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Yes, you can build the business you want, impact your community and bring revenue into your business. You just need the right strategies, support and focus. Now I don't have to tell you that surrounding yourself with a group of like minded and success minded people is only going to move your business forward. And that's what you get inside my Thrive membership. Inside you get access to weekly live Q and A calls, industry specific business training, accountability and resources that will bring ease and give you back time. This group, part mentorship, part coaching, part mastermind, will keep you focused on what matters. So what does matter? Well, your business, getting a steady stream of new clients and being able to seamlessly retain your existing clientele and building those systems that allow you to take time out of your business. Head to spring3.com thrive to find out more and join an upcoming interest Call with me now. Here's this week's episode of the Pilates Business Podcast. If you're running a studio and pouring your heart into it, the last thing you want is to leave yourself legally exposed. Today, we're diving into the legal essentials that every studio owner needs to know to protect your business, your clients and yourself. From liability waivers to independent contractor agreements, I'm covering the top legal must haves you need in place to keep your studio safe and secure. Well, hi there. I'm Sarah Glanfield. I'm a business and marketing strategist just for boutique fitness studio owners like you. If you're ready to be inspired and make a bigger impact, you're in the right place. All you need are a few key strategies, the right mindset, and some support along the way. Join me as I share the real life insights that will help you grow a sustainable and profitable studio. This is the Pilates Business Podcast. Welcome back to the Pilates Business Podcast. Ann Glanfield, your host and today we are taking on a topic that every studio owner needs but few love to dive into. And that is the legal essentials. I know it's tempting to perhaps focus on those parts of your business that you love. Teaching the movement, maybe the design and the decor, the colors of the logo even. But there's one thing that I've seen over and over again in this industry. It's that it's really, really important to protect yourself and your business from a legal perspective. And we don't want you to make any missteps in that area. Which is why I've invited our favorite favorite lawyer, Corey Sterling, founder of Conscious Counsel, back onto the show to talk all about it. Welcome Corey.
B
Thank you Saran, thank you so much for having me. And it's been a while since we had a chance to have a conversation, so I'm really, I'm really excited to be here. And thank you for having me.
A
Yeah, of course. I mean, the last time you were on just for everyone listening was episode 17, which was way back in 2021. And this is episode 194. So, you know, a couple years ago and that was a while ago and I know that a few things have changed in that time. Um, so we'll definitely, we'll hear some of the updates of how things might have shifted. But why don't we kick off? Why don't you begin by introducing yourself, Conscious Counsel and what you do.
B
I would be very, very happy to. I also want to acknowledge you for your consistency. Holy smokes. Yeah. Continually showing up for your community and for your listeners, which is really, really amazing.
A
So every week, never miss a week.
B
You know what? I've. Yeah, I started a podcast and I've missed a week twice. Yeah, but that happens. Anyways, so I acknowledge you. It's your. I'm, I'm striving for, for your consistency. But you're, you're awesome and it's so cool to be chatting with you. Okay. I run an online law firm called Conscious Counsel. We provide, we provide heart leading legal services and legal solutions for professionals in the health and wellness industry, specifically yoga, Pilates and health coaching and retreats. So when I originally started my legal practice, I started just in yoga and then I was like, then I got into Pilates, I was like, cool, why don't I also help out different Pilates studio owners? And now fast forward a couple of years. We've worked with more than 1400 clients. We've got 393 five star Google reviews. We won an award in 2024 for best health and wellness lawyers. And we're having a really, really fun time doing it. So my, my job is very, very interesting. I'm essentially a lawyer for different studios and I help them through legal problems and legal challenges and legal issues. For me in. It's so interesting because I get to go through this journey of watching my clients go through things for the first time, even even though I've done it so many times and I've seen the same problems time and time again. And it's sort of, it's just interesting. You see someone going through for the first time and for me it's like, oh, this is. I know exactly where we are and what you need to do and how to take care of it. But you are right that a lot of people who run studios, they love doing the schedule, they love doing Instagram, they love doing all the fun, amazing, juicy parts of it. And they don't have the legal foundation in place and unfortunately that can come back to, to bite them. So I, I stand up, I take a stand to provide hard leading legal solutions for studio owners around the world and do everything I can to share my expertise and my information so that whoever's listening doesn't make the same mistake that one of my clients has already made and to do it in a fun and interesting and entertaining way. So here I am.
