Log In / Register | May 16, 2012

Curves Sues Franchisees Over Breach of Agreement

After Termination for Not Offering System Products, Franchisees Then Compete With Curves

PERRYOPOLIS, Penn. - Curves International, Inc. is suing two different franchise owners, Ms. Angeline Bednar and Catherine Maser, for violating their franchise agreements.

Curves alleges that Ms. Angeline Bednar's Curves unit in Perryopolis, Pennsylvania stopped selling Curves services but used the trademark to sell her own fitness services. After her location was terminated as a franchise, Bednar then started a gym, B-Fit, in place of her terminated franchise centers the next month. Under Curves' non-compete clause, franchisees are not allowed to operate competing businesses within 10 miles of the franchises for a year.

A second franchisee, Catherine Maser, entered into an agreement for her second shop in 2003. The Curves suit claims that Ms. Maser violated terms of the franchise agreement and was terminated in May, then billed $55,000 in fees. She converted the Curves franchise into her own fitness center, "Look At Me Now", a breach of contract. She then violated her first franchise agreement in Carmichaels, Pennsylvania by not selling Curves products, equipment and services. Her first shop was terminated and the franchisor demanded payment of $43,000 in owed fees.

Read more via Pennsylvania's Herald Standard

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