Perpetual and fixed-term memberships: extension types explained

In this article you will learn the four extension types that decide what happens at the end of a membership term (no extension, fixed-term extension, indefinite extension, rate change), how to set up a perpetual contract that runs on indefinitely, and when to use each option.

Contents

• Prerequisites
• Note on UI labels
• Term and extension: the two parts of a contract's lifetime
• Extension type: No membership extension
• Extension type: Contract extension with a Fixed Term
• Extension type: Contract extension for an Indefinite Period
• Extension type: Rate change
• Cancellation period for the extension
• How to pick the right option
• Common pitfalls

Fast lane

1. Open Settings / Membership management / Rates and select the rate you want to configure.
2. Open the term you want to edit (or add a new one).
3. Set the Term (the initial commitment, for example 12 months).
4. Pick one of the four Extension type values: No membership extension, Contract extension with a Fixed Term, Contract extension for an Indefinite Period, or Rate change.
5. For the fixed-term extension, enter the Extension term (for example 1 month, 12 months). For the indefinite extension, no extension term is needed.
6. Set the Cancellation period for membership extension (only required if there is an extension).
7. Save. The change applies to new contracts on this rate. Existing contracts keep the terms they were signed with.

For the step-by-step UI walkthrough, see the existing How to add a term to a rate article.

Prerequisites

• Permission: Configure rates. Assigned in Settings / Resources / Roles.
• Rate already created: extension types are configured per term on a rate. If you have not yet created the rate, do that first under Settings / Membership management / Rates.
• Subsequent rate ready (only for the Rate change extension type): the rate that members should switch into must already exist and have a payment frequency. If it does not, the system will reject saving the term.

Note on UI labels

This article uses the labels that appear in the rate-term edit modal: No membership extension, Contract extension with a Fixed Term, Contract extension for an Indefinite Period, and Rate change. Other places in the software (member detail views, lists, exports) sometimes summarise the first three as Membership extension. Both refer to the same configuration. Localised English variants (en-AU, en-GB, en-NZ, en-US) may show slightly different wording in some screens, but the function is identical.

Term and extension: the two parts of a contract's lifetime

Every membership contract has two phases configured on the rate:

• Term: the initial commitment the member signs up for. For example "12 months". During the term the regular cancellation rules apply.
• Extension: what happens once the term ends. The Extension type field controls this and has four values: No membership extension, Contract extension with a Fixed Term, Contract extension for an Indefinite Period, and Rate change. The next four sections explain each one.

The difference between a perpetual membership and a fixed-term membership is purely the extension type. A 12-month term with No membership extension is fixed-term. A 12-month term with Contract extension for an Indefinite Period is perpetual. The initial 12 months are the same in both cases.

Extension type: No membership extension

The contract ends automatically when the term expires. The member does not need to cancel; access is revoked at term end.

• Use it for: trial memberships, fixed-duration campaigns ("12-week transformation"), corporate one-off contracts, gift memberships, and any product that should not auto-renew.
• Cancellation: not required to end the contract. Members can still cancel early via the extraordinary cancellation flow if local law allows.
• Reporting: contracts on this extension type appear with a known end date, which makes them easy to filter and to forecast.

If you pick No membership extension, the Extension term field and the Cancellation period for membership extension field are not available. Both only apply when an extension exists.

Extension type: Contract extension with a Fixed Term

At the end of the term, the contract renews for another fixed period of the length you define. The member keeps the same rate and continues paying.

• Configuration: enter a fixed Extension term (for example 1 month, 3 months, 12 months). After the initial term ends, the contract renews for that period, then again for that period, and so on.
• Cancellation: the member can only cancel within the Cancellation period for membership extension before the next renewal. If they miss the window, the contract rolls over for another fixed period.
• Use it for: classic "12 months commitment, then 1-month rolling" pattern; annual renewal contracts where the member commits in yearly cycles; corporate annual contracts.
• Reporting: contracts on this extension type have a known next renewal date, which lets you forecast renewals and cancellation windows.

