General Manager J.R. Ruis understands how tough it is for some of his longtime members at YouFit Health Club in Miami to pay even the rock-bottom monthly fee of $10.

“The unemployment center next door is busy all the time,” Ruis said. “And the center for children and families upstairs is real busy, too.”

The recession hasn’t spared swanky health clubs, either, including the Downtown Athletic Club on the 15th floor of Miami’s Wachovia Tower, which last year lost 200 to 300 members as nearby law offices, banks and architectural firms laid off employees.

In the 2005-2006 fiscal year, there were 393 licensed health clubs and fitness centers in Miami-Dade and Broward counties. Now there are 349, a drop of 44 or 12 percent.

It has become survival of the fittest in the $19.5-billion health-club industry.

The result: a buyer’s market for those wanting to sweat away stress and get healthy — especially important if you’ve lost your job and health insurance.

To keep members and lure new ones, many South Florida fitness centers have cut membership costs and waived initiation fees. But the biggest gain for gym consumers is a new industry trend: elimination of long-term contracts.

“They’re doing that for survival purposes,” said Terry McElroy, spokesman for the Florida Department of Agriculture and Consumer Services, which licenses and regulates health clubs.

“The fact is people used to be perfectly willing to pay for a year membership,” McElroy said. “They are not now for obvious reasons. They do not know if they will be working and do not want to lay out all that money at once.”

Michael Collier, general manager of 2-year-old Snap Fitness 24-7 in North Miami, agreed: “The last thing a lot of people want to do now is be locked into a contract when they don’t know what tomorrow will bring.”

Snap is waiving its $60 initiation fee and running a $1-a-day promotion, which is paid $30 per month, a $9 savings over its usual monthly fee.

YouFit, a St. Petersburg-based chain with five South Florida locations, charges $10 a month with no contracts for basic facilities offering lots of cardio equipment.

“Our goal is to be the best value in fitness,” said J.J. Creegan, director of brand development. “It’s easy to join, easy to cancel.”

LA Fitness, with 20 Miami-Dade and Broward gyms, has done away with contracts and begun offering family memberships that cover up to four people for $90 a month.

Gold’s Gym, with five South Florida outlets, has cut its membership fees by about 20 percent and begun offering month-to-month plans.

“I do think the industry had to remold itself during the recession,” said Anthony Johnson, manager of Gold’s Fort Lauderdale gym, which did a $500,000 upgrade last year, adding personal televisions and iPod docks on the cardio-training machines.

“People just couldn’t afford to keep coming.”

Membership is climbing again, Johnson said, after dropping about 25 percent in early 2009.

Fitness aficionados who’ve kept their gym memberships are using them more. Average health club attendance increased to an all-time high of 102 days , according to the International Health, Racquet & Sportsclub Association.

“In hard times, people need something to break the stress and exercise becomes your ally,” said Bill Higgs, general manager of Shula’s Athletic Club in Miami Lakes.

Nonetheless, Higgs said, revenues are down about five percent at the gym named for former Miami Dolphin coach Don Shula.

“When it comes down push to shove, and your home is foreclosed or something like that, you might not have much of a choice,” said Higgs, who has added kids’ programs and sponsored a weight-loss contest open to the community. “It’s still tough out there.”

Some South Florida clubs have gone the extra mile for unemployed members, allowing them to slide a month or two on payments or even work out for free.

“I have a very personal gym where everybody knows everybody,” said Chris Russo, owner of Miami Shores’ MPower Project Fitness.

“If somebody who’s worked their [butt] off for years and finds themselves in a crappy position, I’ll tell them: `Come in and pay when you can.’ ”

The 14-year-old gym is running a sale, offering membership for $99 down and $29.95 month.

“Would I have done that three years ago?” Russo asked. “Probably not.”

Loyalty can be a two-way street. Adrienne Jarrett, 55, an administrator at the University of Miami Center on Aging, said she began taking her lunch to work and shopping for clothes at thrift stores, but won’t skimp on workouts at MPower Project.

“It makes me feel fantastic and healthy,” Jarrett said. “I walk a little taller. Smile a little more.”

Harold Stowe, 59, said he’s being eating out less to afford his MPower membership. He lifted his shirt to reveal a six-inch scar on his chest.

“Quadruple bypass,” said Stowe, who is retired. “My doctor said I should exercise 30 minutes a day and I don’t have the will power to do it at home.”

The 26-year-old Downtown Athletic Club took a proactive approach to its declining membership. It offered two-month free memberships to laid-off members, pumped about $500,000 into a new cardio center and bolstered its classes and basketball league.

