007

Do you own a Curves for Women franchise? Have you owned one, or know anyone who has? What are your thoughts on this franchise?

Curves For Women is one of the fastest growing franchise companies of the decade, having now topped 10,000 locations. I know in our area the concept seems to have passed the test of time. However, according to Franchise Pundit, 8% of the current Curves franchise locations are for sale.

What’s the inside scoop on the Curves for Women franchise opportunity?

SHARE YOUR INSIGHT. LEAVE A COMMENT.

POSTED IN: Curves For Women

247 opinions for Is Curves for Women a Good Franchise Investment?

  • nirmala pillay
    Jun 5, 2007 at 6:53 am

    I would like to know more information on curves franchaise. For instance if i wanted to buy in the franchaise, would i be able to do so. What are the rules and regulations of the company. I am interestsed, please inform, thank you.

  • Graeme Townshend
    Sep 3, 2007 at 7:42 pm

    Worst investmrnt I ever made. Lost $150K. Virtually no support from franchisor. You’re crazy to even cosider this dying fad!

  • sean
    Sep 4, 2007 at 8:19 am

    Graeme:
    Could you share more about your experience? Do you think the concept works, if the support was there? Why is it a fad?

  • Graeme Townshend
    Sep 6, 2007 at 9:29 am

    Sean,

    Curves places too many units close together, I had 4 within a 5-7 mile radius. My lack of experience really affected my decision to purchase an existing location. Curves tries to convince you that you are working together with the other locations and that you are not competing.

    There is no creative thought as to what marketing strategies to use. Our competitors have much better equipment. Because the equipment is based on a hydralic system the women do not have to work to move the apparatus, thus they tend to get very little resistance and poor results.

    I currently own a Hollywood Tans franchise and feel that I got much better support in every facet of my business. Also I resent the fact that Gary Heavin uses his christian faith to lure people into the Curves concept. At Hollywood Tans, if I need to speak with management, they take my calls, but try to contact Heavin and it will never happen.

  • sean
    Sep 6, 2007 at 11:18 am

    I have toured Hollywood Tans, interviewed Ralph and Ralph Jr. (the founder and president) and worked with Bob McQuillen, the VP Franchising. It’s an impressive organization and a very unique system.

    I can see how the contrast could be very striking.

  • Mac
    Sep 13, 2007 at 1:28 am

    how can you categorize as a fad a company that has grown 10,000+ franchisees?

  • Graeme Townshend
    Sep 16, 2007 at 3:05 pm

    Because once you have owned one you’ll see what I mean. People are not signing up for the Curves program, because they are getting better deals and trainging at their local gym. The equipment allows you to cheat on your workouts and therefore you do not get the results you are looking for. Membership continues to plummet, at least in Maine. There is a Curves on every corner. The only one making money is the franchisor who sells the 10,000 plus locations. They’ll tell you you are not working hard enough, I have a Hollywood Tans franchise and I receive an incredible amount of help. You end up competing with every gym in your trade area and 3 to 4 other Curves as well. Open one up and you’ll see what I mean.

  • sean
    Sep 17, 2007 at 11:03 am

    Graeme said: People are not signing up for the Curves program, because they are getting better deals and trainging at their local gym. The equipment allows you to cheat on your workouts and therefore you do not get the results you are looking for.
    Graeme: What do you mean about “cheating” on their workouts? Is it that the routine never gets any harder? I’m interested.
    Someone in the industry made the point that Curves & others similar did a great job getting couch potatoes off the couch, but they are too limited to retain members. Some will drop out because they’re not committed to health. those who are committed will graduate to a full gym. Do you agree?

  • sean
    Sep 17, 2007 at 11:17 am

    Mac asked:how can you categorize as a fad a company that has grown 10,000+ franchisees?
    Mac: A fad isn’t defined by the growth, but what happens once the growth occurs. Is it sustainable? They may have sold millions of Pet Rocks, mood rings and leisure suits, but did they make a lasting contribution or were they a flash-in-the-pan. When investing in a business, it’s an important question. If it’s a fad, you better get in early, make your money, and get out before it busts.
    See my question above. This is the concern. Did Curves appeal to people initially, but is it too limited a concept to be sustainable? What’s your opinion?

  • Mac
    Sep 18, 2007 at 5:07 am

    I just don’t know, I’m trying to work it out but I certainly see that the circuit can get boring after a while (I’d be bored to death), but in the US Curves seem to have won the ‘test of time’, haven’t they? They’ve been around for ages!

    How fail to see how you can compare Hollywood Tan with Curves though, different business, budget, etc… Comparisons should be done with Ultimate Woman Fitness, Contours and so on.

  • Graeme
    Sep 18, 2007 at 8:40 pm

    The Curves equipment is based on a hydraulic system, just like the shocks on a car, in fact, they are automotive shock absorbers, just painted white. Being a former professional hockey player, I am very familiar with training and when I tested the equipment, I got a decent workout. For the equipment to function properly the client has to give a good effort (the harder you push, the more resistence). Most of the women who use Curves do not give maximum effort. That’s why weight training with a personal trainer is more beneficial, because you can’t fool the equipment and cheat (you can either lift 5 pounds 6 times, or you can’t).

    That’s why the client retention is so low. Some women do acquire an interest in joining a traditional gym, but that is not good for the person who owns the Curves. Although it is quite honorable to encourage women to get up and be active, you still have to pay your bills and having dozens of clients leave is not a favorable result for a business owner.

  • sean
    Sep 19, 2007 at 10:53 am

    Doesn’t Curves and the others offer personal training for an additional fee? This would seem to be a no-brainer as both a way to increase incremental revenue and retention.

  • Graeme
    Sep 19, 2007 at 6:05 pm

    No, the monthly membership fee covers the personalization of the workout. You get a consultation and measurements done for the sign-up fee, which is usually waived 90% of the time. The attendant is the personal trainer, and is simply there to encourage the clients to make it through the workout.

  • Franchise Dreams Becoming Nightmares for Many Fitness Club Owners
    Sep 25, 2007 at 9:40 am

    […] reading: Is Contours Express a Great Fitness Franchise? Is Curves for Women a Good Franchise Investment? IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? Will the REAL Butterfly Life Franchise Please Wave Its […]

  • sean
    Sep 25, 2007 at 10:00 am

    I think you’ll all find this post very interesting:
    Franchise Dreams Becoming Nightmares for Many Fitness Club Owners

    Nearly 60 Contours Express franchisees are alleging fraud and breach of contract. There’s a link to the Petition for Damages document that has not been circulated publicly until now. They also complain of unrealistic start-up costs and breakeven projections.

    Question for those who have opened Curves franchises: In your opinion, what is the REAL initial investment number they should be using? What was the actual cost of opening your facility? What was the actual working capital (dollar figure) needed?

  • Contours Express Franchise Owners Allege Fraud, Breach of Contract at FranBest Fitness Franchises
    Sep 25, 2007 at 12:30 pm

    […] Is Curves for Women a Good Franchise Investment? […]

  • Contours Express Franchise Owners Allege Fraud, Breach of Contract at Franchisor Marketing
    Sep 25, 2007 at 12:36 pm

    […] Is Curves for Women a Good Franchise Investment? […]

  • Contours Express Franchise Owners Allege Fraud, Breach of Contract at Franchisee Marketing
    Sep 25, 2007 at 12:46 pm

    […] Is Curves for Women a Good Franchise Investment? […]

  • Fitness Franchise Owners Having A Fit: Allege Contours Express Defrauded Them at PIGASYS
    Sep 25, 2007 at 12:49 pm

    […] Is Curves for Women a Good Franchise Investment? […]

  • Franchise Dreams Becoming Nightmares for Many Fitness Club Owners at PIGASYS
    Sep 26, 2007 at 1:38 am

    […] reading: Is Contours Express a Great Fitness Franchise? Is Curves for Women a Good Franchise Investment? IS BUTTERFLY LIFE A GREAT FITNESS FRANCHISE? Will the REAL Butterfly Life Franchise Please Wave Its […]

  • DonBeau
    Oct 17, 2007 at 10:54 pm

    Comment on Curves. As a franchise consultant for many years I was contacted by a number of clients to give my professional opinion on Curves. This was a few years back but I did a regional survey of owners and could not find any validation. Most got a lot of spinning in the begining but the concept just didn’t work. I also did a national survey an found the same. Why then have they grown so well? One key is that the initial investment is relative low and most put up cash for the franchise and all were of course women and most could survive as they were busy and had in most cases a spouse income. I then did a franchise evaluation of the system and it failed in almost all areas. This system rates how well the zor provides the synergy of the seven wonders of franchising. What the group can do as a group that can’t be done individually. This concept is just among many today that the zor takes most the earnings. Franchising is at a new low today as many zors and businesess are taking advantage of the middle america. (another story)

  • Pkj
    Oct 30, 2007 at 10:58 am

    I am the owner of a Curves. I have owned it for 5 years. I think a large number of people, including myself thought that this was the kind of business that would run itself and all we had to do is collect the money. Well, it is not that kind of business. You can make money if you work at it. I find that Curves Corporate offers a lot of help and encouragement. I am part of a great Co-op and we are not competing with each other. We meet monthly and come up with many ideas, promotions, and advertising ventures. We strugle sometimes but I think that is part of every business.

