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As a gym owner, you are likely familiar with the need to constantly update various aspects of your business. Standard operating procedures, marketing efforts, and client engagement strategies all receive regular attention and revisions. However, one critical area often overlooked is the legal documentation, including waivers, membership agreements, and staff contracts. Many gym owners acquire these documents when they first open their gym but never revisit them. This “set and forget” attitude can lead to significant issues over time.
There are three primary risks associated with failing to update your legal documents regularly:
The FTC’s Click-to-Cancel law has been making headlines, and many gym owners breathed a sigh of relief when the Court of Appeals vacated it. While it won’t be enforced at the federal level—for now—several states, including California, Minnesota, and New York, have already enacted their own subscription-based laws, and similar legislation is under consideration across several states.
Even if this specific law doesn’t affect you yet, use this as your warning: now is the time to review your membership agreements and other legal documentation. If your gym has been open for years, there’s a good chance your paperwork is outdated, leaving you exposed to credit card disputes, lawsuits, employment fraud and other costly headaches.
And it’s not just cancellation policies at stake. Liability waivers, staff contracts, and other key documents often get filed away and forgotten after a gym’s launch. This “set it and forget it” mindset can turn into a costly problem down the road. A proactive review and update today could save you from a lawsuit tomorrow.
Resist the temptation to skip the legal fees and rely on an online template or ChatGPT to create or update your documents. There are several nuances depending on the type of gym you run, the services you offer and the state you operate in. Consult your business attorney—or better yet, a lawyer who specializes in gym and fitness law.
Did you know you need other legal documents in addition to your membership agreements? You also need liability waivers and employment contracts. Your liability waiver should be signed by every single person who walks into your gym for the first time and it must live outside of the membership agreement as a standalone document.
Your employment agreement needs to outline a few key details including type of employment (most coaches cannot be classified as independent contractors) and termination specifics. Be mindful of non-compete clauses and confidentiality agreements as these laws can vary state to state.
Here are three areas that can change making it important to keep your legal documents current.
Society evolves rapidly, and these changes can render your legal agreements inefficient or outdated. For instance, the rise of social media and influencer culture over the last few years has necessitated updates to likeness language in waivers. It’s now more important than ever to address how members’ images and videos might be used in marketing materials.
Similarly, the widespread adoption of security cameras and recording devices in gyms has created a need for explicit notices regarding camera usage in your gym. Members should be aware that they are being or could be recorded and your waiver should include appropriate language to cover this aspect.
Laws and regulations are constantly evolving, and your gym’s legal documents need to keep pace. If the idea of tracking rules that vary by state, county, and city feels overwhelming, that’s all the more reason to work with legal counsel. As noted above, subscription cancellations are a major focus right now, but there’s also a new wave of legislation targeting auto-renewal notices and pricing transparency.
As your gym grows and evolves, so do your membership policies and service offerings. It’s crucial that your membership agreements and waivers reflect these changes. New services such as specialized fitness classes or nutritional counseling, may require additional language to adequately cover the risks involved. Taking your classes outdoors or hosting at another business? Does your current liability waiver cover injuries and incidents that happen offsite? Even the way you store your clients’ data and private information can be left to legal scrutiny.
To avoid these risks, Gym Lawyers recommends conducting a comprehensive review of your legal documents at least once a year. The fall is an ideal time for this review. Clients are returning from summer vacations and attendance is typically increasing. Additionally, many gyms introduce new services or update existing ones in the fall, which might necessitate changes to waivers and membership agreements.
Neglecting to update your gym’s legal documents can have serious consequences. By adopting a proactive approach and conducting annual reviews, you can ensure that your waivers, membership agreements, and staff contracts remain current and effective. This not only protects your gym from legal and financial risks but also reinforces your commitment to providing a safe and professional environment for your members.
If you’re a Wodify customer, you have all the tools you need to stay compliant, including the ability to edit waivers and agreements, as well as a customizable website that can align with any applicable cancellation laws.
