How to Write a Cancellation Policy

An effective cancellation policy is important for any appointment-based business. A cancellation is a written policy that holds both you and your clients accountable to your time together. It outlines expectations around missing or canceling an appointment, including cancellation windows and fees. 

Agreeing on a cancellation policy helps you protect your business by making sure you get paid, and it helps you and your clients to value each other’s time. Here’s how to write and put in place your cancellation policy and an example policy to use as inspiration for your own.

What to include in a cancellation policy

A cancellation policy should be concise and practical. There are a few key pieces that can ensure you and your clients are on the same page. 

Here are a few questions your cancellation policy should address.

1. What’s the latest a client can cancel their appointment without a cancellation penalty? It’s common for small businesses to require 24-hour or 48-hour notice. You can decide what works best for you.

2. What’s the penalty when a client cancels outside of the cancellation window? Common late cancellation fees include: charging the client’s credit card in full, 50% of the appointment cost, or a flat-rate late cancellation fee. 

3. Are there consequences for regular no-shows or cancellations? You could set a “three-strikes” rule, so that clients that no-show or cancel late three times can’t schedule with you again. Or you could require full deposits after three missed appointments.

4. What happens if there’s a delay outside of anyone’s control? Illness or natural disasters could qualify as incidents that fall outside of your policy. Be clear about whether deposits are always nonrefundable or if you will make an exception in those cases. 

5. What’s your policy for late arrivals? Make it clear at what point a late client becomes a missed appointment. A common grace period time frame is 15 minutes past the appointment start time. 

6. What happens if you, the business owner, need to make a last-minute cancellation? A good appointment cancellation policy also outlines what clients can expect from you.

Cancellation policy example

It can be useful to see how other businesses handle cancellations. Use this cancellation policy example as inspiration when you’re ready to create your own.

“We require all customers to provide at least 24 hours notice when canceling or rebooking an appointment. Late cancellations or no-shows will be charged for the full session using the payment method provided at booking. Clients arriving more than 15 minutes after their appointment start time will be considered a no-show.

We will provide a one-time cancellation fee waiver for extenuating circumstances. Alternatively, we will offer one free appointment upon rescheduling. The free session will need to be scheduled within 7 days of the cancellation.

Should we need to reschedule with less than 24-hours’ notice, clients will not be charged any fees and will receive priority rebooking or a full refund if desired.”

Note: This cancellation policy template is not legal advice. What you choose to include in your cancellation policy is up to you as the business owner, but these tips are a useful starting point.

Best practices for an effective cancellation policy

A solid cancellation policy should be easy to enforce. To create a great cancellation policy:

• Make the guidelines clear and simple.

• Keep a professional tone.

• Post the policy on your website.

• Build the policy into your client intake forms. 

Cancellations happen, and how you handle them is part of building strong client relationships. Keeping your policy straightforward and clear sets the stage for mutual professional respect.

Including a summary of your cancellation policy in other high-touch areas of your business is part of making your policy as clear as possible. For example, include cancellation information on your client scheduling page or in your website’s FAQ. Or make sure to mention the policy in appointment reminders you send before you meet. That way, it’s hard to miss.

As a final step to ensure your clients are aware of your policy, make it part of the booking process. Building your policy into your intake forms will require clients to agree to the policy to complete their booking. 

This will keep your workflow running smoothly and help clients understand what to do if they need to cancel or rebook. And they’ll know how to reach out or what to expect if you need to reschedule too.

Ready to create your cancellation policy?

This post was updated on February 12, 2024.