Written by: Matthew Becker, founder and lead attorney of Gym Lawyers PLLC

As the year wraps up, most gym owners are focused on holiday schedules, new year challenges, or maybe squeezing in their own training sessions. But before you close the books and pour that celebratory protein shake, there’s one last workout your business needs—an end-of-year legal and operational clean-up.

Your annual review isn’t just busywork. It’s how you protect your progress, fix blind spots, and set yourself up for a smoother, more profitable year ahead. Here’s what every gym owner should have on their checklist.

1. Review Your Membership Agreements

Your membership agreement must be state and federal law compliant. If you haven’t reviewed it in the past year, now’s the time.

Ask yourself:

  • Does it clearly cover payment terms, cancellations, and renewals?
  • Are your cancellation and refund policies compliant with your state’s consumer protection laws?
  • Have you added or retired any programs that should be reflected in your agreement?

Action item: Review your membership freeze, refund, and auto-renewal language—those small details are where most state-level compliance issues hide.

2. Audit Your Waivers (Especially the Kids’ Ones)

If you run youth programs, you can’t just reuse your adult waiver. Most states don’t allow parents to waive a child’s right to sue, meaning your standard form might not protect you.

A proper kids’ waiver should:

  • Waive the parent’s right to sue on the child’s behalf,
  • Require the parent to indemnify the gym against claims, and
  • Clearly outline youth-specific risks.

Action item: Review your adult and child waivers before the new year.

3. Double-Check Staff Classification

Coaches, cleaners, nutritionists—are they employees (W-2) or independent contractors (1099)?

Misclassification is one of the most common and costly mistakes in fitness businesses. Ask yourself:

  • Do you have systems dictating how work is completed?
  • Do you control when your staff works?
  • Do you pay them by the hour vs by the service completed?

Action item: If you answered yes to those, they’re likely employees. Correct classification now to beat a tax audit later.

4. Update Your Business Entity and Records

Your LLC or corporation only protects you if it’s in good standing. Each year, confirm that you’ve:

  • Filed your Annual Report or State Renewal
  • Updated your Operating Agreement or Bylaws if ownership changed
  • Checked that your Registered Agent and address are current

Action item: If you opened a second location, you may need separate entities or DBAs for each.

Matthew Becker—gym owner, founder and lead attorney of Gym Laywers PLLC

5. Review Insurance Coverage

You probably have gym insurance, but have you actually read it?

Take 15 minutes to confirm that:

  • Your policy actually covers your services
  • Your coverage limits still make sense for your revenue
  • High-risk services (youth programs, martial arts, aerials) aren’t excluded
  • You know whether your policy is claims-made or occurrence-based—and what that means for how long you’re covered after a claim arises

Action item: Update your insurer with your latest waiver version—it can affect claim outcomes.

6. Revisit Vendor and Lease Agreements

End of year is a great time to make sure you’re not overspending or locked into outdated contracts. Review:

  • Software, cleaning, and maintenance vendors
  • Equipment leases (are any expiring or due for renewal?)
  • Your commercial lease for rent escalations or renewal deadlines

Action item: Review your renewal notice deadlines and rent escalation schedule now—landlords often build in automatic increases or short renewal windows that can catch busy gym owners off guard.

7. Plan Ahead with a Market Value Opinion or Exit Review

Even if you’re not selling, getting a gym market value opinion helps you track growth, set goals, and identify financial leaks.

Capture year-end data like:

  • Total revenue and net profit
  • Membership trends
  • Payroll and expenses
  • Owner salary or distributions

Action item: Get a gym market value opinion and treat it like a fitness assessment for your business—it shows where you’re strong and where you can improve.

Final Thoughts

Your end-of-year clean-up doesn’t have to be overwhelming. It’s your annual maintenance check for the legal and financial engine that drives your gym.

By tightening up contracts, reviewing coverage, and understanding your numbers, you’ll walk into next year stronger, protected, and ready to scale.

Because the truth is simple: you can’t reliably build freedom on a shaky foundation.