starting strength gym
Results 1 to 5 of 5

Thread: Laws That Affect Gym Membership

  1. #1
    Join Date
    Aug 2017
    Posts
    6

    Default Laws That Affect Gym Membership

    • starting strength seminar april 2024
    • starting strength seminar jume 2024
    • starting strength seminar august 2024
    If I may, I would ask to bring a new topic to the discussions.

    Some states, such as New York, Massachusetts and Tennessee, have passed or have considered legislation requiring gyms and health clubs to offer a prepaid membership option at all times and/or limit the duration for which gym memberships can auto-renew through EFT payments.

    Is this already a topic known to any of you, in other words, is there a concern, and what would the consequences be for gyms if these laws are enacted?

    I am trying to value a large chain of gyms and this information could be helpful for my analysis.

    Ciao,
    J.W.

  2. #2
    Join Date
    Jul 2007
    Location
    North Texas
    Posts
    53,557

    Default

    What is your specific concern?

  3. #3
    Join Date
    Dec 2016
    Posts
    24

    Default

    Matt Reynolds discussed the effect that auto renew and contracts have on the valuation of a gym during a podcast.

    Are the gyms you're attempting to value located in a state that has or is considering laws to limit gym contracts?

    Growing to 1000+ Gym Members w/ Matt Reynolds

  4. #4
    Join Date
    Oct 2011
    Posts
    24

    Default

    Quote Originally Posted by John Winthrop View Post
    If I may, I would ask to bring a new topic to the discussions.

    Some states, such as New York, Massachusetts and Tennessee, have passed or have considered legislation requiring gyms and health clubs to offer a prepaid membership option at all times and/or limit the duration for which gym memberships can auto-renew through EFT payments.

    Is this already a topic known to any of you, in other words, is there a concern, and what would the consequences be for gyms if these laws are enacted?

    I am trying to value a large chain of gyms and this information could be helpful for my analysis.

    Ciao,
    J.W.
    Sounds like it could possibly affect member churn rates negatively and as such you may want to allow for that in your valuation. Do you know what proportion of revenue is derived from auto-renew memberships and what the current/historic churn profile looks like?

  5. #5
    Join Date
    Jun 2011
    Location
    Philly burbs, USA
    Posts
    653

    Default

    New York already has significant limits on "evergreen" contracts, see GOB 5-903.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •