Health Clubs - The Most Questionable Fee Gaining Popularity
Right Now
Copyright 2006 Brad Howard
For many people, the day they join a health club is supposed to
be a major positive turning point in their life. After all, the
decision to get in shape is never an easy one.
However, many clubs are really taking advantage of the fact that
most people don't really read the agreements that they sign.
These health clubs are putting in "stealth" fees that, while
legal, leave many people wondering about the ethics of the clubs
that use them.
So, what's the killer fee that most people are completely
unaware of?
It's called the "facility improvement fee" or "facility
improvement addendum" and it's lighting up many members around
the country.
Here is how it works. When you join a club that has one of these
fees, you typically have to initial a spot that states that the
club is going to draft a fee of $25 every (pick a month and
date) of every year you are a member for facility improvements.
In some instances, you don't even have to initial beside it,
it's just there.
Now, that doesn't seem like such a big deal. After all, the club
does need to have new equipment, new paint, and money to get
things fixed up.
In actuality, the many clubs never use this money for the
improvement of their club at all. In fact, it's just another
profit center for them and it goes right in the owner's pocket.
Legally, they can do this due to the way the contract is
written. Typically, it'll say something like:
"...to be used for maintenance, upkeep, and any other club
expense deemed necessary by management."
To be honest, I've walked in a few clubs that don't look like
they've been cleaned in ages but they sure do charge the
facility improvement fee.
Here are the biggest scams with "facility improvement fees"
* Charge the fee and never fix anything * Only charge the fee to
people with monthly memberships * Charge the fee for "future"
club expansion * Charge late and bounce fees when the unplanned
for draft attempts to go through
If your club charges a "facility improvement fee," find out what
they plan to improve this year. Ask to get an itemized list for
all of the members. Should your fee be a legitimate fee,
management won't have any problems with providing this.
Make sure that your club is accountable to you with the money
you pay. Granted, the owners have every right to do whatever
they want with any dues based income. However, a fee that has a
specific name should be used to that purpose.
If you are looking for clubs and you come across a "facility
improvement fee," make sure it looks like the health club LOOKS
like it's been improved or at least kept up. Think about it, if
health clubs have an average member base of 2000 members times
$25, that $50,000 should go a long way.
And remember, this is $50,000 EACH YEAR in improvements.
In conclusion, make sure to read all of your agreements and
question any fees that seem a little questionable. A "facility
improvement fee" can be a good thing if the fee is actually used
for what it's designed for. However, don't let unscrupulous
owners use it as another way to line their pockets.