Can I legally opt out from a gym membership if the ownership of the gym has changed? Legal Advice Needed?

Question

LEGAL ADVICE NEEDED:
If I joined a gym with "Holmes Place", and signed a contract for 12 months with that company, and a couple of months later the "Holmes Place" becomes overtaken by "Virgin Active".....is there any legal way to leave the gym without facing consequences for breaching the contract on the grounds that I've signed the contract with "Holmes Place" and not with "Virgin Active"? The truth is I am unhappy with my membership, but the gym, formerly known as "Holmes Place" is notorious for charging its customers even if they stop going to the gym (f.e. if I attended the gym for 2 months, and then I stopped, they are still going to take money from my a/c by direct debit for the next 10 months, because they will say the contract was for 12 months. I can ask my bank manager to stop the direct debits, but then the gym will give my details to a debt collection agancy, as it has happened to a colleague of mine). Is there any way out of this?

Answer 1

In most cases, the change of ownership does not breach your contract. It is like a lease on an apartment. If the building is sold, the new owner assumes the conditions of the lease and it remains in force. Most gym memberships have a "cooling off period" of something like 30 to 60 days. Once you have past the cancel date, there is little that you can do to get out of a signed contract. There may be an early cancellation fee written into the contract allowing you to cancel at a charge.

Answer 2

Gym Ownership

Answer 3

Firstly, from the moment that you sign a contract which lasts for 12 months, you are liable to any breach of the contract you make within those 12 months(e.g. not paying in this case).
However, you have signed this contract with the condition that this gym will keep you satisfied, which in your opinion does not. Before signing this contract with them, was there any mention of their side of obligations? As in, "if you join our gym we'll make sure you'll be toned and fit within the next 6 months" ? Or, in simple terms, what is the reason you are not satisfied with them? Is it truly something on their behalf? From the moment that they do not carry out their side of obligations they are already breaching it, therefore you have the right to terminate the contract.
The change of ownership does not usually amount to your right to breach the contract. More often than not, within the terms that you agree to is reference to the party you are dealing with. It usually mentions who they are and what happens upon change of ownership(whether you'd be still liable or not).
This is not something that the Debt Collection Agency deals with however, it is a legal issue that is usually dealt with within the courts. Before deciding to stop showing up to the gym, I suggest you bring this matter before the owners, tell them the situation and why you are not willing to carry on the membership, therefore trying to resolve the issue before it becomes out of hand.

Answer 4

Cant give you legal advice. But generally contracts will have a transferrability clause both as to the customer and the service provider. Usually the customer cant transfer and the service provider can. It will depend on your contract and local contract laws, but the odds are they can indeed sell the contract to someone else and you are still bound to perform (ie pay).

My life advice is this - the gymn is good for you. Suck it up and go.