The company's business model is based on an entry fee and contracts of variable duration that are tacitly renewed unless one month's notice in writing is given.
The judge at the Small Claims Court criticised the company for allowing the credit to roll on for at least one month before taking action.
In 2012, California WOW Xperience found itself entangled in a financial dispute and was sued in Thailand's Bankruptcy Court by Bangkok Bank Plc.
In August 2012, more than 200 members, many of whom found themselves unable to travel to California WOW Xperience's single remaining Thailand branch to make use of long term or lifetime memberships, filed complaints against the company in hopes of being refunded.
The Foundation for Consumers along with 100 former customers have filed a lawsuit against California WOW Xperience which is now awaiting a court order.
In 2016, CalFit itself abruptly closed doors on members in Hong Kong and Singapore, some who had been sold lifetime memberships.
[3][12] The council had met with company management in January, and made its censure public after the situation failed to improve.
Some of the sales even force the customers to take a picture with smiling face to prove the contracts are based on their own willing.
[14] A petition to wind up the company was lodged with the court in early July 2016, and creditors including prepaid members and staff have been coming forward.
[14][15] All outlets owned and operated by JV Fitness, the holding company, were officially closed on 12 July, and two senior executives were being interrogated by the Customs and Excise on suspicion of violating trade description law.