Choose Your Billing Restart Option

With almost all states easing their guidelines, we know there is a lot to consider as you prepare to open your clubs and restart billing for your members. Putting members first while considering cash flow implications to your business isn’t easy, but it is the right move for your business long-term. We have created streamlined options to help you restart billing as quickly as possible.

Overall strategy consideration:

  • Does your strategy prioritize member’s needs to feel fairly treated for what they paid and what they had access to?
  • Is your strategy easy-to-understand so your staff is comfortable explaining?
  • Does your strategy balance your need to start collecting revenue as quickly as possible with members’ concerns about coming back to the club?
  • Is your strategy simple and automated enough that your staff can focus on welcoming members back instead of processing manual back-office changes that could result in errors?
Defining Proration Terms

  • Billing restart date: Assumed to be the member’s normal billing cycle regardless of when the club reopens –creating the Member Debit proration
  • Member Credit proration: The number of days that the member has paid dues but the club was closed
  • Member Debit proration: The number of days that the club has re-opened but the member has not paid dues
  • Proration: The credit and debit value measured in whole days, or dollars, calculated as monthly dues divided by the number of days in the billing period
  • Closed Days: For closing and opening days, count partial day as a closed day

Frequently Asked Questions:
1How do I calculate the total number of days impacted by my club closure?
Write down the date your club closed, the date when you stopped billing, your anticipated opening date and your member billing date.
  • If you typically bill on the 10th of the month (e.g. March 10 and April 10) and you closed on March 23, there is a member CREDIT period of 18 days (March 23 to April 9)
  • Let's say you didn't stop billing until April 15, so that's 30 days CREDIT (April 9 to May 9) where member paid for but could not access the club.
  • If you plan to open on May 16, then there is a member DEBIT period of 26 days (May 16 to June 9).
2How do I weigh or calculate the impact for my members and my cash flow?
  • First one needs to understand how many types of the membership agreements you offer. Common examples include “term” vs “no-term”, or “paid in full”.
  • Do you bill on the same day every month for every member? Or, is your billing date unique to each member agreement?
  • For each membership agreement type, determine the net prorated value based on your net proration days above.
  • In the example above, the net prorated days of CREDIT is 22 days = (18) + (30) + 26.
3Should I prorate or not prorate?
  • Based on the impact analysis you have just completed, decide if you deem the impact material enough at the club and individual member level to warrant a per-member change.
  • If you deem the impact to be immaterial, then no proration is a viable option. Assessment of member reaction to no proration is a critical part of your overall evaluation.
  • Both options are viable; in practice 85% of ABC clubs have chosen to not prorate (Option 1 above).
4If I want to prorate, how should that be implemented?
  • Apply outstanding net credit to club dues in the next billing cycle after the club re-opens. In the example outlined above, if your membership dues are $20, then the member would be entitled to a net credit of $14.67 (daily rate of $20/30 days). Such credit would be applied to the member's June billing, therefore the net payment would be $5.33.
5What else should I consider regarding billing?
Based on your membership agreement types, it is important to consider how you want to handle personal training and other recurring services, like annual fees.

You should also take into account how you want to handle the timing of annual or enhancement fees. Many brands plan to push annual fees that would have otherwise been due while the club was closed, as well as annual fees coming due within first 30 days of opening to a later date (i.e., 45 or 60 days after club re-opens).

There are several reports you can generate in ABC’s solution to see the various membership types and their status. Access our weekly dashboard from CRS to see what the trends are nationally and how your state is performing.
6I have decided on the plan, what should I communicate to members?
Ease of engagement and members’ ability to understand their impact will be at the core of your communication and should influence your decision. Will your front desk staff be ready to answer membership-related questions? These questions have frequently been a deciding factor in the majority of ABC clients opting to resume normal billing at the next billing cycle, or Option 1 above.
7I’ve never stopped billing. Does this apply to me?
For those club that were able to continue billing their members during the club closure, these billing and related credit alternatives may still apply should you choose to provide them with a credit for the time your club was closed.

We can’t wait to reopen your club!

Filling out the form is the best way to turn billing back on.
Please note that we’ll prioritize by state-mandated openings.

If you are Anytime Fitness, Workout Anytime or Crunch please reach out to your point of contact for the correct form.