The FTC’s new Click to Cancel rule introduces updated requirements for how businesses manage subscription-based billing. For gyms, especially those using recurring membership models, it is important to understand exactly what the rule mandates—and whether it applies to your business model.
Let’s take a closer look at what Click to Cancel is, why it was introduced, and what it means for gym owners in practice.
Understanding the Click to Cancel Rule
The Click to Cancel regulation is part of a broader FTC update to “negative option marketing” policies—practices in which a business continues charging customers until they take action to cancel. The new rule, which takes effect on May 14, 2025, requires that consumers who sign up for a subscription online must also be able to cancel it online in a similarly simple and accessible way.
This change aims to prevent situations in which customers experience friction while trying to cancel recurring services. Non-compliant practices include requiring a phone call to cancel, hiding cancellation options behind multiple steps, or failing to process cancellations in a timely manner.
In essence, the FTC rule establishes that canceling should be no more difficult than signing up.
Does the Rule Apply to Every Gym?
Not all gyms will be affected by this update.
The rule specifically applies to businesses that allow fully self-serve online signups. If your gym enables prospective members to purchase a recurring membership directly through your website—without consultation, onboarding, or interaction with staff—you are likely subject to the Click to Cancel requirements.
However, many coaching gyms operate using a different model. Many functional fitness and personal training facilities rely on structured onboarding: free intro sessions, No-Sweat Intros, in-person consultations, or goal-setting meetings before a membership is initiated. If your membership sales process includes any of these touchpoints, you are generally exempt from offering online cancellation under the new FTC rule.
Expert Insight from Gym Lawyers
Not sure whether the rule applies to your gym—or if your cancellation process needs to change at all? I asked Matt Becker, Esq., lead attorney at Gym Lawyers PLLC, to weigh in. Here’s what he had to say:
“A lot of gym owners are scrambling to ‘fix’ cancellation processes that don’t actually need fixing. The Click to Cancel rule applies to a specific kind of business model—not every gym. The real risk isn’t just non-compliance, it’s making reactive changes that hurt your retention and aren’t legally required in the first place.”
He added:
“Not every gym needs to panic about the Click to Cancel rule—but if you’re selling memberships online without talking to anyone first, you probably need to take a closer look. And even if the rule doesn’t technically apply to you, your software might already be rolling out features anyway. It’s worth having someone walk through your setup so you’re not blindsided—or accidentally making things harder on your team.”
How Cancellation Features Are Being Rolled Out
Some gym software providers have proactively added cancellation request features to member-facing apps and portals to support FTC compliance. In many cases, these features were rolled out and activated by default—without an opt-in option or advance notice to gym owners. As a result, some owners only discovered the change when members unexpectedly began submitting cancellation requests.
This feature allows a member to request a cancellation through their account interface, with the request routed to gym administrators for manual processing before the next billing date. While this approach may meet the technical requirements of the new rule, it may not align with how coaching gyms operate.
For businesses that already use structured onboarding and high-touch offboarding, the sudden appearance of a cancel button can frustrate both staff and members. If your gym doesn’t rely on self-serve digital signups, this kind of feature may not be necessary, and in some cases, it can undermine the retention processes you’ve worked hard to build.
Can the Feature Be Turned Off?
In many platforms, yes. Gym owners can toggle off the cancellation request option in their admin settings, provided they are not legally required to maintain it. Before doing so, it is recommended that you document your signup process and review your cancellation terms to ensure they are clear, accessible, and aligned with applicable local laws.
Why This Matters for Coaching Gyms
The impact of this rule extends beyond compliance. It also raises important questions about how gym owners manage member engagement at the end of a contract.
In many coaching environments, cancellation is more than a transaction—it’s an opportunity. A well-timed conversation can uncover unmet needs, offer a better-fit membership, or strengthen the relationship with the departing member. Defaulting to an impersonal form or app-based request may bypass those opportunities entirely.
For gyms that have built their model on relationships, community, and high-touch service, the rollout of Click to Cancel features, especially without context, can feel misaligned with their operations.
What Gym Owners Should Do Next
The Click to Cancel rule takes effect on May 14, 2025. If your gym allows fully digital signups, you will need to provide an equally simple way to cancel. If you require consultations, goal reviews, or onboarding sessions before a membership begins, your existing cancellation process may already comply with the standards.
Gym owners are encouraged to review their signup processes, member agreements, and software settings to determine any necessary adjustments. While the rule’s intent is to protect consumers, implementation should also reflect the daily operations of your gym.
Ultimately, the goal is to establish a cancellation process that is clear, fair, and consistent, while maintaining the opportunity to connect with your members throughout the process.
Need help navigating cancellations in a way that fits your business?
Book a demo with Kilo to see how our gym management software helps coaching gyms customize the member experience—from sign-up to cancellation—while staying organized and compliant.
Talk to Gym Lawyers if you’re unsure how the Click to Cancel rule impacts your contracts, terms of service, or legal responsibilities as a gym owner.
