By Jess Sharp, Money blogger
New year, new you, and for many of us, that means getting out and joining a gym.
But before you rush to sign on the dotted line of a membership contract, here are a few things you should consider.
Understanding the form
The first and perhaps obvious thing to do is make sure you fully understand the contract – it is legally binding, after all.
Agreements must be clear, and you should be able to understand it without seeking legal advice.
If you don’t understand any words or if the meaning of a term is unclear, you should ask for an explanation before signing.
Jill Lipscombe, legal director and head of dispute resolution at Lamb Brooks solicitors, tells Money: “Look out for areas such as, cooling-off period, flexible payments, holiday periods, minimum terms contracts, free cancellation and termination provision.”
Check the term – and if it auto-renews
While many of us do it with good intention, you shouldn’t commit to a long term gym contract if you aren’t certain that you will keep going.
It is usually difficult to exit your agreement, so you don’t want to end up paying for something you aren’t using.
Gym contracts tend to fall into two categories:
- Fixed term contracts – these will last for a set amount of time, such as six or 12 months
- Rolling contracts – these will automatically continue on a month-to-month basis after an initial period ends. They tend to be more expensive but can be cancelled with little notice
Around this time of year, many gyms and health clubs will advertise offers that come with cheaper prices for longer terms.
While this might make sense for the money in your pocket right now, it isn’t always the best option for the future.
Shorter-term contracts or ones that allow you to cancel at any time tend to have a more expensive price tag, but it does mean you have more flexibility to leave.
Some may have automatic renewal clauses, which automatically extend the contract for another term unless you cancel before the end of the period.
Make a note of the date by which you should inform them if you don’t want this to happen.
Are there any hidden fees?
You may have come across some memberships that can increase during your term, and some gyms do the same thing.
Ms Lipscombe say: “It may be that the initial six months are cheap, but you are then tied in for a further six months, or significantly more, at an expensive rate that you may not be fully aware of with certainty at the outset.”
Double check if your gym has the right to unilaterally increase the membership fee and if so, how frequently they can do so.
Luke Hughes, owner of OriGym, tells Money that some gyms charge a joining fee, which is normally accompanied by the first month’s payment.
Others also charge to use lockers, he adds, and that can come with fixed penalties.
“Some gyms allow you to hire a locker on a direct debit basis so that you can leave your belongings overnight, but in order to combat gym members who don’t pay, they can apply small fixed financial penalties to members’ accounts and withhold their items until payment is received or even bin belongings that have been left in unauthorised lockers,” he says.
What is the cancellation policy?
Cancellation policies will vary depending on the gym.
Some like TruGym require a minimum of 30 days written notice to cancel a membership, and you must make any full payments that fall within that period.
Third Space in London requires you to submit a written request by the 1st of the month you want to end your membership.
Ms Lipscombe says it is worth looking for “membership freezing” options in your contract – this can allow you to temporarily suspend your membership.
The contracts that offer this option are often more expensive.
“Consider how long you plan to use the facilities and inquire about policies for long-term illness, injury, relocation, or job loss if not specified in the contract” she adds.
“Always verify the minimum commitment, any early cancellation fees, and notice periods.”
What if a service stops?
It’s important to check what would happen if the gym stopped providing a service.
This could be grounds for a reduction in the amount you pay or for you to leave your contract early.
The contract is likely to protect the business, so it’s worth making sure that you don’t miss out if it fails to stick to its end of the bargain.
Ms Lipscombe says you can always seek legal advice if you are in a dispute with a gym over a service you’ve signed up for.