World Gym closes Benton County sites; Lawsuit claims owners behind $479,000 on rent

NWA Democrat-Gazette/ANTHONY REYES • @NWATONYR Developer Michael Charlton’s lawsuit says the owners are behind in payments at the Lowell site, owing $323,335.
NWA Democrat-Gazette/ANTHONY REYES • @NWATONYR Developer Michael Charlton’s lawsuit says the owners are behind in payments at the Lowell site, owing $323,335.

Three Benton County World Gym locations closed Tuesday as the local franchisees deal with a court case claiming they are behind on rent payments.

Gyms in Washington County at 2035 N. College Ave. in Fayetteville and 866 S. 48th St. in Springdale remain open. The World Gym of Northwest Arkansas website only listed the Washington County sites Tuesday.

Rhett and Tania Garner posted a note on Facebook stating, "The three northern locations of World Gym have been on a lease and we were not able to work out some issues -- they are beyond our control."

Michael Charlton, a Bentonville developer, filed a lawsuit in Benton County Circuit Court last month claiming Rhett Garner was $476,423 late on rent payments as of Jan. 19.

Additional plaintiffs in the lawsuit include Charlton Development Co., Brightwood Business Park, WGL LLC and GG of NWA. The companies manage the gyms sites at 2003 S.W. Regional Airport Blvd. and 2614 S.E. J St. in Bentonville and 1607 Empire St. in Lowell.

"Because of ongoing litigation, I've been asked not to comment on the situation," Charlton said when reached by phone Tuesday.

The Garners didn't reply to email seeking comment. An employee at the Fayetteville site referred questions to a corporate number for the local franchise. No one answered the line in four attempts to get comment.

The lawsuit says the Garners are furthest behind in payments at the Lowell site, owing $323,335. The lease began Nov. 14, 2006, with a monthly rate of $45,000, increasing annually to $55,000 a month in year 10.

Charlton also claims in the lawsuit Garner owes $54,645 on a 10-year, $200,000 promissory note he gave the gym operator to buy equipment in 2004.

The Garners said in their Facebook post they own the Washington County locations and that's why they can remain open. They stated Benton County members can use their memberships in Washington County.

"We are working fast to ensure to take care of all members and their questions," the social media post stated.

NW News on 03/25/2015

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