Gym/contract

[TESLAMotors]

There's a gym that has a very reasonable deal going on right now, but right next to it, an LA Fitness opened up. I personally don't like the idea of paying up front for a full year, but a friend of mine is insistent on doing this because you save roughly $200 or something.
Now I asked him, what if their business dries up because of LA Fitness and they close up shop? I'm assuming the money is gone.
It's too bad because it's convenient for us both in terms of work and commuting the HOV lane.

 

[|2 /-\ | /|/]

I always pay lump sum. Never give them your credit card. If they are busy or relatively busy what are the chances they will close down, probably low. Maybe if you wait a bit longer, you might get a better deal.

 

[exnocomment]

Two things can happen - if they completely fold you become a trade creditor to the legal entity and you can be SOL. If GoodLife buys them out, I know a friend that got his membership grandfathered so suddenly he went from membership at a single gym to being able to access all of the GoodLife gyms - at his old price. Usually the former though..

 

[Keebler Elf]

The big downside to paying upfront has always been the risk of the gym closing. The smaller the franchise (even worse if it's an independent), the greater the risk.

I was offered an amazing deal for a year at Planet Workout but passed and they closed down before the year was out.

Some place like a Goodlife I'd take the risk.

 

[TESLAMotors]

The big downside to paying upfront has always been the risk of the gym closing. The smaller the franchise (even worse if it's an independent), the greater the risk.

I was offered an amazing deal for a year at Planet Workout but passed and they closed down before the year was out.

Some place like a Goodlife I'd take the risk.

That's the gym and they're still open.
When did they close? Because we hadn't heard anything of the sort.
I think if anything they were doing rennovations.

Was it planet fitness maybe?

 

[Bud Plug]

Unfortunately, it's difficult to predict the health of some businesses simply by looking at their volume. Restaurants are an excellent example of businesses that frequently go under, even when they appear to be doing a fair volume of business. Volume does not always equal profit.

Fitness clubs are particularly slippery animals. A cynical personal might even say that their business model is to collect as much money as possible up front, and then go bankrupt, by design. There seems to be a lot of evidence that's consistent with this theory.

I'd go monthly (despite the increased cost). Aside from the bankruptcy concern, it's also my experience that the maintenance of a gym can go south in a hurry under poor management. You'll want the flexibility to switch gyms when this happens, and given the turnover in management of these places, a "poor management phase" is inevitable.

 

[TeeJay]

Two things can happen - if they completely fold you become a trade creditor to the legal entity and you can be SOL. If GoodLife buys them out, I know a friend that got his membership grandfathered so suddenly he went from membership at a single gym to being able to access all of the GoodLife gyms - at his old price. Usually the former though..

Big places go down
Remember Premiere?

First fall people were all happy they get grandfathered
Second fall... uh oh game over