STATE OF FLORIDA DEPARTMENT OF LEGAL AFFAIRS OFFICE OF THE ATTORNEY GENERAL IN THE MATTER OF: YOU FIT, LLC. Attorney General Case No. 13-3-1154 Pursuant to the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes (2015), the STATE OF FLORIDA, OFFICE OF THE ATTORNEY GENERAL, (?the Attorney General?) investigated certain business practices by YOU FIT, LLC a Florida limited liability company having its principal place of business located at 1350 NeWport Center Drive, Suite 200, Deer?eld Beach, Florida 33442, and having Mr. Rick Berks as its manager at the same address. For the purpose of resolving the Matters Investigated, YOU FIT enters into this Assurance of Voluntary Compliance By signing this AVC, YOU FIT does not admit any of the alleged facts or any violation of any law, regulation or rule, YOU FIT expressly reserves all rights and defenses available to it, and YOU FIT enters into this AVC solely for the purpose of resolving the investigation. The Deputy Attorney General accepts this AVC in termination of the investigation pursuant to Section Florida Statutes (2015). 1. YOU FIT is engaged in the ownership and operation of health clubs and facilities in Florida and several other states. 2. YOU FIT sells health club memberships to consumers through its website, direct marketing, sales presentations at its facilities, and other means and methods of promotion. 3. YOU FIT offers ?month-to-month? memberships costing $10.00 per month that are good for use at a single YOU FIT location or $19.99 per month that are good for use at any 1 0048 1424-1 YOU FIT location. These memberships are automatically renewed until they are cancelled by the member. 4. The Attorney General received complaints about YOU business practices from consumers who contacted the Attorney General?s Of?ce of Citizen Services, the Better Business Bureau, and other consumer protection agencies. 5. Consumers complained that they allegedly failed to receive adequate notice of YOU cancellation policies with respect to its Membership Agreement and its Personal Trainer Agreement Agreement?), that YOU FIT allegedly imposed charges and instituted collection efforts after receiving notices of cancellation, and that YOU FIT allegedly misrepresented its month-to-month memberships as being ?without commitment or obligation.? 6. ?Clear and conspicuous? or ?clearly and conspicuously? means readily noticeable and readily understandable. When evaluating whether a statement is ?clear and conspicuous,? the following factors shall be considered and, if present, indicate that the statement is clear and conspicuous: A. Whether the statement is suf?ciently prominent as to be readily noticeable to and readily understandable by the persons to whom it is directed. B. Whether the statement is expressed on its own instead of in the midst of other information. C. Whether the statement is expressed in plain and simple English. D. Whether the statement is in close proximity to any statement(s) that it purports to clarify, or to which it is logically related. E. Whether the statement is consistent with other statement(s) and is not 0048 14 24-1 confusing. F. Whether the statement is presented without distractions that compete for the attention of the consumer, including but not limited to inconsistent information. G. Whether the statement is presented prior to the consumer incurring any ?nancial obligation. 7. ?Matters Investigated? shall mean those matters set forth in Paragraphs 1 through 6 ofthis AVC. IT IS HEREBY AGREED BY THE PARTIES: CQMELIANQE 8. YOU FIT shall comply with the Florida Deceptive and Unfair Trade Practices Act, Chapter 501, Part II, Florida Statutes (2015). 9. YOU FIT will clearly, conspicuously, accurately, and completely disclose on its website, all conditions, procedures, requirements, fees, notices, policies and forms necessary for consumers to cancel their YOU FIT membership pursuant to the YOU FIT written cancellation policy. Prior to signing a YOU FIT Membership Agreement or PT Agreement, the consumer shall be provided with a copy of the Membership Agreement or PT Agreement and written notice of all conditions, procedures, requirements, fees, notices, policies and forms necessary for consumers to properly cancel their YOU FIT membership. (The forms themselves or other administrative documents that may change from time to time need not be provided at that time, but shall be available at all YOU FIT health clubs during all business hours of each such health club.) Customers may elect, if they so choose, to receive a copy of the written Membership Agreement or PT Agreement via email within one business day after signing such agreement. 004314244 YOU FIT also agrees to establish policies and to train its employees on such policies to fully disclose its cancellation procedures to prospective members before those individuals are asked to sign a Membership Agreement or PT Agreement. 