Fair Trading (Health and Fitness Industry Code) Regulations 2022

The Fair Trading (Health and Fitness Industry Code) Regulations 2022 (SA) prescribe a mandatory industry code - the Health and Fitness Industry Code 2022 - under Part 3A of the Fair Trading Act 1987. The regulations came into operation on 1 September 2022, repealing the earlier 2007 code and its enabling regulations. The code sets detailed requirements for membership agreements between traders (health and fitness businesses) and consumers for the supply of prescribed goods or services: the use of fitness equipment at the trader’s premises, physical fitness programmes (including pre-exercise evaluations, individualised exercise programmes, supervised fitness programmes, and aerobic fitness programmes) to be undertaken at those premises, and the use of fitness facilities. The code applies only to agreements under which the consumer makes payments beyond a per-visit basis - it excludes casual pay-as-you-go arrangements where payment is required only at the time of each visit. The regulations give the code legal force: a contravention of the code is a contravention of section 28E of the Act (the provision that makes breach of a prescribed industry code unlawful) and is subject to a civil penalty under Part 7 Division 3A of the Act. The expiation fee for an alleged civil penalty contravention is $500, except for a breach of clause 10 (failure to provide a copy of the agreement to the consumer), for which no expiation fee is specified. The Commissioner for Consumer Affairs is responsible for administering the code. A transitional provision preserves the 2007 code for membership agreements entered into before 1 September 2022 until those agreements expire or are terminated in accordance with that earlier code. The code does not apply to sporting clubs not established for pecuniary profit, businesses providing only spa/sauna, solarium, swimming pool or similar facilities, businesses providing only martial arts instruction, medical practitioners in the practice of medicine, or physiotherapists in the practice of physiotherapy. The code mandates that all membership agreements be either a fixed term agreement (maximum 12 months) or a periodic agreement (ongoing, with an optional initial fixed period not exceeding 12 months). It imposes specific disclosure, content, and behavioural obligations on traders, including restrictions on renegotiation of fixed term agreements with more than three months remaining, prohibitions on offering incentives or exerting undue pressure to steer consumers into periodic agreements with an initial fixed period, a ban on accepting periodic payments more than 12 months in advance, requirements to give the consumer a copy of the agreement, and a duty to notify the consumer one month before the end of any initial fixed period.

The code revolves around several key definitions. A membership agreement is any agreement between a trader and a consumer for the supply of prescribed goods or prescribed services, but it expressly excludes agreements where payments are required only at the time of visits - meaning purely casual or session-based arrangements are not caught. A fixed term agreement is a membership agreement that provides for supply for a fixed term and does not continue after that term ends. It cannot exceed 12 months and must state clearly that it ends at the fixed term. A periodic agreement is an ongoing agreement that ends only when terminated by either party; it may include an initial fixed period (a set period at the start, not exceeding 12 months) after which the agreement rolls into a continuing periodic arrangement. The supply period is the period for which the consumer is entitled to receive goods or services under a periodic agreement outside any initial fixed period - and this supply period cannot exceed three months. The code therefore forces a maximum three-month billing cycle for ongoing periodic memberships (clause 6(d)). The initial fixed period in a periodic agreement is a fixed duration, starting when the agreement takes effect, during which the consumer is entitled to receive goods or services. Prescribed goods and prescribed services are defined by reference to clause 3(1): the use of fitness equipment, physical fitness programmes (which include pre-exercise evaluations, individualised exercise programmes, supervised fitness programmes, and aerobic fitness programmes), and the use of fitness facilities, all at premises occupied by the trader. Pre-exercise evaluations encompass screening, testing, and information collection for the purpose of fitness advice. Individualised exercise programmes includes oral or written advice on exercise programmes. Supervised fitness programmes includes advice given during an individualised exercise programme, whether to an individual or group, and includes circuit workouts. Aerobic fitness programme includes aerobic exercise, aquarobics, and cardio-vascular training. The code also defines visit as a visit by a consumer to the trader’s premises for obtaining prescribed goods or services - important for determining whether an agreement is a membership agreement (if payment is only at the time of visits, it is excluded). is defined as a sporting club or organisation not established for pecuniary profit, which is excluded from the code entirely. The concept of is adopted from the Fair Trading Act’s Part 7 Division 3A, meaning the code’s obligations are enforceable by penalty notices and court orders. The of $500 (set by regulation 5(2)) applies to most contraventions but notably not to a breach of clause 10 (failure to provide a copy of the agreement). The code also distinguishes between two agreement types: all membership agreements must be either a fixed term agreement complying with clause 5 or a periodic agreement complying with clause 6. A trader who offers periodic agreements with an initial fixed period must also offer consumers fixed term agreements and must ensure the consumer is informed in writing of the different types and acknowledges that information before entering into any agreement.