A
Here you are. And I think, you know, when we, we were so. Business owners wear so many hats, especially small business owners. And you know, when you open a business, there are things that you sort of expect that you might not know so much about. And, and there are things that you know that we will never, you know, you, you can never expect to know everything about the, the legalities of business, right? Which is when it's really, I think, quite important to bring in experts to, to give you guidance and to give you support and when it comes to all of the legal stuff, right. I think, you know, you're not going to go get a law degree to then write your own documents. So it's important to have someone who not only can help you from a legal perspective, but I think it's also helpful to have someone who can help you and who understands your business and the industry that we're in so that they can make sure that you're fully protected in the right way. So when you start with, when you, if you were starting a studio, what would you say are the, this, you know, how should someone sort of make sure that they are protected from the beginning? What, what are the sort of basics?
B
Yeah, you want to look at what different relationships you're going to have in your business, right? So the different relationships you have is you probably, if you have a studio, you have teachers that work for you. So what relationship do you have with them? Are they contractors or are they employees? You have your clients who. You have two types of relationships with your clients. One as it relates to liability and them getting injured and one as it relates to, you know, a consumer provider relationship in terms of you selling something and then buying something. You have a relationship online for all the information and photos and images and personal information that you collect online. And if you're renting a space, you have a relationship with your landlord as well. So usually it's the, the first step always is just zoom out and think who do I have different relationships with and how can I put in place an agreement that is at best standards for the Pilates industry that represents what, what is normal and, and what different studio owners and Pilates are using? How can I have that type of agreement reflect the relationship I want to have with that, with that person or with those people? And really like in the most simplistic sense, the true purpose of the lawyer is to give peace of mind and security and confidence. Because I see so often that it, it's either something that people want to sweep under the rug and just not think about and be like, I'm just going to hold them hope that nothing happens or is sometimes that happens. Or they'll just be like, ah, like okay, it'll. The universe has my back. Everything will figure everything out out for itself. And so what I've learned more and more that I've done this and probably what's changed a lot since being a guest on episode 17 is realizing that my role as the lawyer really is to give people freedom and give them security and give them peace of mind and be like, cool, I've got this part for all these things that you don't understand. And so you go off and like sign as many members as you want. I'm starting to work with a new studio who's doing a build out. So it's like a seven figure project, custom build out all of the things. And I saw, I saw that they started selling like their legacy memberships without having a membership agreement. And I was like, okay, like we, we gotta talk about this. Like this, this is something that you need to have in place, you need to take care of.
A
So why don't we die? Can we dive into that really quickly? So tell me about the membership agreement and how, what falls under that?
B
Yeah, so really important. You just, the way that you want to think about the relationship that you have with your clients is how can things be as easy and simple for me and my team as possible in accordance with the laws. So you, in, in, in a membership agreement you want to address certain things like you know, auto subscription, you know, subscription pay, expectations, behavioral expectations, what, what to do if someone does not follow them. Payments, rescheduling, cancellations, hygiene, respect, what's included, what's not included. All of those different elements want to be addressed in the membership agreement because this is, this is the relationship that you have with your clients and that if and when you have a problem with one of your clients. And one. One issue I've consistently had with my clients or studio owners is they've wanted to stop working with a client who's either making instructors feel uncomfortable, making other members feel uncomfortable. Whatever issue comes up around that if you have a generic templated agreement that doesn't outline the specific expectations of your studio, you're gonna have a really, really difficult time removing that person from the studio. And then when you try to kick them out, they're gonna say, oh, you're discriminating against me because of abc. Because usually the person that you're trying to kick out has some form of mental imbalance or some. Like there's some issue that's going on there usually. And so for me, as the lawyer, it's like, we tell people what we expect of them. They follow the behavioral. The behavioral standard that we set. If they don't, we have a legal reason to kick them out and not provide a refund for what they've paid based on breach of contract. So it's, again, is it. Is it the most fun thing to think about? Not really. But what I say to every client when we're doing a studio membership agreement is like, think about all of the headaches and issues you've had in the past dealing with your clients, whether that it's not paying, showing up late, whatever it is, not wearing grippy socks. You. You choose the issue, not taking care of the equipment properly. Let's put all of that in agreement. Let's get your clients to sign it. If anything comes up, you have superior legal position, you can address it immediately.
