This time around, I would like to reiterate the complaints that I have against Ultimate Studio Martial Arts in a more explicit manner, as the rebuttals and comments do not seem to address my issues. Please understand my complaint and that I have nothing against the way in which students are instructed nor do I have a complaint about any particular programs or activities. In fact, Ultimate Studio is very creative when it comes to providing activities for your children and, in the beginning, I was quite impressed with their organization. But, again, this is not what I am addressing. I am addressing the financial practices of Ultimate Studio. You must understand both aspects, instructional and financial, in order to understand what is going on. Also, please keep in mind that I am writing this complaint to inform others of the business practices conducted by Ultimate Studio when procuring new students and also to expose Ultimate Studio’s unprofessional policies. My aim is to reveal these deceptive policies so that others may not fall victim to such crude schemes both nationwide and locally. I will present the facts from my experience dealing with this company. Let me begin by first addressing the fact that when I first signed my child up, the TOTAL AMOUNT due on the “Agreement” was left blank. (Here is how it appears: Total Sales Price $__________) I am confident that if the total amount of the contract (which was $1548) were properly filled in, then my child would have not joined. I am positive that when all of you reading this purchase an item or service you are provided the TOTAL AMOUNT of the item or service on the receipt. Well, here, this was not the case. And this is where the deceit lies because the Program Director slyly wrote the amount $219 on the contract, as if this were the TOTAL AMOUNT owed. Do you think that I was supposed to calculate the TOTAL AMOUNT myself? This would be absurd. Clearly, Ultimate Studio lacks common business ethics when it comes to providing accurate billing statements.
All right, let me now address the HIDDEN FEES. I will list the fees below. Please keep in mind that these fees were NOT discussed or presented during my meeting with the Program Director when first joining, and this is were the deception lies. Also, I received over thirty (30) fliers during my child’s three month involvement with Ultimate Studio and I can assure you that the majority of these fliers are not readily available to parents nor are they prominently displayed in the studio. In fact, those fliers outlining unexpected fees are not given to the parents until that specific event draws near. So how am I supposed to anticipate several hundred dollars in fees when first signing up if nothing is ever mentioned of them and Ultimate Studio keeps them secret until that event presents itself. This is completely unprofessional. As a newbie to the deceptive practices of Ultimate Studio, I did not anticipate any fees except, of course, the initial $219 registration and month-to-month tuition fees thereafter. How could Ultimate Studio expect a parent to anticipate any fees other than tuition fees, especially if they are new to the sport and its customs? If miscellaneous or mandatory school fees are not mentioned at the outset, then how can a school expect parents or adults to make informed decisions about whether they want to sign up? This would be similar to staying in a hotel room and paying a flat fee of, let’s say, $219 a night. But suddenly, as the day goes by, you receive a phone call that you will now be charged $1.00 for each gallon of water you use and the next day you are told that you will be charged $4.00 for every kilowatt-hour of energy used and so on. If you do not have the common sense to realize that this hotel’s practices are unfair and unprofessional, then you deserve to be taken for a ride. So here are the HIDDEN fees:
1) $50 belt test fee (this fee gradually increases based on your child‘s belt rank)
2) $370 mandatory sparring equipment (I understand sparring is dangerous, but this “mandatory fee” was not discussed and I was not aware that students MUST spar. I have no problem with the price or quality of the equipment, I am stating that this fee should have been discussed when signing up.)
3) $50 late payment fee (this fee is more harsh than credit card companies.)
4) $20 Competitor Fee (a mandatory fee for your child to participate in Intramural School Tournaments.)
5) $5 Spectator Fee (this is charged to those loving parents and relatives who want to watch their child participate in Intramural School Tournaments.)
These are the “HIDDEN” fees that I came across during my child’s involvement with Ultimate Studio and although they may be NECESSARY to pay rent and maintain the business, I am simply stating that these fees should be discussed when first registering. I am sure that there are more, and I am confident that the owner and the other “insiders” know exactly what I’m talking about and why I am so passionately addressing these issues. I would advise Ultimate Studio to take a look at the “BUSINESS” portion of the company and reform its practices and policies. At least, provide the parents with enough information at the outset so that they may make informed decisions about if they can afford to sign up their children.
The other issue that I would like to address is the complete deception regarding the “Contract” or “Agreement” itself. Now, having contacted several companies, and doing thorough research, I discovered that this document, the one you MUST sign, is a financial instrument or a loan. Here is how it works. I sign the document stating that I want to sign up for a year and so this is my commitment and it is supposedly binding. This loan, obtained by Ultimate Studio is then sold to a third party, the same way your mortgage may be sold by the bank to third parties. But keep in mind that you were never told that you signed a loan agreement and this is completely illegal. So, Ultimate Studio is given a certain amount of money up front based on the total sale price of the contract. This is why it is NOT so easy to cancel or end your child’s involvement with Ultimate Studio or other martial arts schools. Having attempted to cancel my child’s involvement with Ultimate Studio, I was ignored and told that the owner must speak to a third party. So I wondered what third party is the owner referring to because I was never told that a third party was involved. Soon, after doing some research, I discovered that the third party is the finance company that fronts money to the school based on the sale of these loan agreements. This is entirely illegal. Unbeknownst to me, I signed a loan for Ultimate Studio in the amount of $1548. Once you try to cancel, you will be ignored and forgotten.
Again, I have no problem with the “instructional” aspects of Ultimate Studio. If Ultimate Studio has the wherewithal to reform its deceptive business practices, then I could honestly say that I would recommend going there. But, since there is so much deceit, I would recommend keeping yourself informed when signing up. I am not trying to ruin any martial arts schools either locally or nationally. I am trying to ruin the “business practices“. My case has merit and I am standing behind these facts 100%. If any parent reading this decides to join Ultimate Studio or any other martial arts school, then please DO NOT sign a CONTRACT. A martial arts school that is confident in its retention of students would not recommend parents to sign their child up for either 3 months, 6 months or even 1 year. Think of a university or college, do they encourage parents or students to sign a contract for a year or more in order to attend the school? NO! The student may leave the school whenever necessary and although they may be financially penalized, they will not be locked into a long term contract. Also, at a university or college parents and students are provided with the TOTAL AMOUNT of tuition for the year because most universities and colleges are confident in their programs and instruction and do not need to deceive parents or their students. And so, isn’t Ultimate Studio supposed to be a school? Why would they lock a child into instruction for such long periods of time? Why would they not provide the TOTAL AMOUNT of tuition on the contract?
Please, read the above complaint carefully. It has been one month since I first ran into problems with Ultimate Studio and the issue has yet to be resolved. I tried many times to resolve this issue thinking that the owner was a reasonable business person. I would like to end this on a positive note, so I would request that Ultimate Studio reform its business practices, and if it can do that, then I wish you much success in the area. I hope that I will be the last person to confront these issues. And for those who are defending Ultimate Studio (Insiders, students, etc.) you have not been through what I went through, so your remarks are irrelevant and do not even address my issues. By the way, I am serving as an example of standing up for my rights as a consumer and I hope that others will do the same. Good luck to those venturing into the sport of martial arts! |