At the same time, new downtown condo buildings began filling with residents and Wells Fargo moved into Wachovia Tower.

The net result: “We’ve picked up what we lost and added 15 to 18 percent,” said Bryant Samson, general manager of the gym with a bird’s-eye view of the city. “We’re now ahead of our best year ever.”

Then there’s the über-upscale Equinox Fitness Clubs, which costs about $135 a month and is banking on members’ vanity.

Equinox’s three South Florida clubs have not slashed prices, said chief operating officer Scott Rosen, and instead have upgraded with the newest generation in spin bikes, eco-friendly towels and high-end shampoo, conditioner and body wash.

“In Florida, a lot of people are body conscious,” Rosen said. “You can do without another meal at China Grill, but you can’t do without Equinox if you want to look good on the beach.”

General Manager J.R. Ruis understands how tough it is for some of his longtime members at YouFit Health Club in Miami to pay even the rock-bottom monthly fee of $10.

“The unemployment center next door is busy all the time,” Ruis said. “And the center for children and families upstairs is real busy, too.”

The recession hasn’t spared swanky health clubs, either, including the Downtown Athletic Club on the 15th floor of Miami’s Wachovia Tower, which last year lost 200 to 300 members as nearby law offices, banks and architectural firms laid off employees.

In the 2005-2006 fiscal year, there were 393 licensed health clubs and fitness centers in Miami-Dade and Broward counties. Now there are 349, a drop of 44 or 12 percent.

It has become survival of the fittest in the $19.5-billion health-club industry.

The result: a buyer’s market for those wanting to sweat away stress and get healthy — especially important if you’ve lost your job and health insurance.

To keep members and lure new ones, many South Florida fitness centers have cut membership costs and waived initiation fees. But the biggest gain for gym consumers is a new industry trend: elimination of long-term contracts.

“They’re doing that for survival purposes,” said Terry McElroy, spokesman for the Florida Department of Agriculture and Consumer Services, which licenses and regulates health clubs.

“The fact is people used to be perfectly willing to pay for a year membership,” McElroy said. “They are not now for obvious reasons. They do not know if they will be working and do not want to lay out all that money at once.”

Michael Collier, general manager of 2-year-old Snap Fitness 24-7 in North Miami, agreed: “The last thing a lot of people want to do now is be locked into a contract when they don’t know what tomorrow will bring.”

Snap is waiving its $60 initiation fee and running a $1-a-day promotion, which is paid $30 per month, a $9 savings over its usual monthly fee.

YouFit, a St. Petersburg-based chain with five South Florida locations, charges $10 a month with no contracts for basic facilities offering lots of cardio equipment.

“Our goal is to be the best value in fitness,” said J.J. Creegan, director of brand development. “It’s easy to join, easy to cancel.”

LA Fitness, with 20 Miami-Dade and Broward gyms, has done away with contracts and begun offering family memberships that cover up to four people for $90 a month.

Gold’s Gym, with five South Florida outlets, has cut its membership fees by about 20 percent and begun offering month-to-month plans.

“I do think the industry had to remold itself during the recession,” said Anthony Johnson, manager of Gold’s Fort Lauderdale gym, which did a $500,000 upgrade last year, adding personal televisions and iPod docks on the cardio-training machines.

“People just couldn’t afford to keep coming.”

Membership is climbing again, Johnson said, after dropping about 25 percent in early 2009.

Fitness aficionados who’ve kept their gym memberships are using them more. Average health club attendance increased to an all-time high of 102 days , according to the International Health, Racquet & Sportsclub Association.

“In hard times, people need something to break the stress and exercise becomes your ally,” said Bill Higgs, general manager of Shula’s Athletic Club in Miami Lakes.

Nonetheless, Higgs said, revenues are down about five percent at the gym named for former Miami Dolphin coach Don Shula.

“When it comes down push to shove, and your home is foreclosed or something like that, you might not have much of a choice,” said Higgs, who has added kids’ programs and sponsored a weight-loss contest open to the community. “It’s still tough out there.”

Some South Florida clubs have gone the extra mile for unemployed members, allowing them to slide a month or two on payments or even work out for free.

“I have a very personal gym where everybody knows everybody,” said Chris Russo, owner of Miami Shores’ MPower Project Fitness.

“If somebody who’s worked their [butt] off for years and finds themselves in a crappy position, I’ll tell them: `Come in and pay when you can.’ ”

The 14-year-old gym is running a sale, offering membership for $99 down and $29.95 month.

