How to write a coaching contract: the ultimate guide to getting clients while protecting yourself

Business owners pour hours and hours into their brainchild. If you have a coaching business, you'll know this firsthand – it takes an incredible amount of energy to build your client list and create a successful business.

That's why it's essential to have the right contracts in place with your clients. Without them, you're leaving yourself open to potential disputes and misunderstandings that could cost you money and time.

A coaching contract is an agreement between two parties – the coach (you) and the client – outlining how they will work together for a predetermined amount of time or until a specific outcome has been achieved.

Let's take a look at what goes into writing an effective coaching contract and why having one in place is so important for your business.

Why you need a coaching agreement

Writing up a contract is fairly time-consuming. It's certainly not everyone's idea of a fun way to spend their day. But it is absolutely essential if you want your coaching business to be successful and protect you in the long run.

A contract sets out exactly what each party will provide, how much they'll pay, when they'll pay, and any other terms that both parties agree on. This provides clarity for everyone involved and can help avoid misunderstandings down the line.

Without a contract, you risk:

• Having no legal way to enforce verbal agreements if issues arise
• Misunderstandings about payment, schedule, or deliverables
• Damage to your professional reputation
• Potential financial losses and disputes

• Disagreements over payment
• Confusion about the goals of the coaching sessions
• Misunderstandings about what will be provided by each party
• Unmet expectations from either side

Legally, you have no way to enforce a verbal agreement should anything go wrong.

A contract also helps protect your business legally and financially in case something goes wrong. It's insurance that can save you time, money, and lots of headaches down the line.

Key aspects of a coaching contract

Defining the scope and objectives

The coaching agreement must clearly define the scope and objectives of the coaching relationship. This includes specifying the topics, skills, or areas the coaching will cover, as well as the expected outcomes. For example, a career coach might focus on job search strategies and interview preparation, while a leadership coach targets management skills development.

Setting clear objectives helps both parties stay aligned and measure progress. Use specific language such as "improve public speaking skills within six months" or "develop a personalized business growth plan". This clarity reduces misunderstandings and ensures the client knows what to expect from each session.

To create an effective scope section, outline the number of sessions, their duration, and the format (in-person, video call, phone). Tools like HelloBonsai’s coaching contract templates can help you structure these details professionally and efficiently.

Payment terms and cancellation policies

Specifying payment terms in your coaching contract protects your income and sets clear expectations. Include the total fee, payment schedule, accepted payment methods, and any late payment penalties. For instance, you might require a 50% deposit upfront with the balance due before the final session.

Cancellation and rescheduling policies are equally important. State how much notice clients must give to cancel or reschedule without penalty—typically 24 to 48 hours. You can also include fees for late cancellations or missed sessions to discourage no-shows. This clarity helps maintain your schedule and cash flow.

Many coaches use payment platforms to automate payments and reminders. These include:

• PayPal
• Stripe
• HelloBonsai’s invoicing tools

Including these details in your contract streamlines the process and reduces disputes over money.

Confidentiality and data protection

Confidentiality is a cornerstone of trust in coaching relationships. Your contract should explicitly state that all shared information remains confidential, except where disclosure is required by law. This reassures clients that their personal and professional information is safe.

With data privacy laws like GDPR in Europe and CCPA in California, coaches must also address how client data is stored and protected. Specify the tools or platforms you use and your commitment to secure data handling. For example, using encrypted video platforms and secure cloud storage services shows professionalism and compliance.

Including a confidentiality clause not only builds trust but also protects you legally. Consider consulting with a legal expert to tailor this section to your jurisdiction’s requirements, especially if you coach clients internationally.

Termination and dispute resolution

Outline how either party can terminate the coaching agreement clearly. Define the notice period required, such as 14 days' written notice, and any conditions allowing immediate termination. This protects both coach and client from unexpected disruptions.

Include a dispute resolution process to handle conflicts professionally. This could involve mediation or arbitration before pursuing legal action. For example, you might specify that disputes first go through a neutral third-party mediator, which can save time and costs compared to court proceedings.

Clearly stating termination and dispute procedures reduces uncertainty and helps maintain a positive professional relationship. Use plain language and keep this section concise to ensure clients understand their rights and responsibilities.

Coaching agreement without a contract

To demonstrate the importance of a coaching contract, it's helpful to look at what can happen without one.

Without a contract, both parties are relying solely on their memories and understandings of what was agreed upon during the initial conversation or meeting. This leaves them open to potential disagreements and misunderstandings down the line.

