---

@Small town wrote:

...Instead of the gym paying him, he collects members fees and then pays the gym facility for its use. This way they avoid having to send him a 1099...

---

If he's not an employee of the gym, his clients at the gym sign up with him independently as their personal trainer, and his only relationship with the gym is gaining access to the facility (exclusively or otherwise) - and I would presume that there are clauses that limit the gym's liability for his professional activities, etc., I don't see why the gym would be paying him and how this could avoid having to send him a 1099.

Under this arrangement, he doesn't receive any pay from the gym and the rent or commission (or whatever it may be called) is an expense of his that needs to be accounted for separately.

If the gym is supposed to pay him for certain services he renders to the gym, a 1099-MISC would have to be issued if that amount is $600 or more.  Generally, you can't offset whatever expense he has to pay the gym against that amount.