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Clubs See Gains in 2Q 2010


IHRSA Index Reports Improved Metrics


> In October, IHRSA released its 2010 Second Quarter Index, which, reporting on the financial performance of 24 leading U.S. club companies, representing a total of 502 facilities, showed across-the-board improvements on all key performance indicators. For the April-June, 2010, period, the


figure for total revenue was up by 2.6% over the same quarter in 2009; membership dues were up by 1.5%; nondues revenues rose by 3.6%; and earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) increased by 5.1%. The stats for same-store operations, i.e.,


clubs open for at least two years, were also upbeat: total sales rose 1.8% quarter-to- quarter; dues revenue was 1.4% higher; and nondues revenue was up by 2.5%. “Historically, the industry encounters a


dip in membership growth and traffic in the second quarter, compared to the tradition- ally strong start of the calendar year,” points out Jay Ablondi, IHRSA’s executive vice president of global products. “This year proved to be different for leading club operators, as the economy contin- ued to improve slowly, and consumers showed a willingness to purchase nondues services.” “Increases in nondues


Jay Ablondi


revenue resonate with the consumer price index (CPI) results for April, May, and June,”


elaborates Melissa Rodriguez, IHRSA’s research manager. “Consumers were willing to pay more for nondues services, such as personal training, spa, youth fitness, and other programming, which clubs managed to profit from over the second quarter.” —|


.org For the latest industry data, visit www.ihrsa.org/research 26 Club Business Internat ional | JANUARY 2011 | Legal


Barefoot Exercise ‘Extra!’ By Sandie Pendleton, J.D.


C


hristopher McDougall’s bestselling book, Born to Run, and its extensive dis- cussion regarding the reported benefits of barefoot running have helped ignite a new exercise trend… or craze. Fitness center owners are being asked


if members can exercise barefoot, or are just seeing members working out barefoot in areas of the facility where, until recently, no one wanted to do so. The following are some of the related questions you should think about from a risk-and-liability- management standpoint:


1. Do you have a waiver of liability agreement that covers barefoot exercise?


If you’re going to allow members to exercise barefoot, you should have your current waiver agreements reviewed to determine if they cover injuries caused due to such exercise. You should do this, especially, if your facility is located in one of the many states (e.g., California, New York, and Wisconsin) that are strict when it comes to waivers. Well-drafted waiver agreements address the risks associated with a particular activity, and, if your facility is going to allow barefoot exercise, your waiver should briefly address the risks associated with this type of exercise. While many of those risks may be remote—for example, the potential for exposure to things that can cause serious diseases (such as the MRSA bacteria or, even, the HIV virus), your waiver should at least identify them briefly. If your current waiver doesn’t discuss these risks or encompass barefoot exercise, there are advantages to creating a separate barefoot-specific waiver form.


Sandie Pendleton


2. Do the rules of your facility need to be updated? Many rules for facilities have a provision indicating something like “proper footwear” is required. If you permit barefoot exercising, you want to ensure that your facility’s rules are consistent with your new practice.


3. Do staff procedures at your facility need to be updated? There are many “slip-and-fall” case decisions indicating that the failure of commercial establishments (e.g., a gym or store) to have and follow a procedure regarding inspecting for, and cleaning up, spills on floors constitutes negligence. So, if you’re going to allow barefoot exercise in your facility, you should consider the issue of whether you should modify how frequently your staff is required to inspect, and/or clean, surfaces with which bare feet may come into contact. While you’re at it, you should ensure that you have a system in place to document that the schedule was not only created, but also followed. Before you decide to allow barefoot exercise in your facility, you should also, in


addition to addressing the preceding questions, think about the likelihood-of-injury risks; equipment-warranty issues; insurance issues; financial issues (risks vs. benefits of permitting barefoot exercise); and the legal risks associated with this activity. Facilities that take a reasonable and proactive approach should be able to accommodate the desires of barefoot exercisers, while, at the same time, protecting the facility from undue legal and financial exposure. (A longer version of this article can be found at www.releaselaw.com.) —|


– Sandie Pendleton, J.D., is an owner of the law firm of Kohner, Mann & Kailas, S.C., sandiependleton@kmksc.com.


www. ihrsa.org


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