For example, if you don't have a contract that states how many sessions will be provided for a certain amount of money, confusion can arise about when payment is due or when more sessions are required.

Likewise, if there's no timeline set out in the agreement, it can be difficult to keep things on track. Without a contract, it's much easier for one party to become unreliable and delay progress.

A contract lets you set your own terms for the relationship. Without one, you'll be shooting at a moving target regarding client expectations.

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How to write a coaching agreement

Ready to set up your contract for better outcomes and firmer boundaries? Every contract will be different, but you can typically rely on a few key elements to remain consistent. Let's take a closer look.

Introductory Section

In this section, your goal is to lay the foundations. The ideal scenario is that anyone reading the contract will be able to understand the basics of what's being agreed upon from the first section.

Provide a thorough overview of the coaching agreement. Address the purpose of the coaching contract and give a rundown of what will be covered throughout. The main goal is to ensure understanding of the terms and conditions of your coaching relationship.

For example, here is a template you might use to get started:

This agreement outlines the terms and conditions of the lifestyle coaching relationship between [Coach's Name] and [Client's Name]. The purpose of this agreement is to clarify the expectations, responsibilities, and obligations of both parties for the duration of the coaching relationship.

The agreement is intended to support the achievement of [Client's Name]'s personal and professional goals through the provision of guidance, support, and accountability by [Coach's Name]. By signing this agreement, both parties agree to comply with the terms outlined herein.

Coach Responsibilities

Spend this section outlining the specific responsibilities you will be taking on as the coach. For instance, will you be providing feedback? How frequently and to what extent? What will your support for the client look like?

This section is crucial for a few reasons. Clients can have wildly varying expectations, so it's essential to be clear on what you will and won't be providing.

Your responsibilities are the foundation of your coaching relationship – so they need to be written out in detail. Doing so serves as a reference point if any issues arise during the coaching period.

Yours might look something like this.

The Coach’s Duties and Responsibilities include, but are not limited to:

• Providing personalized coaching sessions once per week, for one hour each.
• Developing a personalized coaching plan based on Client’s specific goals and needs.
• Keeping all information shared during coaching sessions confidential, except as required by law.
• Adhering to the code of ethics of [insert relevant coaching organization].
• Keeping detailed records of Client’s progress and adjusting coaching strategies as needed.
• Responding to Client’s emails or messages within 48 hours, except in case of emergency or unforeseen circumstances.
• Scheduling and conducting coaching sessions at the same time and day each week, and rescheduling sessions in a timely manner if necessary.
• Regularly participating in professional development opportunities to improve coaching skills and stay current with industry developments.

Client Responsibilities

Although you're providing a service to your clients, it's still crucial that you outline what their role is as your client. It is well within your right to have certain standards; for instance, you might apply an inconvenience fee if they cancel a session with short notice.

This section might look something like this:

The Client’s Duties and Responsibilities include, but are not limited to:

• Providing honest and open feedback during coaching sessions.
• Agreeing to the terms of the coaching contract before each session begins.
• Rescheduling or canceling coaching sessions with at least 48 hours’ notice; if less than 48 hours’ notice is given, an inconvenience fee may be applied.
• Completing any assignments agreed upon in each session before the next one begins.
• Being prepared and on time for each coaching session.
• Paying the appropriate fees before or after each session.
• Following any instructions given by the Coach during sessions, unless otherwise agreed upon.
• Maintaining a safe environment for all parties involved in the coaching process (e.g., no physical contact).

Payment and Fees

Never enter into a coaching arrangement with clients without a clear understanding of how much they will pay and via what method. Aim to cover the following points in detail within this section:

• Payment amount
• Payment schedule
• Accepted payment methods
• Refund policies
• Late payment penalties

• How much will you bill for each session?
• Does the payment scheme vary? How so?
• When is payment due?
• Will you accept different types of payments (e.g., cash, card)?
• Are there any additional fees associated with the coaching sessions (e.g., material costs, travel expenses)?
• What happens in the event that a client misses a session or cancels on short notice?

You save yourself a lot of trouble by having these details in writing rather than relying on verbal agreements.

Confidentiality and Privacy

Both you and your clients should have contractual obligations in place when it comes to confidentiality and privacy. This is especially important if you work with sensitive information; for instance, you may need to guarantee that personal details remain confidential at all times.

