There is a very large gym near us that uses contracts like this. You can pay upfront the total cost of tuition, uniforms, competition fees, etc for the year at a discounted rate. Or you can pay monthly, but the cost is significantly more. If you are unable to participate for ANY reason, even injury or moving, you can buy out your contract for $500 if there are less than 6 months left on it. If you pay in advance, there are no refunds. My CP has never quit anything mid-season, but she has a medical condition that lands her in the hospital at least a few times a year. She has not missed one single practice yet this season, but the thought of her being sidelined and me still having to foot the cheer bill was enough to cross that gym off my list.