Over its 15 year history, Curves, known for its unique fitness club model, grew to become the #1 fitness franchise, the fastest
growing fitness franchise and world's largest fitness franchise with nearly
10,000 clubs in more than 60 countries serving more than 4 million
members. Curves is
specifically designed for women, and offers fitness, nutrition and weight loss
solutions. Most clubs now also offer a unique computerized personal coaching system
called CurvesSmart. The Curves
franchise is a proven sustainable business model. The foundation of the
corporation and concept remain strong, with the majority of clubs performing
well for their owners.
Curves corporate franchising operations are now primarily focused on strengthening the brand and
expansion into international markets.
Existing U.S. franchise owners are supported by an active Curves Franchise
Association (www.curvesfa.org), local
Coops of Curves franchise owners and this year, existing franchise owners will
be the focus of Curves annual convention.
Additionally, in December, 2008 Curves formed a strategic alliance with
Healthways SilverSneakers Fitness Program, which reimburses Curves owners for
free membership/club use extended to Medicare-eligible women, and has been a
boost to Curves membership. Recently, additional insurance companies have joined to promote SilverSneakers to promote either free memberships or reduced cost memberships through their wellness programs.
Resales make much more sense than buying a new franchise. Key factors for success as a Curves
franchise owner are controlling overhead costs (rent <20% of revenue),
attaining membership levels generally greater than 300 and sufficient working
capital to advertise for new members.
Overhead costs can be maintained by working as an owner-operator and
negotiating lower lease terms.
Buying an existing franchise with membership levels of approximately 200
or more gives new owners a running start versus start-up of a new franchise
location with no members on day one. And, buying an existing "shovel ready" franchise
business preserves capital for advertising, rather than build-out and equipping
a new location.
Buyers of existing Curves franchises come from all types of life
situations, including:
·
Owner-operators starting a new career;
·
Multi-club investors/managers;
·
Empty-nesters returning to a career;
·
Retirees and looking for a new opportunity;
·
Members of Curves that just love being there!
Most
clubs performed spectacularly well during the early years, however many
owners
believe Curves over-saturated the market with franchise locations.
Those clubs with an insufficient population base, who were also saddled
with debt for clubs purchased at the peak of Curves growth history,
inevitably fell victim to decreasing revenue and consolidation of
active locations in the U.S.
There
were approximately 5,600 Curves franchises owners in 2009 in the U.S.
according
to Entrepreneur magazine, down from a peak of over 7,600. While
painful for club owners, who have
been forced to shut their doors, the quiet majority of well-managed
remaining
club locations have the population base to support the business model,
and are
in fact benefiting from the consolidation. The Curves fitness concept
has never been contested and loyalty to the Curves brand remains
strong.
Some
owners who have not survived this shake-out, as well as certain lawyers
searching to gather clients, have vocally expressed their
disappointment on the Internet and in some cases, in court. Similar
discontent from franchisees of
McDonalds, Quiznos and other successful franchisors pop-up on search
engine
results as well, but this vocal minority is not representative of the
majority
of franchisees. Prospective buyers of any franchise should
always conduct their own independent investigation before investing
money. UFOC and related materials should be
carefully reviewed; advice from an attorney and a CPA in reviewing all
legal
documents should be obtained; and talking to as many existing
franchisees as
possible, and visiting their outlets it critical.
With remaining franchisees benefiting from the consolidation and exciting
new programs such as SilverSneakers, there is a robust secondary market
developing for Curves franchise resales.
With any franchise there is a turnover of existing franchise resales
that is normal and expected.
Prices and terms for franchise resales have also never been better, with
many owners willing to provide financing or other incentives directly.
In summary...
Why Curves? - because it is a proven franchise
business model that has successfully weathered previous economic cycles, is the
#1 women's fitness franchise with unparalleled name/brand recognition and the
parent corporation is financially sound and committed to supporting existing
franchisees. Curves provides unparalleled training and support to owners.
Why a franchise resale? -
because franchise resales are proven entities with an existing membership base
as a foundation and your capital can be spent on increasing membership rather
than start-up costs such as build-out and equipment.
Why now? - because many club
locations are benefiting from closing of unprofitable neighboring clubs, generally clubs see their largest membership increases at the beginning of the new year, Curves
membership is being stimulated by programs such as SilverSneakers, and prices
and terms have never been better.
Touchstone works with business seekers looking for independent businesses, as well as franchise resales. An established franchise resale may be a great option to consider, depending on your background, skill set, lifestyle, and financial goals. For more information, please visit
www.touchstonebiz.com or contact
Touchstone at (303) 278-7501.
Niche Manufacturer Construction Company