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..


Bob Rodi, CLP
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.President
Mount Pleasant Capital Corp.
Bob Rodi, CLP
President
Mount Pleasant Capital Corp.
It is my firm belief that the fitness business is one of the worst investments anyone can make. Too many people are not disciplined enough to go the distance. If everyone was disciplined in excercise the fitness business would be a gold mine.
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.
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.
I worked for a Curves in Louisville KY and I am so glad to hear someone say what I have always thought. Not only is Gary Heavin a parasite but many of the owners are as well. Present company excluded! The one I worked for sucked her employees dry and expected so much from us for nothing in return. I have a horrible taste in my mouth for Curves and will not even mention the work in conversation. I now workout at a YMCA - yes there are men there and it isn't geared for women, but you don't have the crap to put up with either. Best of luck to you in your endeavors. I hope you can get out of the Curves franchise without a great financial burden on you.
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.
--
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
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
Uh, I could give it to you for $2.50.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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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
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
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 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!!!
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"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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 Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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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
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
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"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Well, at least now you don't sound like Giles anymore.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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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
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
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"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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]
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
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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
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 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, publishes a website on business opportunities and franchises called "The BizOp News"
"Franchaise"
Was that just a typo or a clever way of denoting the often dangerous tendency for new franchise investors to think that their businesses are going to run themselves, leaving them to lounge by the pool sipping margaritas and counting cash? Franchaise--I think a new word has just been added to the lexicon of franchising. :-)
Are the freudian slip and the Dunkin' wife panties a matching set?
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
The Pantie Shucker.
It should become our franchise drink, don't you think?
All the Dunkin folks who are pantie obcessed ought to really love this drink. The only problem is that there don't seem to be a lot of DD shoppes in Houston.
I hear they are trying to put 20 new stores in Houston - Anyone who invests in them will be bound for bankruptcy court. We are already supersaturated with cheap doughnut shops. Of course FranWad investors probably won't catch on to that. They can sell 'em on the representation - true - that there isn't another DD shop for at least 5 miles. But - Hey - they're still holding Quiznos franchise "fairs" - what a word to use in connection with Quiznos - here, and folks are still lining up for them. The only reason there are so many Quiznos shops is that they are such a great investment - right?--
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
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
adding social dimensions to it, is about the brightest notion I have heard on the subject in a very long time.
My vision of a workout place if a bunch of folks using machines and hooked up to ear pieces - - no social interaction at all - - unless there is some group exercise like you just described.
Maybe I'm just old and out of touch - - only us old farts want to interact with other people in such situations. At your age group that's probably called loser workouts.--
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
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
101 lb men aint cute--
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
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
cute folks in here on BMM. I am really certain that if those who are really cute would spend more time here, including the posting of pictures, BMM would become a much more popular place for the discussions that take place here.
I can't help it that I'm a guy.--
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
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
It was written:
Many locations are for sale because the owners have been running their facilities for years, and they are exhausted.If you have ever owned your own business, no matter what it is, you can understand this.
My reply:
Actually I cannot. And I have owned and still do own (in the form of partnerships) several businesses. To the best of my recollection any exhaustion I incurred was self induced by trying to reach for the brass rig off a concept or model that did not realistically support my desires. I'll admit I have done it, but once again it was because the concept I started did not match my latent desires from the onset.
So I am saying what I understand is when people enter into a concept that is not a realistic match for their return expectations then yes I suggest you may work yourself into exhaustion. But I resent the implication that this is standard business practice, or the expectation that this is what business ownership represents. My retort would be that flawed business planning results in employer exhaustion. In large part, a proven operation model would alleviate such concerns. One again this points to a flawed business model.
FuwaFuwaUsagi
"Never underestimate the power of stupid people in large numbers."
FuwaFuwaUsagi
"Never underestimate the power of stupid people in large numbers."
It was written:
You ahve to constantly market the location with lead boxes, flyers, press releases, health fairs, etc.
