How the scam works:
Small gyms in neighborhoods might announce a grand opening coming as soon as they complete a renovation.
Flyers advertise new membership rates at this gym after the reopening. Even more good news –if you join in advance, you’ll pay half price.
This way, the money will go towards the renovation and it sounds like a win-win situation. The scam is that shady owners are pretending to re-open these facilities when in fact they will just run with the membership money, after being forced to close the business. This was reported to happen in several states across the USA, including California, Florida, Ohio and Washington.
How to avoid:
As much as you want to support the little guys, make sure you know who the real players are. If the business is in your neighborhood, ask a couple of your friends who used to go there what they know about the owner. And, although advance membership at half-price sounds attractive, it’s really safer to make sure they have completed the renovation before joining a gym.
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