A
Yeah, and it's about like, that peace of mind, you know, because I think, you know, we're dealing with often, you know, hundreds and hundreds of human beings, and everyone has. Comes into this, into your studio from a different place with sometimes different expectations, sometimes misconceptions and all of these things. And so you never quite know, you know, what's going to come at you. And so protecting yourself is so important, for sure.
B
It's the point of all of it. It's like you start a studio, you get five legal agreements, and then if there's a problem, you send me an email. That's. That's like. That's the. That's the most simple, that's the most simplistic way. You know you're not going to get sued. You know that if there's an issue, you have a strong legal position, and you know that you have someone who understands your business, who can take care of it. For you. So it's like, I think in my, in the earlier years of my career I was much more law focused. Right. Be like, well, this is the law and this is what we do. And now I'm much more relationship focused where it's like, cool problem comes up for me, the email, I'll take care of it for you. Because you should be focusing on growing your business or having great messaging or building your team or whatever else it is that that business owners should be taking care of.
A
For sure. For sure. So what are the sort of key legal agreements that you need in place.
B
As it relates to operating online? You need a privacy policy in terms of service. This is the collection of personal information in 2024, turning 2025, it's more important than ever. Any third party that you share or facilitate the sharing of personal information with, you have to list them on part of your privacy policy. A lot of people will ask like, where and when? You know, can't I just copy this? What, when, when would I use this? I think it's something like 60 plus percent of data breaches in a professional context happen to small business owners. And so the reason why you need a privacy policy, other than the fact that it's mandated and that if you're going to be collecting it, if you have a mailing list, if you are holding people's personal information, you need to let them know how you're going to use it. But also if there's a data breach, you have to show that you follow the appropriate steps and you let people know what would h. And like a data breach is a reality in 2024.
A
It certainly is. It's scary and it happens.
B
Yeah, compromise information happens. So it's one of those things that a lot of people think like, oh, like what do I need this for? But a, you need it because it's a rule and to. There can be data breaches and I've had clients who have had information compromised and then got sued because they didn't have the appropriate privacy policy in place. So it's sort of like we just want to take care of all of it. So once privacy policy, service slash membership agreement we spoke about waiver of liability is a really big one. So this is before you are providing services to someone, you tell them what you're going to do, how you're going to do it, where you're going to do it, what equipment you're going to use, what can go wrong, and then they agree not to sue you by virtue of their participation. So if they suffer damages by doing the activities that you said in the way that you said you're going to do it with the equipment that you said you were going to do, God forbid there's a problem, then the waiver of liability is, is what you stand on to say, hey, before we work together, before I allowed you to come into the studio, you signed this document. We told you we were going to be using the Cadillac and the, you know, and the Pilates ring and a Bosu ball and lightweights and whatever. And this is, you know, in the reformer and this is the accident that happened. And as such, you, you agree not to hold us responsible. I went through something. A client of mine is a Pilates instructor doing home Pilates and their clients are elderly, elderly client base. Unfortunately there was an injury, someone got really, really hurt and then threaten them, blame them all the bad things. We have the waiver of liability signed. I was able to respond to the person immediately with a copy of the signed waiver. It goes away. So that's privacy waiver service agreement, a media release and a social media disclaimer. If you're going to be taking testimonials, if you're going to be taking photos, if you're going to be taking videos, using them on your website, using them on promotional campaigns, if you run, if you run Instagram lives where you give information that could be construed as professional recommendations, you want to be covered in the event that you do that. And then the last agreement would be either a contractor agreement or an employee agreement based on your state, based on the scope of services being provided.
A
That covers a lot. Which ones typically are missed, would you say?
B
What I see missed the most are not paying enough time, not paying enough time or attention to the independent contractor, independent contractor slash employee question. I think that clients don't understand the ramifications of making that classification and usually they'll want it both ways. So in plain English, it's cheaper and easier for you to have contractors, but you have less control over the services that they provide. Also you're not entitled to the benefits of things like a non competition, which is like probably one out of four issues that I'm resolving for clients has to do with non competition or them wanting to preclude someone from working somewhere else in some capacity. So when you're with independent contractors, you can't really have any non competition provisions in even with employees, it can be difficult. It has to be drafted appropriately. I think that's missed. And, and I, yeah, I mean, look, if if, if a client is doing things properly and getting all of these agreements customized, then they're in great shape. What? Half of my legal practice, half of my legal practice is getting emails from clients who used ChatGPT or use their friends documents. And now we're having a problem and are paying me, you know, four times what it would cost to have done it the right way. And half of my clients are. People are like, okay, I know that I need to take care of this. So if I get a hold of someone and if I have an opportunity to speak with them and explain what I do and why I do it and all of the different experiences I've been through, I think then, then, then nothing gets missed because it's just like, hey, I have. You can choose any of those documents. I've got 15 stories for each of them of things that I've been through with clients.
