I was the owner of a franchised gym that closed. I emailed both the billing company, National Fitness, and the franchisor, Diversified Health & Fitness, that we were ceasing operation. The franchisor approved the closing and agreed that no more dues would be taken after that date.
On Oct 11 the corporate office began billing our members again with no warning. On Oct 13 it sent an email saying the members were being transferred to another gym. I had no knowledge of this email and did not approve reinstating the billing. When members called the 800 number, they were told that I, the gym owner, had reinstated the dues and transferred all members, which is untrue.
Members were told to cancel manually through the website or be charged another month. Some had NSF fees, and several hundred people were affected. The franchisor says the new gym is within 10 miles, but by my GPS it is more than 10 miles away. Members who called National Fitness were told there was no record of the gym closing and that they might be charged another month and a maintenance fee.
The BBB closed the case as unresolved. As of January, members were still being charged and many had received no refunds despite promises. I would like the franchisor to refund all dues charged after the closing date and send members a letter with the correct steps.
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