California Fitness Closes Most Branches as Vietnam Steps In

California Fitness & Yoga has suspended operations at numerous locations across Vietnam, leaving only one facility at Cali Binh Duong Square in Ho Chi Minh City open to members as of November 3. The widespread closures, which include all nine branches in Hanoi as well as facilities in Nha Trang and Da Nang, have prompted numerous complaints to the Vietnam Competition Commission under the Ministry of Industry and Trade.

Regulatory Stance on Member Contracts

The Vietnam Competition Commission has clarified that the mass suspension of services constitutes a civil matter between the fitness chain and its members. Because the dispute involves the execution and termination of private contracts, the commission stated that the determination of legal rights and financial obligations must be resolved based on the specific terms of the membership agreements and applicable national law.

While the company’s membership manual mandates that disputes be settled through arbitration at the Vietnam International Arbitration Centre (VIAC), the 2023 Law on Protection of Consumers’ Rights offers members an alternative. Under Article 67, clause 2 of this legislation, consumers retain the right to choose other methods of dispute resolution, including initiating civil litigation in a competent court, even when a standard contract contains an arbitration clause.

Steps for Affected Members

The commission has advised members who wish to pursue refunds or contract termination to prepare documentation for potential legal action. Recommended evidence includes:

• Original membership contracts and all attachments.
• Payment receipts and proof of transaction.
• Official communications or notices received from California Fitness & Yoga.
• Records documenting the status of service delivery.
• Copies of any formal requests or complaints previously submitted to the company.

Under Article 50 of the 2023 Law on Protection of Consumers’ Rights, members may also authorize social organizations dedicated to consumer protection to represent them in court proceedings. Whether a member is entitled to a full refund and the specific amount of such a reimbursement remain matters for the courts to decide on a case-by-case basis.

Operational Status of Remaining Facilities

The company has faced repeated criticism following a series of temporary closures that disrupted long-term prepaid memberships. While the brand has announced plans to resume operations at its Vung Tau and Bien Hoa locations starting November 5, it has not provided a confirmed timeline for the reopening of its other shuttered sites.

Legal Options Under Contract Disputes

Can I sue the company if my contract says I must use arbitration?
Yes. Under the 2023 Law on Protection of Consumers’ Rights, you are not strictly bound by an arbitration clause in a standard contract and may choose to take your case to a civil court.

Does the government provide direct refunds to members?
No. The Vietnam Competition Commission has clarified that requests concerning contract execution, termination and refunds are civil matters between members and the company, to be resolved based on the contract and applicable law. Whether a member is entitled to termination or a refund, and the specific amount, are matters for a competent court to decide.

What should I do if I want to seek legal representation?
You may contact social organizations recognized for protecting consumer rights, as they are legally permitted to represent members in court if authorized to do so. Ensure you have gathered all payment receipts and contract documents before seeking legal counsel.

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