California Fitness
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California Fitness (aka California) is a gym chain in Asia, with 22 clubs in five countries (6 cities) in Asia (Singapore, Hong Kong, Taiwan, China, and Malaysia). It is a wholly owned subsidiary of US based 24 Hour Fitness, which has about 3 million members and 385 clubs in 16 states. All fitness equipment is standardized across all 3 (California Fitness, California WoW Xperience, and 24 hour Fitness) chains, as well as some decorations, originating from the US parent. However, one major difference is the Asian chain is a full service club, offering clean towels, hair dryers, etc, and even Japanese style spas, upscale showers, boxing, and other amenities. However, California lacks the basketball and other sport facilities often found in the US, mostly due to culture difference and lack of space. All club pass members of all 3 chains can use each other's clubs for free, for up to 30 days while traveling in any one country, or any in their own country for an unlimited amount of time.
Unlike in the USA, where fitness is considered a "health issue", in Asia a club membership is considered a status symbol. California Fitness has been known to charge over $100 USD per month for some members in Hong Kong and Singapore.
California Fitness, like its parent, often teams up with famous people to create publicity. Among those include using gyms to generate electricity.[1]
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[edit] California WoW Xperience
It's affiliate California Wow Xperience (CEO is a former Cali Fitness executive), is a California Fitness offshoot and a publicly traded company on the Stock Exchange of Thailand, mainly to get around foreign ownership laws, as it's business model, equipment, decoration all come from the California Fitness chain. However, it is considered a "Thai" company as majority ownership is Thai.
[edit] Locations
[edit] California Fitness
- Beijing(1), Shanghai(1), Hong Kong (10) in China.
- Kuala Lumpur(3), Malaysia, and Singapore(4)
- Taipei (5), Taichung(1), Taiwan
[edit] California Wow Xperience
- Bangkok(Ekkamai (coming soon), Espalande, Pinklao, Siam Paragon, Silom, Sukhumvit 23, Sukhumvit 31, Chaeng Watthana, Ratchayothin), Pattaya(1), Chiang Mai(1) in Thailand
- Seoul (Gangnam, Apgujung, Myoungdong) and Daegu in Korea.
- Saigon (Hung Vuong Plaza Dist. 5) in Vietnam
[edit] California Fitness Membership Scams
Even though the club is popular largely from its publicity stunts and marketing campaigns, there have been several reports regarding the members being charged fees beyond their membership periods or after request of cancellations. A largely affected group of Members are from Singapore where the law is quite strict and binding. The business model of this fitness club chain is hugely criticized by the public mainly because they end up paying more than what is ever told by the sales executives. [1]
Similar incidents has been alleged against their parent (24 Hour Fitness) and there are two existing cases against them in the courts of California, United States. One of the cases has been recently settled ruled in favour of the public who had fought for re-imbursement of the additional fees taken by the club by means of unfair business practices. In the settled case the plaintiff had alleged that 'The third cause of action alleges that 24 Hour Fitness’ practices and contract are unfair and unlawful in violation of California Business and Professions Code section 17200, as 24 Hour Fitness allegedly collects dues beyond the term of the membership contract in violation of the Health Studio Services Act (“HSSA”), fails to comply with statutory formatting and disclosure requirements of the HSSA, and sells monthly membership agreements using false and misleading representations and advertisements prohibited by Civil Code section 1812.92 and Business and Professions Code section 17500 et seq. Based on prior rulings by the Court, the “unlawful” portion of this claim only applies to Class Members who entered into their contracts after January 1, 2002.' The was upheld by the court in the verdict. [2].
The other case is in San Francisco Superior Court (Case No. CGC-05-446492).[www.kitchinlegal.com/pickering.php]
California WOW Xperience in Seoul recently went bankrupt. According to the Korean news media, the Korean employees had not been paid for the previous three months salary. Members of the gym are banding together to sue the company for membership fees. Approximately 40,000 people were members of the club.
The club sold memberships right up until the day they closed.
[edit] References
[edit] See also
China, Hong Kong, Malaysia, Singapore, Taiwan
Thailand
Korea
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