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Curves Franchise Loss: Tired Formula, Poor Marketing Or 'Pruning'?

If you live on the sweltering East Coast of the U.S., the most you probably feel like exerting yourself today is by jumping into a cool lake but, as fate would have it, the muses of re-reporting this morning are focused on exercise and diet. First, Richard Gibson reports that the number of Curves franchised fitness centers "for women only" has plummeted from 7,748 at the beginning of 2007 to about 5,208. Only 35 outlets opened in the U.S. last year while about 1,000 closed.

Curves president Mike Raymond says some of the departed owners came into the system to as "investors rather than owners" and claims that the pruning was intentional. But observers cite more flexible hours for working women, cheaper competitors with more amenities and options, and the poor economy as factors in the drop.

Diana Tavary of Helena, Mont., walked away from her clubs after 10 years because she feels Curves didn't keep up with the times, Gibson reports. "They didn't allow you to offer anything different than just" a formulaic 30-minute circuit, she says. Newer rivals such as Snap Fitness and Anytime Fitness offer a range of workout equipment and exercise routines, as well as showers and dressing rooms.

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Other franchisees cite poor marketing. "There is also a perception that the Curves workout is a 'sissy workout,' which is a complete misunderstanding," says Jim Gasson, a franchisee in northern Virginia.

Read the whole story at Wall Street Journal »

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