  • J A Berberick
    Oct 31, 2007 at 7:49 am

    I have owned two Curves franchises since 2002. Both of my franchises are profitable and have been profitable since 2003. The franchisor provides very good support and they have fulfilled all promises made in the UFOC. I agree that they have oversold the number of franchise units in the US and this is causing some Curves clubs to close due to lack of market. Also, some franchises were sold in small communities that did not have sufficient population to sustain the franchise long-term, and those clubs are also closing. Like any business, a Curves franchise requires continuous marketing and good business management.

  • Kunst
    Nov 4, 2007 at 6:18 pm

    I will second (or 3rd) Pkj and J A Berberick. Yes, there was a fad factor involved in Curves’ growth. For a while, it was easy, too easy. Yes, they sold too many Curves, but buyers went in with their eyes open, and most did well for a while. The problem is human nature: people don’t really want to exercise, and that is doubly true of Curves’ target market. Women sign up, come for a while, and then stop coming (true of all gyms — at least Curves calls them). On the other side, most Curves owners had little if any business background going in, and while that may not have mattered much a few years ago, it’s significant now. This is no longer an easy business. You can’t just sit back and let the money roll in. Some Curves are going out of business, and that will be more true if the economy turns downward. The ones that survive and thrive will be the ones with committed and dedicated owners, with a well-trained and managed staff, that actively help their members improve their heath. Personally, I think Gary Heavin has done a great job so far. He has stepped up to the next level several times (I am not in sync with his religion, and that hasn’t been a problem). I hope he can do it again, because these are challenging times.

  • Tessie
    Nov 12, 2007 at 4:39 pm

    Do franchise owners pay a flat fee (to Curves)? Or a percentage?

  • Curves owner in CA
    Nov 13, 2007 at 10:38 pm

    I agree that Curves expanded much too quickly and were too aggressive in dividing up franchise territories. Before I bought the club, there used to be a competing Curves in all four directions within 1-3 miles from our location, each club cannibalizing each others’ businesses and overspending in order to “up” the others in appearance, equipment and hours. Two of them have gone out of business within the last 18 months, and one is struggling. I think Curves hype hit its’ high about 2-3 years ago, and since then there’s been lots of disappointed owners. Personally, I think the franchisor was a bit slow in reacting to the market and supporting the franchisees during the down-turn, but I think they are doing a better job now, and the business will stabilize.

    My experience with the equipment and attrition rates are very favorable. I think Curves has two key strengths: 1) it’s short and convenient (30 min), 2) well run clubs foster a real sense of community among women. Whether the equipment lets you “cheat” is not a very relevant question for most members. Many of them would not be working out at all, or even worse, might be injuring themselves with improper use of weights. Better they work out less strenuously, but still work out, than to just quit (experience of most of our members with other gyms). A more relevant question is, are your members consistently coming and working out? The two key factors I mentioned definitely help increase consistency and lower attrition — better than most “full” gyms in the industry.

  • Money Baffling
    Nov 20, 2007 at 9:51 pm

    Still waiting for some answers to questions in this line previously asked regarding money and franchise ownership. One question from Sean was,
    “Question for those who have opened Curves franchises: In your opinion, what is the REAL initial investment number they should be using? What was the actual cost of opening your facility? What was the actual working capital (dollar figure) needed?”
    My google search lead me here and these are the questions I’m most interested in today…although I found the entire conversation enlightening.

  • Pkj
    Nov 21, 2007 at 12:06 pm

    Well, to answer your question, since there are no new territories to buy, you will have to buy a resale. To open the doors today would cost about $70,000 then the membership income should be given a value.
    Working capitol needed will be dependant on the income that is generated by memberships minus the expences. It would be hard to put a dollar figure on that because depending on what part of the country you live in the cost vary dramatically.
    My suggestion would be to look at their books. DON’T ASK HOW MANY MEMBERS! Look at income and outgo from bank statements. See if there is anything left over. Ask if the owner worked at the facility, if so how many hours. Most to of the Curves are run by employees and as good as they are (or are not)they do not care about your wallet as much as you will. How much advertising did the previous owner do? This is important, because if the owner just sat in club and did little to nothing to bring in new members, then you’ll know there is a possibility for growth. When looking at bank statements ask about any deposits that are unusual. The owner might have subsidized from a personal account. Then make your decision. Good luck

  • Scott
    Nov 28, 2007 at 12:28 am

    I have worked with over 300 Curves locations and have noticed a dramatic fall in closures and owners just wanting to get out. It peaked around 2004 and has been in a steady decline ever since. I would not recommend investing in a Curves franchise, especially buying a location from a previous owner. The reason why they are selling is because of declining membership base, due to various reasons. Since they can’t lose any weight, it’s become a social club for women. You have set costs per month no matter how many members you have.

  • Patricia
    Dec 6, 2007 at 10:18 am

    I consulted with Franchise Foundations about buying a Curves franchise and they steered me away from it. Too much competition, high turnover rates, long hours and the employees that you hire to help run the business are paid close to minimum wage, so they’re always quitting or now showing up. There’s a really good article on their website at: http://www.franchisefoundations.com/articlesiibuyingafranchise.html#Bookmark1

  • sean
    Dec 6, 2007 at 1:44 pm

    Patricia:
    There are a number of good articles on attorney Kevin Murphy’s Franchise Foundations site. His own foray into franchising was pretty illuminating.

    On a completely unrelated subject, he also has a fascinating story about his Vietnamese wife Linh Murphy’s family history…
    Sean

  • Donna
    Dec 7, 2007 at 11:20 pm

    My husband and I are considering a purchase of a Curves franchise that is losing memberships. However, the owners have been absence from the business with little or no investment in the last 3 years. While in the last 3 years this Curves location has changed my life with weight loss and physical endurance. Both my husband and I have successful sales careers that we believe can bring about a new prospective to the location. Can my passion for Curves and my passion for sales bring success? We think it can!

  • Patricia
    Dec 8, 2007 at 9:19 am

    The history of second-hand franchises that are losing money (or are barely breaking even), and are sold over and over again to persons who think they can turn them around, is pretty consistent. They continue to lose money under new ownership. I know a couple who bought a second-hand Curves. She had a strong sales background and he was a management consultant. Perfect background, but history didn’t change. After a year, it’s still losing money and they’re now trying desperately to sell it. They say they each put in about 70 hours a week and leaving their former jobs to take on a Curves was the biggest mistake they ever made. Passion, as the prior poster notes is good. But common sense is even better. Read what Mr. Franchise has to say at http://www.franchisefoundations.com/articlesiibuyingafranchise.html#Bookmark1

  • sean
    Dec 8, 2007 at 12:28 pm

    Patricia said: The history of second-hand franchises that are losing money (or are barely breaking even), and are sold over and over again to persons who think they can turn them around, is pretty consistent. They continue to lose money under new ownership.
    What Patricia is referring to is a practice (or phenomenon, depending on whether it’s intentional or not) in franchising called “Churning.”

    Say a new franchisee invests $250K to open a sparkling new location, new eqpt, signage, the works. After an optimistic opening, their sales volume can’t support their expenses or debt service, and they’re forced to sell for $125K. The franchisor is paid a “transfer” fee (Say $10K in this case) by the new franchisee, who thinks he can make it work since his investment was lower. But he can’t, so he’s forced to sell it for $25K just to get out of his lease and franchise obligations. The franchisor gets another transfer fee and the new franchisee is able to operate at a low volume because he/she got it for a song.

    The first franchisee loses $125K+
    The second franchisee loses $100K + $10K
    The third franchisee has $25K + $10K on the line

    The FR received an additional $20K in transfer fees & does not show any failed franchises on his record since the first two franchise failures are listed as “resales” or “transfers.” If this scenario occurred 100 times, 200 franchisees could have walked away at a substantial loss yet the franchisor could boast that they’ve “never had a store close or fail.” As many exiting franchisees are required to sign a confidentiality or non-disclosure agreement, you may never know that this is going on.

  • Anita
    Dec 9, 2007 at 4:32 am

    My wife and I have owned 3 Curves franchises over the past 5 or 6 years. 1 has been highly profitable, 1 slightly profitable and 1 barely bread-even. We have successfully sold 2 of the clubs and have assisted the new owners in the transition so that they continue to be successful. Of those 2 sales, 1 of the new owners is doing incredibly well and 1 is doing so-so. Curves is a very simple business — the revenue from membership is straightforward and the costs are also pretty easy to get your arms around. There should really be few surprises when you buy a franchise from an existing owner. Check out the lease to make sure it is transferable and the can’t be increased immediatly on transfer. Look at the franchise territory. If it is in a very small town, growth prospects are minimal but in bigger areas there can be good upside if you market and manage the club better than the past owner. The new Curves Smart equipment is being installed soon at my remaining club and the buzz has been very positive. I believe that rollout will re-energize these clubs and increase their value far more than the investment required to install the new equipment. Do your homework, but I would not rule out investing in Curves.

