Parents Beware, Karate Nightmare
By Thom Singer, Fri Dec 9th

Parents Beware, Karate Nightmare by Thom Singer

Earlier this year my eight-year-old daughter became involvedwith Karate. It has overall been a good experience for her andshe has enjoyed learning the martial arts. We selected the dojobased on a location close to our home and from the beginning wehad some issues, but we liked one of her teachers... and he dida great job of relating to the kids and the parents.

As my daughter's involvement grew and we were asked to sign along-term (three year) contract in order for her to move up tothe intermediate level of training and to be on the "black belttrack". (They would not put her in this program without thecontract). Soon thereafter is when it everything went south. Theteacher whom we liked and respected left the school and webecame less satisfied with the level of instruction. Someparents spoke to the owner, who insisted that he himself is a"great" teacher. But like art, opinions about instruction aresubjective. While he may think he does a fine job, we just werenot as pleased as we had been. Additionally, a fifteen-year-oldgirl, who was obviously new to instructing martial arts, taughtthe two classes I recently observed.

My wife has tried to get out of the contract, only to find thatthe "financial services" firm who handles the billing will notallow us to terminate, and the owner of the business says wemust talk to them. My assumption was that we would have a one ortwo month cancellation fee...but NO.... they expect us tocontinue to pay $150 per month regardless of if we want to bethere, or even if we ever show up again (they told my wife thatour satisfaction or participation had nothing to do with thecontract).

Other parents in the neighborhood have told me about similarexperiences with this karate school. I checked with the localBetter Business Bureau and discovered that the school has an"unsatisfactory" rating. There have been three complaints withthe BBB since February regarding "sales practice issues" and"billing or collection issues". In each case the owner of thedojo has simply ignored the BBB (no response to the complaint),which means he did not even attempt to work with thedissatisfied client. This is a bad sign.

I work in a professional environment where good and ethicalbusiness people want happy clients, not just those locked intocontracts. This is my



first experience with someone who does notcare about customer service.

I have spoken with two attorneys who have said that there aremany of these types of businesses (karate schools, gymnasticsstudios, dance instruction, gyms, etc....) make a practice offorcing people to pay on contracts regardless of satisfaction orparticipation. They outsource their contracts with "collectionfirms" who know how to structure it so that clients do not havethe rights that one would normally expect.

My wife was lead to believe that the contract was there to keepus engaged in the program and guarantee the price for theblack-belt training. They avoided letting her know that therewas no way out.... and again, our daughter could not progress inher training without the contract. Having never had experienceswith these types of business practices..... It never dawned onus that this would be an issue. It seemed like a gym membershipwhere a thirty-day cancellation notification was all that wouldbe necessary to move on. It is just karate for theeight-year-old!!!

I am disappointed in the whole situation because the martialarts teach about integrity, ethics and honor. I have spoken withthe "governing bodies" of karate associations only to find theydo not get involved in billing and contract issues of theirregistered dojos (RED FLAG). I was told that "contracts arecommon, but most schools would never force you to pay if you didnot attend". Beyond that statement there was nothing they woulddo for me.

In getting the kids involved in their programs they are sofriendly, but the tune can sure change fast.

I am currently looking at legal options. Fortunately, we havegreat legal advisors. If the owner of the karate academybelieves that we should have to pay for three years ($5000) ofinstruction that we will never receive....then he is not thekind of man I want my family to associate with in the firstplace.

I am mad, sad, disappointed, frustrated, and sorry that we haveto deal with this situation. I have learned a few lessons thatall parents should follow when getting their kids involved inkarate (and other martial arts) or any other formal activity:

1. Do not select your school, academy, dojo, studio, etc...based only on location. Find the one with the best reputation.

2. Ask other parents for their opinions of the establishment.Ask those who are currently active in the program and especiallyones who have been involved for a long period of time. Also,seek out others in your community who might have participated inthe past.

3. Run a free report on the business through you local BetterBusiness Bureau. If there have been complaints, this may (or maynot) be reason for concern. How a company responds to acomplaint is more important than if there are complaints onrecord. If the business has not responded to complaints, beextra careful. Certainly NEVER sign a contract with them ifthere are unanswered contract and billing complaints. This meansthey will ignore your complaints should they arise in the future.

4. Specifically ask about cancellation fees and policies. If itis not clearly stated in the contract, make them write it downor refuse to sign the contract. Do not take it lightly justbecause it is a kid's activity.

While we all hope the people who facilitate our children'sactivities are wonderful souls who put our kid's experienceabove all else, it is not always the case. I hope that otherscan learn from our mistake.

About the author:Thom Singer is the author of "Some Assembly Required: How toMake, Grow and Keep Your Business Relationships" (New YearPublishing, 2005) and an expert on business development andclient relations. He can be reached at www.thomsinger.com.