Sensitive information might include:

• Personal contact details
• Health or psychological data
• Coaching session notes
• Payment and billing information

• Any personal data pertaining to you and/or the client
• Any confidential material discussed during coaching sessions
• Financial information related to the payment process

The exact nature of your confidentiality clause may vary, depending on the type of service you provide; however, it should always be detailed and specific.

Termination Clause

When will your coaching cease? For what reasons? Do you have a set duration? These are all vital questions to answer in your termination clause.

The termination clause should outline the terms of contract expiration and how either party may go about doing so if necessary. You'll also want to cover any potential liabilities or obligations that might arise upon terminating the coaching arrangement.

Dispute Resolution

Even if your coaching relationship with a client starts out completely amicable, there is always the possibility of a dispute arising during or after the contract period. Therefore, it's important to include a clause that outlines what processes and procedures will be used to resolve such disputes.

It might look something like this:

The parties agree to use their best efforts to settle any disputes or disagreements that arise out of the coaching agreement through friendly negotiation and discussion. If either party is unable to do so, they can initiate mediation in order to resolve the matter amicably. Alternatively, either party may refer the dispute for resolution by arbitration before an independent arbitrator agreed upon by both parties.

Signatures

It's time to sign off on the contract now. You and your client should both sign the document, along with any relevant witnesses, if necessary. Make sure to keep a signed copy for yourself in case of future disputes or misunderstandings.

Hint: To make the process easier, use our Bonsai Online Signature Maker.

Legal compliance checklist for coaching contracts

include essential contract elements to ensure clarity

Coaching agreements must include specific elements to be legally binding and clear. Start by defining the scope of services, detailing what coaching topics or methods you will cover and any limitations. This prevents misunderstandings about what the client can expect.

These elements include:

• Scope of services
• Payment terms
• Duration and termination conditions
• Confidentiality clauses
• Dispute resolution procedures

Next, specify payment terms including fees, payment schedule, and refund policies. For example, state if payments are due upfront or in installments, and whether refunds are available if sessions are canceled. Including these details protects both parties and reduces disputes.

Payment details should cover:

• Fee amounts
• Payment schedule (e.g., upfront or installments)
• Accepted payment methods (e.g., credit card, PayPal)
• Refund and cancellation policies

Finally, outline the duration and termination conditions of the agreement. Indicate the contract length, renewal options, and how either party can end the contract early. Clear termination clauses help manage expectations and avoid legal complications down the line.

Key termination details include:

• Contract length (e.g., 6 months, 1 year)
• Renewal terms (automatic or manual)
• Early termination rights and processes
• Obligations or liabilities upon termination

address confidentiality and data privacy requirements

Confidentiality is critical in coaching agreements to protect sensitive client information. Include a confidentiality clause that commits both parties to keep shared information private, except where disclosure is required by law. This builds trust and meets legal standards.

Data privacy laws like GDPR in Europe and CCPA in California require coaches to handle personal data responsibly. Specify how you collect, store, and use client data, and obtain explicit consent when necessary. Using tools like HelloBonsai’s client management features can help maintain compliance.

Ensure your contract also explains how long client data will be retained and the process for data deletion upon request. Being transparent about privacy practices reduces risk and demonstrates professionalism.

include liability and dispute resolution clauses

Limiting liability in your coaching agreement protects you from claims related to coaching outcomes. Clearly state that coaching does not guarantee specific results and that you are not responsible for client decisions made outside sessions. This disclaimer is essential for managing legal risks.

Dispute resolution clauses guide how conflicts will be handled if they arise. Specify whether disputes will go through mediation, arbitration, or court proceedings. For example, many coaches choose mediation first to save time and costs before litigation.

Including jurisdiction details, such as the state or country laws governing the contract, helps avoid confusion. Taking these steps ensures you have a clear, enforceable process for resolving issues.

ensure compliance with state and professional regulations

Coaching laws and regulations vary by state and country, so tailor your agreement accordingly. For instance, some states require specific disclosures or prohibit certain terms in coaching contracts. Research local laws or consult a legal professional to confirm compliance.

Additionally, if you belong to a professional coaching organization like the International Coach Federation (ICF), include any required ethical guidelines or standards in your contract. This reinforces your credibility and adherence to industry best practices.

Regularly review and update your coaching agreement to reflect changes in laws or professional standards. Staying informed ensures your contracts remain valid and protect your business effectively.