  • Franchise Pick’s Most Volatile Posts of 2007: A Wrap-Up
    Dec 10, 2007 at 11:30 am

    […] Is Curves for Women a Good Franchise Investment? March 7th, 2007 - 35 Comments […]

  • Current Curves Owner
    Dec 16, 2007 at 9:13 pm

    We bought our club in 2006 as a resale and never looked back. It was one of the best investments we have ever made. The previous owner did not work the club and relied on employees to run it for her. I can tell you first hand that having your employees run your business and you having no hands on is not in your best interest. We did not buy our club to get rich quick like most others thought they were doing. We purchased it so that the women in our community would have a great place to go workout and enjoy themselves with no men, no makeup, no mirrors!
    With the new CurvesSmart up and running in a few states, it truely is the best workout you will ever get! You will not get bored and you will always be pushed to do more based on your current workout level. It is like having a personal trainer on each and every machine! If you do purchase a Curves franchise and they don’t have the CurvesSmart, I encourage you to get it as soon as possible!
    Don’t rule out purchasing a Curves franchise! Talk with the current owner and get all the information you can and run with it if the numbers fit your budget. YOU WILL NOT REGRET IT!

  • Chris
    Dec 17, 2007 at 2:35 pm

    My wife and I purchased a Curves re-sale in May 2005. Lets just say it has been a real learning expierence. I would never purchase a Curves franchise in a small community. There are about 3000 people in our Curves territory. You need a lot of people to draw from because there is a lot of turnover in membership. Women are always quitting for one reason or another and you need to be constantly bringing in new menbers. If you don’t have a lot of women to draw from you will exhaust your new memberships quickly. I feel that Curves was greedy in selling Curves franchises in these small communities. But when Curves was going good they could sell in these small communities because people wanted a franchise and Curves was not going to deny a sale. Looking back we should of been smarter and done more research before we bought our club. The Curves work out is good for women who don’t want to go to a more traditional gym but it will be hard to keep these women coming day after day.
    We’ve had our Curves for sale for over a year and have no offers. I’m afraid that we will be forced to close our club. It just isn’t enough income to pay the loan we took out to purchase the franchise.
    If you are looking at purchasing I would research, research and research the club and area. Maybe even work at the club before purchasing to get an idea how the club is run and the mood of the members.

  • Kylie
    Dec 17, 2007 at 6:24 pm

    Current Curves Owner: Would it be possible for you to contact me? I am in the process of developing a new location and would like some input.

  • Jose
    Dec 22, 2007 at 7:17 am

    Opening any womens only at this time would be a bad decision. Especially a Curves. Beware of the owners of curves who tell you they are doing great, It is a lie. Their PRIDE will not let them tell you the truth. Many owners are not willing to admit they are just above Bankrupcy and the 2nd morgaga on the house is due. Truth be told if they told you they were doing poorly they could not resell there poor business to someone ignorant of the downturn in this quick money operation the Curves company created for them selves. To put Frosting on the cake now they sell Trash they call food, Candy bars they market as Curves food, making anyone who eats them FAT. Please see for yourself. Read the ingediants. Lets be Honest people, over 1000 curves acroess the nation have closed yet you hear nothing about it. If you want the facts look in an old phone book 3years ago and look at a new one and count the Curves that no longer exist in the phone book in you area. It will open you eyes. One last thing/ because a curves is open does not make it profitable. many of the owners are stuck into 5-10 year franchise agreemtns and leases that they would have to file Bankrupcy to get out of, so it is a matter of time before the name Curves no longer exists. it will be a “Remember when”. Many of the ones going out of business have donated the quipment to the local city center where people can use them for free, I did. And now all the seniors are quitting curves and going to the senior center.
    Kylie do not waste you tiem trying to contact the curves owner he will never speak negative of his company nor would you speak negative of your baby.
    Please listen to the people who have lost and do not make the same mistake, stay away from all womens only franchises at this time, it is not worth it.
    Good Luck.

  • pkj
    Dec 23, 2007 at 1:43 am

    Well, Jose has got his facts incorrect. Yes, there have been Curves that have closed but it has not been 1000, it was announced at convention that 548 have closed in this last year. That is about 5% of all the Curves. There will probably be more so if you are looking to buy one PLEASE look at the bank statements and question all income (deposits that are unusual). When a Curves closes the members go to a neighboring Curves and makes the remaining club(s) stronger. A weak club that had 100 members closes, about 80% of the members will transfer. That is a $2400 -3600 per month more income for the neighboring clubs.
    Curves will let owners out of their contract, so none has to stay in this business. Curves does require that all equipment goes to other Curves owners. I don’t know if Jose has had a bad experience but remember there are two sides to every story
    .
    My membership continues to grow after 5 years and although I am not making an enormous income but I can bring home about $4000 a month if I work the club about 40 hours per week. Not bad considering I do not have a college education and I spent about $50,000 to open my doors. I am also very excited about the new Curves Smart coming this year. Our members are very excited, old members are coming back. I believe that Curves offers the best and most important 30 minutes of the members day
    If you are considering buying a Curves please do your due diligence. Go to other Curves owners and ask questions I think you’ll be pleased with the warmth of the owners they are incredible group of women and men.
    Good Luck

  • Jose
    Dec 24, 2007 at 9:44 am

    pkj must work for Curves because he thows alot of numbers around. These are not facts but wishes. Most of all Curves members of closed clubs do not go back. This 80% is not factual but numbers some bean counters like to throw out there so everyone thinks Curves is such a good investment. No MR PJK I am not emotionally hurt by your comments, I am not a former curves owner I am tired of these franchises taking advantage of the little guy with the 401 K. Working there whole life to make nothing once Curves promises fail them. By the way $4000.00 a month is nothing. A good business will generate more than that with no college degree. Lets not compare owning a business with someone who has a JOB. The Job person with a degree in a good field makes more than $4K month with benefits, no rent no headache. The mere fact that PJK brags about how he is making more money on Left overs from failed Curves does not surprise me. The turnover rate is so high he cannot get more New members. It is sad that the owners who lost everything when their Curves went out of business are subject to this abuse with FACTS. The FACT is the Curves should never have closed over 500 or more clubs and every year they have a “New Thing” Last year it was something. I guess what they have is not Good enough.
    If you want to buy a womens only franchise. Don’t. Save your $50K
    You will thank me for it. Invest it into a managed money account with Charles Scwabb, Now your making money and not losing.
    That’s good advice take it and do your homework.
    I know you will do the right thing.
    If you agree post me an email.

  • Patricia
    Dec 24, 2007 at 10:37 am

    Jose makes some very valid points. The research I’ve done (and I’ve considered almost a dozen different franchises from different companies at this point) indicates there are major flaws with not only the Curves business model, but also the other “womens only” fitness frnachises. The high franchise owner attrition and turnover (resale) rates, lawsuits, etc. all support this business metrics flaw. I’m not being sexist (I’m female), but it appears Curves (and others) constantly need “new blood” i.e. new members to replace those who have left the club. The profile of a woman who joins a Curves or Curves-type club is a person that doesn’t stick to a regular exercise program. They start with a bang, but end in a fizzle as other priorities dominate and replace their Curves membership. Jose also makes a good point about current Curves owners overestimating their “success” with the franchise. My personal experience bears this out. A lot of franchise owners start out saying they’re doing really well, “very profitable,” etc., etc. But when you start questioning them for specific numbers (after learning their Curves is for sale, “Oh, by the way, my Curves is for sale, if you’re interested”), the story changes. The lucky ones are making like $2,000 to $3,000 a month and are working 60-plus hours a week. That calculates out to $8 to $12 per hour, with no overtime pay, benefits, etc. All the lucky one’s have done is bought themselves a close to minimum wage pay scale job with a lot of headaches, financial exposure and zero return on their investment. And the majority of owners who are not in this “lucky” category? It’s just not a pretty picture.

  • Jose
    Dec 25, 2007 at 7:39 pm

    I thank You Patricia for being open minded and Honest and doing Your Homework. I am a business owner and am very successful but not without hard work. Many of my close friends are Multi Millionaires and all started with their own business not a franchise. I have spoken to several owners I know of Curves, Contours, Slender Lady and Ladys Workout Express, all of which went out of business and I assure you they worked 60 hours a week lost there savings and more. The number one reason is ( No new members, boredom and the high costs of Rent and staffing.) Not one of them wanted there business to fail, but one interesting comment from the owners of Curves and Contours was not real support from a marketing prospective. Only a commercial here or there in Dec or Jan on Lifetime for women channel but thats it. No local commercials targeting the area in which they reside and do business. The commercials were ran on a national level so that Curves and contours could justify the $250.00 extra monthly advertising fee they made profit on which equates to about $2.5 million yearly in Gross revenue for the franchisor not the franchisee. If you want additional advertising you must purchase it on your own and all ads must be approved by the franchisor no matter how bad they are or if they even work.
    When you decide to close or relocate to tap into a better market you cannot because you are locked into an area they set up for you regardless if the area has been tapped and there are no new resources for you.

