As conversations about the FTC’s “Click to Cancel” rule heat up, many fitness studio owners are wondering how this will affect their businesses. While the rule isn’t law just yet, it’s shaping up to be a game-changer for membership-based models. To help you prepare, we spoke with Mathew from GymLawyers.com to unpack what this rule could mean for your studio and your clients.

What Is the Click to Cancel Rule?

At its core, the rule is about simplicity and fairness for consumers. It introduces two key changes:

1. The Click to Cancel Requirement

If a member can sign up online, they should be able to cancel online. No more lengthy 30-day notices, mandatory phone calls, or uncomfortable exit interviews. The cancellation process should be just as easy as joining.

2. The Negative Option Rule

Studios will need explicit member action or consent to convert a trial into a paid membership. This means no bait-and-switch automatic transitions from a trial to membership or discounted first month to a full-price plan without a clear heads-up.

Is It Law Yet?

The short answer: Not yet.

Here’s the timeline:

• The FTC has introduced the rule, but it hasn’t been published in the Federal Register (the government’s official rulebook).

• Once published, there will be a 30-60-day public comment period for feedback.

• After that, barring significant objections or revisions, the rule will take effect 180 days later—potentially as soon as May 2025.

While you’re not required to make changes immediately, now is the time to assess your policies and start preparing.

Why Does This Matter?

Some of it is backlash from Covid policies, but if you’ve ever struggled to cancel a subscription, you’ll understand why this rule exists. It’s designed to give customers greater control and hold businesses accountable for shady or restrictive practices.

For small fitness studios, this might feel like an added challenge, but it’s also a wake-up call: retention beats restriction. Instead of worrying about how to prevent cancellations, shift your energy toward creating an experience your members don’t want to leave.

Focus on Retention

Here’s the good news: Retention is not only better for your business but also more cost-effective. It’s significantly cheaper to keep a current member engaged than to attract a new one. Start investing in strategies that build loyalty:

• Create a great experience. Keep your facilities clean, offer engaging classes, and make personal connections.

• Celebrate progress. Highlight wins, whether it’s a fitness milestone or consistent attendance.

• Check in often. Don’t wait for a cancellation request—survey your members regularly and reach out when someone hasn’t been in for a few weeks.

When members feel valued, they’re far less likely to leave, no matter how easy it is to cancel.

Watch Out for State-Specific Laws

While the FTC rule is getting a lot of attention, studio owners should also stay aware of state-level regulations. For example, in New York, businesses must now cancel memberships within 10 days of a request, and states like California, Texas, and Florida already enforce similar consumer-friendly laws.

In addition, many states require gyms to maintain a surety bond if they collect prepaid memberships, which ensures that members are protected if the business closes unexpectedly. Ignoring these requirements can lead to hefty fines, legal trouble, and reputational damage.

Steps to Take Right Now

Even though the “Click to Cancel” rule isn’t law yet, here’s how to set your studio up for success:

1. Audit Your Cancellation Policies.

Review your current process. Can members cancel as easily as they signed up? If not, start streamlining now.

2. Check State Health Club Laws.

Look up your state’s Health Club Act by searching “[Your State] Attorney General Health Club Laws.” Many of these laws have been around for years but could come under scrutiny now that cancellation practices are in the spotlight.

3. Prioritize Retention.

Engage your members with regular check-ins, personalized attention, and a top-tier studio experience. If they’re happy, they won’t be looking for a way out.

4. Consult a Legal Professional.

Don’t navigate this alone. Reach out to a legal expert to ensure your studio is compliant with both federal and state regulations.

Long-Term Contracts and the Industry Shift

For studio owners who rely on long-term contracts, this could feel like an uphill battle. But remember, overly rigid policies can lead to negative reviews or even legal action. Focus on building relationships and trust instead of depending on contracts to keep clients locked in.