The code directly affects traders - health and fitness businesses operating in South Australia - who supply or offer to supply any of the prescribed goods or services from premises they occupy. This includes commercial gyms, fitness studios, personal training businesses that offer ongoing memberships, and any facility providing fitness equipment, supervised programmes, or fitness facilities on a membership basis. The code applies regardless of business size: a large chain with hundreds of members and a single-location independent gym are both covered if they fall within the scope. However, the code does not apply to several categories of business: sporting clubs (not for pecuniary profit), businesses that provide only spa/sauna, solarium, swimming pool or similar facilities, businesses that provide only martial arts instruction, medical practitioners in the practice of medicine, and physiotherapists in the practice of physiotherapy. This means a business that offers both fitness equipment and martial arts classes may still be covered if the fitness equipment use or fitness programmes are part of the membership - only a business providing “only instruction in martial arts” (clause 3(2)(c)) is excluded. Similarly, a business that has a pool but also offers fitness programmes will be caught. The code also affects consumers who enter into membership agreements with these traders. Consumers gain rights to clearer contract terms, caps on upfront payments, advance notice of price increases, easier termination of periodic agreements without financial penalty (except during any initial fixed period), and refunds of advance payments on termination. Consumers also bear obligations: they must cancel direct debit authorisations at the end of a fixed term or on termination, and the agreement must warn them to do so. The code’s transitional provision (Schedule 2) means that traders with existing memberships entered into before 1 September 2022 must continue to apply the 2007 Health and Fitness Industry Code to those agreements until they expire or are terminated. This creates a dual-compliance burden: the new code applies to agreements from 1 September 2022 onward, but the old code still governs pre-existing contracts. This affects both traders (who must maintain two sets of compliance systems) and consumers (who may have different rights under the old code). The Commissioner for Consumer Affairs is responsible for administration, meaning complaints and enforcement actions will be handled by the state regulator. The code also affects legal practitioners and compliance professionals who advise fitness businesses on contract drafting, marketing, and termination procedures. The $500 expiation fee for most contraventions creates a relatively low-cost penalty that may not be a strong deterrent for larger businesses, but repeated breaches could lead to court-ordered civil penalties that are higher under the Fair Trading Act.

The code imposes a set of specific duties on traders and corresponding rights for consumers. Duty to have a compliant agreement: a trader must not be party to a membership agreement unless it complies with the code (clause 4(1)). The agreement must be in writing, signed by the consumer, and set out the trader’s full name and address and particulars of the goods or services (clause 4(2)). The agreement must be either a fixed term agreement (max 12 months) or a periodic agreement (ongoing) with an optional initial fixed period not exceeding 12 months (clause 4(3)-(4)). Duty to offer both types: if a trader offers periodic agreements with an initial fixed period, it must also offer fixed term agreements and must, before entering into any agreement, inform the consumer in writing of the different types and obtain the consumer’s written acknowledgment of that information (clause 4(5)). This prevents traders from steering consumers into longer lock-in periodic deals without presenting the alternative of a straightforward fixed term. Fixed term agreement requirements: the agreement must prominently state it is for a fixed term and will not continue after the term, cannot exceed 12 months, must specify the total amount payable including any joining fee, must specify consequences of non-payment if by instalment, must specify early termination refund or release terms (including action required and amount or calculation basis), and must clearly warn the consumer to cancel any direct debit at the end of the term or on earlier termination (clause 5). Periodic agreement requirements: the agreement must prominently state it is ongoing; if it has an initial fixed period, it must specify start and end dates, total amount payable for that period, consequences of non-payment by instalment, early termination rights (action, amount, calculation, and direct debit warning for termination before the end of the initial fixed period). For the ongoing period (the supply period), the agreement must provide for periodic payments, specify the supply period (max 3 months), clearly identify it as the supply period, specify the amount of each periodic payment, specify any joining fee, set out the method and at least 2 