Contract Law question, with a health club?

[patwin87]

30yrs ago I bought a health club membership with Bally"s. It started out paying $1200 for 2yrs, then $180 a year for 5yrs. Then in 1987 Bally's had a special offer, so I signed a new contract, when I up graded to the highest membership they had. I paid $250 to up grade, and for the rest of my life I would only have to pay $48 a year. So I paid my $48 a year with Bally's for the last 23yrs. Now I just heard for the first time a few days before Bally's closed, that LA fitness bought out Bally's clubs in Illinois. When I called LA Fitness, they said something about I could go to their club for December. What does that mean. I had a contract with Bally's. I have kept my side of the contract. So my question is, if LA Fitness bought Bally's then would that not mean LA Fitness have to honor the contracts Bally's made? It sounds like after December I will have to make a new contract with LA Fitness. That does not seem fair.

[osmont]

You're right! It isn't fair, but is probably exactly what will happen! Your contract was with Bally's. They went defunct and LA Fitness bought the business. That likely didn't include contracts that Bally's had initiated with their customers, because LA Fitness likely doesn't do business the same way,
( that's likely why Bally's folded! ). Bally's taxes and expenses would have been increasing at the same time they were getting less income from members each year! You don't keep the doors open for long doing business that way! I'll bet they didn't keep the equipment and building in top shape when the customers were paying $48 yearly for memberships either. They couldn't afford to! LA Fitness would have no responsibility to former Bally's members to honor a contract they had nothing to do with, unless Bally's had made that a part of the negotiations with LA Fitness. At least you got many, many years of use out of the facility at a very good price! Who knows, maybe LA Fitness will come out with a similar deal. Just be prepared to see another change of hands if that happens down the road.