    Supply and demand dictates that the more Curves you have the less the demand and the less you make. This is the case with womens only clubs in general. Again invest in a sound Managed Money account with Charles Scwabb and you can have peace of mind knowing your money will grow. Never invest your savings into a business investment. Borrow the money from the bank and let your credit do the work for you, if you have bad credit do not go into business without proper financial counseling, its hard work.
    I hope everyone makes the right choice.
    Wishing you Health and Wealth.

  • pkj
    Dec 26, 2007 at 12:00 am

    I was not boasting about my income, just being honest. My membership has increased by about 30% this year which tells you that I was making 0 a year ago. I expect my income to go up by 30% again this year. The difference between this year and the year before is my attitude and my efforts in marketing. I am not trying to talk anyone into buying a Curves, I do not work for Curves International, I am not a MR either. There are problems to be sure with all that said for a small investment you can buy your own business. I have looked into many franchises and for the investment Curves is as good as most.
    Does Jose work for Charles Schawb? Investing your money is no guarantee either.
    Buying a franchise is not for everyone.
    But there are several of us that like owning a small business calling the shots and as in the case of owning a Curves, helping people get healthier.
    I wish everyone on this message board a healthy, happy and prosperous New Year
    (including Jose)

  • Jose
    Dec 27, 2007 at 7:10 pm

    Sorry about the MR. Mrs PKJ.
    I was not aware you were female by the initials. I assumed!
    Of course all Curves are offered to women only owners, not men. I forgot that. Well either!
    A smart investor or business person will not gamble on if’s or what or good intentions. Attitude is no excuse or reason to buy a franchise. Some of the best people who have lost money with curves had great Attitude but now a bad attitude. Attitude does not drive the market or demand. If that is the answer then Good Luck! And anyone reading this should know that a Managed account is safer than any Mutual Fund. For the record I do not work for any investment firm, I have of money invested so I know what makes money. Not Curves. Or any other womens Only franchise.
    The statement I estimate a 30% increase on my investment for Pkj is just pure ignorance. Maybe if you have 100 membes 30 would be 30% but still not enough to pay yourself. and the comment you made Zero ( 0 ) is a little scary.
    Quote from previous response PKJ said
    ((((( I was not boasting about my income, just being honest. My membership has increased by about 30% this year which tells you that I was making 0 a year ago. ))))
    Sorry I call it what it is, no one can make such a narrow prediction based on the fact that 564 Curves a year fail at an astounding 5% rate. That is quicker than the Curves growth rate and for one person to say they will beat these facts is impossible especially owning a franchise with this loss. I predict (based on facts) that at the current fail rate from the 2006 report of a net loss of 548 franchises yearly+/- 10. All curves franchises will close in approx 4 years. This is based on the fact that the fail rate is exponential in nature as the growth rate. This fact is real. Exponential Growth tends to occur after the 15th franchise is sold. In the case of curves they have already closed in my research over 1000. franchises. Not only the 564 in 2006 but in 2004-05. Please read Pkj fact she quoted,
    (Well, Jose has got his facts incorrect. Yes, there have been Curves that have closed but it has not been 1000, it was announced at convention that 548 have closed in this last year. That is about 5% of all the Curves.)

    Now the truth be told 548 curves closed. 548 curves owners lost their money, this last year alone!! WOW!!!
    Now if anyone can beat the facts , I will forever keep my facts to myself. This forum is to disiminate good info in my opinion based on the facts not feelings. So once again. I state to all reading and to Mrs PKJ Good Luck on the Gamble . Thanks for your well wishing but I do not need it, I do not own a Curves and plan to advise others not too also, and if you do, Dump it before you loose. and do it quickly before people find out what a bad investment it really is, and please be wise and do not listen to PKJ. It is clear her response is in her best interest and not the many. If Curves were a good investment I would be the first to admit it, but it is not such be the case.
    Happy New year and Best to all 350 million AMERICANS. I wish you a prosperous and Wealthy Future

  • Hope
    Dec 29, 2007 at 9:22 pm

    I appreciate hearing both sides.. those that are current owners (doing well or not doing well) and those who are cautioning potential Curves owners or giving us things to consider before making the decision to get into the business or not get into the business. I am considering buying the Curves that I work at and I am thankful that I have a place to gather information so I can make an informed decision… and to clarify I am aware that results vary and after weighing the pros and cons “I” have to decide if it is worth the risk.

    I think fitness clubs in general are a hard business to own or be successful in because a lot of people don’t really like working out so there is always going to be turn-over. I have seen several (Beyond Fitness, Peak Fitness, Curves etc.) change hands or close. I have a business degree and am currently studying to get my personal training certificate so health and wellness is my passion. I think attitude is important to success.. in business/career and life in general. You have to be in the right business.. something that is your passion and also gets you a return on investment.

    I hope people will continue to contribute and make this a place to not pass judgment on other peoples opinions or ideas but truly share their real life experiences, the facts and help others.

  • Jose
    Dec 31, 2007 at 8:15 pm

    Great comment Hope. It is great that you are passionate about helping people. I think is admirable that you have taken the time to get your Certification but Helping people and running a business are 2 different animals. When you consider buying a business you are diving into a whole new realm. Now you are the one who is stuck into a lease and paying your trainers when money is tight. I would strongly advise you to take the time and work with people training them before buying a Curves. The reason is, once you see how quality workout equipment biomechanically works with the human body you will realize that the Curves equipment ( Made In Mexico at a cost of Only $3000.00 ) will not be your first choice of fitness equipment. Secondly investigate the downturn in the trend and realize that you are buying a dieing trend, therefor your more likely to lose than win. Rule number one in making money. Always follow the trend when it begins and get out before it stops. It is like the Stock market you might say. If you go on the web site bizbuysell.com you can view many Curves franchises selling for as low as $20,000.
    Infact the gross receipts are not much more than $75,000. Year for a good location. After paying rent and all the bills, You realize you just bought a Job that pays $8.00 Hr no benefits and headaches. One last thing. Sometimes the money is not in the industry you love so do not invest too much for love, invest for profit and work doing what you love part time. Once you build you wealth you can commit full time without the worry. God Luck

  • Cassie
    Jan 2, 2008 at 6:22 am

    The comments have been extemely informative and interesting. I am considering buying a Curves franchise - do the problems relate to other countries eg: Australia where the franchises are more evenly distributed and not 1 on every corner so to speak.

  • Jose
    Jan 3, 2008 at 10:40 am

    Cassie it typically similar all around the world with Curves and other franchises. The Franchise is pushing itself into new markets on the fact that they ( at one time had!!!!!!) 10,000.00 Franchises. Not the case anymore. This hype will draw many into the buiness in other countries before they realize they have been mis-informed. Please request a UFOC and you will find out over 100 pages in the UFOC are names of franchises that have either gone out of business in the United States or closed. If fact the list of Curves franchise that went out of business makes up more of the UFOC than the agreement itself! Do not rely on data from a new country it may not be accurate for a long term evaluation of the investment. Try and get a UFOC from a US market and you will see that Thousands of Curves have gone out of business.
    This trend will come and go in all markets so be very cautious before buying a dieing trend.

  • Donna
    Jan 3, 2008 at 9:50 pm

    It’s almost been 1 month since I began reading the comments that have been both positive and negative about pursuing a Curves franchise. It’s certainly been a wild ride since I first shared my husband’s and my intent to purchase a currently owned franchise. Just yesterday we put down a deposit for the franchise and we are both very excited. Jose I am sorry you have had such a bad experience. I have a great peace in my heart and soul to move forward. Sometimes you just have to take a leap of faith and build your wings on the way down!

  • Patricia
    Jan 4, 2008 at 11:14 am

    Donna, are you nuts? After reading about the reality of what’s going on with Curves, the sound advice offered by Jose and others - you’re still moving forward? Jose, by the way, wasn’t a Curves owner - he’s just giving good advice. Taking a leap of faith and hoping to build your wings on the way down? That’s just another definition of “suicide.” I guess Mr. Franchise at http://www.franchisefoundations.com is right. A lot of uninformed persons plod ahead making franchise investment decisions based on emotion and in the face of facts that foreshadow their financial downfall. I’ll bet you haven’t invested a dime in third party professional advice. If you had, they’d tell you to keep your money and run. All of this is just too incredible to believe. - Patricia

  • Jose
    Jan 4, 2008 at 4:11 pm

    Donna I believe I have been forthright in giving you unbiased advise, not based on emotion. I have placed before you evidence and even web sites to intelligently make a business buying decision and you make an emotional decision. Your emotional purchse proves without a doubt why Curves will not survive long term. Curves should never sell a franchise to someone who does not understand how businesses are operated. Your statement Leap of faith only applies to a slot machine! and the comment build your wings on the way down only applies to those foolish people who go bungee jumping with no bungee. Unfortunately you will be another statistic that no one will hear about, because I can garuantee you will never admit when you go out of buiness only how much money you ae making. I respect that you sound like your faith in God is strong, but your knowledge of scripture very very weak, and your ability to make a good business purchase severly hampered by your emotions.
    To those reading this blog, Do not make this mistake, do your homework and investigate the facts before committing financial suicide. Your Better off investing your hard earned cash than buying a iffy franchise that statistically will not make money. Also I can tell you many of the Curves owners are exactly like Donna!
    Thank you Patricia for your common sense.

