Monday, November 5, 2007
Don't Buy a Contours Express Franchise
This blog was created in hopes of helping people that might be conned into buying a Contours Express franchise. Before you decide to give them your money research and find out the facts. Call every gym you can not the ones they suggest. You will find that most are not making a profit, are for sale or getting ready to close. Why? There is no corporate support. Once they get you it's over.
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A place to get more information
http://www.franchisepick.com/franchise-dreams-becoming-nightmares-for-many-fitness-club-owners/
Franchise Dreams Becoming Nightmares for Many Fitness Club Owners
by sean on September 25th, 2007
60+ Contours Express Franchise Owners Allege Fraud, Breach of Contract by Franchisor
(FranchisePick.Com) Curves for Women can be credited for setting off the fitness franchise gold rush.
In a little over ten years from the launch of their franchise program in 1995, express fitness franchise Curves for Women grew to over 10,000 locations. The consumer concept was simple: A women-only 30-minute circuit training exercise program geared for non-supermodels at a flat monthly fee. The franchise concept was also simple: Low investment. Low space requirements. Minimal payroll & inventory. No real experience necessary. In short, a big room with fitness equipment and a boom box.
Predictably, dozens of Curves knock-offs and variations began to pop up, each hawking their “unique,” low-investment franchise opportunities. Overnight there were not only dozens of new express fitness club franchises for women, there were men-only 30-minute club franchises, senior citizen club franchises, 24-hour fitness club franchises, retro-themed club franchises… even an exercise club specifically for golfers. Experienced franchise salesmen and brokers found themselves surrounded by inexperienced individuals eager to get in on the latest hot new concept and to be in business for themselves but not by themselves for less than $50K. The rush was on.
Contours Express: The Great Pretender to the Curves Throne
Curves challenger Contours Express launched in 1998. The Contours Express website states: “leveraging the success of Curves® while upgrading the product offering and member experiences, Contours Express has created The ‘Better Idea In Women’s Gyms.’ The company is now the #2 Women’s circuit training gym behind Curves. We are the second fastest growing with over 600 locations worldwide in 20 countries, and rated among the most affordable.”
However, more than 60 Contours Express franchise owners have filed a petition for damages in the Circuit Court of St. Louis County against AABB FITNESS HOLDINGS, INC. (formerly known as CONTOURS EXPRESS, INC.), CONTOURS EXPRESS, LLC, and franchise broker JAMES E. HOGG (dba Franchise Visions), alleging fraud and breach of contract. Among the numerous complaints, each of the plaintiffs allege:
“The Contours Express UFOC dramatically understated the cost of building out and operating a location.”
“The owners of Contours Express and their representatives also made “earnings claims” or verbal pitches regarding profitability, which are prohibited by the Federal Trade Commission, to entice the Plaintiffs to purchase franchises and their lenders to finance them.”
“Once hooked, the franchisee had no way out. The typical franchisee’s working capital was exhausted soon after they opened their location and most could not service a debt load of 50 to 100 percent greater than they had been led to believe.”
“… the franchisor provided little or no support to the franchisees as it agreed to do under the franchise agreements signed by the parties. In fact, once the stores were opened, very few of the franchisees were ever visited by representatives of the franchisor.”
The franchisor failed to assist any of the franchisees in selling their locations because they would receive a higher franchise fee if the franchisee closed without selling their location and the franchisor could then sell the territory to a new franchisee.
The franchisor covered up the many franchise failures by not disclosing all of the franchisees who had left the system, as required by law.
Many of the complaints are being echoed by franchise owners of other chains, especially those alleging vastly understated start-up costs and necessary working capital and overly optimistic and illegal earnings claims and profit projections. Recent FranchisePick.Com posts on fitness franchise Butterfly Life has prompted fiery comments and debate between current and former Butterfly Life franchise owners (See links below)
We’ll be continuing to follow the Contours Express legal dispute and other fitness franchise program controversies, and the lessons these disputes hold for those wanting to go into franchising with both eyes wide open.
Earlier this week clubs across the Atlanta area received an e-mail from corporate about a "Franchise Roadshow" coming to Atlanta on Wednesday the 7th. I thought everyone would be interesting in the crap that corporate is spweing about why our clubs aren't successfull. It make me sick.
This is the first e-mail from a club owner here ... the next two are the responses from corporate, plus a third from another owner closing her doors.
Actually - lets start with the corporate bunk
FROM THE CORPORATION
As part of our commitment to grow the size of our company in order to improve the local marketing potential for our franchisees, we have partnered with four other franchised companies, Hollywood Tans, Nathans Famous, Fantastic Sams Hair Salons and Wing Zone in presenting the Atlanta Road Show, scheduled for 7 p.m. on Wednesday, November 7 at Atlanta’s Doubletree Guest Suites, 2870 Windy Ridge Parkway. Reservations for this free event may be made at www.franchiseroadshow.net or by calling Contours Express toll-free at 1-877-227-2282.
Contours Express CEO, Jose Perez and Training Director, Mary Schrad will be presenting at the Road Show.
This is a perfect opportunity to encourage referrals to attend and ask their questions.
