The Legal Side of Creating a Membership Program for Your Clients
Creating a membership program sounds like a dream: recurring revenue, deeper client relationships, and a supportive community built around your brand.
But before you dive into launching your program, there’s one critical step that can make or break your success—and your protection: getting the legal side right.
From terms and conditions to auto-renewals and refund policies, let’s break down what you need to have in place to run a legally sound, client-friendly membership model.
Why Legal Protection for Your Membership Program Matters
If you’re a coach, therapist, or service-based entrepreneur offering recurring memberships, you’re not just building community—you’re entering into a contract.
That means:
Your terms and conditions are legally binding.
Your renewal and cancellation policies impact your clients’ rights.
Your refund policy could protect—or jeopardize—your business.
Failing to clarify these elements can lead to chargebacks, complaints, or even legal disputes.
Essential Terms & Conditions for Your Membership Program
Think of your membership terms as the rulebook for how your program operates. They help both you and your clients understand expectations from day one.
Must-Have Clauses to Include:
Access and Deliverables: What does the membership include? (Examples: coaching calls, digital downloads, private community access)
Payment Terms: Monthly or annual? When is payment due? What happens if it fails?
Client Responsibilities: Expected behavior inside your community or in use of your content.
Intellectual Property Rights: Who owns the content? Can members reuse your materials?
Cancellation Policy: How can members cancel? Is notice required?
Pro Tip: Always have your terms reviewed by a lawyer. DIY contracts can miss key protections that keep you and your income safe.
The Fine Print on Membership Renewals
Auto-renewals are common in membership models. But if they’re not disclosed properly, they can lead to confusion and chargebacks.
Legal Tips for Auto-Renewals:
Clearly disclose at checkout: “This membership auto-renews monthly unless canceled.”
Send reminder emails before annual renewals.
Make the cancellation process easy to find and follow.
Transparent renewals are key to maintaining client trust and reducing disputes.
Crafting a Fair (and Legal) Refund Policy
Refund policies aren’t just about handling unhappy clients—they’re about setting expectations and protecting your income.
Common Refund Options:
No Refund Policy: Often used for digital memberships with immediate access to content.
Conditional Refunds: For example, “Refunds available within 7 days if no materials have been accessed.
Pause or Credit Options: Allows flexibility without issuing a full refund.
Avoid vague language like “case-by-case refunds.” It creates ambiguity and potential for conflict.
Keep It Client-Centered and Legally Sound
Yes, you're protecting your business—but you’re also building trust. Clear legal policies help your clients feel safe, respected, and confident investing in your program.
Think of these policies not as red tape, but as healthy boundaries that allow your business to grow sustainably and ethically.
Final Thoughts + Call to Action
A membership program can scale your income and deepen your impact—but it must be built on a strong legal foundation.
Take a moment to review your program:
Are your terms and conditions clear and enforceable?
Does your renewal policy follow best legal practices?
Is your refund policy fair and aligned with your values?
If you're unsure about any of the above, we’re here to help.
Reach out for a consult and let’s make sure your membership program is not only successful—but legally protected too.
ABOUT MJ MORLEY LAW PC
MJ Morley Law PC provides comprehensive legal solutions tailored for entrepreneurs and businesses at every stage of growth. From entity formation to intellectual property protection, our dedicated team is here to ensure your business thrives in a complex legal landscape. Ready to take the next step? Book a free consultation with us today or explore our services to learn more about how we can support your business goals.