The legal framework that controls business and commercial transactions is referred to as business law. It encompasses corporate, employment, tort, and business contracts. Business law enables enterprises to function in a secure and fair environment while safeguarding consumers from harmful or misleading practices. The law governing business continuously changes as new technology raises new legal problems. Almost every aspect of conducting business is governed and regulated by law, including the ability to engage in trade or commerce, the legal structure of an organization, and contracts for the purchase and sale of goods and the provision of services. This paper evaluates how a fitness business intersects with the law and how the business owner addresses this intersection.
First, understanding the underlying business and the legal challenges a company faces is necessary for a good representation of that company. Dealing with potential contractual problems is frequently the result of poor management, poor communication, or poor leadership. For instance, contractual conflicts are prone in businesses. It will be challenging to manage the fitness facility to profitability if the owner has not yet evaluated the business dynamics, leading to precise disagreements. Acknowledging this helps the attorney examine the circumstances that lead to disagreements and provide perspective for a potential resolution. A strong infrastructure is typically the outcome of successful performance, and it is much simpler for lawyers to spot potential legal problems if they know the business strategy. According to Scope et al. (2021), a construction project’s loss is frequently brought on by the lack of a methodical means to manage expenses or by workers in the field failing to charge for changes in the work that result in legal issues. Change orders can be a great way to make extra money, but keeping good records and communicating with the team is essential for success. Strict norms and protocols must be ingrained in the company’s culture for modifications in the field to be effectively monitored and converted into work orders that the owner has duly approved.
Secondly, it is frequently determined that a firm has to grow, described in this context as increasing demand and revenue. Numerous factors can affect how a business grows, but pursuing internal or external supply expansion is frequently viewed as a positive move that confirms an entrepreneur’s success. However, the expansion also brings about change, which includes new financial, legal, and managerial difficulties (Angelis & Da Silva, 2019). A gym has several options when deciding how to grow internally. One is that a gym can increase its space. The need for venue expansion arises when a company outgrows its initial location. This typically happens when a gym decides to move to a larger location or add extra space for climbing, fitness, or other activities onto the existing one in order to accommodate an increase in the number of clients who are constantly interested in the services the gym is offering. On the other hand, the logistics of beginning a fitness business are among the least attractive components of the process. It may not be as thrilling, but it is crucial to follow the steps to form a company corporation, acquire the necessary licenses, permits, and insurance, and select a legal entity. Despite the lack of flash, selecting and upholding the appropriate legal structure is one of the most crucial things a young fitness firm can do to safeguard itself. The correct legal structure will give business owners various options for safeguarding their enterprise, maintaining its sustainability, and establishing the groundwork for planned, long-term expansion.
The two most typical structures for fitness entities are Corporations and Limited liability businesses (LLCs). A corporation is owned by its shareholders, who, in return for investing money, assets, or labour into the business, are given ownership in the form of shares. The limited liability of shareholders is one benefit of corporations. This restricted liability covers lawsuits against the corporation as well as bankruptcy. For instance, the suing party cannot pursue the owner of a gym facility personally if a lawsuit against the business leads to a judgment against the facility that exceeds the value of the business. The corporation protects lawsuits against the business’s owners and officials. The LLC is the type of structure that fitness businesses use the most. Sitdikova and Starodumova (2019) show that shareholders, like a corporation, do not own an LLC; rather, it is owned by its members. Instead of issuing shares, an LLC instead grants equity in the form of what is known as a membership interest in the business. Like a corporation, an LLC offers its members limited liability protection; as a result, Val would not be personally liable for the LLC’s debts and would only be held liable for the money she provided if the business failed.
Given the inherent dangers in most fitness-related activities, a legal framework limits the owners’ liability, which is crucial for fitness enterprises. A sound legal framework enables people and business partners to formally define, on paper, who has the authority to act on behalf of the firm. Who, for instance, has the authority to bind the corporation, take on debt, recruit and fire employees, and make other crucial business decisions? Other responsibilities, such as who will be in charge of the business’s finances, operations, programming, and staff relations, can also be specified. For business owners, creating a good operating agreement—or bylaws for a C-Corp—can offer crucial clarity and guidelines (Baudot et al., 2020). Whether a building or a widget, management typically has to do with completing duties, getting work done, monitoring performance quality, and producing results. Establishing appropriate controls and processes is essential to the business’s achievement and helps avoid errors that could result in legal problems. It all comes down to establishing a vision and fostering an atmosphere where employees are inspired to perform their jobs properly.
Conclusion
The legal system controls both the standard of the business and how the business is set towards attaining goals. When it comes to business, the concepts of legal and ethics can exist independently of one another while nonetheless intersecting in certain key areas. Ethical considerations are frequently also legally enforceable accounts for this junction. However, this is rarely the case since certain business ethics are akin to an unwritten code based on fundamental morality that is considered universal.
References
Angelis, J., & Ribeiro da Silva, E. (2019). Blockchain adoption: A value driver perspective. Business Horizons, 62(3), 307-314. https://doi.org/10.1016/j.bushor.2018.12.001
Baudot, L., Dillard, J., & Pencle, N. (2020). Hybrid organizations and an ethic of accountability: The role of accountability systems in constructing responsible hybridity. Accounting, Auditing & Accountability Journal, 35(3), 598-626. https://doi.org/10.1108/aaaj-11-2019-4287
Scope, C., Vogel, M., & Guenther, E. (2021). Greener, cheaper, or more sustainable: Reviewing sustainability assessments of maintenance strategies of concrete structures. Sustainable Production and Consumption, 26, 838-858. https://doi.org/10.1016/j.spc.2020.12.022
Sitdikova, L. B., & Starodumova, S. J. (2019). Corporate agreement as a means of providing security in the course of entrepreneurship development. Entrepreneurship and Sustainability Issues, 7(1), 324-335. https://doi.org/10.9770/jesi.2019.7.1(24)
write