My reply:
Really? Sounds to me like a flawed operational model. Most likely the only reason you need to constantly market the location is you have excess capacity, which indicates either a rollout problem or a retention problem, either one indicates a flawed operational model. There is a natural rescission rate in most businesses but if you turnover is so high that you need to constantly attract new people you either built too big, you do not have an appealing model, or your profit is based on churning membership fees. Normally you might on occasion need to run a special when you have too many people that leave at once(I once had a corporate account, where the company relocated an left many vacancies), but if you have a good referral program you should find most of those potiions filled quite readily. This really just sounds to me like another lame conpect run by people who have no clue how to operate the core business; It may simply be that success may be determined by the franchisees skill rather then execution of the operation model.
As far as "Passion + Hard Word = Success" you not related to the "Believe and succeed" guy are you?FuwaFuwaUsagi
"Never underestimate the power of stupid people in large numbers."
FuwaFuwaUsagi
"Never underestimate the power of stupid people in large numbers."
Tom writes: "If you are not passionate about fitness DO NOT BUY ONE! Passion + Hard Word = Success."
May I be first the one to say that this is a stupid slogan.
No, a really, really stupid slogan.
Passion and Hard Work lead to bankrupcty in a broken system, a lousy demographic, or a sh***y business model.
Please come back when you want to talk with adults.
Michael Webster PhD LLB
Franchise News
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
A fitness business can be busy one moment. And slow for many hours. That is how I discovered BMM. I had time to surf the internet. I haven't stopped exploring the internet.
People can be demanding and unreasonable in any business. I have experienced women crying because they had gained weight in a week when they were good. I tried to explain to them that many times when you work out and build muscle you might gain a few pounds. Muscle weighs more than fat.
When we were in business I couldn't go to both of my daughters college graduations. I feel guilty to this day. People do not realize how demanding running a business is. That is why Michael and Richard here on BMM advice people to work in the business of your choice for 6 months.
People do want an easy fix. Losing weight is a challenge and it takes great discipline. It is work. I have to admit I was a member of Curves for 3 years. Longer than any other fitness program.
Curves has been having growth problems for the last 2-3 years. their growth problems are:
They grew way too fast. It is very hard to keep up with the real estate portion of this type of franchise model. If a franchisor sells franchises too fast, and does not add the infrastructure required to keep up with things, there are problems. A fast growing franchisor needs to get caught up with the placement of new franchisees in their locations, before they start selling more. It is ok to slow down the sales cycle.I could go into more detail, but I have to go back to work...
Franpro
Franpro is:
Joel Libava, President Franchise Selection Specialists Inc . Cleveland, Ohio
Franpro is:
Joel Libava, President
Franchise Selection Specialists Inc.
Cleveland, Ohio
Do Diligence,
I enjoyed reading your article and your insights on what about Curves appeals to consumers.
You said that Curves is slowing down and that it "went into business with a big band and may go out with a big bang". What makes you come to the conclusion that their business is slowing down or possibly about to crash?
Does anyone know what the net franchise unit growth/loss is for Curves these past few years?
Bob the reason I wrote this article is because I believe the 30 minute circuit workout is on it's way out. It was a fad that attracted women with curves. Women who weren't anorexic looking. Curves was okay. Most women after a certain age their metabolism slows down.
I have heard stories of clubs closing down. People going bankrupt because they couldn't make it work.
I believe in any business having them too close together for the zee is dangerous. It is just common sense that competing with the same brand especially in the fitness industry is financial suicide for the zees,
Experts, help us out.
There are 654 Curves being sold on the list above from Curves.com out of roughly 9,000 Curves franchises. That's roughly 7% of the network that is listed for sale.
Is this a good or bad sign?
I hate receiving the answer of "it depends" and answering a question with questions but, without more specifics, the answer to your question is: it depends.
We need more detail in order to determine whether this is a "good" or "bad" thing. For instance:
1) At what price basis are these centers being offered for sale? Is the pricing based on a healthy/above avg. industry multiple of earnings? Are they all fire sales?
2) What do the micro and macro markets look like for this service? What stage is the industry in? What is the macro view of this industry/niche?
