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texas gym membership contract

Are Your Texas Gym Membership Contracts Valid?

By Business Contracts, Business Lawyer
texas gym closed by the state of texas government

When you own a Texas gym, you must comply with state law covering such businesses. And, if you provide membership financing options, you also have to comply with federal law that protects consumers.

The biggest mistake Texas gym owners make is failing to comply with the state’s health spa act. If you break this law, among other things, your membership contracts aren’t enforceable. Plus you can end up getting sued by the Texas Attorney General and end up paying penalties.

Then there’s the state’s biometrics law. Even if you’re not collecting biometrics (e.g., eye scans) for gym access and purchases, there’s a good chance that any mobile app you use for the gym members will have access to facial recognition or fingerprint data.

Of course, even if your membership agreements are valid, they can still be missing important terms and conditions designed to protect you as the gym owner.

And then there’s related Texas gym membership documents. These include media releases and waivers of liability.

Now if you need help with your Texas gym’s legal documents, the first step is to set up a phone consultation with Business Lawyer Mike Young.

Do You Know The #1 Reason Texas Gyms Go Bankrupt?

By Business Contracts, Business Lawyer

If you own a Texas gym or martial arts studio, there’s one thing you can do to dramatically improve your chances of staying in business.

Continuity.

Let me explain…

If you own a Texas gym or dojo, chances are you’re a skilled technician. And you view what you do through that lens.

Yet it’s a poor business model designed to leave profit to chance. If you’re in the right location and a roaring economy, you can stay afloat despite this flawed model.

Then something happens. Your landlord jacks up the rent, disaster strikes (e.g., a pandemic), or the economy tanks. Members disappear faster than water down the drain. And you’re forced to close.

Think this won’t happen to you? It happened to many Texas gyms and martial arts studios during and after COVID-19. They “temporarily” shut down and never reopened.

To financially succeed, you need continuity.

And that comes from long-term membership contracts that generate steady cash flow. Ideally most membership agreements will be 1-3 years in length with renewal provisions that comply with the Texas Health Spa Act.

If your business model is either “no contract” or “month-to-month” with cancel at any time, you’re sitting on a ticking time bomb, not a cash cow. 

Because your members will disappear at the least inconvenience (e.g., a temporary COVID shutdown). And won’t return.

So, what’s the “down side” to long-term membership contracts? 

It forces you to act like a business owner instead of a technician with an expensive hobby. 

If that’s too much, consider either freelance training others or working for someone who owns a successful gym or dojo so you don’t have the responsibilities. 

Now if you’re serious about succeeding as an owner, and you need help with your membership agreements, let’s talk. Schedule a phone consultation with Texas Business Lawyer Mike Young.

Does Your Texas Gym Membership Cancelation Policy Violate State Law?

By Business Contracts, Business Lawyer
texas gym membership contract

When you own a Texas gym, it’s important to make sure you comply with state law, particularly the Texas Health Spa Act.

For example, if you have a firm “no early termination” policy, and your gym is covered by the Act, then you’re probably breaking the law.

Why?

Because the Texas law makes it mandatory in some circumstances to let the member end the agreement early.

Not only that, there are certain disclosures you must make in the gym membership contract about membership cancelation rights.

What happens if you violate the Texas Health Spa Act? Every one of your gym contracts can be void.

How long would you stay in business if all your members could walk away today because their membership agreements are unenforceable?

And if there are enough member complaints, you risk a lawsuit from the Texas Attorney General’s Office too for violating the law. Can you afford that?

Now if you’re a Texas gym owner and you need help with your membership contract, it’s time to schedule a phone consultation with Business Lawyer Mike Young. Note that Attorney Young only represents Texas gyms and their owners (not gym members).

Texas Gym Membership Agreements: Can Members Legally Stop Paying You?

By Business Contracts, Business Lawyer
texas gym membership contract

When I speak with Texas gym owners, a common question that comes up is…

“What happens when a gym member decides to quit paying?”

Too often the answer to that question depends upon whether the gym owner is complying with the Texas Health Spa Act.

Why?

Because if you own a Texas gym and are violating this particular law, your membership contracts are void. Don’t just take my word for it. Here’s the language from the actual law. 

The membership “contract is void if:

(1)  the contract or an assignment of the contract does not comply with this chapter;

(2)  the seller does not hold a certificate of registration issued under this chapter at the time of contract; or

(3)  the purchaser enters into the contract 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 health spa owner or operator.”

Although there are sleazy sales tactics out there that violate the third provision, most Texas gym owners screw up by (1) not using a membership agreement that complies with the law and/or (2) not properly registering their gym with the state (Health Spa Act registration is separate from setting up a Texas corporation or limited liability company).

So, what’s this mean?

If you’ve had 250 gym members sign void contracts all of them can walk away at any time and quit paying you. And they’ll probably tell other members to do the same thing.

What would you do if even 20% of your members decided to quit and walk? And you couldn’t enforce your agreements to get paid?

Don’t put yourself in this position. Comply with applicable law…and that include the state’s health spa act, biometrics law, and other legal requirements for owning and operating a gym in the Lone Star State.

If you need help bringing your Texas gym into legal compliance, the first step is to set up a phone consultation with Business Lawyer Mike Young.

Are You Using Void Texas Gym Contracts With Your Members?

By Business Contracts, Business Lawyer

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.