  • Donna
    Jan 4, 2008 at 11:10 pm

    Patricia and Jose,

    It’s unfortunate that both of you make an assessment of my business sense and professional abilities to make a good decision based on a couple of paragraphs I have written with regards to my enthusiasm and faith in myself and my husband to “win” with a Curves franchise. I am a retired corporate executive with a major Fortune 100 company, presently working on a second career making over 6 figures and now investing in a Curves franchise. The adjectives you both so quickly discribed me with “nuts” and “my knowledge of scripture very, very weak and my ability to make a good business purchase severly hampered by my emotions” was very inappropriate based on what little knowledge you have of my abilities, past performance and capabilities. Negative attitudes never win in the business world. Another quote I send out to both of you is this, “Surround yourself with people who BELIEVE you can.” You definitely are not in that circle. I am sorry that such negativity appears to come so easy for both of you. Jose, I have enjoyed a very successful life and career and do not intend to stop now. You have magically “fueled my fire”! Thank you!

  • Hope
    Jan 5, 2008 at 12:32 am

    I was wondering what current franchise owners think about the franchise agreement. It seems pretty scary to me.. like they can just change the rules on you and that could lead to unforeseen expenses. Just wanted your thoughts. I have included a link to the franchise agreement but of course I am not sure if this is the most up to date version either.. after reading the non compete part it looks like I won’t be able to pair my personal training with the business… and I am also concerned that I will have to buy the new smart equipment which according to the current owner it will cost $5000 but she also said it was not required but if they can change things it might be required later… like right after I buy into the business. Don’t get me wrong from what I have heard/have seen it sounds like a good system but I am not ready to do this and still make a profit.

    http://www.freefranchisedocs.com/curves-international-Franchise-Agreement.html

  • sean
    Jan 5, 2008 at 7:44 am

    Donna:
    On FranchisePick.com, we deal with some very volatile and emotional issues. Add to that the entrepreneurial spirit, egos and the potential for unintended connotations when strangers are dashing off quick posts to one another. Sometimes you have to step back, take a breath and realize this isn’t personal. Keep in mind that any warnings you receive are with your best interest in mind. No one here is getting a commission by you NOT buying a Curves franchise.
    I have 20 years of experience putting together programs, marketing programs, sales scripts and manuals for those who SELL franchises. I can tell you that several statements you make would have an unscrupulous franchise salesperson salivating. For example:
    When you say “my enthusiasm and faith in myself and my husband to “win” with a Curves franchise…”, the salesman hears Cha-ching!. When the sidebars on the site reappear (they’re down temporarily) read the comments of all the people who lost $250K plus with concepts like eBay Dropoff stores iSold It, Snappy Auctions, 30 Minute Fitness concepts, Quiznos, The UPS Store. Yet many continue to sell franchises. How do they accomplish that? Because there are enough people who think they can “believe” their way to success, even with a concept that’s not working.
    “…I am a retired corporate executive with a major Fortune 100 company, presently…making over 6 figures…” Cha-ching! The unscrupulous salesman LOVES the corporate exec that boasts of success in a large company, achieved with departments, secretaries, memos, quarterly projections, budgets, performance evaluations, sales and marketing departments, etc. Why do you think they target people with “no health club experience.”? The same reason the Army recruits 18 and 19 year olds: They think they know everything, can do anything they set their minds to, while simultaneously are willing to follow orders. Your experience with a Fortune 100 company has little relevance - and may be a detriment - to being able to run a local franchise with little to no support.
    “…I have enjoyed a very successful life and career and do not intend to stop now.”
    While this and the other comments may have hurt your feelings, they were intended to help you continue to enjoy the rewards of your career of hard work and accomplishment. If you want to hear that if you believe, you’ll succeed, that with franchising you can “be in business FOR yourself, but not BY yourself,” that it’s time to “control your destiny,” and “be your own boss” Entrepreneur magazine and a zillion other franchise sites and publications will be happy to oblige. They are making a lot of money doing so. Richard Quick at http://www.Franworst.com will tell you anything you want to hear.
    There are 400 franchise opportunities listed at http://www.franbest.com. Some are good, some are bad, but most of them aren’t having the widespread failures of 30 minute fitness clubs.
    Obviously, everyone needs to make their own decisions. But you should be thanking Patricia and Jose for at least giving some hard things to consider. Your friendly franchise salesman will be happy to provide the wind beneath your wings. Unlike P&J, he stands to make a nice commission for doing so.

  • Graeme Townshend
    Jan 5, 2008 at 8:46 am

    I have been reading the comments posted for the past several weeks. Just like Donna, I thought I could make this thing work and turn it around. Against my wife’s resistance I forged on with my dream. What I found was a group of 40 other Curves owner in my marketing group who were desperate to get rid of their headache too. Just like Donna, no one, not even my spouse, could have stopped me. The best thing that has ever happened to me is losing that $150K. If you can afford to lose it (which I can’t), then go for it, I learned a lot. Franchising is NOT a good option. Don’t be fooled by the corporate advertising and your friends who tell you they are making it. The Franchisor always wins. Instead, go and work for one of the Franchisee’s and once you’ve learned the system, do it on you own.
    Every time you make a buck the Franchisor takes two back. I am now deep in debt and my wife and I are working 70+ hours a week to dig ourselves out. This adversity was a test on our marriage and I found that my wife is the biggest support I have ever had, even though I messed up. So the relationship we have now was worth the $150K loss, too bad I had to learn the HARD way. I wish I would have done my homework and found this site, I would have asked a lot more questions and I know the man I bought the club from would have been sweating trying to answer, because I know I would not be able to sell my club in good conscience to some poor man or woman with big dreams. I recently sued the man who sold me my club and won, however I will never see the money. Donna, I hope your ego will allow you to listen to Sean, because although you have faith in your abilities, Sean is right. I have been where you are and I can tell you one thing, you are about to place your hands on a red hot stove, and you know what will happen next, a year or two from now your comments will most likley be replacing mine as the next victim. Remember, I was in a group of 40 Curves owners, and they were all once just as optimistic as you. I am sure they will sell you their clubs if interested (all 40 are losing their shirts).

  • Patricia
    Jan 5, 2008 at 9:22 am

    Donna, my comments were based solely on what you said. They were intended to bring out the facts and make you think twice. I don’t have a hidden agenda and I’m not making a dime out of taking the time to give you all this information. My hope was this would jolt you out of the emotionalism that’s driving an investment decision that makes absolutely no sense. You’re supposedly a retired corporate executive. If that’s true, why aren’t you using your business sense and business skills?

    And it’s not just me and Jose that are on the same frequency here. Look at Sean’s lengthy comment, and the most recent one by a Curves owner, one of many who are losing their shirts. And the many, many comments above this one. With your 6-figure income, why haven’t you invested $500 to $1,000 or so in sound professional advice from a third party before putting down your deposit?

    At this point, I think the answer is obvious – you don’t want to hear anything that goes against something you’ve already made up your mind about. That simply is not good business or common sense. The only one applauding your (increasingly) emotional decision that ignores business reality is Curves.

  • Patricia
    Jan 5, 2008 at 10:47 am

    Interesting to see Mr. Franchise has been following this saga. The following is posted at http://www.franchisefoundations.com/articlesiibuyingafranchise.html#Bookmark1

    “And just because you’re a business executive making a 6-figure income now, don’t assume this level will be duplicated in a franchise investment just because the company “approves” your application. One such executive, despite a plethora of negative feedback from current and past franchise owners who’d lost everything, marched forward with her franchise investment in a 30-minute fitness concept. Despite her 6-figure income, she didn’t invest a dime in professional, evaluation advice and stated she was taking a leap of faith, hoping to build her wings on the way down. Sound crazy and suicidal? It is, but this happens all the time. Due to the ploys of the franchise salesperson, too many franchise investment decisions are based on emotionalism. Prior business skills, business sense (and even common sense) are short-circuited. Needless to say, if this business executive made a similar decision for her corporate employer paying the 6-figure salary, she would be promptly fired.”

  • Russ
    Jan 5, 2008 at 11:46 am

    All of you amaze me! Rather than discuss, you batter. Your communication and business sense leave a lot to be desired. I will no longer visit this site for true, solid information regarding
    Curves. The Administrator to this blog should discuss with all of you the meaning of “business”. All of you are dedicated to venting your emotions and anger, rather than disucssing the possibilities or Curves - both and negative.
    Goodbye and good luck!

