California Fitness & Yoga faces fresh backlash over proposed reopening fee

On October 31, the final day of a temporary suspension of operations at multiple branches for restructuring and operational reviews, California Fitness & Yoga surveyed members about a temporary membership plan.

New customers would be charged VND999,000 ($38) per month.

Under the proposal, members would pay monthly rather than in advance for a 12-month package, as they did previously.

For unused benefits under existing contracts, the fitness chain offered three options: members could freeze their current benefits, convert the remaining value into other company services under mutually agreed terms and schedules, or wait for further updates on a resolution.

The survey covers only three locations, including Cali 3/2 in Ho Chi Minh City, and Cali Tran Duy Hung and Cali Times City in Hanoi.

The company aims to secure 3,000 interested members at each location to assess the feasibility of reopening.

However, it stressed that reaching the target would not guarantee the clubs would resume operations, as the decision would also depend on its financial situation, operational capacity and other conditions.

The fitness chain currently has only three operating locations nationwide, all in southern Vietnam: Cali 3/2, Cali Aeon Mall Binh Tan and Cali Binh Duong Square.

October 31 was also the date many members had been waiting for, marking the end of the temporary closures announced over operational issues.

Dane Fort, founder and chairman of California Fitness & Yoga, had pledged to continue the restructuring process, with a 30-day timeline starting October 19 and extending to around mid-November this year, to disclose plans for addressing long-term membership benefits and outstanding financial issues.

The latest proposal has drawn objections, particularly from customers who paid upfront for long-term memberships.

Some said they were reluctant to participate in the survey because they feared the new arrangement could alter commitments made under their original contracts.

Nguyen Quoc Hoan, a member of the chain's Mipec Long Bien club in Hanoi, said he holds a lifetime Iconic membership that is due for renewal on June 24, 2027.

Following advice from a California Fitness & Yoga employee, he also purchased another lifetime Iconic membership for more than VND100 million ($3,885), scheduled to take effect on June 25, 2027, which he has not yet used.

He said his total spending on the two Iconic memberships and an earlier membership exceeded VND300 million ($11,655).

His wife also spent about VND200 million ($7,770) upgrading from a Century membership to a lifetime Iconic package, which she has used for more than two years.

Given the amount already paid, Hoan said he considered it unreasonable for the company to ask members to pay an additional VND599,000 per month while failing to fully honor existing contracts.

“We bought a service and signed a contract. The company has an obligation to fulfill it,” he said.

“If California cannot continue providing the service, it should refund the unused portion and resolve members' rights in accordance with the contract.”

Hoan added that the latest proposals do not address what many members see as the core issue: the company's contractual responsibilities toward customers who prepaid for long-term memberships.

In related news, Nguyen Thi Ngoc Hong, who represents a group of members affected by the closures of Iron Fitness and Core Fitness clubs, said those chains had shut down their Ho Chi Minh City locations between late July and early August this year.

According to the group's latest tally, about 700 members have been affected, with estimated losses exceeding VND15 billion ($582,780).

Although the company met customers in early August and signed written agreements with them, it had repeatedly cited business losses as a reason for not issuing refunds, Hong said.

Some members were told they could transfer to the Fitbox fitness chain starting August 28.

However, Hong said Fitbox had informed the group that it had received no handover information and would not accept the affected members.

Hong said the group had submitted complaints to police and tax authorities for investigation, but members had yet to recover their money or receive the promised benefits.