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A leading gym operator in the United States is the target of a new short report. The Thursday report from Bear Cave lays out a case that Planet Fitness has issues with overbilling, uncancellable memberships and is lying about the locations of its gyms.

What Happened: With over 2,000 locations in the United States, Planet Fitness PLNT is the leading franchisor of low-cost gyms.

At 40x forward earnings, investors believe the franchise network is healthy and has room to grow. The Bear Cave doesnt, an email report from Bear Cave and author Edwin Dorsey reads.

Dorsey said he used Freedom of Information Act requests to uncover hundreds of complaints against the gym chain by customers. A pattern of cancellation attempts being ignored was among the issues found in the investigation, he said.

Benzinga has contacted Planet Fitness for comment on the allegations in the short report.

Every year millions of Planet Fitness members attempt to cancel their memberships, Dorsey said.

The report says Planet Fitness relies on beginners and could see high cancellations as a result, but doesnt make it easy on customers.

The companys website says the cancellation can not be done online, over the phone, over email or through an app. Instead, customers have to cancel in person or send a letter with the reasons for the cancellation, according to Bear Cave.

Most Planet Fitness gyms require access to checking accounts or debit cards, a move that is done to prevent credit card disputes, according to the report.

The report lays out many complaints over the years and investigations into the practice. Bear Cave also cites a F rating for Planet Fitness from the Better Business Bureau and a 1.3 star rating out of 5 stars on Google reviews.

Another issue raised by the report is the allegation that Planet Fitness created a fake investor presentation slide to obscure franchisee saturation.

The report said that in many markets, the Planet Fitness locations are saturated. A map from the companys investor presentation shows dots of locations spaced out in states, a move that could be done to show room for unit growth to excite investors.

The Bear Cave finds it concerning that Planet Fitness appears to have simply faked its gym location slide in its most recent investor presentation.

The report said market saturation could be important for franchisors and investors.

After reviewing the evidence, The Bear Cave is left wondering whether Planet Fitness is actually a thriving gym franchise or an illegal billing operation with gyms on the side.

Bear Cave highlights a 2014 trademark filing from the company for one of its well-known phrases:Were not a gym. Were Planet Fitness.

Related Link: 10 Analysts Have This To Say About Planet Fitness

Why Its Important: Among the items in the short report from Bear Cave is a tweet from Lina Khan, the chair of the Federal Trade Commission.

The tweet says if you click to subscribe, you should be able to click to cancel and quote tweets a comment about Planet Fitness memberships.

FTC has made clear that to comply with the law, businesses must ensure sign-ups are clear, consensual and easy to cancel, Khan tweeted, with a link provided to file a complaint.

Along with facing competition from people working out at home or other gym locations, Planet Fitness could now see its membership cancellation policies called into question.

PLNT Price Action: Planet Fitness shares are down 4% to $80.08 on Thursday versus a 52-week range of $54.15 to $97.04.

Read Next:Why This Planet Fitness Analyst Says Short Seller's Allegations Of Unethical Business Practices Lack Fundamentals

Photo via Shutterstock.

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Queen Camilla withdraws from engagements after becoming unwell with chest infection

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Queen Camilla withdraws from engagements after becoming unwell with chest infection

The Queen is unwell with a chest infection and has withdrawn from her engagements this week, Buckingham Palace has announced.

A palace spokesperson said Camilla’s doctors “have advised a short period of rest” and added that “with great regret, Her Majesty has therefore had to withdraw from her engagements for this week”.

They added the Queen “very much hopes to be recovered in time to attend this weekend’s Remembrance events as normal”.

“She apologises to all those who may be inconvenienced or disappointed as a result,” they said.

It is understood the Queen is currently resting at home and is under doctor’s supervision.

Birgitte, the Duchess of Gloucester, has stepped in on Camilla’s behalf to attend the annual opening of the Field of Remembrance at Westminster Abbey on Thursday.

The Queen has also withdrawn from a Buckingham Palace reception for Olympic and Paralympic athletes hosted by the King on the same evening.

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Camilla recently returned from an overseas tour of Australia and Samoa. No further details regarding her illness or treatment have been released.

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Labour confirms U-turn on proposed ban on smoking and vaping in pub gardens

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Labour confirms U-turn on proposed ban on smoking and vaping in pub gardens

A proposed ban on vaping and smoking in pub gardens will not go ahead, the health secretary has confirmed.

Wes Streeting said the Labour government would not press ahead with the idea after it was floated over the summer and caused an outcry within the hospitality industry.

