§1577.  Requirements for contracts for physical fitness services

A.  Every prepaid or credit contract for physical fitness services of over one month's duration shall conform to the following requirements:

(1)  The contract shall be in writing, and a copy shall be given to the customer at the time he signs it.  

(2)  The contract shall state clearly the street address or location of the center and any outlet which the member may use at the time the contract is executed.  

(3)  The contract shall reveal the finance charge, if any, which the member agrees to pay.  

(4)  If the customer executes a negotiable promissory note in connection with the contract, the contract shall clearly indicate that the promissory note is negotiable paper and that it may be discounted and sold to third parties.  Negotiation of the promissory note does not affect the right of the member to cancel the contract or the method by which the cancellation may be made.  

(5)  Every center that engages in the sale of contracts prior to the opening of any outlet shall provide to each customer prior to the time the customer signs the contract, a written list of equipment and services which are or will be available for use by the customer at the outlet.  

(6)  Any contract by and between a center and a customer shall be canceled at the customer's option if any of the following conditions are met:

(a)  The center goes out of business.  

(b)  The center moves any outlet more than ten driving miles from the business location designated in such contract and fails to provide, within thirty days, an outlet of equal quality located within ten driving miles of the business designated in the contract at no additional cost to the customer.  

(c)  Construction of or improvement to an outlet is not completed within one year of the date on which the contract between the center and the customer is signed, unless such completion date is extended through no fault of the center.  Notwithstanding the provisions of this Subparagraph, construction shall commence, in any event, within thirty days from the date the first contract is executed by a customer.  

(d)  Any physical fitness services provided to the customer pursuant to Paragraph (5) of this Subsection are materially changed.  

(7)  The contract shall contain under a conspicuous caption in capital letters and boldfaced type the following language:

"CUSTOMER'S RIGHT TO CANCEL

(a)  You may cancel this contract by sending notice of your wish to cancel to the center before midnight of the third business day after you sign the contract.  This notice must be hand delivered to the center or sent registered mail to the following address:

________________________________________

Within fifteen days of receipt of this notice, the center shall return any payments made and any note executed by the customer in connection with the contract.  If you use the seller's facilities or services, the center may charge you a reasonable fee based on days of actual use.  

(b)  This right of cancellation shall affect only the financial obligations under the contract and the customer's right to use the center's physical fitness service."

B.  Any contractual provision allowing more liberal rights of cancellation than herein set forth may be substituted for the notice required herein.  

Added by Acts 1982, No. 808, §1; Acts 1993, No. 704, §1.