Choosing a gym membership

As COVID lockdowns continue to affect a number of states, many gyms have been forced to close their doors. But do you have to keep paying for your membership fees during government-mandated gym closures? 

The Australian Consumer Law says that you can’t be charged for a service that’s not being delivered, but it also has a caveat for when a service is stopped by the government and not by the business itself, as is the case with COVID closures. 

This means that a gym can legally continue charging you membership fees during forced closures, although the actual policy will vary from gym to gym. 

Most gym owners will still have a number of ongoing costs during enforced closures, including franchise loan repayments and ongoing leases, and they may or may not be receiving assistance from the government to help cover these costs. 

Many of the larger gym franchises offer membership ‘freezes’ during temporary closures. Others may offer refunds or credit notes for future use. Smaller businesses may offer other solutions such as charging members a half rate during the closure to cover their ongoing expenses.

If your gym has frozen your membership during the government-mandated closures, keep in mind that this may extend the length of your membership. So if you’re on a contract with a 12-month minimum term, but your membership is frozen for three months, the minimum term of your contract will increase to 15 months. 

For example, Fitness First requires 28 days’ written notice to cancel a membership after the minimum term. But their terms and conditions also specify that if you give this notice during a membership freeze due to a government-mandated closure of your gym, the 28-day notice period won’t start being counted until the day the gym reopens.

Fitness Australia is an industry association that exists to create professional standards throughout the fitness industry. 

They have produced a National Fitness Industry Code of Practice but only ACT, Queensland and Western Australia have made all elements of the National Code mandatory. 

In NSW, Victoria and Tasmania, the Code of Practice is voluntary. South Australia has made some parts of the National Code mandatory, while other elements remain voluntary.

Regardless of where they are, gyms that are accredited members of Fitness Australia must comply with the Code of Practice. So it’s worth checking if the gym you’re considering joining is a member of the association.

Key requirements of the Code include:

• Transparently disclosing the full price of the service (including joining fees, late fees, termination fees).
• Pre-paid agreements must not be longer than 12 months and ongoing agreements must not have a minimum term greater than 18 months.
• Minimum 48-hour cooling-off period.
• Cancellations can be in writing or email.
• Contracts can be cancelled if the consumer is unable to use the service due to permanent sickness or physical incapacity (medical certificate is required).
• Supplier must pay the refund to the consumer within 14 days after receiving notice of termination of the contract.
• Cancellation fees must be what is stated in the agreement.

Tightening contract terms: WA and VIC

Western Australia

WA’s Department of Mines, Industry Regulation and Safety updated its code of practice for the fitness industry in July 2021, with some key changes that aim to make contracts more transparent and fair for consumers. New requirements for gym contracts include:

• Disclosing fees more transparently, including breaking down fees by fortnightly and monthly costs, disclosing any extra fees, the minimum term for the contract and the total minimum cost for the contract.
• Clearly outlining how to cancel a contract, including an option for electronic cancellation. Cancellation must be done by giving written notice (email or hard copy), but does not have to be on a specific form.
• Letting members cancel any time during a seven-day cooling off period. 

The code also explicitly prohibits some specific practices considered unfair to consumers including:

• Requiring someone to cancel a membership in person.
• Continuing to accept direct debits after a membership is cancelled.
• Expecting the consumer to separately cancel a third-party direct debit contract set up by the fitness provider.
• Requiring an excessive notice period.
• Charging fees not related to financial loss incurred due to the cancellation.

Victoria

Although the Fitness Australian Code of Practice is not mandatory in Victoria, Consumer Victoria has been asking the industry to remove or modify a number of unfair terms that have been sneaking their way into gym contracts including terms that:

• resulted in the automatic renewal of memberships without the opportunity to cancel at the conclusion of a minimum term
• allowed the health and fitness centre to vary its services without notice
• penalised consumers for terminating memberships
• penalised consumers for breach of contract.

Joining fee: $99.

Cost: Ranges $9.99 to $16.95 a week.

Transfer membership to another person?: Yes.

Fee increase after minimum term: Minimum term doesn’t apply, as these are rolling fortnightly memberships. Fees can increase at any time with 30 days’ notice.

Cancellation policy

Cooling-off period: 7 days (must be done in person).

Cancel if permanent sickness or physical incapacity?: Yes. In fact, the clause is slightly more generous than for other gyms, letting you cancel for “medical reasons” if you present a medical certificate.

