What Do I Need In My Gym’s Terms And Conditions?

Running any business in New Zealand means you’ll need well-drafted terms and conditions to cover yourself should you encounter legal issues.

Particularly if your new business is a gym, your terms and conditions need some extra consideration as the risks involved in running a gym are significantly higher than in other businesses.

Where Do I Start?

When a customer decides to become a member of your gym, you should provide them with two main documents:

1. Terms and Conditions
2. A Membership Form

Both of these documents are legal essentials for starting a gym in New Zealand.

Once a customer signs your membership form, they will be bound by all the provisions you decide to include in your terms and conditions.

The agreement will also protect you from any liability should you encounter any issues with anyone who decides to use your gym.

What Do I Include?

Well-drafted business terms and conditions are necessary to protect the relationship between you and your gym members.

Generally, terms and conditions will outline the rules your gym members must follow when using your gym, and they should be attached to any membership form.

These are the five main things you must include when drafting terms and conditions for your gym in New Zealand.

1. Payment

Any set of gym terms and conditions must clearly outline the payment options and obligations of its customers.

This includes how your customers will pay for the membership and how their fees will be deducted from their bank account.

There are different methods of payment you can consider, such as direct debit or pay-as-you-go payments.

Direct Debit

Take extra care with direct debit as there are specific New Zealand laws regulating the use of this payment method.

If a member using direct debit decides to cancel or stop their payments, your terms and conditions must provide the steps they should take to do so.

You should also set out a process for your members to dispute any direct debits and what happens if the direct debits fail.

Automatic Renewals

Sometimes, your gym members might opt for automatic renewals of their membership.

Ensure this option is clearly spelled out in your gym terms and conditions; otherwise, their membership contract might be unenforceable.

2. Suspension and Termination

Including provisions for suspension and termination in your terms and conditions is very important.

This is because suspension or termination clauses provide options for your members if they wish to end their membership.

Suspension

A suspension clause is useful for your members if they temporarily want a break from the gym – for example, if they’re travelling abroad.

You can offer an option for your members to suspend their membership for certain time blocks, depending on the needs of your business.

Termination

A termination clause is required in all gym terms and conditions.

You always need to give your members an “out” if they decide they no longer require your services.

Your termination clause can include different notice periods.

In some instances, you might also require clients to pay a cancellation fee before they decide to discontinue their membership.

However, be mindful of New Zealand’s laws regarding what’s permitted around cancellation fees!

Depending on how you draft your terms and conditions, you can also include a provision that gives you the right to terminate any customer’s membership if they breach any of the rules and regulations set out in their membership contract.

3. Personal Injury

The safety of gym-goers is one of the most important aspects of your gym terms and conditions.

While you can never contract out of all safety requirements, a personal injury clause will limit your liability to some extent in case something does go wrong.

Your personal injury clause should state that your gym and its employees won’t be liable for any loss or injury that a member suffers if they fail to follow health and safety instructions or misuse the equipment provided by your gym.

A well-drafted personal injury clause will also protect you should any of your customers decide to sue you for any personal damage they have incurred while using your gym.

4. Refund Policy

As a gym owner in New Zealand, it’s important that you include provisions for refunds.

This is because the Consumer Guarantees Act (CGA) has mandatory consumer guarantees which you must abide by.

Offering a refund is one of these guarantees.

Refund policies give your gym members the option to have their money returned depending on any breaches of your gym’s terms and conditions.

Depending on your circumstances, some customers might be entitled to a cooling-off period.

5. Privacy Policy

It’s also a good idea to include a privacy policy in your gym terms and conditions or even on your website.

This is because when people join your gym, they’re going to be providing information that is considered ‘sensitive’.

A privacy policy will require your gym members to agree that the personal information they provide to you might be used for a range of purposes, including marketing.

There may be some members who don’t want their information used for purposes other than using the gym.

In these situations, ensure you have an ‘opt-out’ option so members can choose not to have their personal information shared.

What To Take Away…

If you have a gym, or are thinking of starting one, it’s crucial that you have well-drafted terms and conditions before you begin operations in New Zealand.

There are additional considerations you need to take into account when protecting your business from any liabilities to those who decide to use your gym.

Looking for some guidance? Or are you unsure about where to start? Feel free to contact us at [email protected] or call us on 0800 002 184, we are happy to help you!

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