@actor4life20 "I feel like my boss is making money using me, and using our members!!!" - that's kinda exactly what running a business is about.
I don't think you have any kind of labor claim for unpaid work. Based on what you wrote, the owner used to give his coaches free memberships, now he's not. That's a change you're more than justified in calling unfairm but - to be clear - he's not making you work "5 free hours." He IS paying you for those hours, but he's just offsetting it with your membership fee when actually physically paying you. My former owner did the offset, too. We got $20/class and membership was $140/month, so I wouldn't actually get money from him each month unless I had coached at least 7 classes. I didn't coach those "for free," I coached them to pay my membership.
In the end, it just sounds like your owner, whether it's from struggling to make ends meet, or just wanting to make more money, revamped his revenue structure. Businesses do this. You, the other coaches and the members all have the right to either accept/tolerate it, or go somewhere else if you think it's unfair, but I don't really see anything "unseemly" or "shady" in it.
@conningns I don’t get a 401k match and health insurance plan for “free”. It’s part of my compensation structure. Similarly (identically) access to gym for coaches was part of compensation structure til the owner created a compensation decrease.
Also illegal to require 5 hours work for free. Justifying it as paying for the membership is also illegal. Very similar to how “company scrip” is no longer legal.
@dawn16 I really don’t want to say this….BUT this is terrible advice.
Just because you have a passion for coaching does not mean you would be a good owner. There is NOTHING wrong with being a great coach and inspiring others. But farrrrr too many gyms are started by people who do not know the first thing about owning a business (sales, profit margins, accounting, scheduling, taxes, cleaning and upkeep, decent customer service, the list goes on). And that’s exactly what a gym is - a business.
The owner of the gym raising prices is not necessarily a bad thing if it’s for purposes of funding new equipment or dealing with unforeseen expense increases. Times are tough and he may need that revenue to stay afloat. I’m especially leaning towards that thought with the stipulation coaches need to work 5 hours for free (which is illegal btw).
@aikiba Ever heard the saying "Find something you are passionate about, make it your career, and you will never work a day in your life".
Your examples are weak. Why not surround yourself with a good accountant, mentors, lawyers, other business people etc. No one becomes a business person with out starting out....
"Times are tough" Ha! - Charge clients less, recruit more clients by making it more financially viable, work harder than your competition, offer more than your competition, build relationships that last for decades during these "tough times".
@dawn16 It is very easy to make your passion a nightmare. The question you should have asked first was, ”Is your passion to run a small business?". Another legitimate question to ask is ”If so, do you live in a state that is likely to lock down in the next six months?”.
If her passion is to lead a class, then great, she is already living it(although she shouldn't be paying for the membership if she is leading classes), if it is to run a small business then yes she should get after it, but both of those potential passions are miles apart.
@dawn16 You are fundamentally wrong, and it’s okay. You’ve probably never managed or owned an affiliate or else you would understand my previous post.
Fitness & coaching can be a great passion to have and those who find an avenue to make it their full time job can be super fulfilled. But let’s be clear here, coaching is not equal to owning the facility. All those tasks I mentioned earlier are a hat a CF affiliate owner will always wear until they can figure out how to become profitable and afford to pay for those services.
We don’t know the specifics of this gym so it’s all hypotheticals. But adding more members is great in theory but it’s not as simple as flipping a switch and 50 new paying members sign up next month while also retaining the current members. What if the gym is smaller and adding more members isn’t feasible due to equipment or space limitations? Gyms that get huge influxes tend to struggle to manage the rapid growth. Also, lowering your membership rates almost always retracts from the value you provide. A successful gym does not ever lower rates, they actually do the opposite and if the facility is run correctly and the members find value there they don’t bat an eye.
@dawn16 Keep touting “no debt” when your first suggestion to OP was to get a loan.
But my guess if you’ve owned a gym(s) for 25 years it most certainly was not a CrossFit affiliate or similar model. If it’s true (which is suspect by your responses) it had to have been a globo gym churn and burn model, where yes. You can lower rates because your product isn’t coaching (like a CF gym) it’s the equipment and the physical space which have a finite value and the operating logistics aren’t near as complex.
And take all the members with you. Listen, part of the reason people love CF is for the community. If this guy is the way you are describing, chances are the box culture is not great. Just my 2 cents
@dawn16 Thank you for your input!! I wish it was an option, but we both are students at the moment. But I think my hometown's box would definitely need a competitor. That's what it would take for him to become a smart entrepreneur for sure haha! Maybe one day
@actor4life20 I guess you could refuse the "free" membership and demand to get paid for the 5 hrs. But then you'd get paid $100 and have to pay the $155 membership. Doesn't seem like a good financial move.
Look at it a different way. You're getting paid $31/hr for the first 5 hrs a month, which goes directly toward paying your membership fee. Then $20/hr for each hr after, which you get to keep. That's probably how the owner sees it and he thinks he's helping you out, not screwing you over. At least if you believe (hope) people are mostly good....