“Would I have done that three years ago?” Russo asked. “Probably not.”

Loyalty can be a two-way street. Adrienne Jarrett, 55, an administrator at the University of Miami Center on Aging, said she began taking her lunch to work and shopping for clothes at thrift stores, but won’t skimp on workouts at MPower Project.

“It makes me feel fantastic and healthy,” Jarrett said. “I walk a little taller. Smile a little more.”

Harold Stowe, 59, said he’s being eating out less to afford his MPower membership. He lifted his shirt to reveal a six-inch scar on his chest.

“Quadruple bypass,” said Stowe, who is retired. “My doctor said I should exercise 30 minutes a day and I don’t have the will power to do it at home.”

The 26-year-old Downtown Athletic Club took a proactive approach to its declining membership. It offered two-month free memberships to laid-off members, pumped about $500,000 into a new cardio center and bolstered its classes and basketball league.

At the same time, new downtown condo buildings began filling with residents and Wells Fargo moved into Wachovia Tower.

The net result: “We’ve picked up what we lost and added 15 to 18 percent,” said Bryant Samson, general manager of the gym with a bird’s-eye view of the city. “We’re now ahead of our best year ever.”

Then there’s the über-upscale Equinox Fitness Clubs, which costs about $135 a month and is banking on members’ vanity.

Equinox’s three South Florida clubs have not slashed prices, said chief operating officer Scott Rosen, and instead have upgraded with the newest generation in spin bikes, eco-friendly towels and high-end shampoo, conditioner and body wash.

“In Florida, a lot of people are body conscious,” Rosen said. “You can do without another meal at China Grill, but you can’t do without Equinox if you want to look good on the beach.”

Pet peeves in the gym – be they other people’s loud grunts or their refusal to wipe down sweaty machines – are commonplace.

But a gym in the Basque region of Spain taking the fitness club culture and turning it on its head.

Easy Gym in Arrigorriaga is letting nudists work out in their birthday suits.The gym, the first of its kind, came up with the idea while trying to figure out how to reinvigorate their business amidst a recession.”With the crisis we noticed there were fewer people using the gym,” owner Merche Laseca, told the BBC. “I’m not a nudist myself, though I have no problem with it. But this initiative is about the money.The gym’s grand opening actually ended up not being so grand, as only four people could be seen working out on the first day, according to Spanish website ABC.But Laseca believes that the business in the buff can only go up from here. Starting in May, the space will be open to nude gym rats every Saturday afternoon and all of Sunday.The owner believes nudists can be a burgeoning niche market. The Basque region boasts 12 nude beaches, local swimming pools with naked sessions and even a mass nude run in nearby Sopelana, the BBC reported.But not everyone sees the business model as a naked truth.”Each to his own,” the owner of a traditional gym in Bilbao told the BBC. “But I think it’s the most unhygienic thing in the world.”Nonetheless, the gym is moving forward. According to Spanish newspaper, El Correo, a yoga teacher teacher has offered to teach naked yoga classes.Maite Vicuna, the president of the Basque Naturist Association, told El Correo that the culture of nudists is light years ahead of where it was.”Ten years ago if you went on a naked run through the woods they would have arrested you,” Vicuna said. “But now everything has changed. Everyone is much more accustomed to it.”

