I am considering opening a fitness facility that caters strictly to group exercise instructors. Rather than structuring the facility as a club, my thought is to rent professional exercise space and equipment to instructors on flat rate basis. I am thinking that this sort of arrangement could be advantageous to instructors as long as rental rates could be kept affordable. I am trying to run various issues out with this approach, but am curious whether this sort of studio-for-rent model is prevalent anywhere. I live in a very fitness conscious area and am not aware of any facilities using this sort of model. Is this something that has been tried and abandoned as unworkable already? What problems do you see with this sort of approach?
Katie touched on a subject that I am hoping others might weigh in on, namely the idea that, in order to ensure competent and professional instruction, and to establish a credible reputation for the studio, it would be wise to set minimum requirements (e.g. recognized certifications and up-to-date credentials) in order to rent the studio space. I am wondering if setting such requirements would raise legal issues. Would this behavior constitute controlling how instructors do their business and thus push the studio across the line from being a landlord to being the employer?
It seems to me one of the most attractive things about this arrangement would be that instructors could remain free-lancers (self-employed), not to mention, as the owner of the studio I would not bear the responsibilities that go along with being their employer. This is on my list of questions to put to my attorney, but curious whether people on this forum have run into this in the past.