Company registration, tax compliance and VAT

Trading

Required for corporate wellness contracts and supplier accounts

Municipal business licence and zoning

Premises approval

Confirm zoning permits a fitness facility, and that parking provision meets the condition of use

Consumer Protection Act compliance

Membership contracts

Fixed-term agreements are capped at 24 months and consumers may cancel on 20 business days’ written notice, subject to a reasonable cancellation penalty. Contracts must be drafted on that basis rather than on lock-in

Debit order mandates

Collections

Authenticated mandates; the model provides for 3.8% of collections failing and not being recovered

Qualified coaching staff

Safety and product quality

Recognised exercise science or personal training qualifications, current first aid and CPR certification for every coach on the floor

Public liability and professional indemnity cover

Injury claims

Essential where members train under instruction; medical screening and informed consent at sign-up

Occupational Health and Safety Act compliance

Staff and member safety

Equipment inspection records, emergency procedures, first aid provision and incident reporting

POPIA compliance

Member data

Health screening data, body composition records and progress photographs require consent and secure storage

Company registration, tax compliance and VAT

Month 1

Corporate wellness contracts require a valid tax compliance status before a client will onboard the vendor

Zoning confirmation and parking provision

Before the lease is signed

A fitness facility has specific zoning and parking conditions. Fit-out on non-compliant premises is lost

Municipal business licence

Month 3

Application follows premises identification; inspection typically precedes issue

Coach qualifications and first aid certification

Before opening

Verified rather than assumed. It is an insurability condition and a product-quality condition at once

Public liability and professional indemnity cover

Before the first class

Members train under instruction. An uninsured injury claim is existential for a studio of this size

Membership contracts drafted to the Consumer Protection Act

Before founding member recruitment

Founding members are signed during fit-out, so the contract must be compliant before pre-selling begins

Debit order mandates authenticated

Before first collection

The model provides for 3.8% failing and not being recovered; authentication is what keeps it at that level

POPIA consent framework

Before the first screening

Health screening, body composition and progress photographs all require consent and secure storage

Collection method

Authenticated debit order mandate at sign-up

Authentication is what keeps the failure rate at the modelled level rather than above it

Failure provision

3.8% of collections presented, not recovered

Carried in direct costs. A studio that assumes full collection overstates revenue by roughly R372 000 a year at Year 5

Follow-up protocol

Immediate contact on failure, card as an alternative

A failed collection is often a bank event rather than a cancellation, and it is recoverable if contacted quickly

Cancellation penalty

Reasonable penalty as permitted, not a full-term charge

A full-term charge is not enforceable and generates disputes that damage referral

Annual prepayment option

Offered at a discount

Improves cash and removes collection risk for that member; also a downside response when spend contracts