I'll just add that membership fees have one more advantage, a legal one, since it's a private members' club not open to the public; what happens inside is protected. This came from "bawdy house" (i.e. brothel) charges against swingers clubs, the judgment came down that if it was a members-only location, and everyone inside is a consenting adult and a member, the law doesn't apply. CMJ was the first to apply this to an MP here in Ottawa.
That argument is outdated and never truly protected gentlemen’s clubs.
The old “bawdy house” cases about swingers clubs never applied to commercial operations that profit from sexual services. Those laws have also been repealed. Under current Canadian law, it is illegal to purchase sexual services. It is also illegal for a commercial business to profit from the sexual services of others when it operates as an enterprise that offers those services. Calling an establishment a private members’ club does not create a legal shield.
All the spas operate as commercial operations: clients pay the house, attendants provide sexual services for consideration, and the business profits from the arrangement. Membership fees change the packaging, not the legal reality.
The clubs actively advertise specific hostesses by name and schedule, often with sexualized imagery and language. They do this knowing those hostesses offer sexual services — and that availability is the primary reason members come and pay. Under s. 286.4 of the Criminal Code, knowingly advertising an offer to provide sexual services for consideration is an offence. Individual providers have immunity when advertising their own services; third-party businesses that promote the sexual services of others do not.
Because the sexual services of the hostesses are the main commercial draw, the money the club receives is a material benefit derived from those services. Under s. 286.2, receiving a financial or other material benefit knowing it comes from the purchase of sexual services is an offence. This is especially clear when the benefit is received in the context of a commercial enterprise that offers sexual services for consideration — a category these membership-based hostess lounges fall into.
If the business is also actively recruiting, directing, or exercising control or influence over the movements of the attendants in a way that facilitates the purchase of sexual services, there is further potential exposure under the procuring provisions (s. 286.3).
On the labour side, most of these clubs classify massage attendants as independent contractors. In practice the club typically sets the rates for the basic session (which is widely understood to include a happy ending), controls the schedule and booking system, supplies the location and tools, provides training, can hire and fire attendants, and does not allow them to send a substitute to perform the work. Some also restrict providers from working at other locations. The spa effectively acts as the principal contractor under which the attendants work. Under Ontario’s Employment Standards Act, that level of control, training, and integration usually points to an employment relationship rather than genuine independent contracting. Misclassifying workers this way is illegal and can leave the business liable for unpaid wages, vacation pay, overtime, and other entitlements.
There are further compliance problems. If the attendants are actually employees, the business is required to withhold and remit income tax, CPP, and EI contributions, and to issue T4 slips. Treating them as contractors while exercising employer-level control often means those obligations are not being met.
Under Ontario’s Occupational Health and Safety Act, every employer must have written workplace harassment and workplace violence policies, plus programs to implement them (including clear reporting and investigation procedures). These policies must be reviewed at least annually. In an industry with elevated risks of client harassment or violence, the absence of these required protections is itself a violation.
The Ontario Human Rights Code can also be engaged. If the workplace environment allows or facilitates harassment (including sexual harassment) of attendants by clients or management, and the business does not take reasonable steps to prevent or address it, this can create liability under the Code. These protections can apply even when workers are labelled independent contractors, particularly where the relationship is employment-like.
So no — membership does not make what happens inside protected. It just creates a convenient story that doesn’t hold up under the laws that actually apply.