Back in August, Sir Keir Starmer said his government was considering a ban on outdoor smoking in a bid to bring down the 80,000 preventable deaths caused by smoking in the UK each year.

The ban would have covered smoking in outdoor restaurants and outside sports venues, hospitals, nightclubs, and in some small parks.

But speaking to Sky News this morning, Mr Streeting confirmed the U-turn and said: “We’re not going ahead or not proposing to go ahead with a [smoking] ban on outdoor hospitality.”

Politics latest: Badenoch assembles shadow cabinet

He said the policy idea was a “leak of government discussion” over the summer and promoted a “really good debate about whether or not it would be proportionate” when taking into account the public health benefits, but also the potential downsides.

“I think people know the UK hospitality sector has taken a battering in recent years,” he added.

“And we don’t want to add to their pressure – so we’re not proposing to go ahead with an outdoor hospitality ban at this time.”

However, Mr Streeting did say that the smoking ban would be extended to some outdoor spaces, including schools, hospitals and children’s playgrounds.

It comes as the government today introduces a “groundbreaking” bill that aims to create the “first-ever smoke-free generation”.

The Tobacco and Vapes bill, which was first introduced by Rishi Sunak but was dropped due to the general election, will prevent anyone who was born on or after 1 January 2009 from buying tobacco.

The ban will effectively raise the legal age for buying cigarettes in England by one year every year, until it applies to the whole population.

The policy to create a “smoke-free generation” was seen as a defining one of Mr Sunak‘s premiership and caused controversy within Tory ranks, particularly the more libertarian wing of the party.

The bill will also create limits on the sale and marketing of vapes to children, while separate environmental legislation will be introduced to ban the sale and supply of single-use vapes by next summer.

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The health secretary said “clamping down on the scourge of youth vaping” with licensing, tougher enforcement and a ban on the marketing of vapes to children and young people was “happily, an area of broad cross-party consensus”.

“I first proposed the generational ban for children, when I was the shadow health secretary,” he said.

“To my delight and surprise, Rishi Sunak took it up as prime minister and Conservative leader.

“I hope that cross-party support will sustain a new leader of the Conservative Party, but we’ll find out in the coming weeks.”

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Powys crash: Safety system ‘blocked’ before fatal train collision

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Powys crash: Safety system 'blocked' before fatal train collision

A safety system was “blocked” during a fatal train crash in Powys, an initial investigation has found.

The Rail Accident Investigation Branch (RAIB) has published its initial findings into last month’s collision, in which one person died.

David Tudor Evans, 66, was described as a “lovely guy, full of life and enjoyment”.

A further 15 people were taken to hospital for treatment after the crash near Talerddig, police said.

The collision – at around 7.26pm on 21 October – involved the 6.31pm Transport for Wales service from Shrewsbury to Aberystwyth and the 7.09pm Transport for Wales service from Machynlleth to Shrewsbury.

The RAIB said the units were fitted with wheel slide protection systems – described as being similar to anti-lock braking systems in cars – and an automatic sanding system.

Sand is discharged automatically via hoses when a wheel slide is detected during braking – creating more friction at the wheel-rail interface.

Powys train crash
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A map showing the location of the crash near Llanbrynmair and Talerddig in Powys

The on-train data recorder shows the wheel slide started during braking and was also present after the driver made an emergency brake demand.

An inspection of the sanding system fitted to Aberystwyth-bound train 1J25 showed the leading vehicle’s sanding hoses were blocked.

The RAIB says they were apparently unable to discharge sand.

The ongoing investigation is also looking at the speed at which the trains were travelling when they collided.

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Initial enquiries suggest the westbound train was travelling at a speed of between 15mph and 24mph, while the eastbound train was travelling at a speed of 6mph.

The RAIB says its investigation will look at the sequence of events which led to the crash.

As part of the probe, the agency will look at factors including the actions of those involved, the level of wheel-rail adhesion, and the behaviour of both trains during and after the crash.

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In a joint statement, Transport for Wales and Network Rail said they have “fully cooperated” with the British Transport Police, the Office of Rail and Road and the Rail Accident Investigation Branch.

“As investigations are currently still ongoing, we’ll continue to work together with investigators to understand what happened and await the full conclusion and recommendations of the investigation,” a spokesperson said.

The spokesperson said safety was the “main priority” for both companies and they had “carried out enhanced checks to the trains and the railway line”.

“At this early stage of the investigation, it’s fundamental that we await the findings of the full report and show sensitivity towards our customers, colleagues, the local community and the families of those affected by the incident,” they added.

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