Year Business Began: 1992
Franchising Since: 1995
Headquarters: Waco, Texas
Estimated Number of Units: 4,000
Franchise Description: Curves NA, Inc. is the franchisor. The franchisor is in the business of granting and providing services to its franchisees consisting of the opportunity to open and operate a thirty minute fitness and weight-loss club under the “Curves” trade names, trademarks and system of operating procedures.
Training Overview: All employees must satisfactorily complete approximately 40 hours of online and live virtual sessions with a focus on company history, service, sales, guest production, policy, procedures and management in order to obtain an “Onboarding Certification.” Prior to execution of the Franchise Agreement and prior to opening the club for business, certain individuals associated with the franchise must attend and satisfactorily complete up to five days of training. Training may be held in Waco, Texas or any other location the franchisor designates. Prior to execution of the Franchise Agreement, franchisees may be required to satisfactorily complete a one-day visit to another franchisee club. The franchisee’s key staff may also be required to satisfactorily complete a club visit prior to the opening of the club for business. During the grand opening phase of the club, the franchisor shall provide franchisees with assistance via its independent contractors or Curves employees at their club for up to four days at such times as it deems appropriate under the circ*mstances. All personnel employed by franchisees in the operation of the club must satisfactorily complete Curves required operating system training, obtain onboarding certification, and complete ESP training. Franchisees, their key staff, as well as any owners and personnel, as required by the franchisor, must participate in any additional training or refresher courses (online or otherwise) as required by the franchisor, including participation in or attendance at its annual conventions/conferences, regional meetings, and ESP training courses.
Territory Granted: Franchisees will receive territorial rights to operate one Curves franchise at a specific location the franchisor approves. Franchisees will receive territorial rights (the franchised territory) surrounding the approved location. The franchised territory is based primarily on population. Typically, a franchised territory includes a population ranging from 5,000 to 60,000 people. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. During the term of the Franchise Agreement, and provided franchisees are complying with the provisions of the Franchise Agreement, they will receive an exclusive territory in that the franchisor will not: (i) modify the franchised territory without their written permission, or (ii) directly operate or license or franchise a third party the right to operate a physical location under the Curves marks in the franchised territory.
Obligations and Restrictions: If franchisees are an individual, they must directly perform or supervise operations of the club unless the franchisor consents otherwise. If the franchisor agrees that franchisees need not personally perform or supervise their club, it must be directly supervised by their designated key staff who has successfully completed the initial training program and other educational requirements and training. If franchisees are a corporation, direct, on-site supervision must be done by a designated owner who meets with the franchisor’s approval and who has satisfactorily completed the initial training program and other educational requirements and training. Franchisees must offer and sell only the goods and services that the franchisor has approved and which conform to its standards and specifications.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The franchisor may allow for a term of less than 10 years at its discretion if requested by the franchisee. If the franchisor grants a request for renewal, franchisees must sign a new Franchise Agreement for a term of five additional years. The franchisor may allow for a term of less than five years at its discretion if requested by the franchisee.
Financial Assistance: At the franchisor’s sole discretion, it will finance up to 50% of the initial franchise fee for a period not to exceed 24 months at an interest rate of whichever is less between 10% per annum or the highest rate allowed by law. The franchisor has not, nor does it intend to, sell, assign or discount to a third party any part of its financing arrangements with its franchisees. The franchisor does not guarantee any notes, leases, or obligations.
Investment Tables:
Name of Fee | Low | High |
---|---|---|
Initial Franchise Fee | $50,000 | $50,000 |
Application Fee | $500 | $500 |
Travel and Living Expenses While Training | $1,500 | $4,500 |
Real Estate and Improvements | Varies | |
Site Evaluation | $0 | $750 |
Training and Education Requirements | Varies | |
Furniture | $1,500 | $3,000 |
Technology Fee | $275 | $275 |
TV/Sound Bar System | $550 | $1,000 |
Supplies | $500 | $1,000 |
Computer | $500 | $1,000 |
Signs | $1,000 | $3,000 |
Grand Opening Advertising | $5,000 | $7,000 |
Deposits | $2,000 | $6,000 |
Insurance | $2,000 | $2,500 |
Business Registration | $0 | $500 |
Professional Fees | $1,000 | $3,000 |
Curves Equipment Delivery Fee | $2,500 | $5,000 |
The Evolt 360 Body Composition Scanner | $307.47 | $5,650 |
Evolt License Fee | $150 | $150 |
Evolt Training and Delivery Fee | $300 | $300 |
MyZone Switch Heart Rate/Fitness Hardware | $499 | $600 |
MyZone License Fee | $150 | $150 |
MyZone Trackers (per tracker) | $70 | $70 |
Additional Funds - 3 Months | $1,500 | $4,500 |
ESTIMATED TOTAL (does not include real estate costs) | $71,731 | $100,375 |
Type of Fee | Amount |
---|---|
Monthly Royalty Fee | 7.5% of the previous month's gross sales for the franchise subject to the minimum monthly royalty fee of $375. |
Monthly Advertising Fee | 2% of the previous month's gross sales for the franchise subject to the minimum monthly advertising fee of $175. |
Training Fees | $5,500 |
Relocation Fee | $500 |
Delay of Opening Fee | $1,500 |
Indemnification | Will vary depending upon loss. |
Fee for the Franchisor’s Audit of Franchise | Cost of audit if the franchisee understated gross sales by more than 2% and any unpaid fees owed to the franchisor. |
Escrow Fee | $1,800 |
Assignment Fee | $1,000 |
Onboarding Certification Fee | Then-current fee; currently, $150 per person. |
Health and Wellness Certification | Then-current fee; currently, $50 per person. |
Training for Replacement Staff | Then-current fee; currently, $500 per person. |
Renewal Fee | Amount equal to 25% of the then-current initial franchise fee applicable to a new franchise. |
Monitoring Fee | $250 per month per item of non-compliance. |
Brand Protection Fee | $350 per month per item of non-compliance. |
Technology Fee | $275 per month. |
Late Fee | $55 |
Interest | The highest rate allowable by law on any balance unpaid by more than 30 days. |
Non-Compliance Damages | The remaining months on the term of the Franchise Agreement multiplied by an average of the last 6 months of monthly royalty fees, or if the franchisee’s club has been open less than 6 months, an average of the monthly royalty fees since the franchisee’s club has been open. |
Insurance | Cost of insurance. |
Inspection and Evaluation of Suppliers and Products | Varies, depending upon the cost to the franchisor for the inspection and evaluation. |
Transfer Fee | $5,000 |
The above information has been compiled from the FDD of Curves. Year of FDD: 2022.
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