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.
TLDR – FTC “Click to Cancel” Rule & Gym Retention Strategy
- Retention opportunity – Use your single offer wisely: rewards > discounts.
- Takes effect May 15, 2025 – Gyms must make cancellations as simple as sign-ups.
- One offer allowed – You can present one clear incentive (e.g. gift card, reward) before cancellation.
- No tricks – No hidden buttons, endless offers, or forcing members to call customer service.
- Why rewards work – Discounts cheapen your brand. Rewards uphold pricing integrity, build engagement.
- Member insights – Promotion Vault captures data on cancellations, turning them into operational intelligence.
- Key takeaway – You only get one shot. Make your cancellation offer compliant, compelling, and insight-driven.
Chapters
- What’s changing?
- Turn Your Single Offer into a Powerful Retention Tool
- Why Promotion Vault is Better Than Discounts
- Turn Cancellations into Insights
- FAQ – FTC “Click to Cancel” Rule for Gyms
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 (e.g. gift card, discount, 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? Get a demo today!
FAQ – FTC “Click to Cancel” Rule for Gyms
Q: When does the rule take effect?
A: May 15, 2025. From that date, gyms must make cancellations as easy as sign-ups.
Q: What exactly changes?
A: If you offer online enrollment, you must also provide a clear, simple online cancellation option. No hidden links, no phone calls required.
Q: Can I still try to retain a member during cancellation?
A: Yes, but only once. You’re allowed a single incentive offer, clearly presented, with an easy “yes” or “no” option.
Q: What counts as an allowed offer?
A: Rewards, discounts, or perks are fine — as long as they’re simple, easy to decline, and don’t require extra steps beyond “yes” or “no.”
Q: What’s not allowed?
A: Multiple offers across multiple screens, forcing members to call or email staff to finalize cancellation, making the incentive contingent on extra actions (forms, surveys, upsells), hiding or obscuring the cancellation option.
Q: Should I use a discount as my one offer?
A: No. Discounts devalue your membership and attract price-shoppers. Instead, use a reward-based incentive that reinforces full-price value and celebrates member commitment.
Q: Why are rewards better than discounts?
A: Rewards: Keep your pricing integrity intact, motivate positive behaviors (attendance, consistency), build habits that stick, feel like recognition, not desperation.
Q: Can I gather insights when members cancel?
A: Yes. Promotion Vault’s process ties rewards to quick feedback, giving you critical data on why members leave — turning cancellations into operational intelligence.
Q: What’s the main takeaway?
A: You only get one chance at a retention offer. Make it compliant, compelling, and insight-driven.
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.