Tips to create a coaching agreement

Get your legal affairs sorted properly with these tips and tricks for creating a coaching contract:

• Limiting liability clauses
• Dispute resolution mechanisms
• Jurisdiction details
• Compliance with coaching laws and regulations
• Inclusion of ethical guidelines from professional organizations
• Regular reviews and updates of the agreement

• Be clear, concise, and comprehensive. Your contract should cover all the details in language that is easy to understand without being overly long or complex.
• Make sure both parties fully understand their rights and obligations. If there’s any confusion about anything, you may need to provide additional information or clarification.
• Ensure your terms are reasonable and fair to both sides. You don't want one party feeling taken advantage of in any way; therefore, it's important that each side understands exactly what they're agreeing to before signing the document.
• Remain professional at all times. No matter how friendly you may be with your client, it's important to maintain a professional relationship – this includes the wording of your contract.
• Have everything reviewed by a legal professional. Even if you're confident in your contract, it's still worth getting another set of eyes to review it for any potential issues or problems.

Your coaching agreement should be a living document. As you and your clients start working together, you may need to make adjustments or amendments to the contract in order to best serve both parties.

Can you use a coaching agreement template?

There's no denying that legal documents take time and effort to create. Is there any way you can speed up the process?

Templates are a great way to get started. Here at Bonsai, we offer a range of customizable contract templates that you can use and adjust as needed. They are all approved by law professionals – so you can rest easy knowing that your agreement is legally sound.

A coaching contract should be taken seriously. It lays out the terms of your working relationship and provides legal protection for both parties involved. With a bit of effort, you can quickly create an agreement that works for everyone.

How to use the coaching contract template effectively

Customize the template to fit your coaching services

Start by tailoring the coaching contract template to reflect your specific services and client expectations. Replace any generic terms with details about your coaching style, session frequency, and pricing structure to avoid confusion later. For example, if you offer both one-on-one and group coaching, clearly define the differences in your contract.

Pay close attention to the scope of work section. Specify what is included and what is not. This includes items such as the number of sessions, communication channels, and cancellation policies. This clarity helps prevent misunderstandings and sets professional boundaries from the outset.

After customizing, review your contract to ensure it aligns with your business model and client needs. Using tools like HelloBonsai’s contract editor can simplify this process by guiding you through editable sections and legal language tailored for coaching professionals.

Use e-signature tools to streamline contract signing

Once your coaching agreement is customized, use e-signature software to make the signing process quick and secure. Platforms like DocuSign, HelloSign, or Adobe Sign are widely trusted and comply with legal standards in 2024. This approach saves time and ensures both parties have a verifiable copy of the signed document.

Sharing your contract via these tools also allows clients to review and sign on any device, improving convenience and reducing delays. For instance, HelloBonsai integrates contract management with e-signature capabilities, making it easy to track client responses and send reminders automatically.

Implementing e-signatures not only speeds up onboarding but also enhances professionalism, showing clients you value efficiency and security. Make sure to confirm that the signed contract is stored safely for future reference and compliance.

Consult a legal professional to strengthen your contract

Even with a well-crafted coaching contract template, consulting a lawyer ensures your agreement complies with current laws and protects your interests. Legal advice is especially important if you work across different states or countries, as contract laws and regulations can vary significantly.

A lawyer can help you identify any ambiguous language or missing clauses that could expose you to risks, such as liability issues or intellectual property rights. For example, they might recommend adding a clause about confidentiality or dispute resolution tailored to your coaching niche.

Investing in legal review upfront can save you from costly disputes later. Use services like LegalZoom or consult a local attorney familiar with freelance contracts to get personalized guidance based on your coaching business structure and location.

Provide clear guidance to clients when presenting the contract

When sending your coaching agreement to clients, include a brief explanation of key sections to help them understand their commitments. Highlight important points such as payment terms, session scheduling, and cancellation policies to reduce back-and-forth questions.

Consider creating a simple FAQ or summary document alongside the contract. This extra step builds trust and demonstrates professionalism, making clients more comfortable signing the agreement quickly. For example, you might explain how to request rescheduling or the consequences of late payments.

Clear communication at this stage also sets the tone for your coaching relationship. Encourage clients to ask questions before signing, which can prevent misunderstandings and foster a transparent, collaborative environment from the start.

Use our free coaching agreement template

While your coaching contract should be tailored to each of your clients, there is a way for you to make the onboarding process more efficient. You can quickly create the perfect contract using Bonsai's free coaching contract template. Simply download the template and customize it as you like to add your business branding, then save it in your preferred format to create a professional document for every single new client.

Get started today with our 7-day free trial and see why we are the go-to solution for freelance professionals across industries.

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