I have a client who owns two health and fitness gyms in different cities. Each gym is different; floor layout, schedule, equipment, workouts, etc.
The company website has information on both gyms, but customers have complained that it can be difficult to determine what information on the site pertains to which gym location.
The client’s solution (the customer is always right

) is to create two totally distinct websites; each identical in layout and design, but different in content *only* where the gyms differ.
The two options proposed below are equally easy to develop, but I am concerned about the very real possiblity of getting into trouble with Google or Yahoo through apparent blackhat SEO techniques, and equally concerned about how each subdomain (or subsection) will fare in search results. What you you guys and gals think:
Would it be better to host each separate website in subdomains:
[tt]pasadena.totalgyms.com/...[/tt]
[tt]losangeles.totalgyms.com/...[/tt]
Or would it be better to host on one domain, but divide the content in separate root directories like so:
[tt]www.totalgyms.com/pasadena/...[/tt]
[tt]www.totalgyms.com/losangeles/...[/tt]
Thanks for lending your expertise.
- Mike