CURVES: Should Failed Franchises be Resold?

The Curves franchise on Thorold Stone Road, Niagra Falls reportedly closed overnight.

According to the Niagra Falls Review, members reportedly “worked out the day before and no one said anything and then came in the next morning and it was all dark and empty.” 

The sign on the door read: "Attention Curves members. Sorry closed for business. Thank you for your past support."

Members complained that they had just paid for the month and were given no notice whatsoever.  However, members are free to continue their memberships at other area Curves clubs.

CI’s main concern:  Finding a new owner

The Niagra Falls Review interviewed Becky Frusher, head of corporate communications at the Curves International Inc. head office in Texas:

She said the company will try to find a new owner for the women-only club so members are not disrupted.

"We regret to see any club close," she said. "Our main concern is getting the club back up and running, so that members can continue to enjoy the health benefits of our workout."

Shouldn’t Curves’ main concern be determining the reason for the failure?

While it may seem to members that their Curves franchise club closed overnight, it’s unlikely that it did.

After all, a franchise owner had a significant investment sunk into that club.  The odds are that they have tens of thousands of dollars in outstanding liabilities… money owed to CI, to their landlord, and to other creditors.  Isn’t it more likely that the club closed after a long and protracted effort to keep the club profitable and open?

The more than 500 comments posted here by struggling Curves franchise owners support that conclusion.

Shouldn’t Curves International’s priority be to determine whether the Niagra market could not support that club, rather than to put another owner in the same situation?

And if they find a new owner who reopens the club… will the surrounding clubs then lose the members they took in from the closed club?

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