Should your Texas gym only offer month-to-month memberships? Or should you include longer terms (e.g., one-year gym memberships)?
As a practical matter, this is more of a business judgment decision than a legal issue. However, it’s probably one of the most important ones you’ll make.
When the COVID-19 coronavirus lockdowns hit, per Texas Governor Greg Abbott’s executive orders, many of the gyms that only had month-to-month members closed permanently. Because few of their members returned after the restrictions were lifted.
In many cases, less then 10% returned. And you can’t pay the rent, let alone make a profit, with so few gym members showing up.
Although month-to-month members can play an important source of recurring income to your gym, as a practical matter, those who initially commit to a longer-term membership agreement show greater loyalty. Even if their contracts convert to monthly after an annual term, they’re likely to stick around.
There are many reasons for this, including friendships built with the gym owner, staff, and other members…plus a sense of community.
Of course, you have legal issues that also have to be handled. For example, compliance with the Texas Health Spa Act and the state’s biometrics law. That’s in addition to reducing liability exposure for personal injuries.
If you need help with your Texas gym membership contracts, liability waivers, and other gym legal docs (e.g., trainer agreements), it’s time to schedule a phone consultation with Business Lawyer Mike Young.