Statutory Meaning of Seven Business Days

As many of you already know, every health spa member has the right to cancel the membership contract within seven business days after the date of the signing of the contract. By statute, seven business days means regular business days of operation. So, if a gym is open for business only on Monday through Friday and a contract is executed on Monday, the seventh business day by which a consumer could cancel the contract, would be the following Tuesday.

For gyms that offer 24-hour service or are open seven days each week, unstaffed hours cannot be regarded as cancellation dates because the Fair Business Practices Act (FBPA) stipulates that consumers may hand deliver a cancellation notice to an official at the gym. The gym’s official would then be required to acknowledge receipt of the hand delivered notice. This means that for contract cancellation purposes, business days are staffed days in which an official of the gym is always available to sign for a cancellation notice, should a consumer so cancel.

Notices of cancellation should be submitted in writing and be sent either by mailing the notice before Midnight of the seventh business day after the date of the signing of the contract, or by hand delivering the notice of cancellation to the health spa before Midnight of the seventh business day following the date of the signing of the contract. Notices of cancellation that are mailed should be sent by registered or certified mail, return receipt requested. Notices of cancellation must include all contract forms, membership cards, and all other documents and evidence of membership previously delivered. If a member cancels a contract within seven business days, any payments made under the contract will be refunded less any services actually rendered to the consumer. Remember, “services rendered to a customer” does NOT include preparation of documents.

Should there be any questions on these or other matters, please contact this office.