weeks’ notice for any increase in future periodic payments, and include termination provisions (clause 6). Termination rights in periodic agreements: the agreement must either allow termination by written notice effective for the supply period commencing 2 weeks or later after notice, or allow termination with earlier effect (in which case it must specify whether the consumer gets a refund for the remainder of the current supply period or for a supply period beginning less than 2 weeks after notice). No financial penalty may be imposed for termination (except during an initial fixed period). On termination, the consumer is entitled to a refund of any amount paid in advance for future supply periods. The agreement must warn the consumer to cancel direct debit on termination (clause 6(i)-(k)). : a trader cannot extend or offer to extend a fixed term agreement, or offer further services after the term, unless the fixed term has less than 3 months remaining (clause 7). This prevents traders from locking in consumers for longer than 12 months by rolling over a fixed term too early. : a trader may offer incentives to enter any membership agreement but must not offer any incentive or exert undue pressure on a consumer to enter into a periodic agreement with an initial fixed period rather than a fixed term agreement (clause 8). This aims to preserve consumer choice and prevent aggressive upselling of longer commitments. : a trader must not accept payment for a supply period more than 12 months in advance (clause 9). : as soon as practicable after the consumer signs the agreement, the trader must give the consumer a copy (clause 10). : one month before the initial fixed period ends in a periodic agreement, the trader must give the consumer written notice of the expiry and the consumer’s rights to cancel (clause 11). Consumers have the right to rely on these duties and to seek enforcement through the Fair Trading Act’s civil penalty regime, including complaints to the Commissioner for Consumer Affairs.

The enforcement mechanism is set out in regulation 5. A contravention of the code is deemed a contravention of section 28E of the Fair Trading Act 1987, which prohibits a person from contravening an industry code prescribed under Part 3A. That contravention is subject to a civil penalty under Part 7 Division 3A of the Act. The regulations do not specify the maximum civil penalty amount - that would be found in the Fair Trading Act itself. However, regulation 5(2) provides an expiation fee of $500 for an alleged civil penalty contravention of the code, except for an alleged contravention of clause 10 (failure to give a copy of the agreement to the consumer). This means that for most breaches, a regulator can issue an expiation notice (like an on-the-spot fine) for $500 rather than pursuing a court action. For a clause 10 breach, no expiation fee is specified, so any enforcement would need to go through a civil penalty proceeding in court, which could result in a higher penalty. The $500 expiation fee is relatively low. For a business with thousands of members, a single $500 fine for, say, failing to provide a proper termination clause in a periodic agreement may not be a strong deterrent. However, the code contains multiple obligations; a trader could face multiple alleged contraventions for each membership agreement. The Commissioner for Consumer Affairs is responsible for administration (regulation 4(2)), which includes investigation, issuing expiation notices, and potentially seeking court orders for civil penalties. The Fair Trading Act also gives the court power to grant injunctions, damages, and other remedies for breaches of industry codes. Because the code is prescribed under the Act, a consumer may also be able to rely on the code as a source of rights in private litigation, though the regulation focuses on the civil penalty regime. The code does not create criminal offences; all enforcement is civil. This means a lower standard of proof (balance of probabilities) and no criminal record for the business or its directors. However, civil penalties can be substantial - in other Australian jurisdictions, penalties for similar industry code breaches can reach hundreds of thousands of dollars per contravention. The absence of an expiation fee for clause 10 may mean that breach is considered more serious or more difficult to assess via a fixed penalty. Notably, the code does not specify any penalty for a trader who fails to comply with the transitional provisions (continuing to apply the 2007 code to pre-2022 agreements) - such a failure would likely be a breach of the Fair Trading Act more generally if it results in conduct that misleads or causes harm, but it is not directly a code contravention. The $500 expiation fee is fixed; it is not indexed. Over time, this may become even less significant relative to inflation. Compliance costs for businesses to redesign contracts, train staff, and maintain records are likely to far exceed the penalty amount for most traders, meaning the penalty alone may not drive compliance; the risk of adverse publicity and customer complaints may be more influential.

