Legal Question in Business Law in California

There is nothing illegal about it at all as long as there is nothing dishonest about the advertising and promotion of the event(s) and any local ordinances and permit requirements are complied with.

It's perfectly legal, though it may have to comply with various ordinances, etc. as Mr. McCormick notes. But the students will have to disclose who they are raising the money for. Most people expect fundraisers to support charities, non-profits, or needy individuals. There may not be a lot of interest in a fundraiser for a private business.

First of all, be aware that you are talking about three separate and distinct business relationships in this proposed process:

1. First, you have the deals between the students and the car-wash customers;

2. Next, the relationship between the fitness instructor and the students; and,

3. Finally, there's the landlord-to-fitness instructor lease relationship.

None of these is inherently illegal. However, each of the three parts of the overall scheme may have some minor potential for legal problems; e.g., does the city regulate or license amateur part-time car washes? Are there any rules about wasting water?

Also, there would be an overall coordination anc control problem in orchestrating the whole deal. Getting each student to participate and turn over an appropriate share of the income, for example.

Sounds complicated.