The fitness industry is about to experience a significant shift in how membership cancellations are handled. On May 15th, 2025, the Federal Trade Commission’s “Click to Cancel” rule officially takes effect, impacting how gyms can manage their cancellation processes. As a gym owner, understanding these changes is crucial for maintaining compliance while still maximizing member retention.
What’s Changing?
The new FTC rule is designed to make cancellation processes as straightforward as the sign-up process. For gyms that offer online enrollment, this means providing a simple, clear cancellation option that doesn’t create unnecessary friction for members who wish to end their membership.
What’s Allowed:
- One single incentive offer can be presented during the cancellation process
- The incentive (such as a gift card, discount, or special offer) must be presented in a clear, simple manner
- Members must be able to easily decline the offer and proceed with cancellation
- The cancellation process must be completed without additional hurdles
What’s Not Allowed:
- Multiple pages of retention offers before allowing cancellation
- Forcing members to contact customer service to complete cancellation
- Making incentives contingent on additional actions beyond clicking “yes” or “no”
- Hiding or obscuring the cancellation option
- Creating a deliberately confusing or frustrating cancellation journey
Turn Your Single Offer into a Powerful Retention Tool
The new rule still allows for one strategic retention offer during cancellation. This is your opportunity to make it count. Promotion Vault specializes in turning that single allowed touchpoint into a powerful retention tool that also gathers valuable member insights.
How It Works:
When a member initiates cancellation, present them with one clear, simple offer:
“Stay for 2 months, earn a $50 reward for your hard work.”
This approach is:
- Fully compliant with the new rule
- Simple to understand for members
- Easy to decline if they wish to proceed with cancellation
- Valuable enough to make members reconsider
Why Promotion Vault is Better Than Discounts
Offering discounts to retain members sends the wrong message and creates the wrong motivation:
- Discounts devalue your membership – They signal that your regular price is too high
- They attract price-shoppers – Members stay just for the discount period, then cancel when rates return to normal
- They create zero commitment – Lower payments don’t motivate actual gym attendance
- They train members to expect price cuts – Creating a cycle of cancellation threats to get better deals
Promotion Vault’s reward system takes a fundamentally different approach by offering a reward for a commitment. This strategy:
- Reinforces your pricing integrity – Your membership remains valuable at full price
- Motivates positive behavior – “Reward yourself for your commitment to fitness”
- Creates healthy habits – Members who stay 2 months to earn rewards are more likely to develop gym routines that stick
- Celebrates achievement – Positions the reward as something they’ve earned through commitment, not a desperate attempt to keep them
The psychological difference is profound. Discounts say “we’ll charge you less if you don’t leave.” Promotion Vault rewards say “we’ll celebrate your commitment to fitness when you stay.”
Turn Cancellations into Insights
The most powerful feature? Promotion Vault collects critical member data within the reward process. Finally understand why members are leaving so you can address root causes and prevent future cancellations. Transform each potential loss into actionable intelligence that improves your entire operation.
Remember: With the “Click to Cancel” rule, you only get one chance at a retention offer. Make it the right one.
Ready to implement a compliant, effective retention strategy that captures valuable member insights? Contact our team today.
This article is for informational purposes only and does not constitute legal advice. Gym owners should consult with legal counsel to ensure their specific cancellation processes comply with the FTC rule and any applicable state laws.