A
And so, yeah, so tell me a little bit about what I think the biggest things, the questions, I mean in the conversation that I have with studio owners that come up are around, well, a. Like what? The waivers. So we've, we've kind of, we've talked about that. Obviously it sounds like that needs to be quite specific actually. And so you can't sort of pull a generic, you know, copy and paste perhaps from something you found or ChatGPT has created. But the other following that I would say the next one that mostly comes up is about employment agreement or independent contractors. And you know, obviously there's a, there is a distinction there between the two and because I think the next question is always, or how do I protect my business if I have a teacher, and especially for folks who often have teacher training programs, how do I protect myself and grow this business and offer this service and ensure that these people don't then become my competition? You know, so how does that look? And because I know some of the rules have changed has been a lot more. There's been some shifts in, in, in that way. So can we talk a little bit about that?
B
Yeah, sure, I'd be happy to. So essentially in. And you're absolutely right. And the, the biggest, most expensive issues that I've that I help clients with are waivers and our independent contractor issues or, or employee issues. The contractor employee issues. Always, it's almost always the same people are afraid that whoever they're working with is going to start, steal their clients and start, start their own studio. Like always that all. And it's. What's so interesting is like Law of Attraction. The people who always bring it up that they're afraid that it's going to happen. It sort of always happens to them. And, and so what you want to do is you want to create a contract that is to the maximum extent possible, as prohibitive as possible for those people to be able to do certain things. So non competition usually is not permitted, but non solicitation is permitted. And, and also you want one is able to make it a condition of them working with you that they're also not allowed to work in a, in a certain place. So I'll just, I'll break this down. Right. Non competition typically says, okay, if you work here, if you work at my studio, then you're not allowed to work at any other studio within a three mile radius. Right? Cool. Non compete. Now the issue, what happens is the person, the employee works for the business leaves the business and then goes to work at another studio within a three mile radius. And then my client calls me freaking out, wanting to enforce that provision. That's an example of a provision that's very, very difficult to enforce. What one thing that I do coach my clients on is the, and you can do this with contractors or employees. You, you are allowed to put in restrictions to say if you're working here, you're not allowed, at the same time that you're working here, you're not allowed to work at anywhere within three miles. And that is something that you are able to do because you can say cool as a condition of our employment. You understand that if you're working here, you're only going to work at our studio and nowhere else within a three mile radius. That's different from saying once you're done here for a period of two years in a three mile radius, you're not able to do what it is that you want to do. So there are legal fixes and ways to do it, but it's, it's, it's a little bit tricky. And the most important thing is that you have documents in favor of your legal position so that in the event you want to try to enforce something that you have a strong agreement that, and you have the superior legal position. And I'll just break down this one concept because it's so important to understand all of, all of the issues that I've been a part of. None of them have gone to court. Okay. So we, we always think that, okay, I'm dealing with a lawyer and when I'm in court I'm going to, that's not where the rubber meets the road. That's not where the Action happens. The action happens is there's a disagreement, someone does something, and now you're demonstrating the strength of your legal position. So when you have your customized agreement that's signed by the other person, that puts you in a superior legal position. Let's say that person wants to do something. It's as simple as me sending an email saying, hey, attaches a signed copy of the agreement that you sign. You're not allowed to do A, B or C. If we find out that you do A, B or C, we reserve the right to bring an action against you, plus fees, plus costs, plus everything. And that's like usually 99% of the time, everything stops there. So it's like, it's counterintuitive because of Hollywood and television and how we think that things work, that it's like the grand finale is going to be in the courtroom, but it actually the everything happens in the. In. In between.
A
Right. That's really helpful to, to, to. To understand a little bit more detail. Thank you. So there. So obviously, you know, legal precedents change on a regular basis. And one of the most recent so of rulings that has come into effect or is about to come into effect is a ruling called the Click to Cancel rule. Can you talk a little bit about that and how it might impact studios?
