The Federal Trade Commission’s (FTC) new “Click-to-Cancel” rule will require fitness studios to change how they handle recurring memberships.
Scheduled to take effect in 2025 (with compliance dates varying depending on location), this regulation mandates that businesses offering recurring services provide an online cancellation process that is as simple as the sign-up process. This move is part of the FTC’s broader effort to build greater trust between businesses and their clients and is largely welcomed by consumers.
To help you stay compliant with the FTC’s new regulations and deliver the best possible experience for your clients, Mariana Tek is rolling out a click-to-cancel feature for recurring memberships. Read on to learn more about the law, this new feature, and best practices to navigate this change at your own studio.
What You Need to Know About the New FTC Click-to-Cancel Law
To get a better understanding of the public perception of the law and its impact on consumers, we spoke to Conscious Counsel, a law firm and member of our marketplace affiliate program. The Conscious Counsel team works with health and wellness entrepreneurs and have been working with several clients to update their agreements and processes to comply with the law.
“At Conscious Counsel, we feel privileged to be part of the process of improving consumer rights and streamlining operations for heart-led health and wellness businesses,” shared lawyer Cori Sterling. “Our top priority is ensuring that our clients can retain the recurring revenue they work so hard to generate.”
Their general perspective on the law is a positive one. “This is all about transparency, consumer rights, and fairness in the marketplace,” said Cori. “The requirements for people to easily unsubscribe or opt out from recurring payments are essential for the way business is conducted in 2025.”
The Details of the Click-to-Cancel Law
Starting in May, businesses offering subscriptions or recurring memberships in the US will need to comply with new rules designed to protect consumers.
Here’s a quick overview:
- Click-to-Cancel Requirement: If a client can purchase a recurring membership online, they must also be able to cancel it online with equal ease. This means no more complicated cancellation processes that require phone calls or email requests.
- No Notice Periods Allowed: Businesses will no longer be allowed to impose notice periods (e.g., 30/60/90 days) for cancellations. The process must be straightforward and immediate. Studios can still put minimum commitments in place, which will mandate the consumer hold the contract for that amount of time before cancelling on their own.
- Clear Contract Terms: Membership contracts will remain in place, and businesses must honor the terms agreed upon when the membership is first purchased.
- Post-Cancellation Communication: Studios can still reach out to clients after they’ve canceled to maintain positive relationships and potentially offer additional services or re-engagement opportunities.
As Cori says, “At the end of the day, it comes down to reasonableness—how reasonable and easily accessible did you make it for someone to opt out from a recurring payment?”
How Mariana Tek Will Help You Stay Compliant
Staying compliant with new regulations can seem daunting, but we’ve got you covered. Here are some key Mariana Tek features – including some new developments coming in May – that will help you stay ahead of the game and get compliant before these regulations take effect.
- Clear, Concise Contract Terms
- 🆕Transparency: Cancellation policies will be displayed clearly on the purchase page, allowing customers to make informed decisions before they purchase.
- 🆕Signed Agreements for Recordkeeping: After a purchase, the signed agreement will be sent to the customer for their records.
- 🆕Purchase Agreement Reminders: Staff will be reminded to attach a purchase agreement whenever you create a recurring membership contract.
- Pre-payment Review: Customers will be prompted to review the purchase agreement on both web and mobile.
- 🆕New Self-Service Cancellation
- Any recurring membership purchased online (In USD) will have a self-service cancellation button available on both web and mobile platforms.
- Minimum Commitment Periods: If membership includes a minimum commitment, members can still initiate cancellation at any time. They’ll be required to fulfill the commitment period before they stop being charged.
- Cancellation Survey: When a member cancels, they’ll be asked to complete a survey to share the reason for their decision.
- Reporting Features to Track Cancellations
In the Membership Details Report, studios can easily track cancellation data. Key data such as date of cancellation and reason are recorded in this report.
Best Practices to Manage This Change at Your Studio
While these new rules are widely supported by consumers, boutique studios may be concerned about how the new simplified cancellation option could impact their revenue. Here are some tips to refine your membership management and customer retention strategies to minimize revenue impact and customer churn:
- Set Clear and Transparent Terms: Make sure your membership terms are clearly outlined on your website, particularly in your Terms of Service and Purchase Agreements.
- Send Automatic Purchase Agreement Emails: Mariana Tek will automatically email signed purchase agreements to clients when they sign up for memberships, offering full transparency and building trust from the start.
- Train Your Front Desk Staff: Equip your front desk staff with the knowledge to review membership terms with clients during the sales process. Ensure they can confidently explain the terms and address any questions to prevent misunderstandings.
- Utilize the Membership Recurring Fees Forecast: Now that clients can cancel their memberships online, revenue may fluctuate more than it has in the past. Stay updated on your revenue regularly using Mariana Tek’s Membership Recurring Fees Forecast tool.
How to Prevent Membership Churn Before It Happens
Preventing membership cancellations is far more effective (and less expensive!) than trying to win back members after they’ve canceled. Here’s how you can stay proactive and decrease churn before it happens:
- Leverage Xplor Growth to Engage Current Clients: Use automated messaging to celebrate client achievements, foster a sense of community, and encourage retention.
- Monitor Client Sentiment and Gather Feedback: Use CSAT scores to gauge member satisfaction. If any member rates their experience 3 or lower, make a personal connection to address their concerns and improve their experience.
- Embrace Gamification to Boost Engagement: Add gamification elements like rewards, competition, or progress tracking to keep members engaged and boost retention.
- Set Regular Reviews of the Membership Details Report: Mariana Tek’s reports and dashboards allow you to understand trends at your studio. Use the Membership Details Report to track cancellations and gain insight into why members are leaving. The cancellation reason (if provided by the customer) will be included in the report.
- Automate Win-Back Campaigns in Xplor Growth: After a member cancels, all is not lost! With Xplor Growth, you can set up an automated email or text campaign to reconnect after a certain amount of days, offering them incentives to return to your studio or try a new offering.
Mariana Tek is dedicated to helping you provide the best possible experience for your customers, while navigating mandatory regulatory changes. By leveraging these tools and strategies, you can ensure your studio remains compliant, reduce churn, and enhance customer satisfaction.
We’re here to help you navigate this change! For any questions or support with these updates, feel free to reach out to our support team. You can also explore Conscious Counsel through our Affiliate Marketplace Program in Xplor Growth here.
by Colleen Trinkaus
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First published: March 21 2025
Written by: Xplor Mariana Tek