10. YOU FIT will not advertise, promote or market month?to-month memberships as being ?no commitment? or ?no obligation? unless such memberships are truly without any obligation or commitment other than the payment of the current month?s membership fee. In any advertisement or promotional material in which YOU FIT employs the terms ?no obligation? or ?no commitment? or any words of similar meaning or effect, YOU FIT will include an asterisk, footnote, hyperlink, or similar device to direct the viewer or reader to a complete description of all terms, conditions, commitments or limitations imposed by YOU FIT upon such memberships. YOU FIT agrees that all memberships shall comply with the Florida Statutes 501.0170) and (2), as follows: Each contract for the sale of future health studio services which is paid for in advance or which the buyer agrees to pay for in future installment payments shall be in writing and shall contain, contractual provisions to the contrary notwithstanding, in immediate proximity to the Space reserved in the contract for the signature of the buyer, and in at least 10-point boldfaced type, language substantially equivalent to the following: A provision for the penalty-free cancellation of the contract within 3 days, exclusive of holidays and weekends, of its making, upon the mailing or delivery of written notice to the health studio, and refund upon such notice of all moneys paid under the contract, except that the health studio may retain an amount computed by dividing the number of complete days in the contract term or, if appropriate, the number of occasions health studio services are to be rendered into the total contract price and multiplying the result by the number of complete days that have passed since the making of the 0048 1424-1 contract or, if appropriate, by the number of occasions that health studio services have been rendered. A refund shall be issued within 30 days after receipt of the notice of cancellation made Within the 3?day provision and A provision for the cancellation and refund of the contract if the contracting business location of the health studio goes out of business, or moves it facilities more than 5 driving miles from the business location designated in the contract and fails to provide, within 30 days, a facility of equal quality located within 5 driving miles of the business location designated in the contract at no additional charge to the buyer. 11. YOU FIT will designate a general manager as the compliance representative at each location and at its corporate headquarters for the purpose of receiving and responding to complaints and membership cancellation requests from members, and will provide the contact information of such representatives to each new member at the time that such member signs a Membership Agreement and at any other time upon the request of the member. YOU FIT will also, at the time that any member signs a Membership Agreement or PT Agreement, provide the member with the address at its corporate headquarters to which complaints from members or written requests for membership cancellation may be sent by the member. 12. YOU FIT agrees that, after the date of this AVC, it will cancel the membership of any member who follows the cancellation policy as written in the YOU FIT Membership Agreement or PT Agreement and requests in writing that his or her Membership Agreement or PT Agreement be cancelled, and delivers such written request either to the YOU FIT club where such member joined YOU FIT or to the corporate headquarters of YOU FIT. For a two-year period following the date of this AVC, YOU FIT will respond to all written requests for membership cancellation and complaints relating to cancellation. The Of?ce of the Attorney General agrees to forward for a period of two (2) years following the date of 004314244 execution of this AVC all new complaints from YOU FIT members concerning cancellation of a YOU FIT Membership Agreement or PT Agreement. YOU FIT agrees to respond to all complaints forwarded to YOU FIT by the Of?ce of the Attorney General within thirty (30) days of receiving such complaints, and to provide the Of?ce of the Attorney General with a copy of each response at the same time that the response is provided to the YOU FIT member. YOU FIT further agrees that it will maintain cancellation policies substantially in the form used in the most recent drafts of the Membership Agreements and PT Agreements, which are as follows: [From the Membership Agreement] HOW TO CANCEL YOUR YOUFIT MEMBERSHIP: Buyer may terminate this agreement by completion of a cancellation request form at your YouFit location or with a written letter delivered via certified mail. All policies regarding cancellation and appropriate forms are available on YouFit?s website, to which Buyer?s attention has been called. Buyer owes all fees until proper cancellation procedure has been completed. All cancellation requests will take up to ten (10) days to process and discontinue billing. You will receive full access to all purchased periods. If you wish to cancel your month to month membership you will be responsible for payment of a ten dollar processing fee at the time of your cancellation request. This does not apply to PIF memberships. Your YouFit Membership Agreement must be current and active in order to utilize the YouCoach Personal Trainer Agreement (or other agreements); but, cancellation of the Membership Agreement does not automatically cancel the YouCoach Personal Trainer Agreement (or other agreements), and cancellation of the YouCoach Personal Trainer Agreement (or other agreements) does not automatically cancel the Membership Agreement. Each agreement must be cancelled separately and according to its respective terms. Member Initials: [From the PT Agreement] H0 TO CA CELYOU PERS