3) What are the firmographics of the units for sale versus the ones not for sale? Can any pattern be discerned? Ex: Units over 2+ years make up 90% of those for sale, etc. Are these all zees with FA's about to expire, etc.?
4) Last, what are the historical, present, and predicted future trends? Is churn 7% now, but down from 25%? Did it go from 1% to 7% in the last 3 months, etc?
IMHO - Asking for an "expert" opinion based on providing this level of data (7 of every 100 businesses in a given chain) will not yield a useful response. Dig deeper and then share what you find.
Any system has churn and churn can happen due to a variety of factors. Many can argue what "healthy/natural" churn rates are but you need to get past the general statistics and examine the root causes and the detail inside - mine for depth. Follow?
I should of got this information. I didn't have to write a blog.
If this is a 123 fit rep. post your monthly reports. They have been disappearing. Even with your bogus scientifically proven results. At least Curves sold many clubs. You haven't even sold a thumb print of clubs as Curves has. I have to say Curves has had a good run as far as business.
Curves I believe had success because they didn't gouge their zees. Think about that real hard. It may be over your heads. Because anything associated with Q is about greed and not seeing their zees become successful.
they aint makin it. Those who are still paying are, in many cases, working other jobs to keep body and soul together,
Soon, hopefully, they will come to realize that they are whipping a dead horse. Then they will do what is required to liberate themselves from this awful relationship.--
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
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
My first advice to you is work in one for two months or three. This advice will show you what is going on while running a 123 fit. Don't let me make your decision. You find out for yourself. It sounds like you are at the stage of looking at the dream and not reality. That is what the sales person, corporation will play on.
The information about the study was told to me by a person who was there. I promised not to tell who it is. All I kinow is Curves took 123 fit to court. I have no inside information about this court case. Now Curves claims their circuit burns as many calories as 123 fit.
I did talk to the ones they said were making it. There is not too many. I understand they changed quite a bit. At what expense? Many people's lives.
people who are area directors. Understand if you are out to buy one they will not disclose this to you. They want you to buy.
I have driven by Curves and they now claim they burn up to 460-500 calories. I was part of Curves and if you work harder on the circuit you will burn more than someone that does it half as hard. It depends on the person in the Curves workout.
There were no other circuits at the Swedish Medical Center. If you go back in the archives of the Seattle Times the president of ACE said 123 fit is good for the time pressed. It is a good work out. I love it. No matter how much someone works out and they do not change their style of eating and follow a healthy diet they will not loose weight.
In the fitness business 70% of the members quit in a year. Therefore constant marketing is important. I know of one man who had 650 members and signed 1150 members. He still didn't make it. Call all the former franchise owners. Listen to them. People tire of the work out and move on to other things. That is why I question the clubs numbers that say they are doing so great.
We used the disk and others did too. It is easy to put numbers on paper. But will it be a reality?
On the 2006 UFOC it states 35 clubs open. They projected 190 clubs to open at the end of the year. Do they have 190 clubs? No they do not. There are 19 or 20 open and many are in trouble. Yet they still sell a system that is not proven. They will use real people to test battle their product and try to get it right. If they ever get it right. In the franchise world you have to verify all their disclosures. People are their guinea pigs.
I believe you should find a site with the lowest rent possible. Look for a newer space with very little tenant improvements. Check out how many fitness centers are around. The less the better.
Service is important. I had no problem there. My last shopping report proved that. I became friends with the members.
I loved the business. I sent out many personal notes with free week passes. My members tried to get more people in the club.
I know how to hustle. When most of your working capital was eaten up from the beginning you feel you were lied to and to keep a positive attitude was a challenge. Good zors who know how much money you had would work with you. Not take it from the beginning. They would want you to succeed. Encourage you and guide you.
Fitness will always be a passion of mine. I was a cheerleader in high school and was very active in fitness. I admit the closing of the business slowed me down a bit. I just started jogging 2 miles a day. I am still working out on my circuit. I am trying to get myself back to the way I was. I am determined nothing will destroy me. Not even doing business with a bad zor.
