Two questions about buying memberships in recreational facilities (gyms/yoga studios)

[sr77]

• Is it completely legal for a recreational facility (e.g., a gym or yoga studio, etc.) to force you into an annual contract, even though payments are made month-to-month -- with the implication that if you decide to opt out of the annual commitment, you are still liable for the full year's fees?

• Where can one go (online) to research the financial strength of a non-public company, such as the type referred to above, to avoid purchasing a membership in a recreational facility that shows signs of failing as a business?

If relevant, I live in NY State (New York City).

Thanks.

 

[Antigone*]

• Is it completely legal for a recreational facility (e.g., a gym or yoga studio, etc.) to force you into an annual contract, even though payments are made month-to-month -- with the implication that if you decide to opt out of the annual commitment, you are still liable for the full year's fees?

• Where can one go (online) to research the financial strength of a non-public company, such as the type referred to above, to avoid purchasing a membership in a recreational facility that shows signs of failing as a business?

If relevant, I live in NY State (New York City).

Thanks.

The answer to the first question is yes.

You can research a non-public company in many ways. Google is a great place to start.

 

[sr77]

The answer to the first question is yes.

Since you appear to live in Greece, can you tell me what source you are relying on for New York City (&/or NY State)?

You can research a non-public company in many ways. Google is a great place to start.

I have not had any worthwhile 'hits' on this using Google. If you do, please let me know what search 'spec' you used.

Thanks.

 

[Some Random Guy]

Is it completely legal for a recreational facility (e.g., a gym or yoga studio, etc.) to force you into an annual contract, even though payments are made month-to-month -- with the implication that if you decide to opt out of the annual commitment, you are still liable for the full year's fees?

Yes, you are entering into a contractural relationship. They are offerin a service and have only agreed to offer it at an annual package. However, they are willling to accept payment for that package monthly. Nothing even remotely illegal, immoral or out of the ordinary here.

Where can one go (online) to research the financial strength of a non-public company, such as the type referred to above, to avoid purchasing a membership in a recreational facility that shows signs of failing as a business?

Google.

Without the regulatory filings required by public companies, you have to do you own digging to find our about private companies. Some sites like BBB and ripoff report type sites may give you some information, but in most cases you will merely find anecdotal stories of individual consumer experiences. It is unlikely that you will be able to find out the true financial health of a private company without personally knowing someone in upper management.

 

[Antigone*]

Since you appear to live in Greece, can you tell me what source you are relying on for New York City (&/or NY State)?



I have not had any worthwhile 'hits' on this using Google. If you do, please let me know what search 'spec' you used.

Thanks.

I am not really in Greece, my friend. I do truly reside in the good old US of A.

Standard contract law is what prevails here. They are merely asking you to sign a contract and they are setting the payment terms for that contract ~ it is not rocket science.

When it comes to researching the company, you need to make sure you have the name in which the company is organized. Joe's Pizza Joint may be on the sign, but the name of the company might truly be Tomatoes, Inc. I am not in NY so I can't tell you what local sources might be available for you, but you can certainly search the Better Business Bureau, Manta.com, DNBI (some of these you must pay for.

Another great source would be to speak to clients who are already members of the gym.

 

[sr77]

Yes, you are entering into a contractural relationship. They are offerin a service and have only agreed to offer it at an annual package. However, they are willling to accept payment for that package monthly. Nothing even remotely illegal, immoral or out of the ordinary here.

I'm not focused on "immoral" or "out of the ordinary." My question is whether any consumer protections that apply in New York State/City limit the ability of a business to force a member to maintain a paid membership if he/she decides the facility no longer works for him/her.

If you aren't familiar with NYS/NYC law, I don't follow why you are making a 'general' response to a question that may in fact be governed by particular regulations that apply there (and not necessarily where you are).

Without the regulatory filings required by public companies, you have to do you own digging to find our about private companies. Some sites like BBB and ripoff report type sites may give you some information, but in most cases you will merely find anecdotal stories of individual consumer experiences.

I don't think BBB and ''ripoff report type sites" are going to have anything about the financial strength of a company. That's not what they deal in. And I guess Google isn't necessarily "a great place to start" after all.

Another great source would be to speak to clients who are already members of the gym.

So you think members of a gym are likely to know the company's financial strength?