REE Initial:? Buyer may terminate this agreement with YouFit Health Clubs, LLC by completion of a cancellation request form at your YouFit location or with a written letter delivered via certified mail. It will take up to thirty (30) business days from receipt to process your request. Buyer is responsible for all payments due during the thirty (30) day cancellation period. Purchased sessions will be available for use per the time frame explained on the back of this agreement. A minimum of three (3) installments must be paid prior to cancellation. All policies regarding cancellation and apprOpriate forms are available on YouFit?s website. Buyer is responsible for all fees incurred until membership is cancelled per the terms of this agreement. Your YouFit Membership Agreement must be current and active in order to utilize this YouCoach Personal Trainer Agreement; but, cancellation of the Membership Agreement does not automatically cancel this YouCoach Personal Trainer Agreement, and cancellation of this YouCoach Personal Trainer Agreement does not automatically cancel the Membership Agreement. Each agreement must be cancelled separately and according to their respective terms. Notwithstanding the above, YOU FIT may elect to utilize a cancellation policy that allows cancellation in person at the customer?s club, as currently provided for, or through contacting the customer?s YOU FIT club location by telephone for detailed instructions on how to cancel help in downloading and executing a form from YOU website, to be delivered to YOU FIT 6 004314244 by certi?ed mail). YOU FIT may also elect to amend their cancellation policies in a manner that in YOU good faith judgment, make it easier for a member to cancel their Membership Agreement or Personal Training Agreement. Any such changes shall be enacted consistent with the provisions of this Assurance of Voluntary Compliance. In the event that YOU FIT elects to make such changes to its cancellation policy, it shall notify in writing and provide a copy of any amended policies to the Of?ce of the Attorney General within thirty (30) days after implementation of any such amended cancellation policies. 13. If YOU FIT intends to convert memberships in any other health club or to YOU FIT memberships as a result of any corporate transaction with another health club or gym, You Fit will follow the procedures imposed by and will be in compliance with Florida Statutes ?501.018. 14. YOU FIT will not refer any member?s account to any collection agency unless YOU FIT ?rst provides the member with a written notice that: a) informs the member that the account is being referred to a collection agency; and b) discloses to the member the exact balance that YOU FIT claims that it is owed by the member and how that balance was calculated. 15. For members who join YOU FIT after the date of this AVC, after receiving a Written notice to cancel any member?s month-to?month membership that is consistent with YOU written cancellation policy, YOU FIT will cease assessing or attempting to collect any additional charges or fees from any such member except for membership fees accrued but unpaid up until the date of YOU receipt of such written cancellation notice and any cancellation fee disclosed within any such member?s written Membership Agreement or PT Agreement. With respect to month-to-month members who joined YOU FIT between January 1, 2011 and the date of this AVC, YOU FIT will cease assessing or attempting to collect any charges or fees 004814244 from such member after the member?s cancellation except for unpaid membership fees that had accrued prior to the cancellation date. YOU FIT will contact any collection agencies to whom it has referred any such balances for collection, request that any efforts to collect such balances from the consumers on YOU behalf immediately cease, and delete any tradelines reported to a credit reporting agency for purposes of collecting an account that is delinquent as a result of such balances. 16. YOU FIT agrees that it has already voluntarily refunded or will within ninety (90) days of the execution of this AVC refund to those members identi?ed on the lists provided by the Of?ce of the Attorney General, all cancellation fees and membership fees paid to YOU FIT by members after the date that said members cancelled their YOU FIT Membership Agreements. YOU FIT agrees to provide the Of?ce of the Attorney General with a list of all members to whom refunds have been issued within one hundred twenty (120) days after the execution of this AVC. 17. YOU FIT shall pay the sum of Sixty Five Thousand Dollars by check made out to the Attorney General?s Revolving Trust Account for the Attorney General?s attorneys? fees and costs of enforcement in this matter. Such payment shall be send to Gerald Johnson, Business Manager, Consumer Protection Division, Of?ce of the Attorney General, Capitol, Tallahassee, Florida, 32399?1050 within thirty (30) days of the execution of this AVC. WSW 18. It is further agreed that any failure to comply with the terms of this AVC is by statute prima facie evidence of a violation of Chapter 501, Part 11, Florida Statutes (2015), and shall subject YOU FIT to any and all civil penalties and sanctions authorized by law, including 004814244 attorney?s fees and costs, as may be determined by a court of law. 19. In the implementation