Independent Contractor Payments (Agent / Split Payment Model)

Overview

We would like GymFlow to support an “Independent Contractor” payment model, similar to how platforms like Mindbody handle contractor payments.

This would allow gyms to operate under an agent/platform model, where trainers can receive payments directly from clients, while the gym retains a commission or platform fee.

Problem

Currently, all payments flow through the business as the merchant of record. This means:

• The gym recognises 100% of revenue

• Trainers are paid via payroll or via invoice

This limits operational and commercial flexibility for freelance or hybrid employment models and VAT efficient structures.

Proposed Solution

Introduce Independent Contractor Profiles with Payment Routing, including:

1. Contractor-Level Merchant Accounts

• Allow trainers to:

  • connect their own stripe payment account.

  • receive payments directly from clients

• The gym business acts as a platform/agent, not the primary merchant

2. Split Payments at Checkout

At the point of sale:

• A single transaction is processed

• Payment is automatically split:

  • % to trainer (service provider)

  • % to gym (platform/commission fee)

Example:

• Session price: £50

• Trainer receives: £35

• Gym receives: £15 (VATable)

3. Flexible Revenue Attribution

• Option to define:

  • fixed fee per session OR

  • % commission OR

  • tiered commission (based on volume)

4. Contractor vs Employee Logic

Allow staff profiles to be flagged as:

• Employee (current model)

• Service Provider (new model)

This determines:

• payment routing

• reporting structure

• tax handling

5. Reporting & Data Ownership

• Gym retains access to:

  • all bookings

  • all client data

• Contractors can:

  • view their own earnings and sessions

• Optional:

  • contractor-level reporting dashboards

6. Fees & Statements

• Contractors receive:

  • their own payout reports

  • visibility of processing fees (if applicable)

• Gym receives:

  • platform earnings summary

7. Lifecycle Management

• Ability to:

  • deactivate contractor accounts

  • stop payment routing

• Contractor responsible for:

  • managing their connected payment account (if applicable)

Benefits

For Gym Operators:

• Enables freelance / hybrid workforce models

• Improves margin control (platform fee vs payroll cost)

• Potential VAT efficiency (depending on structure)

• Reduces payroll complexity

For Trainers:

• Greater earnings transparency

• Faster / direct payouts

• Ability to operate semi-independently

For GymFlow:

• Expands into platform-based gym operations

• Aligns with modern marketplace models.

• Strong differentiator vs competitors

Notes / Considerations

• Needs clear handling of:

  • refunds

  • disputes

  • chargebacks