Prepaid dues liability

Definition

Membership money collected for months not yet delivered, which Florida refunds pro rata if the studio closes.

Why It Matters

Florida registers each health studio location for three hundred dollars a year. It then tells the contract what it must say. A prepaid or installment health studio contract carries a penalty-free three-day cancellation, printed in ten point boldface. It also owes a refund by the weeks remaining if the studio goes out of business or moves more than five driving miles without a substitute, or if the buyer dies or becomes disabled. A sale may close the doors for up to fourteen consecutive days before the studio counts as out of business. For a buyer that is a balance-sheet item wearing a marketing name: every annual membership sold before closing is cash the seller banked and service the buyer owes.