When a two-year gym membership ends after just one year

A gym-goer's tale of frustration emerged in the digital realm among numerous posts about gyms abruptly shutting down. He recounted signing up for a two-year membership this year and inquired about the next steps. However, online commentators merely advised him to explore cheaper, pay-as-you-go gyms. In recent months, numerous fitness chain-operated gyms have shuttered, leaving customers in a state of uncertainty regarding the fate of their fully paid memberships.

Some have clamored for refunds, while others have been given the choice to transfer their membership to another location, which might be less convenient due to the increased travel distance. It is no secret that gym closures are a common occurrence nowadays, yet these establishments frequently entice customers with long-term contracts, ranging from one to two years, or even longer, in exchange for an initial payment of tens of millions of Vietnamese dong.

The question remains: how are these upfront payments handled and what rights do customers have when their gym goes bankrupt? Furthermore, customers often lack the means to assess a gym's financial stability before committing to a long-term contract. A facility may appear to be thriving and aggressively promoting memberships, but this does not guarantee its continued operation in the future.

In the event of a gym's closure, customers might be eligible for a refund of their unused membership or the transfer of their contract to another location, but they may not recover their money if the business goes bankrupt. This predicament also applies to other businesses that request prepayment with limited safeguards, such as language centers, private courses, and spas.

Why should consumers be encouraged to pay a significant amount upfront when they bear the risk of losing their money if the facility closes? Should there not be more safeguards regarding prepayments to better protect consumers?