Case Study: How Regan Peggs Helped Safeguard Second City Fitness


Regan Peggs has been Second City Fitness’s legal advisor for some time now. The solicitors have supported their clients through legalities surrounding corporate work, contracts, disputes resolution, and COVID advice.

About Second City Fitness

Second City is a CrossFit-affiliate gym in Selly Oak, Birmingham. Owners Fergus Lally, Mike Holmes, and Gareth Wayt understand the importance of keeping their business on the right side of the law and of using legal advice and support to efficiently grow their business. They approached Regan Peggs Solicitors for help on legal services for their establishment.

The gym offers different programs every week. They include group training, personal training, nutrition, and online training.

They also offer various membership packages based on the style of training clients want and how often they want it. The Second City Fitness website allows new and current members to book drop-in training and gym sessions.

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What Regan Peggs Does for Second City Fitness

Below is a discussion of some legal services for gyms that Regan Peggs Solicitors offers to Second City Fitness to protect their business and customers.

Corporate Work

One of Regan Peggs first tasks with Second City Fitness involved negotiating the exit agreement of an outgoing director and shareholder. This also involved drafting terms upon which Gareth Wayt would become a shareholder and director of Second City Fitness.

Regan Peggs also played a pivotal role in drafting the shareholders’ and directors’ agreements. This allows all three directors to know where they stand and their responsibilities to the business and each other.

Later, the solicitor was pivotal in creating a separate legal vehicle for all the three partners , another limited company, as part of their growth plan. The gym has arrangements with Arca, a specialist sports physio business. RPS has incorporated that business and drafted commercial agreements.

The businesses are registered at the Regan Peggs offices, allowing the solicitor to monitor their legal responsibilities. So the business owners concentrate on what they do best – running a gym and serving their customers.

Currently, there are two more commercial negotiations taking place. But they are top secret! Watch this space for more!

Contracts With Coaches

Second City Fitness operates with self-employed coaches.
This means a coach is not an employee.
The gym management instructed Regan Peggs to draft service agreements between the coaches and the gym dealing with:

  • The respective duties
  • Payment arrangements
  • Fees
  • Liability, indemnity, and insurance
  • Information confidentiality
  • Termination
  • Data protection
  • Sub-contracting
  • Non-solicitation
  • Dispute resolution
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Membership Contracts

The membership contract is an agreement between the gym and its users. It outlines the expectations of both parties. Specifics of each contract depend on the type of services the gym offers and how they expect their customers to interact with them.

The contracts protect businesses from going under by avoiding lawsuits and ensuring a constant cash flow.

A solicitor helps figure out the gym’s policies around liability, payment, equipment, and operations. There should be a balance between the business requirements and respect for clients to create strong membership contracts that protect both parties.

Regan Peggs Solicitors drafted Second City Fitness’ membership contracts that cover:

  • Different membership plans
  • Membership fees
  • Gym rules
  • Equipment and facilities
  • Liability
  • Data protection
  • Regulation
COVID Advice and Protocols

The lockdown also affected the fitness industry. Second City Fitness’ leadership has been keen on doing what they can to support their gym members.

They have maintained a powerful community even as many members were sent on a mandatory temporary leave of absence. Through it all, the gym maintained its membership through support to its friends and members.

However, coronavirus offences were continuously changing. The Regan Peggs legal team was at hand with each change. They offered advice on what is safe and lawful to do. The solicitors also checked on their risk assessments during the process.

Some gym users are elite athletes for whom different rules apply. Sometimes, instruction could only be conducted online, in parks, individually, outdoors, or via socially distanced indoors.

The solicitors ensured the gym owners have the comfort of knowing that they are doing the right thing each step of the way. A City Council official attended one session and the gym’s team showed the advice they got from their legal team. The official was happy that the facility took its responsibilities seriously.

Commercial Contracts and Disputes

The Second City Fitness team enters commercial contracts with their suppliers. Regan Peggs is always available to check the contracts and make any amendments required.

When things go wrong, the legal team was on hand to take over the dispute and deal with it efficiently. This ensured that the mistake did not distract the gym team.

Support for Members

Second City Fitness is a community of staff and members. They often discuss any issues they have with each other.

Regan Peggs has helped the members of this community with:

  • Establishing their businesses
  • Employment disputes
  • Motoring cases
  • Commercial agreements
  • Terms and conditions for their websites
  • Licensing of intellectual property

Legal Services for Gyms

The increased buying power of millennials and the rise of the health-conscious consumer have been driving the growth in the fitness sector. However, gyms require pragmatic advice to stay ahead of their competitors and avoid the pitfalls in the fast-changing industry. Regan Peggs Solicitors helps gyms and associated businesses operate within the legal framework and improve on their service delivery.

If you run a gym and would like to speak with a member of the Regan Peggs legal advice team, get in touch today or call us directly on 0121 201 3765.

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