Just bought a gym, who gets the unused training revenue?
My husband and I just purchased a 2 small gyms. Right before we officially purchased it (we’re talking a couple of days), almost $2000 worth of personal training was sold. The former owner paid the trainers their portion, however, he is refusing to give us the revenue for the unused training (pretty much all of it), because he claims that personal training revenue wasn’t the same as membership revenue and too bad so sad. So now we have tons of personal training that will be happening under our gym time but are not getting paid for it. Essentially we are taking all the risk but not getting the reward.
Should we get the rest for services yet to be rendered? Just like memberships got pro-rated, shouldn’t training as well? I feel like I should be calling a lawyer on this. Do I need to?
Thoughts?
Hi Summer,
I’m sorry this has happened to you, but unless there was a clause in the purchasing agreement (between you and the seller) there is really nothing you can do about it. Unfortunately you will need to honor the remaining sessions that were bought by those members, even though the transactions took place before you bough the gym. The only way you could go after the previous owner is if he takes those clients with him and train them away from your gym (and only if he has signed an agreement that states he cannot contact any of his old members/clients). This is why you need a lawyer before all of these take place.
If I were you, I would use the time and sessions I have with these clients to try and build a good and positive relationship with the, so they can continue to be your clients and of course buy more sessions when these are done.
Best,
Harris