The code is prescribed under Part 3A of the Fair Trading Act 1987 (SA). That Act also applies the Australian Consumer Law (ACL) as a schedule to the Fair Trading Act. The code therefore operates alongside the ACL’s general protections, such as the prohibition on misleading or deceptive conduct (s 18), unconscionable conduct (ss 20-22), and unfair contract terms (ss 23-28). A term in a membership agreement that does not comply with the code may also be an unfair contract term under the ACL if it causes a significant imbalance in the parties’ rights and is not reasonably necessary to protect the trader’s legitimate interests. For example, a termination clause that imposes a penalty (which the code prohibits except during an initial fixed period) could be both a code breach and an unfair term. The code also intersects with the Small Business Commissioner Act 2011 (SA). Regulation 4(2) includes a note that under clause 37(2) of that Act, the code is taken to have been prescribed as an industry code. This means the Small Business Commissioner may have a role in administering or advising on the code. The code does not override the ACL or other state legislation; it adds additional specific requirements for the health and fitness industry. There may be overlap with the ePayments Code (regulated by ASIC) if the trader offers direct debit facilities. The ePayments Code sets rules about authorisation, cancellation, and error handling for direct debits. The code’s requirement that the agreement warn the consumer to cancel direct debit authorisation at the end of a fixed term or on termination (clauses 5(g), 6(b)(iv)(C), 6(k)) does not replace the consumer’s rights under the ePayments Code to cancel direct debit instructions directly with their financial institution. The code also interacts with the state’s Sale of Goods Act and Contracts Review Act (if applicable in SA), though those are general in nature. For pre-2022 agreements, the transitional provision (Schedule 2) means the 2007 code continues to apply until those agreements expire or terminate. That earlier code may have different requirements (not reprinted here) and may interact differently with the ACL. Traders must be careful not to inadvertently apply the wrong code to a consumer. The code does not apply to sporting clubs, but those clubs may still be subject to the ACL and other laws. The code’s exclusion of per-visit payment arrangements means those casual agreements are governed only by general contract law and the ACL, not the specific code. This creates an incentive for traders to structure offerings as pay-per-visit to avoid the code’s compliance burden, but such arrangements may still be subject to the ACL’s unfair contract terms provisions. The code’s requirement that a periodic agreement cannot have a supply period exceeding 3 months (clause 6(d)) may conflict with a trader’s preferred billing cycle (e.g., annual membership paid monthly). The trader must break the billing into periods of 3 months or less. This interacts with state and federal direct debit rules; a direct debit authority that is open-ended could be stopped by the consumer but the trader must ensure the billing cycle complies with the 3-month cap. The also applies to collection of health information (pre-exercise evaluations), and the code’s reference to ‘pre-exercise evaluations’ could involve collection of sensitive information. The code does not itself impose privacy obligations but the ACL and Privacy Act will apply.

The regulations were made as the Fair Trading (Health and Fitness Industry Code) Regulations 2022, registered as South Australian Statutory Instrument 2022 No. 66, published in the Government Gazette on 18 August 2022, and came into operation on 1 September 2022. They repealed the Fair Trading (Health and Fitness Industry Code) Regulations 2007 (Schedule 3). The legislative history provided in the text lists only the principal regulations; there are no amendments noted. The transitional provision (Schedule 2, clause 1) preserves the application of the 2007 code to membership agreements entered into before 1 September 2022 until those agreements expire or are terminated in accordance with that earlier code. This means that, for a period, two codes operate concurrently: the 2007 code for pre-commencement contracts (until they end) and the 2022 code for all new agreements from 1 September 2022. The 2007 regulations are repealed, but the old code continues to have effect for those specific contracts by virtue of the transitional clause. This is not an amendment to the 2022 regulations themselves, but a transitional saving. The regulations have not been amended as at the date of the legislative history provided. The code itself is set out in Schedule 1 and has not been modified since commencement. The short title and commencement provisions are standard. There is no sunsetting date mentioned, so the regulations will continue until revoked or replaced. Practitioners should regularly check the South Australian legislation website for any future amendments. Given that industry practices and consumer protection laws evolve, it is possible that further amendments may be made to adjust the code, for example, to increase the $500 expiation fee or to extend the code’s coverage to new types of fitness services. The note at regulation 4(2) referencing the Small Business Commissioner Act 2011 indicates a cross-reference that was likely inserted during drafting to ensure consistency with that Act; no amendment history is provided for that note.