How to cancel: Plus Fitness offers rolling fortnightly memberships. To cancel, you must give 14 days’ written notice.

Basic membership: 12 or 18 months, ongoing.

Joining fee: Varies according to location. Ranges from about $99 to $249.

Cost: Varies according to location. Ranges from about $20-35 a week depending on length and flexibility of membership.

Transfer membership to another person?: Yes, $90 fee.

Fee increase after minimum term?: No, not stated.

Cancellation policy

Cooling-off period: 48 hours.

Cancel if permanent sickness or physical incapacity?: Yes.

Cancellation fee (within minimum term):

• 18-month membership: $300
• 12-month membership: $200
• 6-month membership: $100
• 3-month membership: $50

These fees are charged on top of two further direct debits from the date of cancellation.

It also costs $75 to cancel due to “permanent sickness or physical incapacity” and $50 if cancelled in the cooling off period – and you have to pay for any services and sessions if you’ve used any in this time.

How to cancel (after minimum term): Cancel in writing. Two further direct debits will be taken after the date of cancellation. Since billing is fortnightly, this means you’ll need to give at least a month’s notice if you don’t want to be charged after you’ve stopped attending the gym.

Basic membership: Pricing varies from gym to gym. This information is based on a month-to-month membership at Melbourne CBD. 

Joining fee: Access card fee $69.95

Cost: $31.90/fortnight ($15.95/week)

Transfer membership to another person?: Yes, at the club’s discretion, but new member must pay joining fees.

Fee increase after minimum term?: No, no automatic increase.

Cancellation policy

Cooling off period: 48 hours or 7 days in the ACT

Cancel if permanent sickness or physical incapacity?: Yes

Cancellation fee (within minimum term): 25% of the monthly fees remaining after the notice period, and may charge a 10% fee if cancelled during the cooling off period.

How to cancel (after minimum term): 30 days’ written notice.

Basic membership: Offerings vary from gym to gym. This information is based on an F45 Athlete Membership (3 months) at F45 South Melbourne.

Joining fee: None.

Cost: $66/week.

Fee increase after minimum term?: No, not stated.

Transfer membership to another person?: There’s no official policy stated, but the representative we spoke to said it’s at the gym owner’s discretion and he would allow it (no fee).

Cancellation policy

Cooling-off period: Not stated.

Cancel if permanent sickness or physical incapacity?: Yes.

Cancellation fee (within minimum term): 50% of the balance of your fees for the remainder of the the minimum term.

How to cancel (after minimum term): Give 30 days’ written notice.

* These details may vary depending on membership type and gym location.

(All figures are recommended prices only. Each club sets its own pricing, so costs will vary.)

Joining fee: $99 plus a $69.95 access card/fob key fee.

Cost: Metropolitan Clubs $15.68/week ($815.40 a year or $67.95 a month).

Sydney Metropolitan Clubs: $16.37/week ($851.40 a year or $70.95 a month).

Regional Clubs: $14.99/week ($779.40 a year or $64.95 a month).

Transfer membership to another person?: Yes. But new member must pay fob key fee and joining fee.

Fee increase after minimum term?: Possibly. Fee increase is allowed after the minimum term but is not specified.

Cancellation policy 

Cooling-off period: 7 days.

Cancel if permanent sickness or physical incapacity?: Yes.

Cancellation fee (within minimum term): Pay 50% of the balance due for the minimum term, or 30 days of membership fees, whichever sum is more. Exemptions for permanent sickness/incapacity or if you move more than 15km away from any club, as long as you give 30 days’ notice (proof required).

How to cancel (after minimum term): Give 30 days’ written notice.

Basic membership: Passport or 24/7 Access.

Joining fee: $49.

Cost: From $25/week.

Transfer membership to another person?: Yes, but must pay a transfer fee equivalent to the start-up fee.

Fee increases after minimum term?: Yes, 2% after conclusion of minimum term and then every year.

Cancellation policy

Cooling-off period: 14 days (but your joining fee won’t be refunded).

Cancel if permanent sickness or physical incapacity?: Yes

Cancellation fee (within minimum term): Must pay out the remaining term of agreement, less 10% of the total owing. Exemptions for sickness/incapacity, bankruptcy or moving more than 15km from any Fitness First (proof required). But you’ll be charged an exit fee equal to 20% of the remaining contract value on your membership.

How to cancel (after minimum term): Give 28 days’ notice.