"The 123 Fit circuit training program addressed the top reason that individuals do not maintain active lifestyles- --a perceived lack of time" said Dr.Cedric X Bryant.chief science officer for the American Council on Excercise.
Does that not mean the time pressed?
Combining strength and cardio the program meets the requirements for one to be healthy.
Another quotation in the Seattle times Pacific Northwest magazine:
Cedric Bryant's work with the Center for Cardio Vascular Wellness at Swedish Medical Center is a prime example. One room is full of exercise equipment from 123 Fit, and upstart rival of the popular Circuit-training program used by Curves For Women. Through Bryant and the exercise council, the company worked to have it's system tested at Swedish.
Physiologists ran test subjects through the circuit to get unfiltered, "oxygen up take " and caloric data. The company wants that, too,as well as the good public relations and sales it could get from potential positive results. The medical center keeps equipment that helps patients rehab for pursue perventative care. (The study ultimately found high- intensity 123 fit circuit training- workout is as or more effective than jogging or lifting weights for 30 minutes, making it a good option for the time- pressed.
This never said it was the Best 30 Minute Workout. Was it scientifically proven to be World's Best Workout? This is misleading. They never proved this with other workout's side by side. Again it is how big a person is, how hard they work out and other factors involved.
I know many people that went on to better workouts. They personally told me this. To mislead the public is wrong.
I talked to many fitness centers and they also verified the fact about 70% people drop out within a year. I do not know where you get your information. I have been studying the fitness business and have been involved with several clubs including personal trainers. It is a highly competive industry. So how does 123 fit claim 8 out of 10 come back for more?
This is hype and you and I know it. Again why is so many clubs closing? Why are very few making it? Why has most of the zees I conversed with about the biz fit disk say the disk is a bunch of garbage? Can all of us be wrong?
Curves is on it's way out? The 30 minute circuit fad is on it's way out. 123 fit is too late. Sorry. . .
You know many of the area directors get information first hand from corporate. After all they are trying to sell the clubs, right?
the prospects were reliably set forth in the fundamental dsiclosure documents. What does the FDD say about amount of working capital? Does the FDD suggest enough working capital to finance two years to achieve breakeven? DUH!--
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
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
I now have 1400 BMM points. Kindley explain why they won't accept BMM points at SPEC'S Liquors!--
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
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
is on it's way out. I just don't want anyone to get hurt.
I got my information from people who were part of the study at the Swedish Medical Center.
3 or 4 clubs out of 147 sold. Oh my god, what a proven system? I know people who were part of the study. Believe me I know.
3 to 5 years working capital to your future zees. They ask how much money you have or many disclosed it. I wonder why many people didn't get this information. Plus many got gouged from the beginning.
My friend that owns a Curves told me how much it cost her. Not even close to the stories from 123 fit. If 123 fit disclosed from the beginning many would of not done it. Perhaps that is why many former zees are pissed off.
The reason many Curves has less machines is because they bought what the zee could afford before they opened. As time went on they reached a leval of success then added more machines. This again showed they worked with their zees. They didn't gouge them.
none stop about the world of franchising. I know how the franchising industry works. I know they gouge you at the beginning. I have proof which I cannot disclose.
If this is B all I can say is I respected you. From my studying I believe you lied to me over and over. I no longer feel the same way about you. You fit in the Q world. When 123 fit folds and you see all the people hurt by all the lies, I doubt if you feel any remorse about anything. You are first a business man. I am dissappointed in you as a human being.
Many people who buy a 123 fit have not gone to college and majored in business. A good zor will direct and help their people succeed. Many of former zees felt abandoned and deceived. And rightfully so. Talk to many of the former zees they have been emotionally devasted and many financially bankrupt.
You will never be as successful as Curves. l. You gouge your clubs. In which Curves figures ways to keep their cost down. (I.E. Advertising at $1600 a month. When I took the advertising down to a printer they said it would cost $500 or $600 for the marketing you provide.) No wonder many of the zees chose not to go your route. Now the new clubs have to use your advertising. In which many professionals I counseled with, said it wasn't that great. 2. $1995 for a mascot that couldn't cost more than $300 for the company. 3.A coach station cost $3500 which was not of good guality.