Extension type: Contract extension for an Indefinite Period

At the end of the term, the contract runs on without a fixed renewal cycle. The cancellation strategy is automatically set to Receipt of the cancellation, which means the cancellation period starts the day the cancellation arrives, not at the end of any renewal cycle.

• Configuration: no extension term is required. The contract simply continues until cancellation.
• Cancellation: the member can cancel at any time. The contract ends X days/weeks/months after the cancellation arrives (where X is the Cancellation period for membership extension).
• Use it for: standard gym memberships, ongoing class passes, any "stay as long as you want" product where you do not want renewal cliffs.
• Reporting: contracts on this extension type have no fixed end date until the member cancels. Use the Membership extension filters in the Analytics section to track rate distribution and average tenure.

Extension type: Rate change

At the end of the term, the contract is replaced by a new contract on a different rate. Use this for tiered offers where members start on a promotional rate and move to a standard rate after a fixed time.

• Configuration: when you pick Rate change, the system asks you to point to the follow-up rate (and one of its payment frequencies) the member should switch to. The follow-up rate must already exist.
• Cancellation: the member must cancel before the rate change takes effect, or they will automatically continue on the new rate. The Cancellation period for membership extension applies here as well.
• Use it for: introductory rates ("first 3 months at €19.90, then €39.90"), corporate-to-private transitions, age-tier transitions (youth rate to adult rate).
• Reporting: the original contract ends on the rate-change date and a new contract starts the next day on the follow-up rate. Both are linked in the member's contract history.

If the follow-up rate has a different payment frequency or price, communicate the change in advance so the member is not surprised. The Contract extension term updated with price notification rule is the right channel for this.

Cancellation period for the extension

The Cancellation period for membership extension field defines how much notice the member must give before the extension takes effect. It is only available when the extension type is one of the three extending types (fixed term, indefinite, or rate change).

How the cancellation date is calculated depends on the extension type:

• Cancellation period (to term end): applies to Contract extension with a Fixed Term and Rate change. The cancellation must reach you no later than X days/weeks/months before the next renewal date. If the cancellation arrives later, it shifts to the renewal after that.
• Receipt of the cancellation: applies to Contract extension for an Indefinite Period. The cancellation period starts the day the cancellation reaches you. The contract ends X days/weeks/months after the cancellation arrives, no matter what date that is.

The system rejects a cancellation period longer than the term itself (you cannot require more notice than the contract lasts).

How to pick the right option

Use this quick decision guide:

Common pitfalls

• Extension term is empty when the fixed-term extension is selected. The system rejects saving with "The values for the extensions are invalid." Either switch to Contract extension for an Indefinite Period, switch to No membership extension, or fill in the extension term.
• Cancellation period is set even though there is no extension. The field is rejected unless the extension type is one of the three extending types. Remove the cancellation period or change the extension type.
• Cancellation period longer than the term. A 12-month term cannot require a 13-month notice. The system rejects this with a maximum-length error.
• Indefinite extension confused with No extension. The two are different. No membership extension ends the contract at term end. Contract extension for an Indefinite Period continues the contract until the member cancels.
• Fixed-term extension confused with Indefinite Period. Contract extension with a Fixed Term requires a renewal period, and cancellations align to renewal cycles. Contract extension for an Indefinite Period has no renewal period, and cancellations apply from the receipt date.
• Rate change pointing to a rate without a payment frequency. The follow-up rate must have at least one payment frequency configured. Otherwise the system refuses to save the term ("Subsequent rate payment frequency is empty").
• Term and extension units do not match. If the term is in months, the extension term must also be in months. Mixing units (term: 12 months, extension: 26 weeks) is not allowed and is rejected at save.
• Editing the extension type on an active term. Changes apply to new contracts on this rate. Existing contracts keep the extension type they were signed with. To migrate existing contracts to a new extension behavior, use the Change extension term bulk operation under Members / Bulk operations.
• Voucher-based contracts cannot have a membership extension. If the rate is reachable only via a voucher, the system blocks setting an extension type. Voucher contracts are always fixed-term by design.