Each day, I receive Google Alerts on topics related to the health and fitness industry. Recently, I’ve noticed a few “Consumer Alerts” pop up in my inbox, that warn the general public about becoming trapped by health club contracts.
For example, the Prescott News recently warned its local residents that the “Better Business Bureau (BBB) advises consumers to consider the terms of the contract and the facility benefits before joining a health club. In 2012, Better Business Bureau serving Central, Northern and Western Arizona received 125 complaints about health clubs and fitness centers.”
KTUL.com, a news organization for Tulsa, Okla. warned its residents to be wary of health club contracts as well. According to KTUL, “The Better Business Bureau says gyms and health clubs are in the top 20 most complained about businesses.”
Where could these complaints be derived from? To find out, I spoke with Jillian Russo, the director of the National Fitness Business Alliance (NFBA), for her insight on the consumer alert problem.
According to Russo, many complaints made to the Better Business Bureau are a result of auto-renewal policies. This is because clubs may not be explaining the policy well enough to members, who don’t understand that once their contract is up, they’re going to continually be billed until they give 30 days notice not to do so. “We suggest our clubs don’t use auto renewals, because it’s not fair to the member,” said Russo.
Russo said clubs could also avoid member complaints by using a third-party billing company. “This really allows you to make sure your contract is consistent with state law, and makes your business more credible,” she said.
If you do use auto-renewal policies, you may want to look into an alternative contract for your members. Or, at least make sure your members are completely aware of what they’re signing up for. Don’t put the auto-renewal policy in fine print, and a month before the member’s annual contract is up, consider reminding them of the policy.
Doing so could save your business’ reputation, and the Better Business Bureau’s phone bill.
Rachel Zabonick is the Assistant Editor for Club Solutions Magazine. She can be reached at rachel@clubsolutionsmagazine.com. Reach out to her about exciting events or programs your club has implemented, or to share the amazing accomplishments of a member.
