F45 gyms collapse: Your refund rights and if you’re eligible

F45 customers are losing more than inches, as a flurry of the popular gyms close down amid financial struggles. See what to do if your gym closes.

It’s one of Australia’s biggest health and fitness networks, with a dedicated, almost cult-like following, but many of F45’s loyal customers are being left high and dry as franchises collapse around the country.

F45 is well-known for its 45-minute-long high intensity interval training sessions, with thousands of people around the world crediting those sessions for saving their physical and mental health.

But now, some customers are seeing red, after turning up for their regular workout, only to find their home away from home closed down.

Multiple F45 franchises have collapsed. Picture: Josie Hayden

WHAT HAPPENED?

When Covid-19 plunged the country into lockdown, Australians were forced to change their attitude to health and fitness, and learn to get the job done at home.

As a result, gyms have suffered, with only a portion of those who ditched the gym, returning back to external fitness centres.

Despite an array of loyal customers, F45 has suffered the same fate, with at least 11 stores having closed down unexpectedly.

F45 has also been hit with more legal battles involving celebrities like Greg Norman and David Beckham. Australian franchisees are also taking the empire to court.

WHO’S AFFECTED?

Not only do the collapses leave customers without a gym, it’s left many out of pocket too, some to the tune of up to $1000.

F45 gyms operate individually with a range of payment options. While some of those options involve weekly payments, others require upfront payment - such as special challenges or discounted rates that cover six- and 12-month memberships.

The collapses have also left landlords fuming, with some owned more than $100,000 of dollars in rent. One gym reportedly owed almost $600,000 to its landlord, while others reported owed close to $200k.

HOW MUCH DO MEMBERS PAY TO TRAIN?

F45 gyms are run individually and they’re priced that way too, with each franchise able to charge at their discretion, though most offer similar options.

For example, at the Brisbane franchise, you can pay a weekly fee of between $55 and $77 depending on how long you’ve committed for, which can be anywhere from one week to six months.

There’s also the option of paying $780 upfront for a three month pass, $279 upfront for a month, or $150 upfront for ten visits. An extra $50 will get you registered for a 45 day challenge.

WHAT SHOULD MEMBERS DO IF THEIR GYM CLOSES?

According to the Consumer Action Law Centre, if you’ve got an ongoing direct debit or recurring payment that is still coming out of your account, you should contact your bank and ask them to cancel it as quickly as possible.

WHAT IF YOU’VE PRE-PAID FOR MEMBERSHIP?

“If you’ve made the payment via a credit card, you could seek a charge-back from your bank on the basis the service hasn’t been provided,” Consumer Action Law Centre CEO Stephanie Tonkin said.

“If you’ve paid by direct transfer or cash upfront, unfortunately you’re considered a creditor as part of an insolvent business.”

CAN I TRANSFER MY MEMBERSHIP TO ANOTHER FRANCHISE?

Because members are considered a creditor of the franchisee, there are no guarantees.

“But it can’t hurt to contact your gym or the gym’s parent organisation and ask that your payments be credited at an alternative gym,” Ms Tonkin said.

“Or seek a refund from them directly.”

WHAT IF I CAN’T CONTACT F45 AND/OR THEY WON’T REPLY?

If you can’t get in touch with the franchisee of the gym you attended, try contacting the liquidator or the parent company for help.

WHAT OBLIGATIONS DOES F45 HAVE TO ITS MEMBERS?

The franchising Code of Conduct is a mandatory industry code that applies to franchises, franchisees and prospective franchisees.

Like all franchisors and franchisees, fitness business like F45 must ensure they provide consumers with clear and upfront information about fees and charges, according to the Australia (ACCC).

“Fitness business must also provide consumers with clear and upfront information about cancellation terms and conditions, and ensure they do not mislead consumers about the application of these terms and conditions.”

WHAT IF YOU DON’T UNDERSTAND YOUR CONTRACT OR FEEL IT HAS BEEN BREACHED?

Contact your state’s Consumer Affairs Organisation, or Community Legal Centre for help.

Originally published as F45 gyms collapse: Your refund rights and if you’re eligible