A long-term contract is a membership where a person commits to completing a program of study at your studio, with regular attendance in your classes. The member agrees to pay a monthly installment towards their total tuition fees. You can set up a long-term contract to automatically renew using the same terms, but any studios use the completion of a long-term contract as an opportunity to upgrade or update the membership and billing.
When to use Long Term Contracts
Long term contracts are most frequently used by martial arts studios to encourage students to earn at least one black belt through the studio. The benefit of using long term contracts is that it ensures that the studio will receive a steady stream of revenue for a specific period of time.
Recommended Settings for Long Term Contracts
Membership Length - You can use this field to set up a long term contract based on years or months.
Installment Plan - We recommend choosing the "Every Month" option as your default installment plan. Zen Planner will automatically create a monthly payment plan based on the first bill due date and the installment amount that you enter. The Pro-Rate option will pro-rate the installment amount based on the number of days between the membership begin date and the 1st of the next month. All subsequent bills after the first month will be due on the 1st for the remainder of the contract.
Signup Fee - If you enter a Signup Fee (formerly known as a "Down Payment"), Zen Planner will automatically add a bill due today for the Signup Fee amount. Many studios use the Signup Fee to include registration fees or uniform fees. It can also be used as a deposit to hold a person's space in a program.
Attendance - Many studios allow members with long term contracts with unlimited access to all classes at the studio. You can also choose to limit attendance to a specific number of classes per week or per month for the length of the contract.