Controversy in Houston: Lady of America

In Houston, Texas, Lady of America, a women's only fitness business, closed down leaving many members facing hardship.

According to the women, the Lady of America franchise in The Woodlands has broken two laws which they claim should void their contracts.

The first law allegedly broken? There wasn't a sign posted giving their members a thirty day notice. 

The second Texas law allegedly broken? The women were told to finish their memberships at Gold's gym. The law states a contract is still valid at a closed gym as long as the gym offers members equivalent facilities located within ten miles from the health spa.  The women have been offered to attend a Gold's Gym in Magnolia which is seven miles away. 

The women claim since Gold's Gym is coed and Lady of America is women's only the contract is not enforceable.  David Tiede director of the Texas Consumer Complaint Center at the University of Houston Law Center says the consumers have a good argument. 

The women say this is a definite pattern, at least in Texas of Lady of America opening up than closing down.

Notarainni claims, " It does raise a question, was all this some charade so we could be paying money for really no benefit?"  There was never a long term intention to have a gym here," said Notarainni.

"It may very well be that there are reputable franchisees, but it may also be that the franchisor Lady of America is playing fast and loose. I don't have enough information to say they're scam artist.  I think I do have enough information to say the way the consumers who joined gyms in the Houston area is unfair," said Tiede.

Lady of America did send an email stating all questions should be directed to the franchise owner, "then they added," We are in compliance with Texas laws.  Our Lady of Amerca franchise owner in Houston, Alex Valladeres, is no longer part of Lady of America.

Bryan Murphy of Gold's Gym says there are women from Lady of America that prefer Gold's gym.  Bryan says they haven't seen a penny and will explore solutions when the women's memberships transfer in January.

Read full details at Fox News, Houston