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Curves Franchise Cost & Fees

Date of Incorporation: 1992

Franchising Since: 1995

Address: Woodway, Texas

 

Business Description: Curves International Inc. franchisees operate thirty minute fitness and weight-loss center to offer instruction to the general public on weight reduction and fitness.

 

Franchise Offer: Curves will grant the franchisee the right to operate one Curves thirty minute fitness and weight-loss center at a location specified in the Franchise Agreement. The franchisee will offer thirty minute fitness and weight reduction instruction to the general public as an independently owned and operated entity using Curves’ system of operations, logos and trademarks.

 

Financial Assistance: At Curves 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. Curves does not guarantee any notes, leases, or obligations.

 

Training and Assistance: Training will be held near Curves corporate headquarters in Woodway, Texas, or any other place as Curves designates, and will last for two to five days. The franchisee and a designated manager are required to attend and complete the training. The time it takes to complete these courses may range from 18 to 28 hours. The franchisee and designated manager may be required by Curves to attend additional training necessary to the operations of the franchise.

 

Territory: The franchisee will receive territorial rights to operate one Curves franchise at a specific location. The franchise area is based primarily on population. The territory size should range anywhere from populations of 5,000 people to 40,000 people. Curves is restricted from granting a franchised outlet to anyone other than the franchisee within a franchisee’s area.

 

Term of Agreement and Renewal: The length of the franchise term is five years. Curves may allow for a term of less than five years at its discretion if requested by the franchisee. If Curves grants the franchisee renewal, the franchisee must sign a new Franchise Agreement for a term of five additional years. For the renewal term, Curves may also allow for a term of less than five years at its discretion if requested by the franchisee.

 

Obligations and Restrictions: If the franchisee is an individual, he or she must directly perform or supervise operations of the franchise unless Curves consents otherwise. If it is mutually agreed that the franchisee need not personally perform or supervise the franchise, the franchise must be directly supervised by an individual who has successfully completed the training program. The franchisee cannot solicit customers, provide services or advertise outside of his or her territory. The franchisee must offer and sell only the goods and services which conform to Curves’ standards and specifications.

 

Estimated Number of Units: 7,000

 

Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $34,900 $39,900
Travel and Living Expenses While Training $1,000 $2,000
Real Estate and Improvements Varies Varies
Education Requirements Varies Varies
Furniture and Equipment $500 $1,500
Supplies $200 $600
Computer $500 $1,500
Signs $625 $1,100
Advertising $500 $1,000
Deposits $500 $1,000
Insurance $500 $1,000
Delivery Fee $1,500 $2,500
Additional Funds - 3 months $1,500 $3,000
Total (does not include real estate or education costs) $42,225 $55,100

 

Other Fees:

Type of Fee Amount
Monthly Royalty Fee 5% of the previous month's gross sales.
Monthly Advertising Fee 3% of the previous month's gross sales.
Re-Location Fee $500
Delay of Opening Fee $1,000
Certification for Health and Wellness $149
Indemnification Will vary depending upon loss
Fee for Audit of Franchise Cost of audit if franchisee understated gross sales by more than 2% and any unpaid fees owed to Curves.
Transfer Fee $5,000
Escrow Fee $1,800
Assignment Fee $1,000
Monitoring Fee $200 per month
Brand Protection Fee $200 per month per item of non-compliance.
Curves Operating Software Fees $149 initial fee for the web based software and a continuing monthly service fee of $29. Franchisees do not have to pay the $149 initial fee if the franchisee is purchasing a new franchise from or purchasing an already operating franchise from one of Curves’ franchisees.
Late Fee $35
Interest The highest rate allowable by law on any balance unpaid by more than 30 days.
Non Compliance Damages The lesser amount between $28,620 or the remaining months on the Franchise Agreement multiplied by $795

Date of FDD: 2013

The above information has been compiled from the FDD of Curves.

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