Health clubs not sweating the recession

Colorado Athletic Club and Carmichael Training Systems among those expanding

It’s hard not to sweat during these uncertain economic times. Literally.
Although the recession has taken its toll on countless businesses across the state, Colorado’s health club industry continues to expand. “I think don’t think we’ve been hit as hard as retail businesses because people still value their health,” said Ed Williams, president of Denver-based Wellbridge, which owns and operates four Colorado Athletic Club locations and has plans to open two new clubs in Boulder and Denver. Nationwide, the brand has 20 locations. “When life becomes more stressful, people want to make themselves more healthy,” he said. One of the new Colorado Athletic Club sites will be in Boulder’s 29th Street Mall; it is planned to open by year’s end. The 14-year-old Colorado Athletic Club will also add its sixth Colorado fitness outlet in Denver’s Tabor Center. Williams, who founded Wellbridge 27 years ago, said the company is taking advantage of the down economy by building health clubs in good locations that were more expensive before the recession. “We’re facing the same obstacles as everyone else in this economy, but these locations were strong enough that we had to grab them when they were available,” Williams said. When the economy turns around, Williams said, the newly built sites will reap more benefits. That could mean increased membership and use of facilities. Currently, membership numbers at Colorado Athletic Club gyms have not increased, but use of facilities has gone up 30 to 40 percent, Williams said. That means instead of working out twice a week, people are now heading to the gym three or four times weekly. But Colorado Athletic Club is not the only health club chain expanding. Carmichael Training Systems, a state-of-the-art training outlet for high-endurance athletes opened a new location in Colorado Springs . And fitness studio Brio Active officially opened its doors in Cherry Hills Marketplace in Denver recently. Nationwide, franchises of the Irving, Texas-based Gold’s Gym have recently opened or are planned to open this year in several cities, from Fitchburg, Wis., to Midlothian, Va. Franchises are also planned in parts of the East Bay and Bay Area in San Francisco to take advantage of low-cost real estate.
The gym in Cherry Hills Marketplace is the pilot studio for Brio Active, which takes a “new approach to fitness and wellness” with a 25-minute full-body workout. Expert coaches move groups of four or fewer clients through warm-up, flexibility and strength exercises and complete each workout with a “recharging” massage.
The fitness studio chose Colorado as its first location because it is an “activity-oriented state” with many different markets to reach out to, including hardcore athletes as well as those who don’t exercise regularly, said Marsha Macro, manager of Brio Active. Sufferers of multiple sclerosis, arthritis and other physical ailments also find Brio Active’s approach beneficial, Macro said.”We have many fingers in the market right now, and we’re touching so many people,” Macro said. “We want to find out what works and grow with success. We plan to open more sites in Colorado and then go nationwide.”Macro said she expects membership to be slow during the summer because more people spend time outside during this season. But despite the state of the economy, she said, fitness remains a priority for many.”You need something that can take your mind off what’s happening,” Macro said

Health clubs not sweating the recession

Colorado Athletic Club and Carmichael Training Systems among those expanding

It’s hard not to sweat during these uncertain economic times. Literally.
Although the recession has taken its toll on countless businesses across the state, Colorado’s health club industry continues to expand. “I think don’t think we’ve been hit as hard as retail businesses because people still value their health,” said Ed Williams, president of Denver-based Wellbridge, which owns and operates four Colorado Athletic Club locations and has plans to open two new clubs in Boulder and Denver. Nationwide, the brand has 20 locations. “When life becomes more stressful, people want to make themselves more healthy,” he said. One of the new Colorado Athletic Club sites will be in Boulder’s 29th Street Mall; it is planned to open by year’s end. The 14-year-old Colorado Athletic Club will also add its sixth Colorado fitness outlet in Denver’s Tabor Center. Williams, who founded Wellbridge 27 years ago, said the company is taking advantage of the down economy by building health clubs in good locations that were more expensive before the recession. “We’re facing the same obstacles as everyone else in this economy, but these locations were strong enough that we had to grab them when they were available,” Williams said. When the economy turns around, Williams said, the newly built sites will reap more benefits. That could mean increased membership and use of facilities. Currently, membership numbers at Colorado Athletic Club gyms have not increased, but use of facilities has gone up 30 to 40 percent, Williams said. That means instead of working out twice a week, people are now heading to the gym three or four times weekly. But Colorado Athletic Club is not the only health club chain expanding. Carmichael Training Systems, a state-of-the-art training outlet for high-endurance athletes opened a new location in Colorado Springs . And fitness studio Brio Active officially opened its doors in Cherry Hills Marketplace in Denver recently. Nationwide, franchises of the Irving, Texas-based Gold’s Gym have recently opened or are planned to open this year in several cities, from Fitchburg, Wis., to Midlothian, Va. Franchises are also planned in parts of the East Bay and Bay Area in San Francisco to take advantage of low-cost real estate.
The gym in Cherry Hills Marketplace is the pilot studio for Brio Active, which takes a “new approach to fitness and wellness” with a 25-minute full-body workout. Expert coaches move groups of four or fewer clients through warm-up, flexibility and strength exercises and complete each workout with a “recharging” massage.
The fitness studio chose Colorado as its first location because it is an “activity-oriented state” with many different markets to reach out to, including hardcore athletes as well as those who don’t exercise regularly, said Marsha Macro, manager of Brio Active. Sufferers of multiple sclerosis, arthritis and other physical ailments also find Brio Active’s approach beneficial, Macro said.”We have many fingers in the market right now, and we’re touching so many people,” Macro said. “We want to find out what works and grow with success. We plan to open more sites in Colorado and then go nationwide.”Macro said she expects membership to be slow during the summer because more people spend time outside during this season. But despite the state of the economy, she said, fitness remains a priority for many.”You need something that can take your mind off what’s happening,” Macro said

