Florida automatic renewal law for dining clubs and memberships

Florida's automatic renewal statute, section 501.165, applies to service contracts that renew on their own, and a restaurant that sells a dining club, wine club or prepaid annual membership should read it before it prints the terms. The seller must disclose the renewal clearly, send a reminder notice on longer contracts and let the customer cancel the same way the customer signed up. A violation makes the renewal clause void and unenforceable.

Does the law cover a restaurant membership?

The statute covers service contracts, defined as written contracts for services over a fixed period. It does not use the word membership, so a membership falls under it only if it fits that definition. It protects a consumer, meaning an individual who receives the service, and it excludes people acting for a business. A monthly wine club for individuals is a likely fit, while a one-off gift card is not a contract that renews.

An automatic renewal provision, in the statute's terms, is a renewal of more than one month that keeps the contract in effect for more than six months after it starts, and that takes effect unless the consumer gives notice to end it. A month-to-month plan that continues is different from an annual plan that rolls into another year.

What must you disclose?

You must disclose the automatic renewal provision clearly and conspicuously in the contract or in the offer. Put it near the price and the sign-up button, not in a footer. State the renewal term, the renewal price and how to cancel. If the first year is discounted and the second year is not, say so, because a surprise price on the renewal is what regulators and customers object to.

When must you send a reminder?

For contracts with a term of 12 months or more that renew for more than one month, the statute requires a written or electronic notice 30 to 60 days before the cancellation deadline. The notice must say that the contract will renew unless canceled and explain how to get the details and the cancellation procedure. For an annual dining club, that means an email or letter roughly a month or two before each renewal date.

How must customers be able to cancel?

A seller that enters into or renews such a contract must let the consumer cancel in the same way the consumer accepted it. If the member signed up on your website, a link on the website should cancel it. Do not require a phone call or a letter to undo something that took one click to start.

Who is exempt?

The statute lists exemptions, including financial institutions, health studios, utilities and certain licensed insurers. A restaurant is not among them.

What if you make a mistake?

The statute has a safe harbor. A seller that fails to comply is not in violation if it shows three things: it has written compliance procedures that are routinely implemented and enforced, the failure resulted from an error, and it refunds the unearned portion of the contract as of the date it learns of the error. That makes written procedures worth having before an error happens.

How do you set up a compliant club?

1. Write the renewal terms in plain words and put them beside the price.
2. Keep a list of renewal dates and set the reminder 45 days ahead.
3. Offer cancellation online if you sell online.
4. Keep a record of each notice sent.
5. Write down your compliance procedure and who owns it.
6. Refund promptly if you learn that a notice was missed.

Ask an attorney to read your terms once. A few hundred dollars of review is cheap compared with a voided renewal clause across a membership list.

What does a worked example look like?

Say your restaurant sells a 12-month wine club for $600 that renews each year at the then-current price. On the sign-up page, the line beside the button says: This club renews every 12 months at the current price unless you cancel. Cancel online any time before the renewal date. About 45 days before the renewal date, your system emails the member the renewal date, the price and the cancellation link. The member can click through to cancel and get a confirmation. That sequence covers the disclosure, the reminder and the same-method cancellation in the statute, and each step leaves a record you can produce.

Now the failure case. A member signed up in 2025, nobody sent a reminder, and the club charged the card again in 2026. The renewal provision is void and unenforceable, so the member can ask for the money back, and a refund of the unearned portion is the safest response. Do it quickly and write down what went wrong so the procedure is fixed.

Which other rules sit beside the statute?

The card networks have their own rules for recurring billing, and a payment processor may require you to keep proof of consent. Check your agreement. Consumer protection law also prohibits misleading offers, so a free first month must be described as such, with the price that follows it. If your club bundles food and alcohol, check with the alcohol regulator about how prepaid alcohol can be sold.

More guides for your business:

• Florida restaurant gift card law
• Florida credit card surcharges: the statute, the 2015 ruling and today
• Florida operations charge disclosure law for restaurants

More in the US guides for food businesses.