New Year’s gym promise can set you back a pretty penny when you enter a gym membership agreement without looking at the small print. Gyms rely on you reading through vital information regarding charges, cancellations, and automatic renewals. What do you get? You’re paying for a few months or years, and you no longer go there. Unsurprise Charges & Cancellation Strategies. Before joining any club, spa, or gym, be aware of what you are getting into and how to protect yourself against potential membership risks.
Be wary of Auto-Renewal and Long-Term Contracts
Most gym membership contracts will automatically renew if you don’t make an effort to cancel them, and most contracts are for a year upfront. A month-to-month membership can lock you into a 12-month commitment and auto-renew for another 12 months. The terms of cancellation policies on the gyms are written to creep into the fine print, and you can lose sight of key deadlines.
Auto-renew traps to watch out for:
- Auto-renew contracts, which come with a one-year contract period, as opposed to month-to-month contracts
- Have to cancel 30-60 days before the renewal date or prepay another term
- “Evergreen clauses” that simply continue to charge and charge and charge until you take a seat and write, and cancel
Always find out how many days’ notice you can cancel and what process you will have to follow. Some gyms only cancel via certified mail or in person and don’t take phone calls or e-mails. If the salesperson tells you that you can cancel at any time, have them sign a written confirmation of this agreement. What one writes on a contract of gym membership is more significant than what’s being spoken, and courts never differ from what’s been written on it.
Read More: Understanding Noncompete Agreements Before Signing
Find Hidden Fees and Upfront Fees
The first monthly response charge is just the beginning. The extra fees gyms tack on will double or triple what you actually pay. An $29/month membership advertised can cost you $500 your first year after you’ve added all the add-ons.
Sneak fees charged by memberships typically are:
- Sign-up or initiation fees ($50-$200 or more)
- Maintenance or facilities fees are paid annually in addition to the month-to-month fees
- Monthly processing charges on payments
- Mandatory one-to-one training classes or batch classes
- Exit fees for trying to bail out halfway through the contract
Carefully read your contract line by line and demand that every fee be itemized separately by the salesperson. Every state has laws mandating that all charges be disclosed at the time of sale, but the method of doing so varies. Your actual first-year total of all initiation fees and period fees. If the figure is unreasonable, consider negotiating or walking away. Few clubs reimburse membership fees on joining during promotion periods or when you promise to join elsewhere.
Read More: Your Rights When a Company Closes and Owes You Money
Be Mindful of Cancellation Provisions and Exit Clauses
Cancellation is often the most difficult aspect of terminating a health club membership agreement. Cancellation is complicated by the health clubs’ part, stringent time schedules, and even exorbitant cancellation fees. Some gyms employ contracts with you and provide that you cannot cancel for a particular reason during the up-front commitment period.
Most state legislatures do provide some rights of cancellation:
- More than 25-50 miles from all clubs
- Permanent disability, so you can no longer access facilities
- Military posting or deployment
- Death (yes, even some clubs try to bill dead members’ estates)
These exclusions also vary from state to state and typically rely on circumstantial evidence, such as medical certificates or military postings. Everyday life circumstances, such as pregnancy, loss of work, or failing to attend the gym, will not be a justifiable reason to cancel. It is precisely for this reason that it’s very important to review the gym cancellation policy before enrolling in membership. Look for notice-of-cancellation terms in agreements that provide at least a 30-day advance notice and reasonable penalties, ideally not exceeding one or two membership fees.
Protect Yourself Before Signing
A gym contract is a contract, so handle it as seriously as any other financial responsibility. Never be so quick to sign on the dotted line, even if that deal being offered is just too tempting. Take the contract home, read each paragraph verbatim, and check the Internet for complaints regarding billing issues and cancellation issues with the gym.
Have them explain anything you are unsure about, and have them put their thoughts on paper if you require it. Consider monthly memberships, despite the added cost; the convenience is worth it. If the gym is not willing to meet you halfway with unrealistic expectations, that is how they will treat you as a member.
Ready to work out at the gym whenever you feel like it? Read the whole contract, dissect all the charges, understand how to exit, and never count on a promise. You make an informed choice today that will stop you from paying for suits tomorrow.
Read More: Do You Need an LLC? Pros and Cons for Solo Entrepreneurs