Planet Fitness has extended hours at its corporate-owned clubs in New Hampshire to 24 hours a day, seven days a week. The change, announced on Planet Fitness’ Facebook page and Twitter account last week, affects 11 New Hampshire corporate clubs. The new hours also apply to two Planet Fitness corporate clubs in Massachusetts and two in Rhode Island. The 24-7 corporate clubs are staffed at all hours, says John Craig, director of brand development for Newington, NH-based Planet Fitness.“Given the 24-7 business cycle and the growing numbers of folks who work second and third shifts, we think it will help a lot of our members,” Craig says.
Most Planet Fitness franchise clubs are open around the clock weekdays until 9 p.m. Friday, Craig adds. On weekends, those clubs are open from 7 a.m. to 7 p.m.

Planet Fitness has extended hours at its corporate-owned clubs in New Hampshire to 24 hours a day, seven days a week. The change, announced on Planet Fitness’ Facebook page and Twitter account last week, affects 11 New Hampshire corporate clubs. The new hours also apply to two Planet Fitness corporate clubs in Massachusetts and two in Rhode Island. The 24-7 corporate clubs are staffed at all hours, says John Craig, director of brand development for Newington, NH-based Planet Fitness.“Given the 24-7 business cycle and the growing numbers of folks who work second and third shifts, we think it will help a lot of our members,” Craig says.
Most Planet Fitness franchise clubs are open around the clock weekdays until 9 p.m. Friday, Craig adds. On weekends, those clubs are open from 7 a.m. to 7 p.m.

Life Time Fitness Eyes $1 Billion and East Coast

As Life Time Fitness announced 9.5 percent revenue growth in the first quarter, its CEO said the company may hit $1 billion in revenue this year as it ramps up plans for growth in number of clubs and related businesses and as it increases spending on marketing to improve retention.

“Our goal of $1 billion in 2011 is achievable,” Bahram Akradi, chairman, president and CEO of the Chanhassen, MN-based company, said in a conference call with analysts announcing first quarter 2011 financial results. “We will do all we can do to achieve this milestone.”

Life Time Fitness’ first quarter 2011 revenue grew 9.5 percent to $240.6 million compared to $219.8 million from the same period last year. Net income for the quarter was $20.8 million compared to $17.8 million in first quarter 2011. Net income for the quarter was $20.8 million compared to net income of $17.8 million for first quarter 2010.

The company has 90 locations spread across 20 states, but Akradi said his primary area of interest for expansion is on the East Coast, where the company already has clubs in New York, New Jersey and Maryland. “We have some incredible sites in the works,” he said, although he wouldn’t give exact timing. “We are excited about the places we are going and the opportunities we have.” Life Time opened a club in Syosset, NY, in the first quarter. In May, the company will open two clubs—one in Colorado Springs, CO, and the other in Summerlin, NV. Life Time will expand much faster starting in the second half of this year and into 2012, Akradi says. The growth will be balanced between adding more locations and adding other businesses that support the healthy way of life approach that the Life Time clubs are targeting. Those businesses could be events (such as marathons), wellness services or chiropractic services. Akradi, who said that the company reviews dues pricing at each club monthly, plans to increase dues and enrollment fees at some clubs. In particular, the company is increasing dues for members who were given discounts to attract them from lower-priced clubs that had gone out of business. “My vision is every member in every club will pay the same rate,” Akradi said. “And we wouldn’t have special prices for anyone.” The company would be able to justify those higher prices by differentiating on services and programming. “Our goal is to differentiate Life Time Fitness so we don’t have to play in the price segment,” he said, noting that Life Time’s average member price compared to all other national chains is two to three times more. “So, we have focused ourselves on delivering programs—not just equipment—high-quality people and well-run facilities. We want to get to the point where price is not a factor. I feel we are 80 percent there from two years ago. I’m comfortable with the way we have strengthened our brand.” For the year, Akradi expects revenue to increase 7 percent to 9 percent or $980 million to $995 million, primarily due to growth in in-center revenue and corporate businesses, as well as membership growth in new and ramping centers. Net income is expected to increase 14 percent to 18 percent or $92 million to $95 million. Memberships in the first quarter grew 6 percent to 650,784 from 613,882 at the end of first quarter 2010. Quarterly attrition in first quarter 2011 was 8.4 percent, down from 8.5 percent in the prior-year period. Attrition for the trailing 12-month period was 36.1 percent compared to trailing 12-month attrition of 39.3 percent at the end of first quarter 2010.