Basic membership: 24/7 Gym Access.

Joining fee: $89 plus $79 Access Pass Fee.

Cost: From $14.95/week. 

Transfer membership to another person?: Yes, $50 fee.

Fee increases after minimum term?: No, not stated.

Cancellation policy

Cooling-off period: 10 business days.

Cancel if permanent sickness or physical incapacity?: Yes.

Cancellation of weekly direct debit memberships: Terminate at any time by giving written notice.

Cancellation of paid-in-advance memberships: No option to cancel during the prepaid period (except in case of permanent sickness/incapacity). Agreement will automatically terminate at the end of the term if you do not actively renew your membership.

Basic membership: Blue. 

Joining fee: $99.

Cost: From $17.99/week

Transfer membership to another person?: Yes, for direct debit memberships of 12 months or more that are within the minimum term. Fee is $99.

Fee increases after minimum term?: Yes, 4% increase after conclusion of minimum term and then every year.

Cancellation policy 

Cooling-off period: 7 business days.

Cancel if permanent sickness or physical incapacity?: Yes.

Cancellation fee (within minimum term): $245 if more than 6 months remains on the minimum term. $195 or the amount of the future membership fees payable if less than 6 months remains.

How to cancel (after minimum term): Give 30 days’ notice.

We all know someone who’s joined a gym so they can get fit or lose weight, with a vague plan to “use the equipment”. They go a few times, lift some random weights and then stop going after a few months. They try to get out of their contract, only to find they’re pretty much locked in, leaving them out of pocket – poorer but not fitter!

This doesn’t have to be you. With a bit of planning and shopping around, you can make a better choice and get more out of your membership.

Which gym should I join?

Before choosing a gym, there are some basic practicalities to consider.

Types of gym

A standard gym usually includes weight-training equipment (free weights and machines); cardio equipment, such as treadmills, exercise bikes and rowing machines; and workout space for classes. If you’re new to gyms, thinking about what will interest you is a good start.

Other offerings may include a women-only gym, a 24-hour gym, or a gym with a pool and aqua classes. If you’re already active and looking for a new challenge, something a little different – such as CrossFit or mixed martial arts (MMA) – could be worth looking into. 

Location

Where the gym is will make a real difference in terms of when and how often you’ll use it. The harder it is to get to, the more excuses you’ll find to not go.

Opening hours

Will it be open when you’re most likely to want to exercise?

Fitness support

Does the gym offer a fitness assessment for new members, and an individualised program from a good personal trainer?

Child minding

If you need this service, find out the times it’s available, costs and the booking process.

User experience

The atmosphere and clientele of a gym can make a big difference to your comfort and enjoyment. It may help to visit at a time you’re likely to be attending and check out the scene.

• What’s the attitude of the staff – are they pleasant and helpful, or rude and pushy? Are there staff on the floor, supervising the weights area?
• Is it very crowded? Are classes heavily subscribed? Are there queues for equipment?
• Is the ambience (e.g. music, lighting and TV monitors) to your liking?
• Will you feel comfortable among the clientele?
• Check out the atmosphere: is it hot and sweaty, stuffy, air-conditioned, has open windows onto heavily trafficked streets, airy and spacious?
• Is the equipment clean and well-maintained? Are towels required when working out (and is this enforced)?
• What COVID-safe practices are in place and how well do the staff enforce compliance?
• What are the showers and change rooms like?
• Is drinking water available on the gym floor?
• Are safety and security measures adequate? This applies particularly for 24-hour gyms (and gym parking) which may not be staffed at all hours.
• Are there enough lockers available during peak times?

Types of membership

Casual membership

For beginners, a casual membership (pay-per-visit sessions, or buying a 10-visit pass, for example) gives you an opportunity to try it out a few times before making a larger financial (and time) commitment. Not all gyms offer a casual membership – especially chain gyms, or 24-hour gyms that give you access cards.

Short-term membership

A short-term membership – such as a one-month special, or three months – is another way for newbies to test the waters. You may also benefit from members’ services such as a fitness assessment, induction (instruction on how to use the gym equipment correctly) and having a program devised for you.

‘No-contract’ memberships

These do in fact usually involve contracts – that is, you sign a contract to join up and authorise direct debit payments, but there’s no fixed term. However, before you sign, be sure to check that there are no conditions or fees for cancelling your membership.