The source text does not cite any cases or litigation history. The 2007 predecessor code may have been the subject of enforcement actions or private litigation, but the 2022 regulations are too recent to have generated a significant body of case law. The code’s obligations are relatively prescriptive, so disputes are likely to arise from interpretation of specific clauses, such as what constitutes “undue pressure” (clause 8), “as soon as practicable” (clause 10), or whether a given agreement is a periodic or fixed term agreement. Given the civil penalty regime, any litigation would be initiated by the Commissioner for Consumer Affairs or by consumers seeking damages or injunctive relief under the Fair Trading Act. The $500 expiation fee for most breaches may encourage early settlement rather than court action. The absence of litigation history in the provided material means that the code’s provisions have not yet been judicially tested. Practitioners should be aware that the code may be interpreted in light of general contract law and the Australian Consumer Law. For example, the prohibition on financial penalty for termination (clause 6(i)) may be read together with the ACL’s prohibition on penalties in consumer contracts. Courts may look to decisions on similar industry codes in other states or territories, such as the NSW Fitness Industry Code (if any) or the former national voluntary codes. The transitional provision preserving the 2007 code for pre-2022 agreements may generate disputes about which code applies to a particular agreement, especially if the agreement was modified after 1 September 2022. The code does not address whether a variation of a pre-2022 agreement after that date brings it under the new code; arguably, a material variation could be considered a new agreement subject to the 2022 code. No case law addresses this point. The expiation fee is low relative to the cost of litigation, so most compliance issues will likely be resolved by regulatory guidance or negotiated outcomes rather than court judgments. The code’s requirement that the consumer acknowledge being informed of different agreement types (clause 4(5)(b)(ii)) may become a battleground over whether the acknowledgment was properly obtained, particularly if there is a dispute about whether the consumer was given adequate information.

Several provisions in the code create traps for the unwary. Failure to offer fixed term agreements: if a trader offers periodic agreements with an initial fixed period, they must also offer fixed term agreements (clause 4(5)). Many gyms may only offer ongoing direct debit memberships with a minimum term; they now must have a pure fixed term product (no automatic rollover) and must inform consumers of both types and get a written acknowledgment. Not doing so is a breach, even if no consumer complains. Renegotiation during the last 3 months: clause 7 prohibits extending or offering to extend a fixed term agreement if more than 3 months remain. This means a trader cannot approach a member 6 months into a 12-month term to lock in another 12 months; they must wait until the term has less than 3 months left. A premature renewal offer is a contravention. Undue pressure and incentives: clause 8 prohibits offering any incentive or exerting undue pressure to steer a consumer into a periodic agreement with an initial fixed period rather than a fixed term. Offering a free month for signing a 12-month lock-in might be an incentive if it is not also offered for a fixed term. The phrase “undue pressure” is subjective, and sales commissions based on signing consumers into longer commitments could be scrutinised. Advance payment cap: clause 9 forbids accepting payment for a supply period more than 12 months in advance. For a periodic agreement, this means a trader cannot take an annual payment upfront if the supply period (billing cycle) exceeds 12 months? Actually, it says “payment for a supply period more than 12 months in advance” - if the supply period is 12 months, payment for that whole period at once would be 12 months in advance, which might be permissible (it equals 12 months, not more). But if a trader tries to charge for 18 months of supply periods in advance, that would breach clause 9. The supply period itself cannot exceed 3 months, so a trader could realistically collect up to 4 payments in advance (4 x 3 months = 12 months) - but not more. Supply period cap: clause 6(d) says the supply period must not exceed 3 months. This prevents quarterly or longer billing cycles. Monthly billing is compliant, but a trader who bills every 6 months for ongoing membership would breach the code unless they structure payments differently. Termination provisions: many existing gym contracts impose a notice period longer than 2 weeks or a termination fee. Clause 6(h)-(i) requires that the consumer can terminate with written notice effective from the next supply period beginning 2 weeks or later after notice, or with earlier effect. No financial penalty is allowed for termination (except during an initial fixed period). A contract that says “30 days’ notice required to cancel” would breach the code if it prevents termination with 2 weeks’ effect. Also, the code does not allow any administrative fee for termination outside the initial fixed period. : each agreement must include a “clear warning” to cancel direct debit at the end of the term or on termination. If the agreement lacks this warning, it is non-compliant. : clause 10 says the trader must provide a copy “as soon as practicable” after the consumer signs. If a contract is signed online, the trader must send the copy promptly. Failure breaches the code and carries no specified expiation fee, meaning any enforcement goes directly to court penalties. : clause 11 requires written notice 1 month before the initial fixed period ends, setting out the consumer’s rights to cancel. If a consumer misses this notice and their periodic payments continue, the trader could be liable for continuing the agreement without proper disclosure. : the 2007 code continues to apply to agreements entered into before 1 September 2022. A trader who thinks the new code applies to all agreements and changes terms for a pre-2022 member may breach the old code. Conversely, a trader who uses the old code for a new agreement after 1 September 2022 breaches the new code. : a breach of clause 10 (failure to give copy) has no set expiation fee, meaning the regulator cannot issue an on-the-spot fine; it must go to court. This may lead to more severe penalties or costly litigation. : casual pay-per-visit arrangements are excluded, but if a consumer pays for a block of 10 visits upfront, that might still be a membership agreement if payments are not “required to be made only at the time of visits.” A 10-visit pass paid upfront is not a per-visit payment structure; it could be caught. Traders relying on the exclusion must ensure that no advance payment is taken and that payment is required only at each visit.

