Mac Mahon Avocats is a Paris business law firm at 33 avenue Mac-Mahon, Paris 17. Its lawyers advise gyms & fitness clubs businesses on prevention of difficulties, out-of-court procedures, formal insolvency proceedings and distressed disposals under French law. This page sets out the applicable legal framework; it does not constitute legal advice.
Independent gyms, fitness chains and franchises, low-cost clubs, boutique studios (cross-training, yoga, pilates), aquatic and racket centres, and operators of private sports complexes.
Gym operations rest on prepaid subscriptions, high fixed costs (commercial rent, energy, payroll, equipment leasing) and a break-even point tied to a precise membership level. Difficulties usually arise where rent has become too heavy, refurbishment has been debt-financed and the membership base is eroding. Out-of-court procedures allow the lease, equipment leases and tax and social security instalments to be renegotiated simultaneously, before any cessation of payments.
| Procedure | Entry condition | Duration | Legal basis |
|---|---|---|---|
| Ad hoc mandate | No cessation of payments | Set by the court president, renewable | Art. L. 611-3 Commercial Code |
| Conciliation | Actual or foreseeable difficulties; cessation of payments for 45 days at most | 4 months + 1 month | Arts. L. 611-4 to L. 611-16 |
| Safeguard | Insurmountable difficulties, no cessation of payments | Observation period 6 months, extendable to 12 | Art. L. 620-1 et seq. |
| Rehabilitation | Cessation of payments, recovery possible | Observation period up to 18 months | Art. L. 631-1 et seq. |
| Liquidation | Cessation of payments, recovery manifestly impossible | Variable; business continuation 3 months, renewable | Art. L. 640-1 et seq. |
A declaration of cessation of payments must be filed within 45 days of that state arising, unless a conciliation request is filed within the same period (Art. L. 631-4 of the French Commercial Code).
Opening proceedings does not terminate ongoing contracts: the administrator has an option and may require performance against payment for post-opening services (Art. L. 622-13 Commercial Code, applied to rehabilitation by Art. L. 631-14). Amounts prepaid before the opening judgment are pre-opening claims that must be filed.
If the claim arose before the opening judgment, it must be filed with the creditors' representative within two months of publication in the BODACC (Art. L. 622-24 Commercial Code). Payment then depends on the outcome of the proceedings and the ranking of the claim; pre-opening claims cannot be paid outside the statutory framework.
The opening judgment prohibits payment of pre-opening rent and blocks termination based on those arrears. The landlord may, however, seek termination for non-payment of rent falling due after the judgment, after a three-month period (Art. L. 622-14 Commercial Code).
Leased equipment remains the lessor's property; its return follows the rules on repossession claims and ongoing contracts. If the contract is continued, post-opening rentals must be paid when due, failing which it may terminate automatically.
Yes. The court may adopt a sale plan covering all or part of the business and designate the contracts necessary to its continuation, including the lease, which are transferred to the buyer (Arts. L. 642-1 and L. 642-7 Commercial Code). A goodwill sale also remains possible out of court.
An ad hoc mandate (Art. L. 611-3) and conciliation (Art. L. 611-4 et seq. Commercial Code) are confidential and allow the lease, equipment leases and public debt to be renegotiated before cessation of payments; conciliation remains available within 45 days of that state arising.
Phone: +33 1 45 03 20 20
Email: accueil@macmahon-avocats.fr
Address: 33 avenue Mac-Mahon, 75017 Paris, France