📋 Overview

Your gym has received a demand letter alleging misrepresentation in connection with membership sales. These claims typically allege that sales staff made false promises about pricing, amenities, cancellation rights, or other material terms. California's consumer protection laws provide significant remedies for such claims, making proper response critical.

⚠ Verbal Promises Matter

California law can hold gyms liable for verbal misrepresentations, even if the written contract says otherwise.

🕒 30-Day Cure Window

CLRA requires 30-day notice before suit. Use this time to investigate and potentially cure the violation.

💰 Class Action Risk

Sales practice claims affect all members sold to the same way. One claim can become a class action.

Common Misrepresentation Allegations

  • Pricing misrepresentation - Quoted one price, contract shows another; hidden fees not disclosed
  • Amenity promises - Pool, classes, equipment promised but unavailable or substandard
  • Cancellation lies - "Cancel anytime" but contract has penalties or barriers
  • Free trial fraud - Trial terms different than represented, charged without consent
  • Bait and switch - Advertised deal unavailable, pressured into more expensive option
  • Future facility promises - Promised expansions or improvements that never happened

Our Pricing

  • 📄 Demand letter: Flat fee $450
  • ⏱ Extended negotiation: $240/hr
  • 📊 Contingency: 33-40% for strong claims
$450
Attorney Response on Letterhead

Claim investigation, contract review, defense analysis, and professional response.

Schedule Review

🔍 Evaluate the Claim

Investigate whether misrepresentation actually occurred and assess your exposure.

Misrepresentation Analysis

Allegation Type Lower Risk Higher Risk
Pricing discrepancy Contract matches quoted price Contract differs from promotional materials
Amenity promises All promised amenities available Amenities removed/never built
Verbal representations Staff trained on accurate disclosures History of similar complaints
Cancellation terms Clearly disclosed in contract Oral "cancel anytime" contradicts contract
Documentation Member initialed key terms No specific acknowledgments

📄 Sales Documentation

  • ✓Signed membership agreement
  • ✓Sales presentation materials used
  • ✓Promotional offers/coupons presented
  • ✓Any emails/texts with member

📝 Investigation Steps

  • ✓Interview salesperson involved
  • ✓Review any recorded conversations
  • ✓Check for similar complaints
  • ✓Verify amenity availability at signup

⚠ Integration Clauses Don't Block Fraud Claims

Many gym contracts state "this is the entire agreement" and "no verbal promises are enforceable." While these clauses help, California courts generally allow fraud claims based on verbal misrepresentations that induced the contract. You cannot contract away liability for fraudulent statements made to get someone to sign.

🛡 Your Defenses

Defenses to misrepresentation claims focus on what was actually said and what the member knew or should have known.

No Misrepresentation Occurred

If your investigation shows the salesperson did not make the alleged statements, or made accurate statements, document this with the salesperson's account and any witnesses.

When to use: Salesperson denies making false statements, no similar complaints, member may be misremembering.

Written Contract Controlled

If the member acknowledged reading the contract and initialed key provisions that contradict their claim, they cannot claim reliance on different verbal statements.

When to use: Member specifically initialed the provision they now claim was misrepresented.

No Justifiable Reliance

If the member had the contract in writing, had opportunity to read it, and signed anyway, they may not be able to claim reasonable reliance on contradictory verbal statements.

When to use: Contract terms were clear, member had time to review, no pressure to sign immediately.

Statement Was Opinion, Not Fact

Statements of opinion or "puffery" (e.g., "best gym in town," "you'll love it") are not actionable misrepresentations. Only statements of material fact create liability.

When to use: Alleged misrepresentation was a subjective opinion rather than a verifiable fact.

Cured Within CLRA Period

If you can fully cure the violation within 30 days of the CLRA notice (provide the promised amenity, refund the overcharge, etc.), no damages can be recovered under CLRA.

When to use: You can actually provide what was promised or make the member whole.

🚨 Sales Practices That Create Liability

  • Commission-based sales staff incentivized to oversell
  • Scripted pitches that overstate amenities or understate costs
  • Advertising "no contract" when contracts actually exist
  • Promising future amenities with no plans to build them
  • Telling members fees are "refundable" when they're not
  • Rushing members to sign without reading the contract

⚖ Response Options

Choose your response based on whether misrepresentation occurred and your systemic practices.

Cure the Violation

If the allegation has merit, use the CLRA 30-day cure period. Provide what was promised, refund the difference, or rescind the contract. A proper cure prevents CLRA damages.

  • Eliminates CLRA damages
  • Shows good faith
  • Fix systemic issues

Deny with Documentation

If the salesperson didn't misrepresent and you have documentation (initialed contract, no similar complaints), provide detailed response denying the allegations.

  • Preserves rights
  • Creates record
  • May deter lawsuit

Settlement with Release

Offer refund or contract modification in exchange for release of all claims, including class claims. Get a broad release if possible.

  • Ends dispute
  • Prevents class
  • Limits exposure

Sales Practice Audit

Regardless of this claim's outcome, audit your sales practices. If this person was misled, others may have been too. Fix it before more claims arise.

  • Prevents future claims
  • Documents improvement
  • Reduces class risk

📊 Misrepresentation Exposure Analysis

Individual vs. class action exposure

Individual contract rescissionFull refund
CLRA damages (minimum)$1,000
Attorney fees if member prevails$5,000-20,000
If same sales practice affected 100+ members...
Class action damages$100,000+
Class counsel fees$200,000+
FIX THE PRACTICE NOWFuture prevention

💡 The Class Action Trigger

Misrepresentation claims become class actions when the same sales practices affected multiple members. If your salespeople used standard scripts, made similar promises to everyone, or if you've had similar complaints before, one claim can quickly become class litigation. Settling individually while ignoring systemic issues just delays the inevitable.