  • Current Curves Owner
    Jan 6, 2008 at 1:25 am

    I can’t believe all the negativity there is amongst you people that have NEVER owned a Curves franchise. You have no insite on what happens inside the club but yet you are quick to say don’t do it. I did my research and purchased a franchise. I am just glad I didn’t come across this site before making my decision. I am extremely happy with my business decision and will never regret my purchase. Curves stands behind you in every aspect of the business. They provide you the tools to run your business the best way any business can truely be run. If you are considering purchasing a Curves franchise, please don’t listen to the negativity of these people that have NEVER owned one let alone stepped foot in one. Lord knows they probably need to but are afraid it just may work then they will have to bite their tongues on all they have said. As for the men on here posting…do you really have a clue about Curves? I think NOT!!! Potential business owners…please talk to the current owners that DO OWN one and listen to them. They are the ones that have the insite on the business. Of course you will find ones that have failed, but they were obviously not running their business the “Curves Way” or they would still be in business. As for the comment on not purchasing the “CurvesSmart” it is the most fantastic, awesome, amazing, fabulous upgrade on the market! When you have the opportunity to upgrade…DO IT…DON’T HESITATE OR YOU WILL REGRET IT!

  • Patricia
    Jan 6, 2008 at 8:55 am

    To The Supposed Current Curves Owner:

    It’s true I haven’t owned a Curves, but I’ve visited and spoke with over a dozen Curves’ owners. After doing my homework (see my previous comments), I discovered Curves is an incredibly bad investment. Also, there are the many, many comments here from Curves owners saying the same thing. Finally, Sean, the moderator of this site, with over 20 years experience in the franchise industry, has pointed out the pitfalls of the 30-minute fitness concept - it isn’t working in the marketplace (see his box above).

    I think the Current Curves Owner who posted above is someone affiliated with Curves. He/she gives no specifics. For example “I am extremely happy with my business decision and will never regret my purchase.” That statement is not even logical. What if he/she is lucky enough to be in the top 5% of the network and is making $4,000 a month (which is still not a great income level these days). Is that anything to be happy about with all the headaches of always hiring and firing staff who are paid minimum wage, working long 50-70 hour work weeks, financial exposure on the lease, etc., etc.

    And saying “I will never regret my purchase” is ridiculous. Never, no matter what? What if membership dropped and you’re suddenly losing your shirt, like the 40 other Curves owners noted in a prior post? You’re still not going to regret your purchase? Give me a break.

    This mentality (”never regret”) and the religious reference to Lord in the post, are additional hints the poster is from Curves, which is a very religious-oriented company. Finally, the post ends with ‘DON’T HESITATE OR YOU WILL REGRET IT!” A typical franchise sales ploy that’s been tried (unsuccessfully) on me quite a few times now.

    ALWAYS HESITATE BEFORE MAKING ANY SERIOUS, LONG-TERM INVESTMENT DECISION, FRANCHISE OR OTHERWISE. That’s only common sense, something many franchise companies program us to disregard.

  • Current Curves Owner
    Jan 6, 2008 at 12:40 pm

    You are all pathetic! I agree with Russ, I don’t believe that I will visit this site again. MOST of the negative comments about Curves are from people that have never owned one…they did their just so called “homework” and have many opinions that they should keep to themselves not actually being in the position. Quoting Patricia “Also, there are the many, many comments here from Curves owners saying the same thing” From the posts I have read…there are 3 I repeat 3 Curves owners that have posted comments…the others are bogus claims that they know what they are talking about.
    If anybody visiting this site is interested in a Curves Franchise, PLEASE SPEAK DIRECTLY TO CURRENT CURVES OWNERS and get the insite to their business. Everybody has an opinion on everything…and there is NO RIGHT OR WRONG you go with what your gut feeling is.
    If I had to close my doors tomorrow for some unforseen reason, I WILL NEVER REGRET OWNING A CURVES FRANCHISE…and YES Patricia..I CAN SAY NEVER, NO MATTER WHAT!
    WHY SHOULD I GIVE SPECIFICS TO SOMEBODY THAT IS JUST GONNA DOG ME…AND SAY THAT I AM STILL WORKING FOR NOTHING EVEN THOUGH I AM NOT…You have no idea what my financial situation is, lease, monthly payments, payroll, hours etc….so how the hell can you be so negative! Maybe you should actually go to a Curves and do a workout and relieve some of that stress you have built up, LORD knows you need it!

  • Patricia
    Jan 6, 2008 at 2:10 pm

    To: Current Curves Owner

    I’m only offering the fruits of my research and passing along other information and insights given by a number of franchise professionals. Funny, they’ve have all given a thumbs down to Curves. No franchise professional I’ve seen has given a thumbs up. Hmmmm. Ever wonder why? Then, there’s also Sean, a seasoned, twenty-year franchise industry executive who agrees. What we’re posting here is information based on facts and research, not opinions and raw emotion.

    I can understand the “Current Curves Owner” predicament. The truth hurts, and no one likes to admit they’ve made a mistake (“I WILL NEVER REGRET OWNING A CURVES FRANCHISE…NO MATTER WHAT.”) His/her comment says it all – it’s so ridiculous, yet laden with so much pent up emotion. I’ll bet his/her franchise is up for sale, and that’s often the hidden agenda – preserve prospects for the sale of existing franchises.

    I’ve seen this “NO MATTER WHAT” attitude in other franchise owners (not just Curves) who don’t want to admit the reality of their situation. They start out saying they’re very successful, and, btw, their “successful” franchise just happens to be up for sale. Looking at the hard, financial numbers (which they have to show to justify the asking price) reveals a different story. They’re either not making money, or if they are, it’s close to or below minimum wage. I remember pointing this out to one owner. All he did was smile.

    Mr. Franchise is right when he quotes a franchise owner who says being successful in franchising often means having to adjust your definition of success. I’m sure there are very good franchises out there – reasonable investments, working hours, profits, market trend, etc. All I’m saying is Curves doesn’t make the cut in today’s market, from the personal research I’ve done interviewing over a dozen owners and listening to experts in the field.

    Yes, Mr./Ms. Current Curves Owner, I don’t know anything about your financial situation. You’ve elected not to share that. Instead, you end your prior post with ‘DON’T HESITATE OR YOU WILL REGRET IT!” Another emotionally-driven statement that translates to “misery loves company.” I just don’t think that’s right, or makes any sense.

    You’ve interpreted my comments as “so negative,” but I’m only sharing information and insights. Don’t take it personally. The fact that you’re reacting so emotionally shows I’ve said things that ring true in your situation. Don’t get mad at me and say everyone is pathetic. I know it’s difficult, but try to direct your anger towards the real cause.

  • Jose
    Jan 6, 2008 at 2:31 pm

    It is a welcomed Thank You to those who wish no longer to hear the truth about franchising we bid you goodbye but wish you all well. Let me tell everyone why I waited in the background to express what I do and why I am so concerned with those who attempt to buy franchises today without the proper evautional and an exit plan, (should your plan of buying a Curves or any other franchise fail.)
    I own a national franchise and in the past have hired consultants that had great sales backgrouds but that was it, the truth is they are all out for them selves. Over the past year these consultants who I will not name, Sold 5 franchises for my company. The first one opened and within 90 days the new owner thought I can run this my way. Having No experience she then began doing her thing and not operating as per UFOC. Well she no longer operates my franchise. She has been allowed to run her own in her own name but she is failing. The second female decided she would pay the franchise fee, lie on the application and then later admit she had no money to open but felt compelled to buy because she liked the salesman. She is not in business now. The 3rd a man decided he after paying his franchise fee, he did not want to do it anymore and lost his money although rumer is he went and opened his own. and the forth the man and wife opened and after 3 months failed to pay any creditor leaving over $450,000.00 debt at Chapter 7 Bankrupcy.
    Well I fired all the sales people and decided I would no longer persue selling my company to those who really have no business sense. Because I can make money does not mean I can make others money. I have found that people today want to get rich quick and do not understand there are no promisses in business. you must work hard and you must be willing to have an exit plan. I also realize that no sales person is truely interested in what I was trying to accomplish. I truly intended to help those around me make money by advising them but the consultants found the wrong people and sold, sold, sold regardless of the loss to others.
    My company will no longer use these sales sharks! and myself I will demand that any future owners have an attorney to review and insure they are quailified to operate a business.
    So to those Curves owners or sales people. “It is about the money in the sales business, not about the client”. If I had to sum it up I would advise caution today when considering a franchise. any franchise. Do not listen to those ads that claim ( fastest Growing. or the newest craze, or entrepenuer magazines top 50 franchises to buy.) We franchisors love to place ads into these magazines to get your attention and convince you mentally that we are the best. We may not be the best for you! but for some we may. Franchising is expensive and hard work, so invest in a managed money account for security for you and your family.
    Then once your family is safe borrow to buy a francise. But remember there is a risk and you MUST have an exit plan!!!!!
    Only then You will win!
    Stay away from any womens only 30 min franchise at this time the are volatile!