of the provisions of this Assurance of Voluntary Compliance, to the extent that any of its provisions con?ict with the law or regulations of any other State in which YOU FIT operates a health club, the law of the State in which the act, practice, Membership Agreement, or Personal Training Agreement was created or implemented shall control and supersede any con?icting provisions, terms, conditions, or obligations contained within this Assurance of Voluntary Compliance with respect to Membership Agreements or Personal Training Agreements entered into in those states. Nothing in this Assurance of Voluntary Compliance is intended to override or con?ict with any other State?s laws or regulations regulating the operation of health or ?tness studios in that State. Any Membership Agreement or Personal Training Agreement originally entered into in the State of Florida shall be subject to the provisions of this Assurance of Voluntary Compliance, regardless of whether the member has relocated to another State during the time this Assurance of Voluntary Compliance is in effect. 20. YOU FIT shall not represent directly or indirectly that the Attorney General has approved any of its business practices. 21. Nothing in this AVC limits the Attorney General?s ability to investigate and take action regarding any business practices by YOU FIT apart from the Matters Investigated. 22. This AVC shall become effective upon its execution by YOU FIT and the Deputy Attorney General. 23. This AVC is not intended for use by any third party in any other proceeding and is not intended, and should not be construed, as an admission of liability by YOU FIT. 24. This AVC shall bind YOU FIT and its of?cers, directors, employees, 0048 1424-1 representatives, agents, managers and any persons operating under the control or direction of any such person, and shall likewise be binding upon any other business entity run, managed, operated by, owned by, or under common ownership with YOU FIT. 25. YOU FIT shall not change any way of doing business or corporate form or organizational identity so as to avoid compliance with the terms and conditions set forth in this AVC. 26. YOU FIT shall make the terms and conditions of this AVC known to its of?cers, directors, managers, representatives, agents, af?liates, employees, successors and assigns within thirty (30) days of the execution of this AVC. FOR YOU FIT, LLC: RICK BERKS, MANAGING MEMBER 10 0048 1424-1 STATE OF FLORJDA COUNTY OF 0 BEFORE ME, an officer duty authorized to take aclmowledgments in the State of Florida personally appeared Ricky Berks, as the Managing Member of YOU FIT, LLC and duly authorized representative of YOU FIT, LLC, and acknowledged before me that he executed the foregoing instrument for the purposes therein stated, on this Eu /0 Tl" day of2016. Notary Public (signature) Personally Known or Produced Identi?cation Type of Identi?cation Produced: . . . fN I (print, type or 3 amp name 0 fwtj? f; COMMISSION a manor .33 EXPIRES: January 20. 2019 FOR THE OFFICE OF THE ATTORNEY GENERAL: mum? ,1 .24 i dayof Fcbd'wa?v ,2016. STEVEN GAERD SENIOR ASSISTANT ATTORNEY GENERAL OFFICE OF THE ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS 1300 Riverplace Blvd, Ste. 405 Jacksonville, Florida 32207 (904) 348-? wk PATRICIA A. CONNERS ASSOCIATE DEPUTY ATTORNEY GENERAL DEPARTMENT OF LEGAL AFFAIRS OFFICE OF THE ATTORNEY GENERAL The Capitol, PL-01 Tallahassee, Florida 32399-1050 (350) 245-0140 u? 11?1"! {a 11 004814244 The undersigned, Rick Berks, as Managing Member of You Fit, LLC d/b/a You Fit Health Clubs, hereby states, under oath: For members who join YOU FIT after the date of this AVC, after receiving a written notice to cancel any member?s month-to?month membership that is consistent with YOU FiT?s written cancellation policy, YOU FIT will cease assessing or attempting to collect any additional charges or fees from any such member except for membership fees accrued but unpaid up until the date of YOU receipt of such written cancellation notice and any cancellation fee disclosed within any such member?s written Membership Agreement or PT Agreement. With respect to month-to-month members who joined YOU FIT between January 1, 2011, and the date of this AVC, YOU FIT will cease assessing or attempting to collect any charges or fees from such member after the member?s cancellation except for unpaid membership fees that had accrued prior to the cancellation date. YOU FIT will contact any collection agencies to whom it has referred any such balances for collection, request that any efforts to collect such balances from the consumers on YOU behalf immediately cease, and delete any tradelines reported to a credit reporting agency for purposes of collecting an account that is delinquent as a result of such balances. - The specific collection agencies are: First Credit Services Aldous Associates, PLLC 371 Hoes Lane Suite 3008 4725 Holladay Blvd. Pisoatway. NJ 08854 Holladay, UT 841 17 Attention: William Jackson Attn: Tyler Rice DATED this I day of Gibi 1kg?: Rick Berks, Managing Member You Fit, LLC d/b/a You Fit Health Clubs STATE OF FLORIDA COUNTY OF BROWARD SWORN TO AND SUBSCRIBED before me this [a day of (63W (A91 FV 2016, by Rick Berks, who is personally known to me. \i NOTARY PUBLIC My Commission Expires: 0 B. DeAngeIIs COMMISSION FF184407 we EXPIRES: January 20, 2019 mm?gtiv t.