📝 Sample Responses

Customize these templates based on your investigation findings.

CLRA Cure Response - Providing Remedy
Dear [MEMBER NAME], We received your letter dated [DATE] regarding your membership at [GYM NAME]. We take such concerns seriously and have investigated your allegations. Pursuant to California Civil Code Section 1782, we are curing the matter as follows: [DESCRIBE SPECIFIC CURE - FOR EXAMPLE:] 1. We are refunding the difference between the price you were quoted ($XX/month) and the price charged ($XX/month) for all months of your membership, totaling [$AMOUNT]. 2. Your membership rate will be adjusted to $XX/month going forward, consistent with what you were quoted. 3. We are providing [DESCRIBE ANY ADDITIONAL REMEDY]. This cure is provided within 30 days of your notice as required by Civil Code 1782(b). We believe this fully addresses your concerns. We have also taken steps to prevent similar issues in the future, including [DESCRIBE CORRECTIVE ACTIONS]. Please confirm receipt and acceptance of this cure by signing below and returning this letter. Sincerely, [GYM OWNER/MANAGER NAME] ___________________________ [MEMBER NAME] - Acknowledgment of Cure
Denial - Contract Terms Were Clear
Dear [MEMBER NAME], We have reviewed your demand letter dated [DATE] alleging misrepresentation in connection with your [GYM NAME] membership. We respectfully deny your allegations for the following reasons: 1. CONTRACT TERMS WERE CLEAR: Your membership agreement, which you signed on [DATE], clearly states on page [X]: "[Quote relevant contract language]" 2. YOU ACKNOWLEDGED THE TERMS: You specifically initialed paragraph [X], which states: "[Quote initialed provision]" 3. SALESPERSON ACCOUNT: Our sales representative, [NAME], has provided a written statement that [summarize salesperson's account]. Copy attached. 4. NO PATTERN OF COMPLAINTS: We have no similar complaints regarding our sales practices, suggesting this is an isolated misunderstanding rather than a systemic issue. Based on the clear contract language and your acknowledgment of the terms, we believe you received exactly what you agreed to. We respectfully decline your demand. Your membership has been canceled per your request. If you wish to discuss this further, please contact us. Sincerely, [GYM OWNER/MANAGER NAME]
Settlement Offer with Release
Dear [MEMBER NAME / ATTORNEY], We have reviewed the demand regarding [MEMBER NAME]'s membership at [GYM NAME]. While we do not admit any wrongdoing, we wish to resolve this matter amicably. We propose the following settlement: 1. Full refund of all membership payments: [$AMOUNT] 2. Cancellation of membership with no further obligations 3. [ANY ADDITIONAL COMPENSATION] Total settlement value: [$AMOUNT] This offer is contingent upon execution of the enclosed Release and Settlement Agreement, which includes: - Release of all claims related to the membership, including CLRA, UCL, fraud, and any class or representative claims - Confidentiality regarding the terms of settlement - No admission of liability by [GYM NAME] This offer remains open for 14 days. Please advise if [MEMBER NAME] wishes to proceed with settlement. Sincerely, [GYM OWNER/ATTORNEY NAME]
Response to Attorney - Requesting Specifics
Dear [ATTORNEY NAME], We acknowledge receipt of your letter dated [DATE] on behalf of [MEMBER NAME] alleging misrepresentation. To properly evaluate this claim, we require additional information: 1. SPECIFIC STATEMENTS: Please identify the specific false statements allegedly made, including: - Who made each statement - The date and location of each statement - The exact words used (not paraphrase) - Any witnesses present 2. DOCUMENTATION: Please provide any documents supporting the allegations: - Emails or text messages with sales staff - Notes taken at time of sale - Promotional materials received 3. DAMAGES: Please provide documentation of claimed damages: - All amounts paid to [GYM NAME] - Any consequential damages claimed - Basis for any non-economic damages We take compliance with California consumer protection laws seriously and will thoroughly investigate once we receive the requested information. All rights and defenses are reserved pending our review. Sincerely, [GYM OWNER/ATTORNEY NAME]

🚀 Next Steps

Actions to take after receiving a misrepresentation claim.

Step 1: Investigate

Interview the salesperson, review the contract and sales materials, check for similar complaints. Determine if misrepresentation occurred.

Step 2: Document Everything

Get written statements from staff, preserve all sales materials, pull the member's complete file.

Step 3: Assess Systemic Risk

Were similar statements made to other members? Do your sales practices create liability exposure?

Step 4: Respond Within 30 Days

If CLRA claim, cure within 30 days if possible. Otherwise, respond to preserve your position.

Sales Practice Improvements

  • Script compliance: Ensure sales scripts accurately reflect contract terms
  • Disclosure initials: Have members initial key provisions (price, term, cancellation, fees)
  • Written confirmations: Email membership summary after signup matching contract
  • Training: Train sales staff on accurate representations and legal risks
  • Complaint tracking: Monitor for patterns in member complaints
  • Compensation review: Ensure commission structure doesn't incentivize misrepresentation

Get Professional Defense

Misrepresentation claims carry significant exposure, especially class action risk. Get professional assistance to respond properly.

Schedule Consultation - $450

California Resources

  • CLRA: Civil Code 1750-1784 (Consumer Legal Remedies Act)
  • UCL: Business & Professions Code 17200 (Unfair Competition Law)
  • Health Studio Act: Civil Code 1812.80-1812.98
  • Fraud: Civil Code 1709-1710
📝 Need to write this type of letter? See our Demand Letter Guide →