Planet Fitness Streamlines Cancellations—CEO Says It’s a Growth Hack

Gym chains and predatory subscriptions go together like dumbbells and protein shakes—but Planet Fitness just ripped off the bandaid. Their CEO claims making cancellations easier will actually boost retention. Sure, and maybe your January resolution will last past February.

No more treadmill of frustration

Gone are the days of faxing notarized forms to quit your $10/month membership. The 'judgment-free zone' is now hassle-free too—at least when leaving. A bold move in an industry that banks on zombie accounts.

The churn paradox

Wall Street analysts are split: Is this transparency genius or desperation? The stock dipped 3% on the news (classic finance herd mentality), while churn rates remain undisclosed. Either way, it’s a PR win—and in the attention economy, that’s half the battle.

One thing’s certain: In 2025, even gyms can’t ignore consumer expectations. Next up—crypto payments for protein shakes?

Key Takeaways

• Planet Fitness is seeing a "slight elevation" in canceled plans after allowing members of all clubs to close memberships online, company executives said Wednesday.
• The fitness club chain chose to enact a so-called "click-to-cancel" policy because it could help attract members in the future, CEO Colleen Keating said.
• Shares of Planet Fitness finished Wednesday down some 3%.

Making it easier to cancel gym memberships will—in time—bring in more customers, Planet Fitness says.

As of May, customers at all Planet Fitness (PLNT) locations have been able to cancel their subscriptions online, CEO Colleen Keating said on a conference call Wednesday. The company is seeing a “slight elevation” in canceled plans, but the churn may level off in three months based on prior experience, Keating said. 

“We believe this is the right thing to do—both to support our members and their experience, and as the industry leader,” she said, according to a transcript made available by AlphaSense.

“Allowing members to more easily manage their membership will only benefit us when they think about rejoining a club in the future,” she said, telling investors that gyms are poised to grow because younger generations are particularly focused on fitness. 

Planet Fitness voluntarily implemented a so-called “click-to-cancel” policy. A federal rule WOULD have required gyms, media companies, retailers, and other types of businesses to make it easier to cancel memberships online, but an appeals court blocked the move in July.

The New Hampshire-based company narrowed its outlook for same-club sales through the full fiscal year, now anticipating a 6% increase, compared to 5% to 6% growth previously. The adjustment reflects membership churn and the volatile economy, CFO Jay Stasz said.

Planet Fitness reported quarterly revenues and profits that ROSE from a year ago and exceeded Wall Street analysts' expectations, but shares finished Wednesday down some some 3%. Still, the stock has climbed about 7% since the start of the year.