To comply with the code, a trader in the health and fitness industry in South Australia should take the following steps. Step 1: Determine scope. Confirm whether the business supplies any of the listed goods or services from premises it occupies. If the business is a sporting club not for profit, or provides only spa/sauna, martial arts instruction, or is a medical or physiotherapy practice, it is exempt. Otherwise, the code applies. Step 2: Review existing agreements. For any agreement entered into before 1 September 2022, the 2007 code still applies until the agreement expires or is terminated. Those agreements should not be altered to comply with the 2022 code unless the consumer agrees to a new agreement or the old agreement ends. Step 3: Decide on agreement types. The trader must offer at least one type of compliant agreement. If they want to offer periodic agreements with an initial fixed period, they must also offer fixed term agreements. It may be simpler to offer only fixed term agreements (max 12 months) or only periodic agreements without an initial fixed period (i.e., no lock-in). But if the trader wants an initial minimum term, they must also have a pure fixed term option. Step 4: Draft compliant agreements. For fixed term agreements: ensure they state prominently that it is for a fixed term and will not continue, set a term not exceeding 12 months, specify total payable (including joining fee), consequences of non-payment, early termination rights (amount or calculation), and a clear warning to cancel direct debit. For periodic agreements: prominently state it is ongoing; if an initial fixed period, specify dates, total amount, non-payment consequences, early termination rights and direct debit warning for that period; for the supply period: periodic payments, supply period not exceeding 3 months, amount of each payment, any joining fee, method and at least 2 weeks’ notice for price increases, termination provisions (2 weeks or earlier, no penalty except during initial fixed period, refund of advance payments), and a warning to cancel direct debit on termination. Step 5: Inform and obtain acknowledgment. If offering periodic agreements with an initial fixed period, before entering into any agreement the trader must give the consumer written information about the different types of agreements available and obtain the consumer’s written acknowledgment that they have been informed. Keep a record. Step 6: Train staff. Ensure sales staff do not offer incentives or exert undue pressure to steer consumers into a periodic agreement with an initial fixed period over a fixed term. Sales scripts and commission structures should not reward pushing longer lock-ins. . Do not accept payment for a supply period more than 12 months in advance. Do not renegotiate or offer extension of a fixed term agreement when more than 3 months remain. . As soon as practicable after the consumer signs, provide a copy of the agreement. One month before the end of any initial fixed period in a periodic agreement, send the consumer written notice of expiry and their cancellation rights. . Ensure the warnings in the agreement are clear. When a consumer terminates, the trader should process any refund due for advance payments promptly. The consumer must cancel the direct debit, but the trader should also facilitate that if possible. . Keep copies of all signed agreements, written disclosures and acknowledgments, notices sent, and records of terminations and refunds. This will demonstrate compliance if the regulator investigates. . The code may be amended; stay updated via the South Australian legislation website. Consider professional advice to ensure contracts are watertight and compliant with both the code and the Australian Consumer Law. . The code imposes significant upfront costs: redrafting contracts, updating billing systems, training staff, sending notices. These costs may outweigh the $500 expiation fee for minor breaches but are necessary to avoid court penalties and reputational damage. For smaller independent gyms, the burden may be heavier relative to revenue; consider consulting an industry association for template documents.