Life Time Fitness Eyes $1 Billion and East Coast

As Life Time Fitness announced 9.5 percent revenue growth in the first quarter, its CEO said the company may hit $1 billion in revenue this year as it ramps up plans for growth in number of clubs and related businesses and as it increases spending on marketing to improve retention.

“Our goal of $1 billion in 2011 is achievable,” Bahram Akradi, chairman, president and CEO of the Chanhassen, MN-based company, said in a conference call with analysts announcing first quarter 2011 financial results. “We will do all we can do to achieve this milestone.”

Life Time Fitness’ first quarter 2011 revenue grew 9.5 percent to $240.6 million compared to $219.8 million from the same period last year. Net income for the quarter was $20.8 million compared to $17.8 million in first quarter 2011. Net income for the quarter was $20.8 million compared to net income of $17.8 million for first quarter 2010.

The company has 90 locations spread across 20 states, but Akradi said his primary area of interest for expansion is on the East Coast, where the company already has clubs in New York, New Jersey and Maryland. “We have some incredible sites in the works,” he said, although he wouldn’t give exact timing. “We are excited about the places we are going and the opportunities we have.” Life Time opened a club in Syosset, NY, in the first quarter. In May, the company will open two clubs—one in Colorado Springs, CO, and the other in Summerlin, NV. Life Time will expand much faster starting in the second half of this year and into 2012, Akradi says. The growth will be balanced between adding more locations and adding other businesses that support the healthy way of life approach that the Life Time clubs are targeting. Those businesses could be events (such as marathons), wellness services or chiropractic services. Akradi, who said that the company reviews dues pricing at each club monthly, plans to increase dues and enrollment fees at some clubs. In particular, the company is increasing dues for members who were given discounts to attract them from lower-priced clubs that had gone out of business. “My vision is every member in every club will pay the same rate,” Akradi said. “And we wouldn’t have special prices for anyone.” The company would be able to justify those higher prices by differentiating on services and programming. “Our goal is to differentiate Life Time Fitness so we don’t have to play in the price segment,” he said, noting that Life Time’s average member price compared to all other national chains is two to three times more. “So, we have focused ourselves on delivering programs—not just equipment—high-quality people and well-run facilities. We want to get to the point where price is not a factor. I feel we are 80 percent there from two years ago. I’m comfortable with the way we have strengthened our brand.” For the year, Akradi expects revenue to increase 7 percent to 9 percent or $980 million to $995 million, primarily due to growth in in-center revenue and corporate businesses, as well as membership growth in new and ramping centers. Net income is expected to increase 14 percent to 18 percent or $92 million to $95 million. Memberships in the first quarter grew 6 percent to 650,784 from 613,882 at the end of first quarter 2010. Quarterly attrition in first quarter 2011 was 8.4 percent, down from 8.5 percent in the prior-year period. Attrition for the trailing 12-month period was 36.1 percent compared to trailing 12-month attrition of 39.3 percent at the end of first quarter 2010.

The state of North Carolina’s litigation against former Peak Fitness owner Jeff Stec is still ongoing.

That information came in a press release from the office of North Carolina Attorney General Roy Cooper, who recently announced that his state has stepped up its efforts to ensure that health clubs are prepared to refund members whose clubs have closed.

Cooper’s office stated that multiple locations of ZX Fitness, which took the place of the former Peak Fitness clubs after Peak Fitness went into bankruptcy, are still under investigation, along with two Curves for Women clubs in North Carolina. Two other Curves for Women clubs have entered into settlements with the Attorney General’s office requiring their compliance with the law. Three more Curves for Women clubs have complied with the law after receiving a warning letter from the office’s consumer protection division.

In all, the division has recently contacted 28 North Carolina clubs and related businesses, such as dance and martial arts studios, about their compliance with state law. Over the past few years, the division has recovered more than $500,000 for members whose clubs have closed.

“My office hears every week from people whose gym shut down, leaving them in the lurch,” Cooper said in a statement. “Fortunately, North Carolina law requires health clubs to set aside money for refunds, and we want to make sure that businesses are following the law so consumers are protected.”

Under North Carolina law, health clubs, dance studios, martial arts studios and dating services are required to have a bond or letter of credit to cover certain prepaid contracts in case they go out of business and need money to repay consumers. Businesses are required to file sworn statements with the Attorney General’s office about their bonds twice a year.

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