Many Texas gym owners use illegal membership agreements and don’t even know it.
How does this happen? The gym contracts are void because they violate the Texas Health Spa Act (the “Act”).
Section 702.311 of the Act provides that a Texas gym membership agreement is void if:
(1) the contract doesn’t comply with the Act;
(2) the seller does not hold a certificate of registration issued under the Act at the time of contract; or
(3) the member enters into the agreement in reliance on false, fraudulent, or misleading information wilfully provided by, or a false, fraudulent, or misleading representation, notice, or advertisement wilfully made by, the seller or the gym owner or operator.
Most gym owners and staff are honest so the third scenario is rarely the issue.
However, it is very common for a Texas gym contract not to include the provisions required by the Act (the first scenario) and/or the gym owner fails to properly register with the State of Texas (the second scenario).
Now what would happen to your gym if members suddenly decided not to pay? How long could your gym survive?
There are, of course, other legal requirements a Texas gym owner needs to comply with, including the state’s biometrics law.
So, if you’re a Texas gym owner who needs help with your membership contracts and other gym legal documents, it’s time to set up a phone consultation with Attorney Mike Young.