Sean Kirby, the vice president of sales at Jonas Fitness, shares tips on how to prep for Click to Cancel.
In July 2025, the Federal Trade Commission’s new ‘Click to Cancel’ rule will go into effect, requiring businesses, including health and fitness clubs, to provide a straightforward method for consumers to cancel recurring memberships or subscriptions. Failure to comply with this legislation could result in significant penalties and damage your club’s reputation. While this legislation aims to reduce friction for consumers, it introduces compliance challenges for club operators who rely on auto-renewing memberships as a key revenue stream.
Under the new rule, if a consumer signs up for a membership online, they must be able to cancel it online just as easily, ideally with the same number of steps. This new rule includes any offer made through a website or app, which must now have a cancellation mechanism that’s easy to locate and use. Some states already have existing mandates around online cancellations, but the FTC’s national standard raises the bar further.
To comply with the ‘Click to Cancel’ rule, operators must rethink how they handle cancellations and communication with members. It’s not just about adding a button to the website — it’s about transparency, explicit language, and streamlined internal workflows. Clubs must ensure all online agreements clearly outline auto-renewal terms, potential price increases, and billing frequency. Emphasizing transparency and clear communication will keep operators informed and prepared for the changes.
In preparation, clubs have a few viable paths. The most straightforward is to create a custom cancellation form hosted on the club’s website. This form should notify staff quickly, triggering a quick review of the member’s account and agreement. After reviewing the cancellation request, the status must be communicated clearly and promptly to the member if the cancellation cannot proceed due to outstanding terms or balances. The key is a fast, trackable, and member-friendly process.
Embedding cancellation forms within a member portal or mobile app can further streamline the experience. Automated SMS alerts and email confirmations help ensure nothing slips through the cracks, and members feel acknowledged as soon as they submit a request.
While cancellation must be easy, clubs aren’t prohibited from attempting to save a membership, as long as the process remains transparent and does not obstruct cancellation. If a member indicates they’re considering canceling, offering alternatives such as a membership freeze or modified plan can be appropriate, so long as those options are framed as choices and not barriers.
For club operators seeking additional support, automated third-party billing, streamlined member services, or help handling account freeze workflows, there are options. Working with service providers that operate on the club’s behalf can offer additional peace of mind, especially for smaller clubs with limited staff. This hands-off approach can provide reassurance and support in navigating the ‘Click to Cancel’ rule.
Ultimately, the ‘Click to Cancel’ rule is a call to action for operators to elevate their member experience. By embracing transparent, compliant, and thoughtful cancellation practices, clubs are not only avoiding regulatory compliance consequences but also building trust and goodwill with their member base. This rule, while challenging, also presents an opportunity for clubs to enhance their operations and member relationships, fostering a sense of optimism about the future.
