Gyms, weight-lifting facilities, and health clubs all provide a valuable service to the general public. They permit New Jerseyans to maintain their physical health and well-being even during the difficult winter months when exercise outdoors is impractical or even dangerous due to snow or ice. However, few people truly consider the amount of business and legal planning that is necessary to operate a successful fitness facility. Aside from ensuring that the business will be profitable and can sustain itself, sellers of health club services in the state must also comply with registration requirements and a number of government regulations.
The Jayson Law Group is committed to assisting New Jersey business owners navigate the regulatory framework in place in the state. Our firm regularly works with government regulators including those in the New Jersey Division of Consumer Affairs Regulated Business section. If you are founding a gym or health club and need to file formation paperwork along with regulatory applications or would simply like to perform a diligent review of your compliance efforts, the Jayson Law Firm can help.
Health club registration requires extensive disclosures
If there was ever a time where a gym could pop-up overnight with little consideration of legal and business concerns, that time is long gone. If you wish to open or operate a gym in New Jersey you must register with the state and provide a rather extensive amount of information. Typically, facilities that devote 40% or more of its space to health club services must register. Furthermore, the predominant use of the facility must be at-will or discretionary during the times that the club is open for use. While facilities utilizing less than 40% of its space for healthcare services may claim an exemption, there is a specific means for making this calculation and determination.
At the outset, you must provide information about the structure of your business. That is, will it be formed and operate as a corporation, an LLC, a partnership, or a sole proprietorship. While certain business structures will require filing formation paperwork, you should fully understand the benefits and drawbacks of each structure before making a decision. The attorneys of The Jayson Law Firm can assist you with this aspect of your business as well.
Among other requirements, part of the application also requires a financial disclosure and maintain a bond or an irrevocable letter of credit as per NJSA 56:8-41. Typically this obligation applies to health clubs selling membership terms of a length greater than 3 months. Additionally, if you take payment for services more than three months in advance the security requirements will also apply.
We can address your operational compliance with state law
Running a gym in the state of New Jersey is rife with potential legal pitfalls. For instance, consider that the state law defines the meaning of certain words and phrases when they appear in a health club contract. For instance New Jersey State law considers a health club to be an Affiliated health club only if it is located within 25 miles of a members new permanent address and it provides similar services. If you wish for this term to mean something else, it must be clearly defined in the contract. There are a number of other statutorily defined phrases. Businesses that are not aware of these terms and who draft their contracts without consideration of these terms may find themselves in a difficult legal or financial situation.
Furthermore, consider that some health facilities, such as those located in hotels, are not necessarily held out as being open and available to the public. Rather, access is limited to paying hotel guests and provided at either no charge or a nominal additional fee. In circumstances like these, these facilities may find themselves exempt from many or all of the state regulations. However, if the facility were to offer services at fees comparable to other for-profit healthcare facilities immunity would be lost.
Rely on the Jayson Law Group for regulatory guidance for your business
The Jayson Law Group can handle the necessary regulatory filings to start a health club or gym, review your past filings for compliance problems, and handle an array of legal concerns for your company. To discuss how our services could work for you, contact us online or call (908) 258-0621.