Fixed-term and ongoing memberships

Paying upfront for a 12-month membership can get you a good deal – typically much better than a monthly debit arrangement. However, if the gym goes broke, you’ll most likely lose the lot.

If you sign up for 12 months and pay month by month, you’re still locked into a 12-month contract – and if you want to leave after six months or so, you’ll still have to pay for the rest of the year, or at least pay a (perhaps substantial) penalty for breaking the contract.

Also, even if you sign a 12-month contract, membership may continue beyond the 12 months, and your fees will still be deducted until you cancel it – this is called an ‘ongoing membership’. Check the contract to determine whether you’re agreeing to a fixed-term or an ongoing agreement before signing.

Gyms that follow the Fitness Australia Code of Conduct should not accept more than 12 months’ fees at a time, so don’t pay more than this. Some get around this by offering a 12-month contract with an extra six months ‘free’, making the 18-month membership look like a better deal financially.

What’s in the contract?

If you’re new to gyms, and aren’t sure what a contract will look like and the sorts of things it covers, see if you can find the contract for the gym you’re interested in online. You can then have a really good look at it.

If you can’t, at least try looking at contracts for other gyms to see what sorts of things to look out for – google ‘gym contracts’ or ‘gym terms and conditions’.

Don’t tolerate pushy sales tactics

Tell them you want to take the contract home and look at it carefully. If they say the offer is ‘today only’ or similar – and gyms do legitimately offer specials for a limited time – this should be clearly advertised.

Do the maths

Work out how much it will cost per week, how many times per week you’re planning to go, and whether the cost is worth it. Would you be better off going as a casual (if possible), at least at first?

Look for added fees

This could be anything on top of basic membership fees, such as joining fees, fob/access card fees, monthly administration, direct debit fees, late or dishonour fees, cancellation, transfer or exit fees.

Also look out for terms around fee increases. Some ongoing contracts automatically increase your fees every year after the conclusion of the period you committed to when signing up.

Check the cooling-off period

There are minimum cooling-off periods that apply to all gyms for long-term contracts (more than three months) that are members of the industry association Fitness Australia: generally 48 hours in most states, and seven days in the ACT and WA. 

Gyms may have their own cooling-off period exceeding this. There may still be fees that apply, such as administration fees, or ‘guest’ fees if you’ve used the gym within the cooling-off period.

Find out what their holding, freeze or deferral periods are

If you’re away on holiday, or sick or injured for a long time, you may be able to get the time added to the end of your contract or pay a reduced fee for the duration. However, some notice – check how much – is required, and minimum and maximum periods may apply.

Check the cancellation policy

How much notice is needed, and what do you have to do? Regardless of what’s stated, you should always cancel in writing on a dated form or letter, and also tell your bank you have cancelled.

And under what circumstances can you terminate your contract without penalty? Moving more than a certain distance from the gym (and relevant affiliates) or long-term sickness or disability are typical reasons.

Transfers

If you don’t want to or can’t continue your membership, can it be transferred to someone else?

Tricky cancellation terms

If you’re not used to gym contracts, you may find that cancelling a membership – even after the conclusion of the period you signed up for – can be trickier than you expected. 

This is because the majority of gym memberships are classified as ‘ongoing’ agreements. 

For example, you may assume that your contract will automatically terminate 12 months after you sign up for a yearly membership. But if you signed an ongoing contract, your membership will automatically continue unless you actively opt out by cancelling your membership. 

Giving notice

Most gyms also require a notice period of about one month to cancel a contract, even after the conclusion of the period you committed to when signing up (referred to in the contract as the ‘Minimum Term’). 

This means that if you actually want your yearly membership to end after 12 months, you’ll need to cancel your membership in writing one month before the agreement is due to end.

In fact, ongoing gym contracts work similarly to most residential lease agreements. Although you may sign up for a 12-month lease, you’ll still need to give your real estate agent notice in advance if you actually intend to move out after 12 months. If no notice is given, it’s assumed you are continuing the rolling agreement until you ‘give notice’ that you intend to move out. 

Pre-paid and fixed-term agreements

The exception to this is prepaid or fixed-term agreements. 

If you pre-pay for a specified period, the contract will probably terminate automatically at the conclusion of the pre-paid term unless you renew, but it’s still worth checking your contract to confirm. 

 Fixed-term agreements will also usually terminate at the end of the term.