The news release below was distributed today to the media in the Atlanta area, and the attached poster is for display in your gyms. There is a natural movement from former Curves member to Contours Express member to Contours Express owner. Your members may be the best source for referrals. Remember to pre-register any referrals that you may have by calling the Contours Express corporate office in order to earn you $2,000 bonus payment.
A quote from the New Contours Express CEO
"To date, Contours Express has licensed nine locations in the Atlanta marketplace and the market could hold an additional 31 locations, said Perez. "
This was his attempt to indicate regional performance --- perhaps pursuade people to buy.......
HERE IS THE ACTUAL TRUTH OF THE 9 LOCATONS:
It is actually 14 Licenses
1. Snellville - up for sale.
2. Grayson - up for sale for 6 months.
3. Lawrenceville - up for sale for 6 months.
4. Norcross - up for sale.
5. Alpharetta - up for sale or may close.
6. Acworth - Sold in 2006 and now up for sale again or may close.
7. Covington - selling or closing the doors.
8. East Point - closing the doors
9. McDonough - Closing Dec 1.
10.Mableton - Closed
11. Marietta - Closed.
12. Maretta - Open. Status unstable -
13. Atlanta/Sandy Springs - Unsure of status
14. Stone Mountain - just purchased and is not open yet.
THEY ARE LIARS
They are trying to use the fact that they have sold territories to proove that they have done something worthy of people purchaing additional territories.
THIS IS WHY THEY ARE BEING SUED.....
While it is true that they sold the territories over 78% are closed or closing, one is unstable, one unknown and one is not open.
I am SURE they are not telling people that before they sell territories.
AND LET ME BE THE FIRST TO TELL YOU THAT THIS STORY RUNS RAMPANT THROUGHOUT THE COUNTRY.
DO NOT SPEND YOUR MONEY ON THIS COMPANY!!!!
YOU ARE FOREWARNED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
oops,
I meant
FORWARNED
I just hope every potential contours victim sees this
I would love to sell my Contours.However,I would never sell it as a Contours.I would NEVER do to anyone what Contours Corp has done to me and many others.Owners, please check out the new lawsuit with dadygarner.This firm will bring Corp to their knees.Fraud and inducement are only a few of the many things Corp will have to answer for.
I am going out of business in Arizona and cannot even sell it. I have invested $135,000 and cannot even get $35,000 for it. I was number one with 407 members but they are snowbirds and there were hardly any here in the summer. I have not made a cent in two years. Any ideas on how to get rid of equipment? I also have cardio machines like treadmills, ellipticals, etc. I NEED HELP!
My name is Stace Hardin. I am currently taking over a building once a contours express. I do feel for the lady who had this business. I have been in this business for 26 years since 17 and professionally since I was 22. Being certified to train on all levels, and experienced; the best bet to own this type of business is to not do it unless you want it to be your bread and butter. If so, it will be fine, if the person is "into" and "knows" the biz. I will one day offer a "franchise" myself, but you can bet it will not rip people off. You do not have to do that to make this business work. Equipment is like a new car, when you buy it, only worse. contact me for help personalfitness@comcast.net.
Scary as i have just joined one. Where does this leave me?
I was going to buy a contours thank you for everyone who have saved me money. I am a PT and am now looking at OZIFIT franchise its 150k with equipment,TV flooring, the lot.Contours I had to buy everything other than equipment. Ozifit offering to have you trained if not qualified as a PT at Australia Institute of sport. The lady who owns the franchise worked for Curves for a few yrs nearly bought a contours herself but is so happy she didnt Ozifit its like a Fernwood only half the price. there is genuine people out there to help
My name is susan hayden of milford, Michigan.Have had same experiences as others. 150,00 invested could not get any help from corporate even a visit.Would be interested in any law suits available to pursues or info
About pursing one ,lasted two years but had to finally had to close doors any info would help
rjhayden@yahoo.com
Franchising is a kind of the business which is much difficult and may have many risk involve in it. It is important you are prepared for the risk and the unexpected.
I purchased a franchise from Contours Express and started business in 2006. I used all of my IRA money to purchase it, the equipment, etc. I never made one penny and went under completely two years later. I never got any help from Contours at all and lost $149,000. I wish I would have known about the 60 that filed together. Would have loved to be in on it. I am a retiree and have nothing left. I know of one person that lost $800,000. Wish we could get money back. Terrible experience in my life. Sold the business for $25,000 and I still owe.
I lost $149,000 with Contours. It was my retirement money. They never helped me and used high pressure salesman talk during our training. I should have know then. One man lost $800,000 on two of them. They sure ripped us off. Would have liked to have been in on the lawsuit. It just broke me right up.
I also lost $151,000 with Contours. It was from our IRA's. It was such a high pressure talk they gave us and they were so convincing. Once I opened I never got anything more from them and there was no help or anything. All they did was take my money every month. I wish I could join the lawsuit that they have. Does anybody know how to join in on it?
Anyway, it was a complete rip off. Last time I checked they only had about 32 Contours still open and it was over 500 when I started mine.
is there anyone from Australia on this page / reading this page? post so I can contact you.
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