Word of Advice

14 January 2008

New Year’s health kick?

It’s not too early for us to have dismissed all of those well thought out New Year’s resolutions. And if you’re looking to shift that Christmas puku which has been spawned from one too many BBQs and mince pies then you may well be considering joining a gym.

The problem is that if you don’t check the gym contract properly your wallet could be in for an unanticipated workout too. There are a few things you need to be aware of when you sign up for gym membership, like whether or not the contract suits your needs.

If there’s anything in the contract that you don’t understand, ask for an explanation. Make sure you’re clear about how payments are to be made, what happens if the gym closes or is bought out by another gym, and most importantly whether you can change or end the contract if your circumstances change.

How long is the contract for?

Check how long you’re signing up for – while many gyms advertise the monthly or weekly cost of joining a gym, they might require you to sign up for a full year (or sometimes even three years). If you do sign up for a year, does the contract have a rollover position stating that a new membership term will commence if you don’t cancel your membership in writing by the expiry date? Also, check if the gym contract allows for an increase in fees during your membership period.

A change in your circumstances

Look for information in the contract about what happens if you have an injury or fall ill and can’t go to the gym. Some gyms might allow you to freeze your membership until you are well again, but will require a medical certificate before doing so. If you are told verbally that you can freeze the contract, make sure you have this in writing. Consider if you move across town, or to another city, can you transfer membership to a friend or to another branch of the same gym? What about if you loose your job and get into financial hardship?

Changes to the gym

What happens if the gym moves? If this makes the gym inaccessible to you, check what rights you have under the contract you have signed – does it allow you to cancel the contract?

Cancelling a contract

You may not be thinking about cancelling your contract when you sign up, but, with all the best intentions, that day may come when you are ready to cancel it. Check your contract before stopping any payments. Tell the gym in writing that you’re cancelling the contract and the reason why. If they don’t believe that you have the right to cancel, they may take action to recover payments owed. If you have a dispute with your gym over whether you have the right to cancel your contract, we recommend that you keep up with your payments until the dispute is resolved.

For more information about contracts, visit the Consumer Information section of the Ministry of Consumer Affairs’ website.