Fitness Centers NAICS 713940

Jul 28, 2025 - FTC’s Click-to-Cancel Rule Vacated

• According to Club Solutions, the US Court of Appeals has struck down an FTC rule that the fitness industry had fought against. The “Click -to-Cancel” rule was set to go into effect in July 2025. The rule would have required companies to let consumers cancel subscriptions, such as gym memberships, through the same method they used to sign up. The court made its decision after finding procedural mistakes during the FTC’s rule-making process. The Health & Fitness Association (HFA) had protested the rule, stating that the rule was vague and would have resulted in costly system overhauls, contract restructuring, and potential legal exposure for the fitness industry. The HFA said it supports fair and transparent cancellation policies but not broad federal mandates. The organization said it would remain involved if the FTC revisits the issue.
• Labor costs continued to grow for fitness centers in May 2025, according to recent data from the Bureau of Labor Statistics (BLS). Average wages at fitness centers increased 4.2% in May 2025 year over year, reaching $21.70 an hour for nonsupervisory employees. In the past decade, average wages in fitness centers increased 59.3%, higher than the 49.5% growth in overall private nonsupervisory employee wages. Employment by fitness services grew 2.1% in May 2025 compared to a year ago. Fitness services are monitoring pricing pressures resulting from an uncertain economic environment. Leading industry indicators showed improvement in February 2025, with consumer spending up 2.7% compared to a year ago. Producer inflation for fitness and recreational sports centers increased 10.5% in June 2025 compared to a year ago. The Consumer Price Index for club memberships increased 4.6% in June 2025 compared to a year ago, per the BLS.

• Consumer sentiment, an indicator of discretionary spending, increased slightly in July 2025, rising to 61.8 in preliminary July data from 60.7 in June, according to a report in the Wall Street Journal. The consumer sentiment index from the University of Michigan hit a recent peak in December of 74, buoyed following the presidential election, but dropped to 52.2 in April 2025 as consumers expressed uncertainty about tariff effects and rising inflation. In July, respondents’ inflation expectations for the coming year were an anticipated price increase of 4.4%, which was tracking higher than in January, when respondents expected prices to grow by 3.9%. However, July’s inflation expectation results were lower than June’s, when respondents expected a 5% price increase for the coming year. The index serves as a predictor of consumer spending as it indicates consumers’ perception of their financial prospects and the broader economy.
• Fitness centers increasing their recovery services offerings may encounter challenges with the cost of equipment, space, membership education, and consistent use, according to Club Solutions Magazine. Per Ani Oksayan, VP at Chuze Fitness, gyms can start small with foam rollers and massage guns and scale up to massage chairs and infrared machines as demand grows. Space concerns may be addressed by finding underutilized areas. For example, the Cincinnati Sports Club converted a storage closet into a cold plunge alcove. Clubs can also educate members that recovery practices should be an essential and consistent part of fitness and utilized by the average gym goer, not just athletes.