Comments on: Poll: Do you Require Contracts at your Martial Arts School?

By: David Spelding

David Spelding — Thu, 18 Jun 2009 18:39:09 +0000

Contracts are a MUST if you want to run your school effectively while making sure you do not get short-handed. MANY accounts with martial arts schools go delinquent at a high-paced rate. School owners are afraid to confront parents of past due payments as they do not want their school’s reputation tarnished. Accounts that go unpaid need to be collected and it would be in the school owners best interest to have legal documents defending them if need be (not saying it would definitely) Remember: YOUR TIME IS WORTH SOMETHING, just like everyone elses who gets paid in their jobs.

Hope this helps.

David

By: Rick Brumby

Rick Brumby — Tue, 24 Mar 2009 19:10:43 +0000

I don’t think it’s a matter of old or new Ryan, it’s each instructor’s take on how to run a business. One of the guys I train with is a Gracie Barra Brown Belt and their research has shown that 30% of their members under contract do not attend class and that’s okay. The contract still brings in money allowing them to run a professional program for those that do show up. Contracts provide a secure income regardless of the quality of your program with an emphasis on maintaining a business-like environment. The instructor and staff maintain a seperation from the students as seen in big business. In other words, the boss doesn’t go out and have drinks with the guys in the mail room. Those that don’t use contracts usually have a closer relationship with their students making for more of a family/friends atmosphere.
For me, EFT is the middle ground, it’s not a contract but it is a commitment. The student or parent isn’t locked into a long-term contract, but I have more security in making sure the bills get paid at the end of the month.

By: Ryan Wheaton

Ryan Wheaton — Sun, 22 Mar 2009 20:05:02 +0000

Rick, great feedback on using contracts. I find it interesting that at this point 50% use contracts and 50% don’t. Clearly, there is no overwhelming consensus on using them. I wonder if it’s because those that voted and said they do use them have been around a long time and those that don’t currently use them are new school owners? Any one have any ideas?

By: Rick Brumby

Rick Brumby — Thu, 19 Mar 2009 18:13:04 +0000

No contracts, haven’t needed to. Prior to Hurricane Katrina, we ran a 6000 sq. ft. studio with 147 students and still growing. We had 90+% of our students on EFT with a 30 day opt out clause. In other words, they had to give us 30 days notice prior to stopping their agreement, no fines or penalties. At our current studio, we do the same thing but our EFT rate is about 75% and we are no longer a full time studio. There are eight MA schools within 10 mins. of our studio, soon to be nine. Seven are or will be contract schools. I personally dislike contracts therefore I don’t make potential students sign them. If a student doesn’t want to be in my studio or train, I refuse to take their money. I believe when properly presented, whether full time or part time, you can make a comfortable living without contracts. If your goal is to drive an Audi and live in a small mansion, then go with the contracts and stock up on your supply of black belts.

By: Ryan Wheaton

Ryan Wheaton — Thu, 19 Mar 2009 15:22:07 +0000

I do not currently use contracts for my students but can definitely see why so many martial arts school owners use them. For some reason, I’ve always struggled with going that direction. I’m considering doing electronic funds transfer (EFT) as a first step.

By: Leslie Sowl

Leslie Sowl — Thu, 19 Mar 2009 12:31:14 +0000

We offer month to month. There are options to pay in advance, that are like a contract, but the month to month works for us. They have to repay a registration fee if they drop. So many people in our area have been burned by contractual programs that have left quietly in the night that one of our selling points is month to month and we’ve been here for 8 years and aren’t going anywhere. Plus if I do my job in the beginner ranks, they don’t wanna leave and they have a burning desire for that black belt! So, I don’t know. This is just what we do.

By: Adam

Adam — Thu, 19 Mar 2009 03:18:23 +0000

Karate should not be seen as a consumer good that can be used when required. i.e. “I might go to the Gym today”. To commit to karate, means to commit time and effort by having a contract in place the student is essentially saying that I am going to commit to karate for a period of time as a minimum.

If someone is willing to commit to larning for a period of time then we can commit to realy teaching them karate.

By: Brady Cameron

Brady Cameron — Thu, 19 Mar 2009 02:34:40 +0000

Contracts are absolutely essential. If you want a school with real net worth and value. If you want a releiable form of payment at the end of the month, you must have contracts on EFT payment. People who do not want to use contracts are a in their own way of success.I can write a book on the extreme value of contracts and the wealth they will create for you.