Lifetime Fitness 2009 Annual Report Download - page 20

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15
x racquet, tennis and other athletic clubs;
x amenity and condominium clubs;
x country clubs;
x online personal training and fitness coaching; and
x the home-use fitness equipment industry.
Competition in the health club industry varies from market to market and is based on several factors, including the
breadth of product and service offerings, the level of enrollment fees and membership dues, the flexibility of
membership options and the overall quality of the offering. We believe that our comprehensive product offering and
focus on services, amenities and value provide us with a distinct competitive advantage.
Government Regulation
All areas of our operations and business practices are subject to regulation at federal, state and local levels. The
general rules and regulations of the Federal Trade Commission and other consumer protection agencies apply to our
advertising, sales and other trade practices. State statutes and regulations affecting the health club industry have
been enacted or proposed that prescribe certain forms for, and regulate the terms and provisions of, membership
contracts, including:
x giving the member the right under various state “cooling-off” statutes to cancel, in most cases, within three
to ten days after signing, his or her membership and receive a refund of any enrollment fee paid;
x requiring an escrow for funds received from pre-opening sales or the posting of a bond or proof of financial
responsibility; and
x establishing maximum prices and terms for membership contracts and limitations on the financing term of
contracts.
We are subject to federal and state regulations governing the collection, use, retention, sharing and security of
certain types of information that we receive from our members, guests, participants in our various services and users
of our various products.
We are subject to federal and state regulations governing the manufacture and sale of supplement and food products
in the U.S. The U.S. Food and Drug Administration and the Federal Trade Commission are increasingly scrutinizing
claims made for supplement and food products, especially claims related to weight loss. We work with the
manufacturers of our food and supplement products to ensure that appropriate regulatory notices have been
provided, where necessary.
All laws, rules and regulations are subject to varying interpretations by a large number of state and federal
enforcement agencies and the courts. We maintain internal review procedures in order to comply with these
requirements and believe our activities are in substantial compliance with all applicable statutes, rules and decisions.
Trademarks and Trade Names
We own several trademarks and service marks registered with the U.S. Patent and Trademark Office (“USPTO”),
including “LIFE TIME FITNESS®,” “EXPERIENCE LIFE®”and “LIFE TIME FITNESS TRIATHLON
SERIES®” and T.E.A.M. TRAINING EDUCATION ACCOUNTABILITY MOTIVATION®. We have also registered
our logo and our LIFE TIME FITNESS Triathlon logo. We also registered the “LIFE TIME FITNESS” mark in
certain foreign countries.
We believe our trademarks and trade names have become important components in our marketing and branding
strategies. We believe that we have all licenses necessary to conduct our business. In particular, we license the mark
“LIFE TIME” in connection with our nutritional products so that we can market and distribute them under the LIFE
TIME FITNESS brand.