Buying a Gym in Singapore: Who Honours Prepaid Packages?

Short answer: yes, you can buy a gym, fitness or yoga studio in Singapore, but how you buy it decides who owes members their unused prepaid sessions. In a share sale the company that sold the packages stays the same, so its obligations to members come with it. In an asset sale the members’ contracts sit with the seller’s company, and the sale agreement decides whether you take them over. No law we found moves them to an asset buyer automatically. Either way, count the unused sessions before you agree a price.

This guide is general information drawn from CASE, CaseTrust, the Consumer Protection (Fair Trading) Act 2003 and other official sources, not legal advice. Have a Singapore lawyer review how prepaid packages are dealt with in your sale agreement before you sign.

Why are prepaid gym packages such a big issue in 2026?

True Fitness and True Yoga were placed under provisional liquidation on 10 September 2026, and their clubs stopped operating on 11 September. In their FAQ for members, the provisional liquidators say claims for unused packages or memberships will generally rank as ordinary unsecured claims, and no recovery can be guaranteed.

The Consumers Association of Singapore (CASE) said in a media release on 5 October 2026 that between 10 and 30 September it received 1,610 complaints involving close to S$3.82 million in reported prepayment losses after the closures of True Fitness, True Yoga and Yoga Inc. CASE called for mandatory cooling-off periods for high-value packages, compulsory CaseTrust accreditation in sectors such as fitness, and investigation of possible wrongful trading.

In a written parliamentary reply on 6 October 2026, Dr Tan See Leng said the beauty and wellness and fitness sectors face the highest risks of significant prepayment losses. He added that the Consumer Protection Review Panel intends to publish its findings and recommendations later this year. Rules may change, so check the current position before you buy.

Who honours members’ prepaid packages after a share sale?

In a share sale you buy the company, not the gym. The company that signed up the members, took their money and promised the sessions is still the same company after completion. So its obligations to members stay with it, along with its staff, lease and debts.

That makes the package book a liability you inherit. Ask for:

• a ledger of every active package and membership: member, amount paid, sessions used and left, start and expiry dates;
• the standard membership terms, including freeze, transfer, refund and auto-renewal clauses;
• package sales reconciled to bank receipts, to spot heavy selling just before the sale;
• warranties from the seller that the ledger is complete, backed by an indemnity or a part of the price held back until the figures are confirmed.

See our asset sale vs share sale guide.

Do you have to honour prepaid packages in an asset sale?

Not automatically. In an asset sale you buy the equipment, fit-out, brand and goodwill, and the members’ contracts stay with the seller’s company unless the sale agreement moves them. It should say who deals with unused sessions: you take them over for a lower price, or the seller keeps them and refunds members. Ask your lawyer how member contracts will be assigned or novated, and what members must agree to.

In practice, if you keep the same name and premises, members will expect you to honour their packages, and refusing can cost you the customers you paid for. Be accurate in what you tell them. The Consumer Protection (Fair Trading) Act 2003 lists unfair practices in its Second Schedule, including misrepresenting what rights or obligations a transaction involves, and leaving out material facts.

Buying assets from a liquidator is different again. Members’ unused packages are claims against the company in liquidation: the True Fitness provisional liquidators, for example, asked members to file proofs of debt with them. The liquidator’s sale terms decide what you take on; any goodwill offer to members is your choice.

How should prepaid packages change the price you pay?

A package that has been paid for but not yet used is cash the business has already collected for work it still has to do. In the accounts, that money is normally recorded as a liability (often called deferred revenue), not as profit.

Some gym listings describe instalment plans or auto-renewing memberships as predictable cash flow. Ask how much of that cash has already been received for future sessions, and what it will cost you to deliver them. Then agree one of these in the deal: a lower price, a holdback or escrow until the package book runs down, or a seller refund to members before completion.

Agree how new packages are sold between signing and completion. Item 24 of the Act’s Second Schedule makes it an unfair practice to accept payment when the supplier knows, or ought to know, that it will not be able to supply the service. Separately, section 239 of the Insolvency, Restructuring and Dissolution Act 2018 makes it an offence to be knowingly party to a company’s wrongful trading, such as taking on debts it has no reasonable prospect of paying, with a fine of up to S$10,000, up to 3 years’ jail or both. CASE has asked for possible cases to be investigated, including where large prepayments were collected shortly before a liquidation.

