Business coaches in Australia need three things to be legally protected: marketing that only promises what you can deliver, a coaching agreement that clearly sets out your services, fees, refunds, disclaimers and how either of you can end the relationship, and a sign-up process where clients accept those terms before they pay. Electronic signatures and click-to-accept terms are valid for coaching agreements, as long as you can show who agreed and when.
As a business lawyer for coaches, creatives and consultants, I spend a lot of time with coaching clients working through the same handful of questions. What can I promise? What needs to be in my coaching agreement? Can clients sign online? And what happens when a coaching relationship needs to end?
This is what I want you to know about each of them.
1. Be careful what you promise
In today's competitive online space, coaches are encouraged to highlight the transformations they offer. Sales pages, social media ads and website copy all focus on results like "Transform your business," "Increase your revenue" or "Get booked out with clients."
While this messaging is designed to appeal to potential clients, promising specific results you can't control is legally risky. Under the Australian Consumer Law, you can't engage in misleading or deceptive conduct, or make false or misleading representations about your services. A guarantee like "double your revenue in 90 days" can fall foul of both if your client doesn't get that result.
When I see a coach promising specific results, it raises a red flag. It suggests the coach may not understand their legal obligations, and it can easily lead to broken trust and unhappy clients when expectations aren't met.
As a coach, you provide guidance, tools and support, but you're not responsible for the decisions your clients make or how they implement what you teach. What you can promise is to support them as they work toward their goals.
Don't say: "Work with me and double your revenue."
Instead, say: "I'll give you the tools and support to focus on growing your revenue."
2. Be accurate about your qualifications
Represent your skills and experience accurately, and don't overstate your credentials. If you hold an old law or accounting qualification but no longer hold a practising certificate or registration, don't market yourself as a lawyer or an accountant. If a client hires you expecting legal or financial advice based on that qualification, and relies on it, you could be exposed to liability.
3. What your coaching agreement should cover
Your coaching agreement (or client service terms and conditions) is the foundation of every client relationship. It protects you and your client and sets clear expectations from the start. A well-drafted coaching agreement covers:
Your services: what's included (1:1 sessions, group calls, voice note or email access, resources), how long the program runs and how sessions are booked and rescheduled.
Fees and payment: the price, payment plans, due dates and what happens if a payment is missed.
Refunds and cancellations: when clients can get a refund, and what happens to unused sessions.
Ending the agreement: notice periods and the circumstances in which either of you can end the engagement.
Disclaimers: that you don't guarantee results, and that clients should get legal, financial or other specialist advice from a qualified professional.
Confidentiality: for you and, in group programs, for the other participants.
Intellectual property: who owns your frameworks, workbooks and recordings, and how clients can use them.
Limitation of liability: reasonable limits that are consistent with the Australian Consumer Law.
Keep it fair. Since November 2023, unfair terms in standard form contracts can attract significant penalties, and the clause that most often causes trouble for coaches is termination. Read more in Coaches, check your contracts: unfair contract terms explained.
4. Be clear about AI
AI tools are now part of how many coaches create content and run their businesses, and part of how many clients learn. Your coaching agreement should deal with both sides.
Your materials in your clients' hands. Your frameworks, workbooks, templates, recordings and program content are your intellectual property. If you don't want clients putting them into ChatGPT or other AI tools (to summarise them, repurpose them or build their own version), your agreement needs to say so. Without a clear restriction, it's much harder to object later.
Your own use of AI. If you use AI in your business, whether to draft session notes, create resources or plan content, tell your clients at the outset. Your agreement or onboarding should explain:
what you use AI for;
that the coaching, insights and professional judgement your clients receive are yours, not an AI tool's; and
that you won't put their personal information into AI tools.
Being upfront builds trust. A client who finds out later that AI was involved can feel misled, and that's a hard conversation to recover from. Protecting personal information matters for privacy too: the Office of the Australian Information Commissioner recommends against entering personal information into publicly available AI tools.
5. Can clients sign your coaching agreement online?
Yes. Most coaches onboard clients online, and coaching agreements, mastermind agreements and program terms and conditions can all be accepted electronically.
There are two ways this usually happens:
Electronic signatures: typing a name, inserting a signature image or ticking a box that says "I accept." Under the Electronic Transactions Act 1999 (Cth) and the state and territory equivalents, an electronic signature is valid if the method identifies the person and shows they intended to agree, the method is reliable in the circumstances, and the other party consents to signing this way.
Digital signatures: platforms such as DocuSign that verify the signer and keep a secure record of who signed and when, often using cryptographic technology.
Either works for a coaching agreement. What matters most is the sequence. Your client should see your terms and have a genuine chance to read them before they pay or commit, and you should be able to show that they accepted them.
6. How to end a coaching contract professionally
Sometimes a coaching relationship has run its course. That might be because:
your client has achieved their goals;
your expertise no longer fits what they need;
the relationship has stalled;
there are ongoing boundary or payment issues; or
your business is changing direction.
Ending a coaching contract isn't a failure. Handled well, it can actually strengthen your reputation. Your coaching agreement should be your first reference point, so check what it says about notice, refunds for prepaid sessions and confidentiality after the relationship ends. Then:
Review what's outstanding: scheduled sessions, program content and any prepaid sessions that need to be honoured or refunded.
Communicate clearly and kindly: confirm your decision in writing, along with the remaining timeline and any final steps.
Create closure: use the final sessions to celebrate progress, share a summary of what's been achieved and any resources that will help your client keep going.
Offer a referral if it's appropriate, and keep professional boundaries during and after the transition.
7. Keep everything consistent
Your marketing, your sales conversations, your coaching agreement and the way you actually deliver your services should all say the same thing. When there's a gap between what you promise and what your agreement says, that's where disputes start.
Review your sales pages and your coaching agreement together at least once a year, or whenever you change your offer, your pricing or the way you deliver.
I talk more about this in episode #186 of the Rise Up in Business podcast, What promises can you legally make as a business coach?, and in Cutting a client loose.
Need help with your coaching agreement? Download the free Essential Legal Checklist, then book an introduction call.
This article provides general information only and does not constitute legal advice. Your obligations depend on your specific circumstances.
Frequently asked questions
Can a business coach guarantee results?
It's risky. Under the Australian Consumer Law, promising specific results you can't control, like a revenue target, can be misleading. It's safer to promise the support, tools and guidance you'll provide.
What should a coaching agreement include?
Your services, fees and payment terms, refunds and cancellations, how either party can end the agreement, disclaimers, confidentiality, intellectual property and a fair limitation of liability.
Can clients sign a coaching agreement online?
Yes. Electronic signatures and click-to-accept terms are valid for coaching agreements under the Electronic Transactions Act, as long as you can show who agreed and that they intended to be bound. Make sure clients see your terms before they pay.
How do I end a coaching contract?
Check your agreement's notice and refund terms, confirm your decision in writing, honour or refund any prepaid sessions, and use the final sessions to give your client closure and resources to keep going.
Should my coaching agreement deal with AI?
Yes. Say whether clients can put your coaching materials into AI tools, and tell clients upfront how you use AI yourself, including that the coaching and professional judgement are yours and that you won't put their personal information into AI tools.
