4 Essential Terms Missing From The Program Agreement Your Health Coaching School Gave You
As a trained health coach, I’ve seen the program agreements given out by health coaching schools. In fact, it was when I saw the agreement given out by my school that I decided to start this business; because I saw how much there was a need for health coaches to have better contracts.
I graduated from a very well known health coaching school and the following are real provisions that are missing from, or that are outlined in their program agreement. While there are many other provisions that are missing, these are some important ones. We will call it “School Contract”. (As a note, I want to mention that I am not calling out any schools in any way, after all their job is to teach you how to be a health coach, not how to be a lawyer!)
Intellectual Property (IP)
All of the content of your program like videos, recipes or recipe books, written exercises, client handouts, course outlines, photographs etc., are all your IP. Your IP is one of the most important things to protect because it is what differentiates your program from someone else’s and is the core of your business.
The School Contract says absolutely nothing about IP. Zilch.
What does that mean for you?
It means that there is no protection for you if your client uses your program information as their own program, shares it with their friends, sells it online, or even uses bits and pieces of it to create their own product or program or for commercial use.
My Client Program Agreement, outlines specifically what your intellectual property is, how it can and cannot be used, and entitles you to go after your client for additional financial damages in the event they do steal your IP or use it in any way that is forbidden by the agreement.
Refund Policy
This is one of the most important terms in your agreement. It determines if you get to keep your money. If it’s not outlined properly you can be at risk of not getting paid for your work.
The School Contract refund policy provides, “ In the event of the Client’s absence or withdrawal, for any reason whatsoever, the Client will remain responsible for the pro rata share of the program that has been delivered, plus a cancelation fee of $50. The Coach reserves the right to cancel the program if at any point she or he feels it is not advantageous for the coaching program to continue. If this happens, the Client is only responsible for the pro rata share of coaching services received.”
So what’s wrong with this term?
This means that if your client is misbehaving or being inappropriate and you want to terminate the relationship, or if your client decides on a whim that they no longer feel like doing your program, you still have to give them their money back. It also makes your client less serious about committing to your program, knowing they can just leave without consequence at any time.
My Client Program Agreement provides for no refunds generally, especially in circumstances where the client is not behaving appropriately, and provides for only very specific situations where the client may get some of their money back (like if you get sick and are no longer able to provide the program).
Severability
Sometimes laws change and the result of the change can make a term in your contract no longer enforceable or legal. The severability provision of a contract allows you to “sever” an illegal term from the agreement, so that even if one paragraph in the agreement is no longer allowed, the rest of the agreement is still good and enforceable. This is one of many terms that usually come at the end of a contract, to help ensure that in any scenario the agreement will still be good.
The School Contract does not include this term or any of the other usual contract terms that come at the end of an agreement. This means a change in law could make your whole agreement void.
My Client Program Agreement includes this term as well as the other usual contract terms found at the end of an agreement.
Indemnification
Indemnification clauses ensure that you are held harmless for the damages and losses caused by someone else. It contractually obligates that a party will take full financial and legal responsibility for damages and losses arising out of their actions. For example, if your client breaches a term in your agreement and as a result a third-party is injured, you would want to make sure that third-party would not come after you for damages and that your client would agree to be responsible for that injury.
The School Contract is completely silent on indemnification, which means that you could potentially be liable for something you didn’t even do, or at the very least have to deal with the headache of proving that you aren’t the one who is responsible.
My Client Program Agreement provides for a mutual indemnity, meaning that both you and the client agree to hold each other harmless from each other’s actions that result in damages or injury.
Final Thoughts
You have put so much hard work into becoming a health coach and growing your business. Don’t throw it away because of a silly document. The great thing about investing in contracts for your business is that it’s a one time investment that will show you a lifetime of returns. One new client will cover the cost of your contracts, but one lawsuit can cost your entire business. If you want to learn more about which contracts are right for your business you an schedule a totally free contracts consult here.
