Big box fitness franchises first started to appear in the 1980's. Not coincidentally fitness center scams started to occur around the same time. I was living in Edmonton, Alberta, Canada when the World University Games,aka, the Universiade came to town in 1983. I used to freeload and just walk into the University of Alberta weight room to work out. After a facility upgrade for the games, freeloader access was denied. I offered to pay membership fees but this was only allowed for students, staff or alumni.
The frugal thing to do would have been to join a municipal recreation center. However, a friend of mine brought me as a guest to his club, the infamous Family Fitness Center. This was a western Canada franchise with about 5 locations in Edmonton. Each club had state of the art Nautilus machines, group exercise classes, swimming pool, steam, and sauna. What was not to like?
There was also a growing trend for this club to promote the buying of a lifetime membership! That meant no more monthly or yearly fees and no sign up fees. Pay now and be set for life! This would turn out to be far cheaper than a monthly fee for years on end. It seemed an offer that only a fool would turn down. I was no fool, or so I thought. I went for the gusto!
It was so long ago that I can't totally recollect but I think that there was also an option to buy the lifetime membership in 2 or 3 monthly installments. I think I forked over few hundred plus dollars for 3 consecutive months. Boom. bang, bing! It was now clear sailing for a lifetime -or was it?
The problem with this sort of sales paradigm is that it may not be sustainable long term. A steady stream of monthly income is replaced with a short term influx of more money. The trend for many fitness center franchises is that membership sales often slow down or stagnate. The less likely scenario is that there will be so many lifetime members that the club will be overly crowded and unmanageable during peak hours. Sometime in early 1985 the first scenario occurred. Family Fitness Center suddenly closed their doors without warning. If fact, they were selling lifetime memberships the very day before they shut down. Family Fitness Center had gone into receivership.
They were then bought out by another fitness franchise called ClubFit. What did this mean for those who had purchased lifetime memberships?
I wound taking the loss and then bought a pass for a municipal fitness center. I also continued to 'occasionally' sneak into the University of Alberta weight room when the front desk staff was preoccupied. No fool am I !
Until next time, Keep Fit
Little Bobby Strong
The frugal thing to do would have been to join a municipal recreation center. However, a friend of mine brought me as a guest to his club, the infamous Family Fitness Center. This was a western Canada franchise with about 5 locations in Edmonton. Each club had state of the art Nautilus machines, group exercise classes, swimming pool, steam, and sauna. What was not to like?
There was also a growing trend for this club to promote the buying of a lifetime membership! That meant no more monthly or yearly fees and no sign up fees. Pay now and be set for life! This would turn out to be far cheaper than a monthly fee for years on end. It seemed an offer that only a fool would turn down. I was no fool, or so I thought. I went for the gusto!
It was so long ago that I can't totally recollect but I think that there was also an option to buy the lifetime membership in 2 or 3 monthly installments. I think I forked over few hundred plus dollars for 3 consecutive months. Boom. bang, bing! It was now clear sailing for a lifetime -or was it?
The problem with this sort of sales paradigm is that it may not be sustainable long term. A steady stream of monthly income is replaced with a short term influx of more money. The trend for many fitness center franchises is that membership sales often slow down or stagnate. The less likely scenario is that there will be so many lifetime members that the club will be overly crowded and unmanageable during peak hours. Sometime in early 1985 the first scenario occurred. Family Fitness Center suddenly closed their doors without warning. If fact, they were selling lifetime memberships the very day before they shut down. Family Fitness Center had gone into receivership.
They were then bought out by another fitness franchise called ClubFit. What did this mean for those who had purchased lifetime memberships?
- Lifetime memberships would be partially honored but not totally by ClubFit.
- Those with Family Fitness Club memberships would have their sign-up membership fees waived if they wanted to continue with ClubFit.
- Those same members would be now required to pay a monthly membership fee.
- Accept ClubFit's watered down deal.
- Suck it up and take the financial hit.
- Try their luck with litigation in small claims court.
There are some things to always be informed about of when handing over money: Ponzi schemes, penny stocks, used cars, horse racing tips and fitness club memberships. Always do your research first. Scams await in plenty!
The Alberta provincial government historically had a policy of not interfering in private business with rules and regulation. After the media outcry from the Family Fitness Center fall out the Alberta government finally made it unlawful for such businesses to sell lifetime memberships.I wound taking the loss and then bought a pass for a municipal fitness center. I also continued to 'occasionally' sneak into the University of Alberta weight room when the front desk staff was preoccupied. No fool am I !
| Why pay for a month at a time when you can pay it all at once for a lifetime? |
Until next time, Keep Fit
Little Bobby Strong
