11 August 2004

Crunch Fitness Guarantee Program
12440 East Imperial Highway
Suite 300
Norwalk CA 90650

To Whom It May Concern,

On July 14, I went to the Crunch Fitness on Grand here in Chicago. I had filled out a card at a Tower Records for a drawing for a free membership and had gotten a call a few days earlier and was told I had won a free membership. First I was given a tour of the gym and then taken to an office, where I drew a game piece. After scratching it off, it appeared that I had won a free one-week membership. I told the Crunch employee that that was fine, that I’d like to take advantage of that but that I could not afford a regular membership. He pressured me to sign up for a membershipand and said that I could always cancel if I didn’t like it, but once again I informed him that I could not afford a full membership.

He then brought in his supervisor, who also pressured me into signing up, and yet again I told him I would be interested in the free week but could not commit to anything else. He then went over with me the various membership plans, and their prices. I stood firm, even as he kept lowering the prices.

Finally, he told me I could have a no-obligation one month membership if I signed up, but that I could cancel anytime within the first 30 days if I didn’t want to stay on. Finally, I agreed to that. So he drew up a membership plan, printed out the contract, and then indicated two places for me to sign.

He did not, I repeat HE DID NOT, tell me ANYTHING about ANY CONDITIONS that would need to be met for this FREE one-month membership. It was only about a week later, after the 3-day grace period, that I noticed the ‘conditions’ indicated on my contract. I was completely misled by both Crunch employees into thinking that I had actually WON A FREE ONE-MONTH MEMBERSHIP. I was NOT told that I needed to visit the club a minimum of 12 times within the first 30 days, and I was NOT told that this was the only way to effectively cancel my membership without paying the full dues. I tried to cancel at the Crunch on Grand but was told that they had no power to do anything and that I would have to write to you.

Legally, I undertand I should have carefully read the entire contract, but I was ASSURED by your employees that it was not necessary, and that I could cancel ANY TIME within the first 30 days with NO financial penalty. This, obviously, was not only misleading but downright false.

It is unethical and I belive reprehensible that you would lull someone into beliving that they have a no-risk 30 day trial period to try out your gym when in fact there are a battery of conditions that must be met. And furthermore, I am not satistied with the quality of your facilities anyway. $70.00 a month for Crunch is outrageous when I can have many of the same benefits at my local club Pulse Fitness for around $35.00.

Enclosed is a copy of the contract which I signed. I want an immediate nullification of my contract, a copy of which I have enclosed. I want you to cease all charges to my credit card on file immediately. If you continue to charge my card, I will get in touch with my credit card company and instruct them to refuse any more charges, and I will be forced to issue a dispute of charges. I really hope that this will not be necessary.

I believe you should tell your employees that when they talk someone into a membership, they should have the decency to point all club obligations and to TELL THE TRUTH about what a 30-day “no-obligation trial membership” REALLY means.

I would appreciate a response from you as soon as possible, preferrably by phone or email. Thank you for your time.

Rob Christopher