Private-Fitness Llc

CASE STUDY: PRIVATE FITNESS, LLC

I-Summary

Private Fitness, LLC a private fitness owned by Rosemary Worth, a small health club which is located in Rancho Palos Verdes, California- an upscale community located in Los Angeles area. The services offered by the club were personal fitness training and fitness classes of various types including aerobics, spinning, body sculpting, air boxing, kickboxing, hip hop, step and pump, dynamic stretch, Pilates and yoga.

Private Fitness LLC Rate for services offered:

Services Offered Rate per hour

Personal training client’s $ 50/hr

Prime Time (5:30-9:00 am & 4:00-9:00 pm) $ 50/hr

Lean Time (9:00 am-4:00pm) $ 35/hr

Students $ 12/hr

Discounts for prepayments

Private Fitness LLC established in the motivation and inspiration of Rosemary Worth as a former finalist in Ms. Fitness USA competition and since she was an aerobics instructor she decided to start her own Private Fitness by using her personal savings plus a bank loan in order to renovate the facility of her club and acquire necessary fitness equipments by spending $150,000.

Rosemary herself ran most the spinning classes and some aerobics classes. Also she contracted with five instructors. The instructors were paid on commission which ranged, between 20% and 50% of revenue. She also hired Kate Hoffman, one of the instructors and long-time friend. Kate’s primary task included marketing, facility upkeep, scheduling of appointments and record keeping. She was paid a salary plus a commission based on gross revenues. She was proven to be an effective marketing manager since clients was growing.

Suddenly, Rosemary distrusts Kate when $60 was replaced with $20 in the cash drawer. And one of the instructors mentioned during casual conversation about Kate bringing in new private client but no when Rosemary checked there is no record found.

Now, Rosemary realized she had two major problems: What Kate did-the theft of the cash and the...