  • sean
    Jan 6, 2008 at 5:07 pm

    Jose: Your story is very common for young franchise companies and most don’t survive the initial lesson that you have. Most new franchisors feel they need experienced franchise salespeople to help them quickly sell and recoup their initial investments. I argue against it, and advise them to be involved in and take responsibility for the process themselves. New franchisors want salespeople who will work off commissions and then are surprised that they do whatever it takes to get the commission. Also, there are very few decent salespeople who will work with a start-up franchisor.
    It’s critical to be sure that you are accepting the right candidate with the right expectations, and that you know they haven’t been allowed to have unrealistic expectations or provided with earnings claims or cost projections that turnout to be inaccurate. You have your work cut out for you overcoming the stigma of those early failures.

  • Hope
    Jan 6, 2008 at 5:14 pm

    I have decided not to “buy” the franchise that I work at mostly because I wanted a full service ladies gym to begin with.. I want to get into personal training, to offer classes and other things Curves does not offer or allow a franchisee to offer. I thought Curves would be a great way to enter the market and get experience mostly because the owners at the Curves that I work at are giving it away to someone who is willing to take over expenses. Yep, they had been trying to sell it for months (since September) and have resorted to just giving it away. As you can probably guess it is currently losing money but I thought I could turn it around and I still think I could have but it would require a lot of time and marketing… My plan was to hang on to it for 2 years and make it profitable then sell it and get into a full service gym. I think Jose is right about Curves being a fad.. they need to change with the times or they will be out of business. The members I work with are asking for more.. for classes like yoga and palates and other things… several of them have a treadmill or elliptical at home and one member actually joined a fitness 18 to step up her game she said she was going to do both Curves and fitness 18 but how long will she pay for two gym memberships??? The personal trainer in me wants to give my members all they need to have a well balanced fitness program. I do like how Curves appeals to women who would not workout if it wasn’t for the 30 minute circuit and I think the new smart equipment might revitalize the current fitness program and make it more valuable (i.e member will get more out of there workout and see better results) which will help the business. I do not have anything against Curves and I have actually enjoyed working there but for me it was not the right investment. I do wish people would stop getting offended so easily and stop making blanket statements about everyone here.. I do feel it is meant to be helpful. I did not like everything people have said either but I am glad this site had both points of view because I really was excited about becoming a fitness center owner and I really needed to see the obstacles because I already had the optimism.

  • Jose
    Jan 6, 2008 at 8:31 pm

    Good Decision Hope. I am a 3rd level Certified Personal Trainer also and feel strongly in the quality care of people. Like doctors we have to earn the trust of people we help. We do no have members, we have clients to which we grow very close too as we train them. Our Clients love us sometimes more than family because we truly understand that we all need help. CPT’s are always there to help, and we pour our heart into what we do. Hope, you will do well in the future to open a club of your own but it will be hard work and not always profitable. I can tell you that I have had many negative cash flow months, but I have had some great positive cash flow months. Your focus has to be on the business or it will never work. Curves is not the fit or the answer for anyone, it is a fad and very risky.
    The new smart equipment is simply a devise that reads green for go and red for nogo. It works on the priciple that if you push and pull harder you will do more work. The problem is people, and the fact that the Hydraulic equipment is cheap and offers no negative muscle building potential.
    Boring workouts and limited excitement. I think it is a last ditch effort to keep Curves alive. You might call it a defibulator for curves attempting to restart the dead heart.
    One last thing. Becoming a fitness center owner will not be profitable in one year so you must put savingS away AND protect your finances. Never, ever spend your retirement or 401 k or absulutely never use your home to finance your business. Insulate yourself from it and protect yourself should it not work. A wise man once said ( Hine site is 20/20 Be optimistic not stupid! Do not let your dreams blind you of the reality. Hard work pays off if one is wise. The quick to get rich soon finds themselves poor.
    Wishing you Health and Wealth
    JOSE

  • Sadderbutwiser
    Jan 10, 2008 at 2:26 pm

    Four years ago, our Curves once had 1,100 members and was named franchise of the year for the Southeast region. Money was pouring in. Life was good.

    Then Curves split our territory. Rather than lose half our membership, we foolishly purchased it, doubling our expenses. Our state also suffered through eight hurricanes and a tanking housing market.

    To make a long story short, we were forced to sell the two clubs last July to a relative and former co-owner for a measly DOLLAR to avoid being sued by that relative. We’re $270K poorer and I’m currently filling out bankruptcy paperwork. We’re barely hanging on to our house. We have two young children who likely have lost any chance of attending college someday unless they win scholarships.

    The Curves dream became a nightmare for us. Don’t let it happen to you.

  • Kunst
    Jan 11, 2008 at 6:50 pm

    Sadderbutwiser,

    I am sorry for your misfortune. But there is something wrong with your story.

    First of all, Curves does not split existing territories. Either you are talking about a neighboring unsold territory that you took rather than someone else, or you chose to split your territory.

    To “make a long story short”, you say it’s all Curves’ fault. If you had 1100 members then, as you said, money was pouring in. Even half that many members is a very successful club. My guess is that you wound up with fewer members, spread over two clubs and twice the overhead.

    There are ways to cut your expenses when membership drops. It’s hard for me to understand how you could be “$270K poorer” and going bankrupt. Even a failing club has some income and can cover most of the expenses. Your partner problems are probably a symptom of something more to the story. Any legal expenses involved?

    – End of direct reply to Sadderbutwiser.

    When Curves was booming back in 2003-2005, a lot of owners split their territories or bought an additional one. We did both. A lot of owners also committed to larger spaces and/or higher rents, which made them more vulnerable when things turned down.

    Curves has definitely declined financially over the last 3 years. We own four clubs in California, none of which we work in, and are making a very satisfactory living. Yes, it is half what it was three years ago, but that was twice what the two of us had ever made combined in our high-tech jobs.

    Our territory split was ill-advised, and we are working with Curves corporate to recombine that territory into one. Even our one unsuccessful club is at or near break-even.

    A lot of Curves owners were ill-prepared for the business. It was hard not to be successful during the fad phase. Now that it is hard work and a difficult environment, a lot of owners are struggling. Often that is because of their lack of business skills and/or prior mistakes. No one is guaranteed success in business.

    I have been watching the comments on this board that correctly point to the fact that Curves is a lot less lucrative business than in the past. Curves overexpanded, aided by the greed of us owners. It was a fad to a considerable degree. While what Curves offers is good and valuable, the fact is that we’re fighting human nature. People don’t want to exercise, and can always find a reason to quit if they so choose. That’s especially true of Curves’ target market, who are quite the opposite of committed exercisers. At the same time, Curves works if you do it, and our aging population needs exercise to stay healthy.

    With the economy turning down, life is going to be difficult in Curves land. A number of clubs are going to go out of business, but many others will persevere. It may not be the most lucrative of businesses, but it has its pluses. If you’re just doing it to make money, do something else.

    Final note to those considering purchasing a Curves. The smart owners sold 2-3 years ago at the peak. Clubs go for a lot less now. The accounting for this business is very simple. Everything drives off the membership. Make sure you know exactly how many members the club has, and confirm that revenue (bank deposits) confirm that. Expenses are pretty straightforward. If the club has a clean P&L, you should be able to tell what kind of a profit it is making. If not, find one that does. You can adjust for any changes you will make, such as working in the business.

    The key is membership. Overall Curves membership has dropped on the order of half in the last 3 years. With the economy likely going into a recession, further decreases are quite likely. Some clubs have stabilized, some a happily profitable levels, some just making ends meet. If you think you can do a better job than the current owner — specifically at increasing the membership level — test and retest that theory. It may be true, but often is not. Make sure you know what the breakeven point is in terms of number of members.

    I think Curves is going through a time of trial that will be very difficult. I also think there will be a better day on the other side for those that make it there. Curves is pretty wonderful in its own way, but it may not make you rich. If you’re looking at Curves as a passive investment, buy a CD instead.

    – I will go back to reading this discussion now.

