This article guides how to comply with New York’s updated health club contract and cancellation requirements. Follow these steps carefully to avoid legal penalties and maintain a seamless member cancellation experience.
Background and Context
New York state law now mandates that fitness clubs provide a simple online cancellation process for memberships. Note that this requirement is separate from the upcoming FTC rule changes expected in May 2025. For full legal details, refer to: NY General Business Law, Section 624.
Step-by-step Cancellation Process
For Members:
- Initiate Cancellation: Members must tap the “Cancel Membership” button in the My Memberships section of the member app or web portal (or “Cancel Add-on” in the My add-ons section in the member app).
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Send email request: this action will open the member's default email client with a pre-filled cancellation request containing:
- Member's full name
- Member's registered email address
- Membership plan details
Elite customers can custumize the text of the email using the Dictionary feature in the dashboard. Search for the following keys:
APP_CANCEL_MEMBERSHIP_EMAIL_SUBJECT
APP_CANCEL_MEMBERSHIP_EMAIL_BODY
APP_CANCEL_ADDON_EMAIL_SUBJECT
APP_CANCEL_ADDON_EMAIL_BODY
WEB_MEMBERSHIP_CANCELLATION_REQUEST_SUBJECT_EMAIL
WEB_MEMBERSHIP_CANCELLATION_REQUEST_BODY_EMAIL
Important!
The text includes dynamic content, so make sure you do not change the tags that display in curly brackets such as: {branchName}, {userName}, {userEmail}, {membershipName}.
- Member must send email: The member must send this email to the designated studio email address, which is pre-filled in the sender field.
For your club:
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Monitor your cancellation inbox:
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Ensure the correct email address is set up under Studio Settings.
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Regularly check for incoming cancellation requests.
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Failure to respond promptly may result in non-compliance penalties.
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Please make sure you provide a functioning email address in the studio settings as shown below:
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Receive and acknowledge the request
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Promptly confirm receipt of the membership/addon cancellation request with the member.
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If additional details are required (e.g., outstanding dues or notice periods), notify the member immediately.
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Review and process the cancellation:
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Ensure the request is handled within the legally required timeframe to avoid penalties.
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Ensure compliance with notice periods and contractual terms (If Applicable):
- Mandatory cancellation notice periods.
- Fixed-term agreements and early termination fees.
- Any outstanding payments or applicable fees.
- Finalize the cancellation in the Client Profile and adjust the member’s account accordingly.
- Process cancellations before the next billing cycle to prevent unauthorized charges.
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Notify the member in writing:
- Notify the member via email that the cancellation is complete.
- Clearly state the effective cancellation date.
- Provide details on any final charges, refund eligibility, or outstanding balances.
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Maintain Accurate Records:
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Keep documentation of all communications to ensure compliance and avoid disputes.
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Important!
The cancellation process is not automated. Each request must be manually reviewed and processed by your team. Failure to comply may result in financial and legal consequences.
Additional Educational Resources
- How to Cancel a Membership
- How to Schedule a Membership Cancellation
- How to Create Custom Charges
- How to Refund or Partial Refund a Membership
- Using Add-on Services (Beta)
Updating Membership Terms and Conditions
To ensure compliance, your Membership Terms & Conditions (T&Cs) must include:
- A clear and simple cancellation process explanation.
- The required notice period (if applicable).
- Any fees or conditions related to cancellations.
How to update: Navigate to Settings > Forms > Membership Terms & Conditions to edit your policies.
Frequently Asked Questions
1. What if a cancellation is not processed within the legal timeframe?
- Failure to process a cancellation request in time may result in legal and financial penalties. Always ensure timely processing to avoid compliance issues.
2. How do I confirm a cancellation with a member?
- Send a written confirmation via email, stating:
- The date the request was received.
- The effective date of cancellation.
- Any remaining obligations under the membership agreement.
3. What if a member sends multiple cancellation requests?
- Treat all duplicate requests as a single case. Confirm the cancellation once and update your records accordingly.
4. How should term memberships be handled?
- If a member is on a fixed-term contract, ensure that your Membership T&Cs clearly state any penalties or early termination fees.
- Clearly inform the member of any outstanding balance due to early cancellation.
5. What if my club has a cancellation notice period?
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Your notice period must be explicitly stated in the T&Cs and communicated before confirming the cancellation. However, you must still comply with NY Health Club contract and cancellation requirements by allowing online cancellations.
6. Is this process compliant with the FTC rules?
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This process and guide are intended to allow you to comply with the law.
Availability and Roll-out Information
- This feature is automatically enabled for all clubs with a New York State location from Feb 23rd onward. Please make sure the State information in your Studio Settings is set up correctly.
- For clubs outside NY: You may opt in to this feature by contacting our Support team: support@glofox.com.
Additional Support
- Contact our support team if you need further clarification: support@glofox.com.