Annual Maintenance Fee Notice

Dear Fitness System Family,

For more than a decade we have tried, as a family-run business, to keep prices low and never charge our valued clients the unnecessary fees that other chain clubs charge their customers. Other clubs have been charging these fees to customers unnecessarily for years. In the past we’ve refused to engage in that behavior. Unfortunately, due to the increased costs of doing business in the state of California, it is now necessary to begin instituting an annual maintenance fee for all of our members in order to combat these rising costs and provide our staff members a livable wage.

What you can expect:

-As of January 1, 2017, there will be an annual $49 maintenance fee charged to every account on approximately February 15th of each year (for members existing prior to 12-31-2016), or two months after initial sign up for new accounts (joining after 1-1-2017). For EFT Members, it will be auto-drafted to your selected billing. For prepaid members who joined prior to 12-31-16, on your next renewal date, your account will reflect your original rate plus the appropriate portion of the fee (EX- Yearly members will have an additional $49 due at renewal, Semi-Annuals will have an additional $24 due and Quarterlies will have an additional $12 due). NOTE: This fee is per account, not per member. This equates to approximately only $4/month.

-These fees will go towards keeping a stellar facility and Make You Happy Customer service.

-They will also help combat increased insurance, employment, and supply costs that will affect every business in this state.

In order to keep high quality facilities and machines, to account for rising employments costs, and in order to keep regular membership costs low, this fee is necessary. The cost to do business in the state of California is rising significantly, and will affect not just Fitness System and the health club industry, but all businesses. This nominal maintenance fee will provide our staff with a livable wage.

We promise to you and your family to always do our best to maintain the best environment possible. We understand that while it is desirable to keep costs low, some things are out of our control. We appreciate your continued support and promise an even better level of service in the future.

Thank you,

Fitness System

Annual Maintenance Fee F.A.Q.

Q: Why is the fee necessary?

A: With labor and insurance costs set to increase in California over the next few years, we must institute a per account maintenance fee to offset this expense as well as provide a quality environment, equipment and classes. Moreover, this fee should help provide employees with a higher living wage.

Q: How will I be charged?

A: For EFT memberships existing before January 1, 2017, the fee will be charged to your billing on approximately February 15 of each year. (*Note: You do have the option to prepay this fee.) For new accounts that join after on or after January 1, 2017, this fee will be billed two months after your initial signup date, and continue on the same date every year.

Q: Are you the only club that does this?

A: No. This is a standard fee for most of the industry. Fitness System has not done so over the last decade, but the rising business costs in California have made it necessary.

Q: Why is it $49?

A: The fee of $49 per account, not per individual, is the amount necessary to offset the rising labor costs as well as provide an adequate budget for capital expenses and repairs. This fee will help maintain the incredible culture at Fitness System.

Q: I have a prepaid account. How will I be charged?

A: There will be a balance posted to your account for the portion of the year you are prepaying. Example: if you prepay for 6 months, a balance of 24.50 will be posted to your account for half of the total annual maintenance fee.

Q: Isn’t $49 dollars expensive?

A: We get it. Every dollar counts in a family and a business budget. We truly wish the fee was not necessary, but with rising costs, it is. $49 is less than the industry average, and WE PROMISE THAT YOU CAN EXPECT AN EVEN GREATER LEVEL OF SERVICE AND EQUIPMENT AT THE CLUB.

Q: Can I prepay this fee?

A: Yes. You can pay the fee in advance before a balance posts to your account or you are auto-drafted.

WE ARE TRULY GRATEFUL FOR SUCH A WONDERFUL CLIENTELE AND CULTURE AT FITNESS SYSTEM. THANK YOU ALL SO MUCH FOR WORKING WITH US WHILE WE CONTINUE TO NAVIGATE THE BUSINESS CLIMATE AND PROVIDE YOU WITH AN INCREDIBLE FITNESS EXPERIENCE.