  • sean
    Jan 12, 2008 at 5:55 am

    Kunst makes some good points. A few things occur to me.
    Kunst wrote: Curves has definitely declined financially over the last 3 years. We own four clubs… and are making a very satisfactory living. Yes, it is half what it was three years ago, but that was twice what the two of us had ever made…
    Kunst: you are fortunate to have good locations in strong markets that you could survive a 50% reduction and still be profitable even without working the club yourself. Imagine how difficult it was for those who had average or marginal locations to begin with and then took a 50% reduction. It sounds as if you had a goldmine, then had to settle for a normal, profitable business. They started with a normal, profitable business and wound up with a distressed club or outright failure.
    If you had 1100 members then, as you said, money was pouring in. Even half that many members is a very successful club. My guess is that you wound up with fewer members, spread over two clubs and twice the overhead.
    Correct me if I’m wrong, but two of the main problems facing not only Curves but all 30 Minute Workout Clubs are member retention and increasing competition and saturation. Just because a club has 1100 members one year doesn’t mean they can count on that the next year, even if they do a great job. 250 of those members are going back to the couch and their new big screen with remote, 150 are going to try out one of the 5 knockoffs closer to their house, 150 are going to Jenny Craig or Nutrisystem, and maybe 100 were so successful they’re moving up to a full service club. So you need constant recruitment just to replace the members you lose… but now there’s lots of competition.
    A lot of Curves owners were ill-prepared for the business. It was hard not to be successful during the fad phase. Now that it is hard work and a difficult environment, a lot of owners are struggling. Often that is because of their lack of business skills and/or prior mistakes. No one is guaranteed success in business.
    Curves, and all the 30 minute fitness clubs that followed, made (and make) “no experience necessary” one of their main selling points. As Kunst points out, this didn’t matter much when people were streaming in the door, but now that there’s a challenge to overcome, years of experience bringing in and keeping members could make a critical difference. However, its unfair to infer that the lack of industry experience is the franchisee’s fault when they were told over and over that that wasn’t a factor.
    Experienced, successful health club owners I’ve had as clients told me that relying on membership fees is one of the major mistakes health club owners make. They contend that the membership fees pay the rent, the eqpt lease, and the utilities, but profitability depends on add-on sales and services: personal training, classes, merchandise, supplements, apparel, etc. They say the 30 minute clubs are doomed to marginal profitability because they’re just not set up for anything but membership fees. What do you think? This would explain the current struggles. A member of a full service club potentially represents thousands of dollars per year in revenue if they end up with a personal trainer, but a 30 minute club member can only represent maybe, what, $600 per year in revenue?

  • Sadderbutwiser
    Jan 12, 2008 at 11:30 pm

    I’m not laying all the blame on Curves. We made just about every mistake business owners could make. The No. 1 mistake my wife and I made was entering into business without any business experience. But a family member made an offer we couldn’t afford to pass up. Unfortunately we got left holding the bag when the smoke had cleared.

    Curves certainly could have made things easier by NOT offering so many franchises in our area. We had 18 in a 72-mile county: one for every four miles. Had we been able to keep our territory to the west without having to purchase it outright, we’d still be in business today and doing well.

    A Curves to our south once sold for $180,000. It’s listed for $35K today and STILL remains unsold.

    I feel for ALL struggling Curves owners. We’ve been there and are still trying to overcome the fiscal blow.

    A South Florida law firm is assembling a class-action lawsuit against Curves. Hundreds are participating. Club owners who had to close due to oversaturation of the market may still be able to participate.

  • Jose
    Jan 14, 2008 at 7:35 pm

    Hello Sadderbutwiser.
    I am not defending Curves, believe me, I do not care for the type of business model they have or how they created more territories than could be profitable for anyone let alone you. Their greed has caused the demise of many wanting to get rich quick Like yourself, but sadly found that it was only a dream.
    I understand the frustration you feel but it is not the time to run for the class action lawsuit. Law firms are natorious for selling you the loser a fake dream of becoming rich and regaining your loss, It is a lie, they are the ones who win not you. Take my advise and run from any law firm encouraging you to enter into the class action law suit. SHould you lose and you will!! you will be resposible for all attorney bills as if you had hired them. The legal bill could run into the
    1 million dollar range and you will have to pay a portion of the bill if you loose. Remember Class action law suits only benefit the law firm not you. You knew your rights when you bought and did it anyway. You admit that, so take the loss and learn. If you get involved into this litigation you will lose even more. The layers will make up stuff and get you to agree by twisting the truth do not be fooled or you”ll be the FOOL.
    Good Luck if you get involved You’ll need it!
    P.S. and bring your check book!

  • Been there
    Jan 17, 2008 at 12:57 pm

    Jose,
    You have no clue about what you are talking about. Lawyers are hired on a contingency basis so if they don’t win, they don’t get anything. They won’t take a case if they think it doesn’t have a chance of winning in court. Been there, done that.

  • Patricia
    Jan 17, 2008 at 3:21 pm

    What planet have you been living on Mr./Ms. Been there? Attorneys only take a case on contingency in personal injury matters. Have an auto accident, slip and fall in a department store, bitten by a neighbor’s dog, sure they’ll take it on contingency - but only it’s a good case.

    What Jose is talking about is not personal injury cases, but commercial litigation. It’s strictly pay by the hour, $300 to $500 an hour, these days. Doesn’t matter if its a commercial class action suit. All that means is there are more people to share the high hourly rate. If the underlying contract has a “prevailing party entitled to attorneys fees,” and that side wins, the other side is ordered to reimburse what the winning side has already paid their litigation attorney. But even here, that’s usually reduced by the court if it feels the total fees paid are not “reasonable.” Do a little research on franchise class action lawsuits before you start calling others names and exposing your own ignorance. You’ll learn a lot.

  • GT
    Jan 17, 2008 at 10:25 pm

    Hey guys, no need to be cruel here. I am a former Curves owner and I was asked to be part of this lawsuit and we are on a contingency agreement with our law firm. They will get a huge chunk if we are successful, but we are not paying anything upfront I assure you. I also successfully sued the gentleman who sold my Curves, for fraud, so there is hope for us in this case.

  • Jose
    Jan 18, 2008 at 8:15 am

    Hello those of you who think that sueing is the easy way out. In most cases the party that is sued is forced to file bankrupcy due to lack of money trying to defend false or even proper litigation, in which case court reporter fees, deposition and other fees must be paid by both parties regardless of who wins the case.
    The reason I posted information on the site was to inform parties interested and sueing that it is not an easy road and there are no garauntees. If you have a lagitimate case against Curves I believe you have every right to seek punitive damages, but if you have made a decision like the women Donna who decided to move forward and buy Curves even after given good sound and researched advise you deserve what you get. I believe you are the dishonest person and a thief if you bring action against anyone or any company because you deciced not to do your homework and seek professional advise. In such cases I believe you will not win. This is the case with class action lawsuits. Many of these suits are filed on behalf of one disgruntled franchisee, the attorney will then call other franchisees who may be haveing a hard time and place doubt into there mind and beg them to get involved. Most of the time this is done as a tactic to pressure the franchisor to give in to the demands for fear they may lose if 20 or more franchisees make simular claims. In fact false claims such as Trademark, UFOC and other such alligations in regards to franchise operations are common in all cases. The federal trade commission is well aware of these false and frivolous suits. A smart business person will always attempt to solve problems and create more by being ignorant. Put your emotiona asise and think what is best for your family. Jumping into any suit may put your wealth and mariage in jeopardy. Focus on your family and you will hvae peace and confidnce to move forward.
    God Luck!
    As for GT who claims he successfully sued. That is non sense, no one wins and I can tell you 99% on the time he will not collect. To those who want to pay. Send him $50 dollars month for 70 years he will never collect it all.

  • Sadderbutwiser
    Jan 19, 2008 at 5:46 pm

    My wife and I can’t take part in the lawsuit even if we could, because we sold our clubs instead of closing them. (For 50 cents each, plus debt.) Only owners who were forced to close their clubs can participate.

  • Sadderbutwiser
    Jan 19, 2008 at 5:54 pm

    Here’s the law firm info. I’m not sure whether they’re accepting new clients, but it might be worth a try to send them an e-mail to inquire about the status of the case.

    Good luck!

    Zarco Einhorn Salkowski & Brito, P.A.
    Address: Bank Of America Tower
    Ste. 2700
    100 Southeast 2nd Street
    Miami, FL 33131-2193
    Phone: (305) 374-5418
    Fax: (305) 374-5428
    E-mail: Contact Us
    Contact Us
    Web site: http://www.zarcolawfirm.com

  • Sadderbutwiser
    Jan 21, 2008 at 1:00 pm

    BTW, we were told they were charging about $3,500 per club in up-front fees to participate, so have some cash ready.

  • Jose
    Jan 22, 2008 at 8:18 am

    GT and (Been there) were incorrect. Please see my argument above. As I said before the Lawers win! not You.
    Thank You Sadderbutwiser for the honest Truth. Notice the $3500. retainer X 100 equals $350K for nothing. I checked out the web site and sure enough this Law firm is a Shark looking for fools to make false claims! They admit they specialize if FINDING or more like making up false claims against Franchisors. They can only make money if thery sue. No litigation, No money!
    Thanks

  • Vicki
    Jan 27, 2008 at 5:33 am

    I have owned five Curves for 9 years and have had an income of $6,500,000.00 over the last five years from those five clubs. (first four years I owned one, then two, then four, then five.) When Curves was selling franchises, every woman who purchased a territory would have KILLED to purchase another. Greed was rampant. Many potential “owners” were denied territories for various reasons and were LIVID. EVERY SINGLE PERSON THAT PURCHASED A CURVES DID SO WITH FULL INFORMATION IN HIS/HER HAND. Curves is a movement, not just a health club. Of course, it is a “perpetual sales organization” - anyone in their right mind should have deduced that from the beginning. So is a car dealership a “perpetual sales organization;” the difference is that Curves has a monthly generated income.
    Where in the WORLD could you make an initial investment like you make with a Curves purchase and IMMEDIATELY have a monthly generated income?
    Of course, Curves is a business. Of course, it has it’s operating modality. Of course,