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Due diligenceExpert answer · 1 min read

How do I check whether a wellness centre’s membership is retained or only signed?

Ask for the member list with start dates, renewals, cancellations and last visit. Members who keep coming and renewing are retained, while a list full of old sign-ups with no recent visits is not. Compare that against the payment records.

A large membership count can hide a leaky bucket. Ask for a list showing each member’s start date, plan, payment status, cancellations and date of last visit. Sort it by start date and see how many people from each earlier cohort are still active today. Steady cohorts suggest the centre keeps its people. Steep drop-offs suggest it mostly recruits.

Look at the reasons members leave. Does the centre collect exit notes? Are cancellations clustered after a price change, a practitioner leaving or a seasonal pause? Ask how freezes and paused memberships are counted, because they can inflate the headline number.

Finally, test the numbers against the money. Compare the membership list to payment records and the financial statements, and ask your accountant to reconcile them. Check whether any members were signed on a discount that ends soon. Ask how the centre contacts members who haven’t visited, since that shows how seriously it treats retention. Keep an eye on one more point: how the centre treats long-time members when prices or practitioners change. Ask to see any complaints or cancellation messages. Patterns in what members say when they leave are often more informative than the totals themselves.

Key takeaways

  • Group members by sign-up date and track each group forward.
  • Ask how paused or frozen memberships are counted.
  • Reconcile member lists with payments received.
  • Read exit notes to learn why members actually leave the centre.

Sources

This answer is checked against primary sources. Links were last confirmed on the dates shown.

  1. 01
    Business Development Bank of CanadaGovernment
    How to conduct due diligence when buying a business
    bdc.ca·Checked Oct 21, 2026
  2. 02
    Business Development Bank of CanadaGovernment
    What are the steps to buying a business?
    bdc.ca·Checked Oct 21, 2026
  3. 03
    Business Development Bank of CanadaGovernment
    After buying a business, what is the next step?
    bdc.ca·Checked Oct 21, 2026

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