What business model involves a personal trainer operating his own business within a larger fitness facility?
a. sole proprietor
b. facility owner
c. facility employee
d. independent contractor
e. limited liability company
Answer: d. independent contractor
Independent contractor is correct because in this scenario the trainer is in charge of obtaining their own clients and setting their own hours, but the client pays the larger business, which then pays the personal trainer a percentage. An independent contractor typically works within, but not for, a larger health club or commercial fitness facility.
Sole proprietor is incorrect because this trainer works alone, for themselves.
Facility owner is incorrect because this individual owns the gym where the trainers work.
Facility employee is incorrect because this individual trains the facility's clients and is paid a standard wage.
Limited liability company is incorrect because this is the larger corporation, not the trainer themselves.