Contract Feature and How can it be Used


About The Feature


‘Contract’ feature is also commonly known as ‘Direct Debit’ or ‘Monthly Ongoing’ or ‘Recurring Billing’. This feature is beneficial and can be used when the gym / club is providing a fixed service at a fixed charge for a month and doesn’t want to create bills every month Manually.

Gym / club decides to bind a member in a minimum lock-in period prior to which the member cannot exit from the said contract i.e., the client is bound to pay for the specific period.

By using this feature, it saves time wherein the gym / club wouldn’t have to create bills for each and every month for the member who wants to have continuity in membership / services being used by the member in consideration.

Using Contract feature also safeguards the gym/club, from members who would want to stop the services without intimation as, the member’s have the facility for pay-as-you-go, i.e., pay monthly.


How Does Contract Function

  • Contracts can either be designed for a ‘specific period’* or can continue as ‘pay-as-you-go’*
  • Gym / club can decide for which product the member should be charged every month.
  • On 1st of the succeeding month of purchase, the bills are automatically created.
  • Club within a stimulated timeframe needs to update the received payment details via bank file.
  • Incase payment information has not been updated, the membership is suspended.

How to create a contract?

  • Login into FitnessForce Software
  • Go to Settings > Create Contract Master
  • Fill the details as mentioned below:
    • Contract Name : Name of the contract needs to be mentioned here
    • Status : Active
    • Terminate Online : No
    • On Completion : Select – Pay As You Go
    • Adjust Price By : Incase there would be a difference in the rate of the contract post the completion of minimum contract period, that needs to be mentioned here
    • Min. Contract Period : Lock-in period needs to be mentioned, i.e., the client is bound for how many months in the contract
    • No. of Installment as Deposits : How many month’s advance payment needs to be taken from the client

Example: Incase 2 deposits have been mentioned i.e., One would be pro-rata for the current month and one additional amount would be charged for the last month. Last month denotes the month which client wants to stop using the service and doesn’t wish to pay for. Then the ‘Last Month’ amount collected would be adjusted against the month which would be considered as last month of services which would be utilized by the member

  • No. of Days for 1 Installment: Here we determine which date in a month which would be considered as cut-off date for calculating pro-rata.
  • Billing Cycle : Can be any date between 1st to 31st (days of the month)
  • Select the product / package which would  be recurring i.e., charged for every month – Mark this as : Recurring* - Yes
  • Select any product / package which should be charged only on initial purchase – Mark this as : Recurring – No
  • Billing Cycle: This is considered as a cut-off for calculating pro-rata (This can be between 1st to 31st)

Glossary

  • Pay-A-You-Go: As long as the amount is being debited from member’s credit card or bank account, the membership / service continues
  • Terminate (Specific Period): After the defined term of the contract, contract comes to an end. Member would have to subscribe for the service again
  • Bank File: File downloaded from FitnessForce Software which has the details of the members who owe the gym/club for a month
  • Recurring Product: Services for which product needs to be charged on monthly basis
  • Non-recurring Product: One time charge, i.e., product/service which would be applicable only on initial purchase
  • Billing Cycle

Example: The ‘No. of Days for 1 Installment’ is set as 20th date and Billing Cycle is set as 1st.

Scenario 1: Incase the activation date is set as 15th of a month for the initial month the member would pay Rs.1000 (Considering that the recurring product’s value is Rs.2000/-.)

Scenario 2: Incase the activation date is set as 22nd of a month and the billing cycle is set as 1st, member would pay Rs.533/- (Considering that the recurring product’s value is Rs.2000/-.)

  • Last month:
  • Pro-rata: The amount paid on initial purchase of the contract. This is the difference amount derived on pro-rata, between the activation date and the Billing Cycle date.