It's the perfect business model. The entire concept is to lure hams, with new year resolutions and other temporary intentions to make a change, into contracts that are so cheap they don't overthink before signing up and also don't motivate to actually go. Add judgement-free-bullshit, free pizza and bagel nights, and have many hams sign up and pay, but never show up to actually use the equipment. Evidence that this works very well is that you could easily eat the equivalent value of the membership fees in pizza and bagels and basically use their gym for free. But since their target audience doesn't actually use gyms, this is no problem for them.