Curves had the best interest of their clubs in the beginning. They were a big hit. Business goes in cycles. Curves may be at the end of their success. Perhaps there are so many other fitness centers opening up. That is the reason I believe Curves, 123 fit and many other copy cat systems will fail. I personally believe first hand a fitness business is one of the worst investments. People eventually get tired of any exercise program. Even personal training. I have had personal trainers. I have been a member of 24 hour fitness and bigger clubs.
In any fitness center it is hard to teach people to care or committ. This will always be the fitness challege.
Shame on companies like 123 fit who have hurt so many people. 123 fit is not the only fitness center that has hurt people.
I know because I have many connections in the industry. I have friends who own a Curves. I have many friends that are former 123 fit owners all over the country.
I believe you DoDil. I believe that you believe that you know.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
Only trolls like Sleep Tight are insincere.
The Truth Shall Set You Free!
TIF
The Truth Shall Set You Free!
TIF
wipe the Cheesy Poof crumbs off your face and get your a$$ to bed. you've got a heavy day of trolling tomorrow.
But will they stay? I loved all the work outs I did through out my life.
The zor will be okay but will you be? That is what you need to investigate. Remember skip the sales person and whatever and whoever is connected with corporate. They will tell you what you want to hear.
If you decide to open a 123 fit and your not making it I know exactly what they will say. "Other clubs are doing it." Then call the other clubs. I asure you many are hurting and barely breaking even. Do not call the clubs that claim they are successful. Or where corporate wants you to call. Call the ones they don't direct you to. There is a reason they do this.
Curves gave me a week trial work out. As far as scientifically proven, it worked for me for 3 years.
123 fit wasn't proven with other circuits. They said it was. All they had was their circuit and took magazine articles to compare the circuit. Not exactly a fair comparison.
Good luck in buying one you will need it. Come back on BMM and learn how the 123 fit system is connected with Quiznos. Read all the sad stories. I assure you, you will regret you ever heard their name.
123 fit is really slowing down to a hault. Only 19 or 20 clubs left. I will be happy to give you names of people who will tell you their stories. Have you read the fitness magazine with the story of 123 fit owners speak out. It is called "Lights Out!" Then decide if you want to buy one. The product is never the reason to buy a franchise.
Still Curves has more that 19 clubs open. I strongly believe the fad is going out.
Killer due diligence. Work in the club in Moses Lake. Do it for 2 months and come back and tell us what you learned.
Ask them to see their books. Then proceed to do killer due diligence. Come back and everyone will tell you what this involves.
There is something about the Schadens they always have a good product. I loved the work out. Still do.
As far as a franchise to buy people stay away. It is financial suicide. Just like Quiznos they gouge their zees to the max. They make their money up front.
Curves first of all was not an ORIGINAL idea. It was a stolen one. Let's get that straigt. Google Pace exercise group, THAT was the original. With adjustable machines!
Curves won't be around in 5 years and if it is, there wont be many for a few reasons.
The circuit is only good for a few months, tops! The human body will adapt. Even with curves smart, all they did was take the circuit coach and make her computerized. There is no overload of the muscles or anything. It is the same old same old and it does get boring.
Member rentention suffers because of the same old same old.
Curves has the odacity to say that their workout is approved by Baylor University because they PAID for the study! How can a company today offer a stale circuit that has non-adjustable machines for different types of bodies??
It is a cookie cutter approach that is full of lies and marketing hype.
Gary heavin markets this as his idea, little do Curves owners know he stole it and really has no clue about fitness.
Nothing here is original.
All he did was take a concept that was already in the works and changed the name from PACE to Curvs and wala people think he "invented this." Like Microsoft didnt invent the graphical unser interface, Apple did but microsoft stole the idea and ran with it. Same thing here.
Curves was a fad that started with a boom and once people figure it out it had no longevity, they got out or tried to!
