CURVES Franchising Guide
How much does a curves franchise cost? With the growing interests in franchising among entrepreneurs, due to the simple, yet effective business models they present, there has been little or no information available to many with interests on joining or investing in franchises.
This article aims at reducing the difficulties experienced by franchise candidates and investors as it provides information on buying a Curves franchise. With the contributions made, it is strongly believed that the information supplied will help in no small measure in boosting investor confidence and guiding them in making informed investment choices.
Providing services mainly centered on women’s fitness and weight loss strategies and workouts, the Curves franchise was founded by its present CEO and founder, Gary Heavin in 1992. With its corporate headquarters located in Woodway, Texas, the Curves franchise started its franchising operations in 1995.
However, before the opening of the Curves Franchise, Gary Heavin had operated unsuccessful fitness chains which never succeeded. It was the lessons gathered from the failure of the first chain of fitness centers that led to the success of the Curves Franchise.
Financial Requirements for Buying a Curves Franchise
Buying a curves franchise comes with several requirements, however, in this section, we are focusing on the financial requirements of ownership of a Curves franchise. The curves franchise requires that franchise candidates meet the following financial requirements; an Initial Investment starting from $31,825 to $39,100, a Net-Worth requirement of $75,000 and a Liquid Cash requirement of $50,000.
These fees are mandatory in order to be considered for buying this franchise.
Ongoing Fees for Buying a Curves Franchise
There are also ongoing fees required from franchise candidates. These ongoing fees are also mandatory, and must be accepted by all franchise candidates. The franchise candidates are left with little or no choice as regards the payment of the ongoing fees.
If the franchisee is not satisfied with this requirement, the only option available to him/her is to simply quit and look for another franchise opportunity.
The ongoing fees include the following; an Initial Franchise fee of $24,900, an Ongoing Royalty fee of 6% and an Ad Royalty fee of 3%.
Training and Support for Curves Franchise
Buying a Curves franchise requires that all Curve franchisees and their managers undergo a period of compulsory training aimed at providing them with the right skills and knowledge to help in adequately running their own franchise without much difficulty. The support provided also ensures that franchisees are adequately guided through the provision of support services.
For the training, franchisees go through a period of 1 week training at the franchisor’s corporate headquarters. Also, in addition, there are 4 days of on-site training to acquaint franchisees with daily business procedures. Support covers the following areas; periodic newsletter publications, a toll free line, internet services, a grand opening, field operations and periodic meetings.
Financing Options for Buying a Curves Franchise
There are financing options available to franchise candidates to cover up some of the expenses to be incurred. For Curves franchisees, there is a financing option available to them. This is in form of an in-house financing arrangement made available by the franchisor to provide financing covering the franchise fee.
Curves franchisees benefit from territorial rights which gives them exclusive access to a particular territory. The population within these territories is typically from 5,000 to 60,000 people.
Within this area, the franchisees are expected to exclusively have access to business rights under the control of the franchisor. However, franchisees may face competition from other competitive brands the franchisor controls.
Terms of Agreement and Contract Renewal for Buying a Curves Franchise
This is largely dependent on the agreement signed between the franchisee and the franchisor. For Curves, the tenure of ownership of the franchise by the franchisee is usually a 5 year period. However, this can be reviewed downward whenever the franchisee desires that.
In the event that the term is renewed, there will be an entirely new signing of the franchise agreement between the franchisor and the franchisee. If after the renewal, the franchisee desires that the contract term be reviewed downward, then this is mostly acceptable to the franchisee.
Conditions Every Franchisee Must Abide By
All Curves franchisees are required to personally supervise the operations of their franchises, unless otherwise stated by the franchisor. However, if it is agreed that the franchisee can operate based on an absentee ownership model, then this franchise has to be supervised by a manager who must have attended training and also knows how to properly carry out the administration of duties of this franchise.
How to Open for Buying a Curves Franchise
To buy a curves franchise, certain steps must be followed, which first involves registering your interest using appropriate channels.
This channel is through the online application form made available to all franchise candidates who must carefully fill and submit same online. The information supplied by the franchise candidate is used in determining if he/she is qualified to buy the Curves franchise.
If qualified, a Curves franchise representative contacts the applicant through the contact details supplied on the form. Further investment decisions are taken, involving the Franchise Disclosure Document being handed to the franchise candidate to enable him/her to fully understand the terms of the agreement, and to help in making up his/her mind on the next step to take.
Above are the steps involved in buying a curves franchise. Buying this franchise comes with several steps, as such investor or franchise candidate has to be first screened to ensure he/she is the right candidate.