Store Closure and Default Exposing Vulnerabilities in the Prepayment Model

This is a typical negative case of irregularities in the fitness industry’s prepayment model. In November 2025, Xi’an Zero Distance Fitness & Swimming Banpo Store suddenly closed down on the grounds of water and electricity issues, while many members had just renewed their memberships during the “Double 11” promotion, with one member spending a total of 48,000 yuan. What was even more dissatisfying was that the Changle Store under the same legal person was carrying out normal promotional recruitment during the same period, and disclaimed responsibility for the Banpo Store on the grounds of “independent corporate operation”. An investigation revealed that the Banpo Store had repeatedly defaulted on water, electricity and property fees as early as April, yet still conducted illegal promotions to collect funds. This incident exposed problems in the fitness industry such as the separation of brand and corporate entities and the lack of supervision over prepayments, and also promoted industry discussions on regulatory measures such as prepayment escrow mechanisms.