It seems they grew too fast. They exploded and I’m sure a lot of buyers got in too late. Just like in the stock market when people buy at the top and sell at the bottom.
It was too easy to replicate. I remember an article five years about how a competitor saw what Curves was doing, created a similar product and in nine months had about 90 franchises sold.
The model lent itself to many buyers who wanted their own business but weren’t true business people. The economy, competitive pressures and the wearing off of the novelty demanded business acumen that wasn’t always there.
Be careful out there was a weekly saying on the, “Hill Street Blues” TV show. It also applies to business opportunities of all kinds. Especially ones with limited competitive advantage and low barriers to entry.
“Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of changeis trend.” – Ajaero Tony Martins