As a gym owner, you’re focused on providing top-notch services to your members. Whether you run a boutique yoga studio, a personal training facility, or a sprawling fitness center, the foundation of your business’s legal and financial security starts with a written membership agreement. Let’s explore why having this document isn’t just a good idea—it’s essential.
Myth: “We Don’t Do Contracts”
Many gym owners pride themselves on offering a “no-contract” experience to attract members. But here’s the legal reality: if you’re collecting auto-recurring payments, you do have a contract, whether it’s formalized or not. Without a written membership agreement, you lack the explicit authorization from your clients required to legally process recurring payments. This can leave you exposed to disputes, chargebacks, or even regulatory penalties.
A written agreement clarifies the terms of auto-pay arrangements, cancellation policies, and member obligations. It protects your gym from misunderstandings while ensuring your clients know exactly what they’re signing up for.
State Laws: Not Optional
Every gym owner must understand that state laws requiring written membership agreements are non-negotiable. If your state mandates a written agreement, you must comply. Period.
Take, for example, New York’s new cancellation law set to take effect in February 2025, or the Federal Trade Commission’s proposed “Click to Cancel” rule potentially arriving in May. These laws don’t care about the size of your gym or the type of services you offer. Whether you run a personal training studio with ten clients or a large gym with thousands, compliance is mandatory.
Failing to comply with state or federal laws can lead to severe fines, lawsuits, and reputational damage. Don’t risk your business by thinking these rules only apply to the “big guys.”
Size Doesn’t Matter—Compliance Does
One common misconception among smaller gym owners is that laws governing membership agreements don’t apply to them. This couldn’t be further from the truth. Regardless of your gym’s size, written agreements provide critical protections, especially in today’s evolving legal landscape.
For example:
- New Employment Laws: States like California and New York are implementing new employment regulations for gyms. Without updated agreements, you could unknowingly breach labor laws.
- Membership Cancellations: The FTC’s new rules will enforce easier cancellation processes, which must be reflected in membership agreements.
By having a written agreement tailored to your business, you ensure compliance with current and upcoming laws, avoiding costly oversights.
Written Membership Agreements: A Tool for Success
A well-drafted membership agreement does more than just check a legal box. It can:
- Set clear expectations with your members.
- Outline cancellation policies, late payment penalties, and liability waivers.
- Protect your gym in disputes over billing or services.
- Establish trust with your clients by demonstrating professionalism.
Think of it as a roadmap for your business relationship with your clients. When your policies and procedures are clearly outlined in writing, everyone benefits.
Proactive Compliance Is Key
2025 is shaping up to be a landmark year for gym owners, with new laws and regulations coming into play. Don’t wait until it’s too late. Taking the time now to review and update your membership agreements ensures your business stays compliant and protected.
If you’re unsure whether your agreements meet legal requirements, or if you’ve been operating without written agreements, now is the time to act.
Need Help? Let Us Take the Guesswork Out of Compliance
At Gym Lawyers PLLC, we specialize in helping gym owners navigate legal requirements, draft customized agreements, and stay ahead of evolving laws. Don’t let uncertainty put your business at risk. Contact us today to ensure your membership agreements are compliant, comprehensive, and tailored to your gym’s needs.
With a written membership agreement, you’re not just protecting your gym—you’re setting it up for long-term success. Get started today and secure your business’s future.