Gym Ts & Cs

It’s no secret that gym contracts can be hard to understand and tricky to terminate. In fact, in 2017, NSW’s Department of Fair Trading received 550 consumer complaints relating to gym membership cancellations, cooling-off periods and refunds (or the lack of them). 

The ACT, Queensland and Western Australia have implemented a mandatory Code of Practice for the fitness industry to offer consumers better protection – but most states haven’t, leaving many people unsure of their rights. 

In 2011, the ACL banned unfair terms in consumer contracts. This means contracts should be fair and you may be entitled to remedies if the service you paid for doesn’t meet consumer guarantees. 

Before signing a gym contract, make sure to read it thoroughly, and if important information (including cancellation fees, notice periods etc.) is not included, make sure you ask for this information first. You may also want to consider signing up with a gym that complies with the Fitness Australia Code of Practice if you’re not in a state with a mandatory code of practice.

Can you transfer gym membership?

Cancelling a gym membership before the minimum term can often involve hefty fees, so transferring your membership instead can be a clever alternative. 

If you’re moving house, transferring your membership to a different club location will usually be cheaper than cancelling an existing membership and signing up again in your new location. 

Alternatively, if you’re looking to get rid of your membership altogether, selling your remaining membership to another person could save you a significant sum in cancellation fees.

Gyms are not legally required to let you to transfer your membership (either to a new branch for yourself, or to somebody else) but a number of the bigger chains do allow it, although policies can vary from one location to another. 

Transferring to a new location

Transferring your membership to a club at another location within the same franchise may come with some fees (such as an administration fee and/or a new access card fee). And remember membership fees can vary from one location to the next, even within the same franchise, so if you’re moving to a new club, you may need to pay higher membership fees.

If your current gym membership lets you visit any of the gym’s club locations for free, keep in mind that if you start attending a new location more frequently than your designated ‘home club’, you may have your membership automatically transferred to that club, which may come with fees or higher membership rates.

If you’re moving and your new home will be too far away from any branch of your current gym, you may be able to cancel your membership without penalty (Fitness First and Anytime Fitness allow for this if you are moving more than 15km away from any of their gyms.)

Transferring membership to another person

If your agreement allows it, transferring your membership to another person will usually be subject to a number of conditions. 

You may have to have a certain amount of time remaining on your contract and the new member often can’t be somebody who has recently held a membership at the same gym. 

Most gyms will charge either a transfer fee or the initial start-up fee charged to new members when transferring a membership to a new person.

What if your gym closes down?

In a competitive marketplace, with new gyms opening regularly, existing gyms may close down, leaving members in the lurch. And with the current COVID-19 pandemic forcing many gyms to close their doors for extended periods, it’s possible that more and more gyms will be forced to close their doors permanently. 

Your gym may have contingencies in place for clients if it closes down. The contract for the Virgin Active chain of gyms, for example, states that if your home club closes, you have the choice of transferring your membership to another club, or terminating your membership on the day the home club closes.

Some gym closures have left members no choice but to go to other branches, which may not be very convenient. For example, when Lifestyle Fitness in the Sydney suburb Carlton closed down, members were told they could use the gyms in two other suburbs. Judging by the comments on the gym’s Facebook page (which was quickly taken down) this wasn’t a popular option and, in any case, those branches also closed down shortly afterwards.

If you’re lucky, nearby gyms not affiliated with the facility that has closed may offer to take on members as a goodwill gesture. But you may be required to agree to a membership with that gym when your current contract expires.

If you’re not happy with the solutions offered by the gym, you can at least stop the direct-debit payments by contacting your bank.

If you’ve paid upfront, you’ll have to try to recoup your money from the company or its liquidator. Contact your state’s fair trading department for advice.

If you’ve paid with a credit card, you may be able to use a chargeback to get a refund, although this only works for a limited time after you’ve paid.

Making a complaint

Fitness Australia has various resources to help people with complaints about their gym. 

1. Start by writing a letter to the business concerned (whether it’s a gym or a personal training service or something else). 
2. If that doesn’t work, and your gym is a member of Fitness Australia, submit your complaint to Fitness Australia. 
3. If it still doesn’t get resolved, take your complaint to your state’s fair trading office.

Gym membership costs and cancellations compared

We compare the costs and cancellation policies for eight of the biggest gym franchises in Australia by market share according to IbisWorld.

Note: Minimum term refers to the length of the agreement outlined in an ongoing contract. For example, if you sign a yearly ongoing contract the minimum term will be 12 months.