Curves International came to terms with the New York Attorney General on an agreement to reimburse members of more than 60 Curves clubs that closed in that state.
The agreement was announced last Tuesday by the office of Attorney General Eric T. Schneiderman. Schneiderman said that Curves did not honor its obligation to provide refunds when franchisees of independently owned Curves clubs shut their doors.
“If you do business in New York, then you have to play by the rules,” Schneiderman said. “Curves International—like any franchisor operating in the state—must refund the customers who prepaid for memberships they ultimately could not use.”
In 2009, 60 Curves clubs in New York state closed, according to the attorney general’s office. Curves will put up to $100,000 into a reimbursement fund, which will be overseen by the Better Business Bureau, for all members who requested a refund from any New York Curves that closed that year. Also, Curves will pay an additional $60,000 to the state of New York for the costs of an investigation that followed complaints to the attorney general’s office.
Curves President Mike Raymond said the Waco, TX-based company is pleased to have reached a resolution with Schneiderman’s office.
“Curves International Inc. has always prided itself on its excellent record of customer service to our members,” Raymond said. “When it was brought to our attention that [a] certain [number] of our franchisees were not treating members in the same spirit of fairness we pride ourselves on, we took all necessary steps to ensure that such was corrected. We look forward to working with the attorney general to prevent our members from being harmed by any rogue franchisees in the future and helping all of our members on their path to health and wellness.”