Gym closed - what are my options

Mythium

Hey All,

Is there an ombudsman in the leisure sector that I can complain too? 

I signed up and paid for a year gym membership (£300) with anytime fitness Rugby on 07/06/24. On 20/11/24 they let the unfortunate staff go and closed the doors without warning. 

Some people recieved emails announcing the closure and advising they would be in contact, I have not and I believe it's because I paid upfront and don't have a rolling contract so essentially they have my money and I can't do anything.

I have since found out Anytime fitness are a franchise and the gyms essentially run themselves, and these gyms have been closing down over the country because they have gone bankrupt however the franchise is still live.

This, in my opinion, is a cop out, I've called their head office and essentially they couldn't care less. 

If anybody has any good advice of where to go from here I'd appreciate it.

I have tried to raise a section 75 on my credit card but am waiting to hear and don't hold out hope as we have passed 120 days but by my reckoning I'm owed roughly £150.00

Thanks in advance

lisyloo

There's no time limit on section 75. I think you may be confusing it with chargeback.

A chargeback goes to the bank of the franchisee, they can appeal (although I can't see grounds for it here).
Section 75 is paid by your credit card company, there is no time limit.
Has your dispute been acknowledged by your card provider?

Alderbank

Mythium said:

Hey All,

Is there an ombudsman in the leisure sector that I can complain too? 

I signed up and paid for a year gym membership (£300) with anytime fitness Rugby on 07/06/24. On 20/11/24 they let the unfortunate staff go and closed the doors without warning. 

Some people recieved emails announcing the closure and advising they would be in contact, I have not and I believe it's because I paid upfront and don't have a rolling contract so essentially they have my money and I can't do anything.

I have since found out Anytime fitness are a franchise and the gyms essentially run themselves, and these gyms have been closing down over the country because they have gone bankrupt however the franchise is still live.

This, in my opinion, is a cop out, I've called their head office and essentially they couldn't care less. 

If anybody has any good advice of where to go from here I'd appreciate it.

I have tried to raise a section 75 on my credit card but am waiting to hear and don't hold out hope as we have passed 120 days but by my reckoning I'm owed roughly £150.00

Thanks in advance

Welcome to the forum.

The franchise model is not a cop-out, many of our well established, popular high street brands are franchises. Your claim is against the actual business who you paid and who has since breached their contract with you.

You might be confusing s75 with chargeback. Chargeback is normally limited to 120 days but the Consumer Credit Act has no time limit (although other legislation might cut in after several years). In your circumstances, where the entity you had a contract with has simply reneged on that contract, your chances of recovery via s75 are very good.

Mythium

Thanks for coming back so quick, I specified a section 75 to HSBC and they just said someone will be in touch. That was 21/11.

I could be getting mixed up though as I thought they were the same thing, Apologies!

Mythium

Alderbank said:

Mythium said:

Hey All,

Is there an ombudsman in the leisure sector that I can complain too? 

I signed up and paid for a year gym membership (£300) with anytime fitness Rugby on 07/06/24. On 20/11/24 they let the unfortunate staff go and closed the doors without warning. 

Some people recieved emails announcing the closure and advising they would be in contact, I have not and I believe it's because I paid upfront and don't have a rolling contract so essentially they have my money and I can't do anything.

I have since found out Anytime fitness are a franchise and the gyms essentially run themselves, and these gyms have been closing down over the country because they have gone bankrupt however the franchise is still live.

This, in my opinion, is a cop out, I've called their head office and essentially they couldn't care less. 

If anybody has any good advice of where to go from here I'd appreciate it.

I have tried to raise a section 75 on my credit card but am waiting to hear and don't hold out hope as we have passed 120 days but by my reckoning I'm owed roughly £150.00

Thanks in advance

Welcome to the forum.

The franchise model is not a cop-out, many of our well established, popular high street brands are franchises. Your claim is against the actual business who you paid and who has since breached their contract with you.

You might be confusing s75 with chargeback. Chargeback is normally limited to 120 days but the Consumer Credit Act has no time limit (although other legislation might cut in after several years). In your circumstances, where the entity you had a contract with has simply reneged on that contract, your chances of recovery via s75 are very good.

Thank you, that's reassuring, hopefully I will hear from my bank soon.

The franchising isn't the cop out, it's the lack of support or information from the company and using franchising as an excuse I found underhanded. For both staff and customers. 

lisyloo

Mythium said:

Thanks for coming back so quick, I specified a section 75 to HSBC and they just said someone will be in touch. That was 21/11.

I could be getting mixed up though as I thought they were the same thing, Apologies!

Been discussing this elsewhere.
They may try chargeback first as the don't pay for that.
If they say you're out of time then ask them for section 75.

DullGreyGuy

They are ultimately independent businesses, the franchisor may well be equally in the dark as to what is happening. Their website says its temporarily closed 

With most banks you raise a "dispute" which leaves the bank to choose if it's a chargeback or S75. Assuming within the scope of the chargeback scheme most will do that first given the longer time limit on S75

scary_monger

Great info, They've done the same thing at our local branch as well I don't think anyone has any money back as of yet

blueboy12

I have the same problem,
 My local gym in Dover closed unexpectedly. I paid £300 for yearly membership.
I also use anytime fitness in Ruislip.Ruislip now are saying my membership has expired even though i have 6 months left.
they say that i have to take it up with the Dover branch that doesn't exist anymore.
pure rip off.