The FTC's Click-to-Cancel Rule: What It Means for Gyms
Sidwell Kiser
Experienced Sales & Marketing Strategist | Driving Business Growth & Operational Excellence
If you have any sort of social media, you’ve probably heard about the FTC’s “click-to-cancel” rule. And if you’re in the fitness industry, it’s likely the only thing filling your feed right now. This new regulation, effective January 14, 2025, is designed to simplify the cancellation process for recurring subscriptions and memberships, empowering consumers like never before. While it’s a win for gym-goers, the rule presents a challenge for fitness facilities, particularly for big players like Planet Fitness , Crunch Fitness , and YMCA of the USA , known for their complicated cancellation procedures and extended fees.
But not every gym is bracing for the worst. While some scramble to comply with the changes, others are capitalizing on this moment to modernize their image and build stronger connections with members.
What the Rule Entails
The “click-to-cancel” rule introduces significant changes:
? Streamlined Cancellations: If a membership can be signed up for online, it must also be cancelable online without unnecessary hurdles.
? Clear Disclosures: Terms of service, renewal timelines, and cancellation methods must be transparently disclosed.
? Optional Sales Offers: Businesses cannot require members to listen to sales pitches or navigate additional offers before completing a cancellation unless explicitly agreed upon.
? Renewal Reminders: Companies offering automatic renewals must notify members in advance, providing ample time for informed decisions.
For gyms accustomed to retaining members through complex cancellation policies, these changes mean serious operational and cultural shifts.
Planet Fitness: A Fresh Start for the New Year
Planet Fitness , one of the largest gym chains in the world, is not only adapting to the FTC’s new rule but is also seizing the moment to inspire gym-goers just in time for the New Year’s rush.
In late 2024, Planet Fitness began rolling out sleek new gym designs in select locations, offering a fresh and modern look:
? All-Black Equipment: A bold move away from their signature purple-and-yellow machines, the new black equipment exudes sophistication and appeal.
? White and Black Overtones with Purple Undertones: This contemporary color scheme retains hints of Planet Fitness’s iconic branding while signaling a more polished and modern era.
? Streamlined Layouts: The updated gyms emphasize open, airy spaces, creating a more welcoming and motivational atmosphere. Equipped with deadlift platforms, power racks, and turf.
The timing couldn’t have been better. With many people setting fitness goals for the new year, Planet Fitness’s modernized spaces are a perfect motivator for potential members looking to jumpstart their fitness journeys. By aligning the updates with the season of resolutions, the chain positions itself as a forward-thinking brand that inspires trust and energy while delivering on its promise of a “Judgment Free Zone.” The social media response has been immense, fitness influencers nationwide are taking to the apps to express their love for the new layout. ( https://www.tiktok.com/t/ZTYTVPaUs/ )
Eos Fitness Will Power & Whimsy
EōS Fitness has taken a different approach to adapt to the changing landscape. The gym chain recently introduced Will Power, a quirky and charismatic mascot designed to embody the brand’s playful yet determined spirit.
The timing couldn’t be better. With the “click-to-cancel” rule looming, Will Power provides a sense of trust, humor, and community, reminding members why they joined in the first place. By combining a strong identity with a lighthearted approach, EōS turns a potential challenge into an opportunity to reinforce loyalty.
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The Challenges for Gym Owners
While Planet Fitness and EōS are making proactive changes, other gyms face a steeper climb. The new rule could bring:
1. Administrative Costs: Updating systems and retraining staff to ensure compliance.
2. Revenue Impact: The ease of cancellation may lead to increased churn, especially for gyms that rely on “low-cost, high-volume” membership models.
3. Increased Scrutiny: Transparency requirements could expose unfair policies, damaging consumer trust.
How Gyms Can Thrive
To survive—and thrive—amid these changes, gyms must focus on retaining members through positive experiences rather than complex contracts:
? Enhanced Member Engagement: Offering unique classes, community events, and personalized support can help gyms build long-term relationships with members.
? Flexible Membership Options: Providing options to freeze or pause memberships could reduce cancellations.
? Modernizing Spaces: Following Planet Fitness’s lead with updated aesthetics and better equipment can make gyms feel fresh and inviting.
? Transparency as a Strength: Fair policies and clear communication will earn member trust and loyalty.
The Big Picture
The Federal Trade Commission 's click-to-cancel rule signals a seismic shift for the fitness industry. While it presents challenges, it also opens doors for gyms to modernize, build trust, and embrace new opportunities.
Planet Fitness’s sleek redesign—launched at the perfect time to inspire New Year’s fitness goals—and EōS Fitness’s playful Will Power mascot showcase two ways gyms can differentiate themselves in this new era. By focusing on transparency, community, and innovation, the industry can turn regulatory compliance into a competitive advantage.
Sources:
? Federal Trade Commission. “FTC Announces Click-to-Cancel Rule”
? MarketWatch. “The FTC is making it easier to cancel subscriptions”
? Community Rec Magazine. “Understanding the FTC’s Click-to-Cancel Rule”
? Club Industry. “Planet Fitness Begins to Modernize Gyms with Contemporary Updates”