Gym Closings and Membership Transfers
If a health spa has closed its doors for business or anticipates doing so, that health spa owner is required to provide the Attorney General’s Consumer Protection Division with information regarding the final disposition of the membership contracts. For gyms that are closing, memberships may be transferred to a substantially similar facility located within ten miles of the gym. A substantially similar facility is one in which the size, equipment and services available to the member are equal to or exceed the size, equipment and services available at the health spa location in which the contract was entered.
An alternate location for a health spa is not considered substantially similar if:
- The original facility was limited to use by members of one sex and the alternate facility is used by members of both sexes.
- The size, facilities, equipment and services available to the member at the alternate location are not substantially equal to or do not exceed the size, equipment and services available to the member at the health spa location in which the contract was entered into.
If a health spa is closing its doors and the membership contracts will be transferred to a substantially similar facility within ten miles, the health spa owner is required to provide to this office a copy of a transfer agreement between both gyms. Members of the facility that is closing should be notified in writing and a copy of that letter also submitted to this office.
Gym membership contracts that are not transferred to a substantially similar facility must be terminated. Please be aware that there can be no billing on membership accounts for gyms that have closed their doors. In addition, gym owners are not allowed to execute long term membership contracts with consumers if the owner anticipates closing the gym during the agreed term of the membership contract. There are no exceptions to this requirement.