Does CaseTrust accreditation protect members when a gym changes hands?

Partly. Under CaseTrust Accreditation for Storefront, gyms and fitness centres that collect advance payments must join a prepayment protection scheme. CaseTrust’s prepayment protection page says this lets members claim back the unused part of their prepayment if the accredited business closes. For fitness centres it covers membership, package and session fees paid in advance, except fees worth less than two months of service, and members receive a proof of protection.

The protection is tied to the closure of the accredited business. We found no published CaseTrust rule on what happens to accreditation or cover when the business is sold, so ask CaseTrust directly (6461 1800) before completion, and check that the insurance is still in force.

What else should you check before buying a gym or yoga studio?

• Lease and premises: the landlord’s consent to an assignment or a new lease, the remaining term and reinstatement duties. URA’s use guidance for a fitness centre or gymnasium says HDB commercial premises need HDB’s consent rather than URA planning permission. Commercial buildings may qualify for instant approval by lodgment, and planning permission is not guaranteed. See our HDB shop takeover guide.
• Staff and trainers: who is an employee and who is a freelance trainer. In a going-concern purchase, Section 18A of the Employment Act moves employees across on their existing terms. MOM notes that a transfer of shares, or of assets only, does not count as such a transfer. See what happens to staff in a business takeover.
• Billing: recurring GIRO or card deductions run through the seller’s merchant and bank accounts. Plan how members will be moved to new arrangements, or billing stopped, at completion.
• Equipment and brand: which machines are owned or leased, plus the trademark, booking software and member records.
• GST: if the seller is GST-registered, a sale of the business as a going concern can be an excluded transaction with no GST charged, if IRAS’s conditions are met.

Our due diligence checklist for buyers and documents to prepare before a sale agreement cover the rest, and how to buy a business in Singapore walks through the full process. Prepaid packages are common in beauty too; see how to buy a beauty salon in Singapore.

How do you buy or sell a gym or studio on SG Business Mart?

SG Business Mart is a Singapore marketplace, not a broker. Sellers list their business directly, choose what to share and talk to buyers themselves, with one-time listing packages of S$49, S$79 or S$99 (see pricing). Browse health and wellness businesses for sale, such as an MMA gym in West Coast, a Pilates studio in Balestier, a dance studio in Chinatown and a yoga and wellness company with its trademark. Sellers can speed up a buyer’s checks by preparing the package ledger, membership terms and lease before listing; see selling a business in Singapore.

Frequently asked questions

Can you buy a gym or fitness studio in Singapore?

Yes. You can buy the company that runs it (a share sale) or only its equipment, brand and goodwill (an asset sale). The route decides who owes members their unused prepaid sessions, so settle that in the sale agreement before you sign.

Does a new gym owner have to honour prepaid packages?

In a share sale, yes in effect: the company that sold the packages still owes them. In an asset sale, the members’ contracts stay with the seller unless the sale agreement moves them to the buyer, so the agreement decides. Get legal advice on your deal.

What happens to my gym package if the gym is sold?

If the company was sold, your contract is still with the same company. If only the business assets were sold, ask the new operator whether it has taken over packages, and ask the seller for a refund if it has not. Keep your contract and receipts.

What happens to prepaid packages if a gym goes into liquidation?

Members file a claim with the liquidators. In the True Fitness and True Yoga case, the provisional liquidators said such claims will generally rank as ordinary unsecured claims, and no recovery can be guaranteed.

How do you value prepaid memberships when buying a gym?

Treat unused sessions as a liability, not income. Get a package ledger, check it against bank receipts, estimate the cost of delivering the remaining sessions, and reflect it through a lower price, a holdback or seller refunds.

Does CaseTrust protect prepaid gym packages?

Only at CaseTrust-accredited gyms and fitness centres, which must join a prepayment protection scheme. Members can claim back the unused part of their prepayment if the business closes. Fees worth less than two months of service are exempted.

Do gym staff transfer when you buy a gym?

In a share sale, staff stay employed by the same company. In a going-concern purchase of the business, Section 18A of the Employment Act generally moves employees across on their existing terms. Freelance trainers have their own contracts to renegotiate.

Do you need URA approval to run a gym?

It depends on the premises. URA says HDB commercial premises need HDB’s consent instead of URA planning permission, and commercial buildings may qualify for instant approval by lodgment. Otherwise a change of use application is needed, and approval is not guaranteed.