And shout they did. In 1996, there were 44 Curves gyms. In 1997, there were 247. The Heavins decided to move their headquarters from their home to a proper office. They rented two offices and soon added a third. The next year, the number of Curves franchises doubled again, to 537, and the Heavins moved Curves headquarters from Harlingen to Waco, to a low-slung building across the street from a waste-treatment facility. They had five employees and never thought they'd outgrow that building. In 2000, there were more than 1,200 franchises. In 2001, Curves doubled in size again. By 2004, the company had more than 8,000 franchises, and Curves moved again, to its current capacious headquarters: a rustic, ranchlike building in Woodway, with working fireplaces and hallways lined with prints of ducks in flight and cowboys taking aim at Indians.
Heavin credits Curves' rapid growth to the low-overhead business model, which allows the company to open profitably in towns too small for other gyms. "We created an efficient business model that could go where no one else could," he says. Indeed, the average Curves club today has only 400 members--which, according to a formula the company has developed, is what a town with a population of about 10,000 can sustain.
Targeting smaller towns and cities had several strategic advantages. For one thing, it made it easier to attract members, because Curves often was the only fitness option in town. It also made it easier to attract new franchisees: The territories were small enough that an enthusiastic Curves member could open a gym one or two towns over without poaching business. The low-overhead model also meant that the buy-in for a franchisee wasn't steep--a little under $20,000 in those days, including the equipment. And franchising in out-of-the-way places gave Curves at least one more edge: The gyms were largely hidden from rivals, which allowed the company to sell hundreds of franchises without arousing competition.
Marketing also proved easy. Curves promised a fast-yet-effective workout, along with a sense of community with like-minded women. This promise was particularly attractive during the mid- to late 1990s. Aging boomers were being urged by their doctors to spend more time at the gym. But few women are able to put this advice into practice: Some 66 percent of women say they never get 10 minutes or more of any kind of vigorous physical activity a week, according to a 2004 report by the Centers for Disease Control and Prevention. What's more, Heavin's frank talk about religiously inspired values could not have been timed better. Not only were megachurches on the rise, but the family-friendly aspect of Curves ownership--hours that allow you to be home to have dinner with your family--also had a strong appeal and stood in stark contrast with the around-the-clock service required by other franchisers.
To be sure, Heavin's unabashed religiosity has alienated some. In 2004, for example, news broke that the Heavins had given generously to an anti-abortion group, sparking a moral dilemma for many pro-choice Curves members. The issue even surfaced in The New York Times Magazine's column The Ethicist. The column's author, Randy Cohen, suggested that pro-choice Curves members who value their reproductive rights more than their figures should relinquish their memberships. Very few members actually left, however, and Curves continued its rapid growth. The numbers are indisputable. "It took McDonald's 25 years to reach 6,000 locations. It took Subway 26 years," says Heavin. "And it took us eight."
Back at Club Camp, Heavin wraps up his remarks and opens the floor to questions from the franchisees. How can I inspire teamwork among my employees, one wants to know. Will Curves authorize a price increase anytime soon, asks another. Then Heavin gets this question from a franchisee in Colorado: "Hi, Gary. I know what you do for women is amazing, but what about men? Have you done any testing in consumer markets? I've been asked this question by my own members."
"Here's the answer so you can tell your members," Heavin replies. "When hell freezes over." Raising his voice to be heard over the applause and cheers, he explains himself. "Compared with women, men don't seem to be that loyal. For five bucks off the dues, he's going to go down the street. Also, in a gym environment, men don't bring their friends. When you're sitting at a table with several people, does Bob get up and say, 'Come on, Jim and John, let's go the bathroom together?' Men don't work that way." After the laughter dies down, Heavin turns somber. "The men's fitness business is a terrible place to go--and I've been there, by the way. Will the Curves equipment and physiology work for men? Sure. Would the business model work? No. I'm approached constantly to do this. Maybe someone else will figure out a smart way to do it. But we're going to take care of the women." He gets another robust round of applause.
Some CEOs might at least take a moment to consider a brand extension idea offered repeatedly by franchisees and customers. But not Heavin. "When it comes to women's fitness, just by sheer numbers, I'm the world's undisputed expert. I'm the visionary," he says. "We certainly get a lot of good ideas from members and franchisees. But the big ideas, they come primarily from me." He points to this fact: Of the nearly 10,000 Curves locations that have opened, only 300 have closed. Of those, 200 have reopened successfully.
The question, of course, is whether Heavin's faith in his own judgment, and the credence he puts in lessons learned from past mistakes, will continue to suffice as Curves makes the transition from a fast-growing upstart to a global enterprise. There are signs that not everybody thinks so. Gary Findley, for example, began suggesting to Heavin that with growth slowing--the chain now opens about 1,000 new franchises a year--the company needed to begin opening complementary businesses under the Curves umbrella. "In order for Curves to maintain its spot ahead of the competition, it needs to provide some additional income opportunities for franchisees," he says. "At some point, they're going to reach their maximum income potential." Heavin, on the other hand, was adamant about keeping the focus squarely on 30-minute circuit training for women. Indeed, new franchisees are warned that if they deviate at all--by adding, say, treadmills or tanning beds to their clubs--they'll be in violation of their franchise agreements and run the risk of losing their businesses.
