In the Curves International 2010 Franchise Disclosure Document (FDD) issued March 25, 2010, 28 civil actions were disclosed in the Item 3 Litigation section.
5 are individual or group actions by Curves franchisee owners alleging such things as breach of contract, fraudulent inducement, negligent misrepresentation, etc. on the part of Curves International.
7 are lawsuits by Curves members allegedly injured on pieces of equipment or on premises.
5 are by vendors, employees and a competitor (Weight Watchers) against Curves International.
11 are lawsuits by Curves International against its franchisees, most seeking recovery of damages (non-payment of fees) resulting from their alleged “abandonment of the franchise.”
Curves International, Inc. Settlements With Franchisees Who Sued
The mandatory disclosures of litigation in the Curves FDD make public the following “confidential settlements” between Curves International, Inc. and the Curves franchisees who sued them. For more information on the allegations and court venues, consult the CURVES International 2010 Franchise Disclosure Document (FDD).
Healthy Directions Northwest, Inc. v. Curves International, Inc., George Blaine and Sandy Blaine d/b/a Curves.
“…A confidential settlement between the parties and this case was dismissed by the court on 4/9/09 in which We [Curves International] paid $5,000 in full and complete settlement of all claims.”
Linda G. Woodward, Susan Taylor Harper, Lydia S. Romero, Jeffrey P. Kalbfleisch and Stephanie Kalbfleisch v. Curves International, Inc.
“…We paid $3,500 in settlement of all claims filed by said plaintiff [Woodward], and her claims were dismissed from this lawsuit by the Court on 2/13/08. Confidential settlements have been reached between the 4 remaining plaintiffs and Us… execution of the settlement documents and dismissal motions are pending.”
Kareen Lay v. Curves International, Inc.
“On 3/20/09, an action was filed against Us by a franchisee seeking recovery of damages in an undisclosed amount for alleged breach of the franchise agreement by an alleged failure to mediate. As of the date of this Disclosure Document, this case is still pending.”
Kinnie Gibson v. Curves international, Inc.
“On March 9, 2010, an action was filed against Us by a former master franchisee in Germany… regarding the franchise relationship. As of the date of this Disclosure Document, the case is still pending.
Momentum Sales & Services, Inc., et al. v. Curves International, Inc. and Howard Gary Heavin.
This is the largest group action lawsuit by franchisees against Curves International, Inc.
17 plaintiffs’ claims were dismissed with NO payments being made by Curves International, Inc.
29 confidential cash settlements totalling $204,400 were made by Curves International, Inc. resulting in their claims being dismissed. The average settlement amount was $8,290.
As of the date of the FDD, the case is still pending with 81 plaintiff groups remaining.
|Date Settled||Plaintiffs||Amount CII Paid|
|2/7/08||Lori Brickel & Jill Kalatucka||3,000|
|5/14/08||Diana L. Dahlin, Peggy Matson||20,000|
|5/14/08||Carol L. Rooney, Jaclyn A. Rooney||7,500|
|6/11/08||Sheree Corde Carter||5,500|
|5/8/08||Denise Alabach, Diane Schneck||5,000|
|6/27/08||Judith Haddad, Tringo, Inc.||10,000|
|5/13/08||Sandra L. David||3,500|
|5/19/09||Gloriously Fit Inc., Janet & Russell McTier||1,000|
|6/24/09||Akute LLC, Royce Makil, Gracy James||6,000|
|6/24/09||Doobly Ventures LLC, Doobly Ventures III LLC, Deborah B. Myers||7,000|
|11/20/09||Carol Riedel, Marie Fitness Inc.||12,000|
|1/8/10||Betty J. Boyd||2,500|
|2/2/10||Geralin Inc., Linda Coughlin, Geraldine McClary||4,500|
|2/24/10||S&P Wolf Inc., Peter & Sarah Wolf||3,000|
|3/5/10*||Karen Costner Leighton||24,000|
|3/5/10*||Fitness etc. LLC, Yvonne Samuels||2,500|
|3/5/10*||RM&R Fitness Inc., Mary Stark||2,000|
|3/5/10*||Elaine & Robert Taylor||2,000|
|3/12/10*||Treetoad LLC, Teresa Soderberg||2,000|
|* Agreement date.
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