 

[Antigone*]

I'm not focused on "immoral" or "out of the ordinary." My question is whether any consumer protections that apply in New York State/City limit the ability of a business to force a member to maintain a paid membership if he/she decides the facility no longer works for him/her.

If you aren't familiar with NYS/NYC law, I don't follow why you are making a 'general' response to a question that may in fact be governed by particular regulations that apply there (and not necessarily where you are).



I don't think BBB and ''ripoff report type sites" are going to have anything about the financial strength of a company. That's not what they deal in. And I guess Google isn't necessarily "a great place to start" after all.



So you think members of a gym are likely to know the company's financial strength?

You can purchase a membership for DNBI and get creditworthiness and general information. Since the company is not publicly traded, they are not required to file quarterly or annual reports.

Both SRG and I gave you solid information about contract law. That is all that is necessary in order to offer you "consumer protection" ~ that and your decision as to whether or not their terms are viable for you.

If you feel strongly about patronizing a company with financial strength, I suggest you patronize a company that files its financials with the SEC or build your own home gym.

 

[cyjeff]

I'm not focused on "immoral" or "out of the ordinary." My question is whether any consumer protections that apply in New York State/City limit the ability of a business to force a member to maintain a paid membership if he/she decides the facility no longer works for him/her.

The answer, as you have been repeatedly told, is no. The state and city of New York allow a willing buyer and a willing seller to enter into a contract.

You did.

You just don't like it very much. Sorry.

If you aren't familiar with NYS/NYC law, I don't follow why you are making a 'general' response to a question that may in fact be governed by particular regulations that apply there (and not necessarily where you are).

You can always contact your Attorney General... but he will tell you the same. You entered into a contract. You are both bound by the terms of that contract.

Same as if you bought a car. After a year on a five year loan, you decide you don't want it anymore. Can you just turn the car into the dealership and say, "Thanks, I'm done" without any penalty? No, you cannot.

I don't think BBB and ''ripoff report type sites" are going to have anything about the financial strength of a company. That's not what they deal in. And I guess Google isn't necessarily "a great place to start" after all.

I research private companies all the time. Google is an excellent resource... but it is not a fast or easy process and you have to know what to look for.

Start with looking for their business license and under what business name the license is in.

So you think members of a gym are likely to know the company's financial strength?

I expect that an informed consumer would have asked these questions prior to purchase.

 

[sr77]

You did.
You just don't like it very much. Sorry.

Sorry. I didn't, actually.

I expect that an informed consumer would have asked these questions prior to purchase.

Me, too. That's why I posted here. As it turns out, I am the informed consumer, but mostly what I'm getting here is finger-wagging, not information.

Consumer law often invalidates contract terms. Unfortunately, no repliers to date seem aware of that. Most consumer law is also local, and may or may not apply at one location, whether or not it does at another.

So I continue to welcome any informative replies from persons who are familiar with how NYS/NYC law applies in situations such as the one I've asked about.

 

[cyjeff]

Sorry. I didn't, actually.

Are you saying you DIDN'T enter into a contract? That there isn't a piece of paper somewhere with your signature on it where you pledge X dollars for Y services?

That is a contract.

Me, too. That's why I posted here. As it turns out, I am the informed consumer, but mostly what I'm getting here is finger-wagging, not information.

Consumer law often invalidates contract terms. Unfortunately, no repliers to date seem aware of that. Most consumer law is also local, and may or may not apply at one location, whether or not it does at another.

Consumer law protects the consumer from unfair business practices.

I don't see how forcing you to adhere to the terms of the contract YOU signed is unfair.

So I continue to welcome any informative replies from persons who are familiar with how NYS/NYC law applies in situations such as the one I've asked about.

Okay... let's look at this another way.

What contractually agreed upon services are you NOT getting?

 

[Some Random Guy]

Consumer law often invalidates contract terms. Unfortunately, no repliers to date seem aware of that.

Oh, he's one one of those "Prove to me that no law exists saying X" posters.

Here you go:
Laws of New York

See GBS (General Business) Article 30 section 624.

Not wanting to pay anymore is NOT a valid reason to cancel the contract.

And if insist on being snippy and continue to bad mouth the accurate advice you have been given, then read further into the statute and notice that killing or severely maiming yourself will give you sure fire way out of the contract.