Legal Term
Automatic Membership Fee Hike
Legal Definition
A contractual provision in a membership agreement, such as for a yoga studio, that authorizes the service provider to increase fees periodically based on predetermined criteria (e.g., inflation indices, fixed percentages, or scheduled dates) without requiring explicit, separate consent from the member for each increase.
In Plain English
A part of your yoga studio contract that lets them automatically raise your monthly membership price after a certain time or under specific conditions, without you having to agree to it each time.
Example in a Contract
Section 5. Fee Adjustments: Annual Membership Fees shall automatically increase on each renewal date by the percentage change in the Consumer Price Index (CPI) for the preceding 12 months, capped at 7%. The Studio shall provide written notice of any increase at least 30 days prior to the effective date. Continued payment of fees after the effective date shall constitute the Member's acceptance of the new fee.
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