Curves Franchise Cost & Fees
Date of Incorporation: 1992
Franchising Since: 1995
Headquarters: 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. Franchisees will not receive an exclusive territory. 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 5 years. Curves may allow for a term of less than 5 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 5 additional years. For the renewal term, Curves may also allow for a term of less than 5 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: 6,000
|Name of Fee||Low||High|
|Initial Franchise Fee||$34,900||$39,900|
|Travel and Living Expenses While Training||$1,000||$3,000|
|Real Estate and Improvements||Varies||Varies|
|CurvesSmart Sensors||$39.95 (each)||$479.40|
|TV/Sound Bar System||$550||$550|
|Products and Display||$620.17||$1,393.14|
|Additional Funds - 3 months||$1,500||$4,500|
|Estimated Total (does not include real estate or education costs)||$46,070.17||$69,443.14|
|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.|
|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.|
|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.|
|Curves Complete||$15 per new Curves Complete member.|
|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|
The above information has been taken from the FDD of Curves. Year of FDD: 2014
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