True Fitness closure: Put limits on what spas and gyms can collect in pre-paid packages?

If you’re a customer with a pre-paid package with a business and it closes, will you ever get your money back?

True Fitness and True Yoga customers and employees were left in the lurch last week after the businesses shuttered. Many have unused memberships, packages and services, and members have reported losses of more than $609,000.

And it’s not just gyms. Prepayment packages are common at nail salons, spas, interior design and renovation firms, and bridal studios.

When these businesses close, what happens to consumers’ money, and are there ways consumers can be better protected?

In this episode of The Usual Place, I chat with:

• Jeremy Ko, a fitness entrepreneur who has opened 25 fitness gyms and three climbing gyms, and had to close three, and

• Debby Lim, a senior partner in Dentons Rodyk’s Litigation and Dispute Resolution Group. She was also affected by the recent closure of True Fitness, having been a member since June 2025.