Many Texas gym owners set themselves up for failure before the doors are even open. Here are some of the common fatal mistakes made and how you can avoid them.
1. No Membership Contracts – If you’re doing month-to-month pay-as-you-go, it’s a recipe for failure. Because the type of member you get is looking for a bargain, lacks commitment, and will quit for any reason or no reason at all. You can’t make accurate revenue projections because you don’t have a long-term membership base.
2. Illegal Membership Agreements – Most Texas gym membership contracts have to meet certain requirements in order to be valid and enforceable. This includes complying with the Texas Health Spa Act, the state’s biometrics law, text messaging laws, and financing laws and regulations.
3. Weak or Nonexistent Liability Waivers – You can’t just “borrow” another business’ liability waiver and hope it will work to protect you when a gym member or visitor gets injured. Chances are the waiver won’t work and you’ll be liable.
4. Treating Workers As Independent Contractors Instead of Employees – It may be tempting to treat your trainers and other staff as independent contractors. And it’s possible in limited circumstances to do so. Yet most of the time these workers are employees. Regardless of which applies, you’ll want the right agreement in place to protect you in the relationship. Done incorrectly, you can be paying back taxes, worker’s comp, unemployment comp, and penalties.
Of course, there are other things that can be done to reduce your risks of failure (e.g., signed media releases). Yet the four mistakes listed above are the main ways Texas gym owners destroy their businesses.
Need help? It’s time to schedule a phone consultation with Texas Business Lawyer Mike Young. He only represents gym owners (not members).