When you go to club camp they tell you how it works. Sure it works. If you take a completely sedentary female in her 30's or 40's and you put her through her very first exercise program, results come fast. It has nothing to do woth "the curves workout" it has to do with basic human body adaption to early stages of exercise induced stress!
What happens after the women has lost the fat and the inches? the hydraluic resistance is not enough because it has the same weight, same reps, same circuit!
It was a money machine scheme that will soon die down significantly due to oversaturation and lack of innovation!
Its already begun.
Curves Smart is their attempt to "Frankenstein" a non adjustable workout. Interesting stuff yes, backed by exercise science NO!
I don't care if a PhD approved this workout. It was a PAID study. Anytime something is PAID for by the same company what do you expect??
While I agree with some of what Dan says about it being resistance training and the body adapts to it, I disagree with his generalization and ranting about Gary Heavin and his Baylor Univ. study. Curves is not only successful because of the resistance training, it is successful largely because it is a 30 min w/o which really does give you a full body full muscle w/o in any other gym would take you 1 hr 30 mins minimum. Ladies have little to no time left in their day for working out for 1 hr or more, they work full time, they pick the kids up drop them off at this that or the other activity and the day/evening is gone. Curves gives you that 1 1/2 hr w/o in 30 mins, and you are energized and ready for whatever comes next. You get out of the gym whatever you put into it, whether it is 30 mins or 1 hr and 30 mins, no matter what gym it is. I think Dan has a hard on about Gary Heavins and his success in promoting curves and I am willing to bet he has never done a curves w/o in his life and would challenge him to put his money where his mouth is! I have been a member since 2004 and I love my w/o as much today in 2010 as I did when I first began. I might not be skinny minny but I am healthy and more fit than some of my friends who talk about doing a w/o but never seem to get to the gym. Most women wait till they have health issues before joining any w/o club, myself included. You can do 3 30 mins sessions a week or you can do 6 30 min sessions, or you can mix this w/o with something else that gives you more cardio to get the results you desire. If you don't do the hard work it takes you will not get the results you desire no matter what club you join and that is the long and the short of it!
received recognition by the AAFD. Surely the AAFD would not bestow recognition for good practices upon a company such as you describe. Are you daring to contradict the awards committee of renown experts who decided to recognize Curves as an investment worthy franchise opportunity - chock a block with fairness and jolly feeling toward franchisee associations and all that other crapola that the AAFD takes into account (plus money changing hands) when deciding to bestow its covetous recognition.
You are commiting lese AAFD, Sir. How dare you?
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
Just for the hell of it and to provide some Aussie Curves feedback I did a quick search.
Gary and Diane Heavin visit Australia
Before purchasing her Curves franchise in Sydney’s inner west
Buying a Curves Franchise
I could not find any Curves franchisee complaints from Australia? I thought they had won a Franchise Council of Australia award but it seems they didn’t and anyone can buy one of those.
Interesting how my search went off on a tangent and ended back in 2002-2004 looking at so much positive media about numerous franchises that today are deemed to be disasters. A few of the journalists who were very positive about those brands and franchising as the route to business success at the time either publish nothing about franchising or are somewhere between reserved to critical today.
From 2000 to 2006 FCA award winners included a ‘who’s’ who’ of today’s accepted Australian scams; Poolwerx, Bakers Delights [COBS], Jumping J-Jays, Lenard’s Chicken etc etc.
Uh, I was one of the renown experts who recommended that Curves be given an award - not because it is currently an investment worthy franchise because it isn't- since Curves has recognized the extreme downturn in their franchisee's resale value and have seriously tried to engage their IndFA to solve this problem.
Will the Curves IndFa working with the franchisor solve their economic problems? Don't know, but we gave the award because the franchisor was constructively working with the Curves IndFA to address their economic woes.
And as Richard knows, his favourite firm, Dady and Garner, agreed with the award.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
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
The only mention of the AAFD award on the Curves site is their press release which states, in part,
You might have confused the AARP ad on the front page of the Curves website with the AAFD.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
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