B
Yeah, it's. Look, I think in. This is the, this is what I'll say about it. So it's something new that's coming in and it's the, the intention of it is to create clarity in a recurring subscription payment model. And it's also intended to benefit customers. It's for consumer protection. This is what I can say. I haven't done too much research into it, but in looking at the policy. So at law, this is like Law School 101. When a new ruling or a new piece of legislation comes in, it's always a reflection of policy, of society at that time, where the lawmakers are like, hey, we don't think that this is working for the general public. So we want to put something in effect that will support them and that will be more advantageous or fair to them. Because it's like things happen and then the laws always have to adapt and change afterwards. The intentions of the Click to Cancel Policy are not, and I can say this with 100% confidence, the FTC was not looking at Pilates studio memberships and thinking, we've got to stop these people. It's really for a little bit more sinister types of businesses that have recurring payments and have tricky, misleading deceptive business practices that make it easy for people to opt out of recurring memberships. Which is like, overall, this is a very, very good thing. Like, it's not, it doesn't, it's not going to hurt studios. To me, how I interpret is that it emphasizes the need for a clear membership agreement and also what the opt in and the opt out process processes. So most of what the actual practical implication for this is going to be is like, what process is available for someone to opt out of a recurring payment? Right. So it's just like you have to disclose this, you have to show this, you have to make it easy for people to be able to opt out and not have issues. What I will say will be very, very important in terms of chargebacks and in terms of protecting studios. If you're selling some. Someone something at a certain price, that is, you're purchasing an annual membership at a recurring payment rate of $100 a month, that, you know, it's 1200, but if you just paid for three months, it would be 600. Right. I'm just. You want your membership agreement to say, in the event that you terminate this early, there will be a price adjustment to reflect that. You know, because if, if, if you don't have that in place, someone can sign up for an annual membership, pay on a monthly basis for that particular price, opt out early. Cool. I got my four months of Pilates coming six times a week, paying 100 bucks a month, which would be, you know, an absolute steal and then walking away and be like, oh, cool, well, I'm allowed to cancel it subject to the written agreement between the parties. So in. Yeah, sorry, go ahead.
A
So, yeah, so, so, so as, as long as you have the. Within your terms and conditions. Very clear. So they can still cancel, but they would be an additional sort of termination fee then. Is that what you do?
B
The click to cancel is a breath. Just think of the procedure. It's the procedure which, in, in which way someone is allowed to cancel a recurring membership. So it can't be hidden, it can't be deceptive, it has to be present. There has to be like a, you know, a negative opt in, whatever it is, all of all of those sorts of things. What the issue that I foresee happening is that people sell something at a certain price based on a promise to pay over a certain amount of time. And if someone now has these strong consumer rights that they can cancel something at any time. Cool. You can cancel whenever you want, but the, the payments and the amounts owed should be reflective of however long you actually were paying for the services. Does that, have I explained that clearly?
A
Yeah. So if you, so you, so if they, so if. So if they are committed, say to the 12 months and they were paying 100 bucks a month, yet if they were going month to month, it would be 200 bucks a month.
B
Yes. The risk for the studio owner is that now that it's easier to opt out, they could opt out after a certain time and now they're paying half the amount for having gotten something else. So we just, it just is a reminder to tighten up studio membership agreement.
A
And so in that scenario, would you recommend that folks don't have a 12 month commitment on their membership or what would you say?
B
I'm, I'm, I'm not so concerned about that. I think that a 12 month option makes sense. Again, what I'll say is like, it's not, it's not about us in the Pilates industry, this ruling. It's, it's really, definitely it's, it's relevant in the sense that it applies to everyone and anyone who has recurring subscriptions. But I think the most important thing always is to manage the relationship and communicate the expectations. And so long as you're doing that appropriately, there may be a couple of people who try to take advantage. But that's why you want to be prepared with the right documentation.
A
Right. Okay. So as long as you tighten up the membership agreement, there is no need to change anything within your pricing structure per se, other than the fact that perhaps tighten up the early termination clause.
B
Yeah, no, there's, there's no need to. And also again, what, what this is about is it's procedural. It's the process of which someone is allowed to opt out of a subscription. That's all that this is about. It's not, it, it doesn't change the laws. It just either certain in, in the same way that a privacy policy has to have certain things in order to be at best practices on a procedural level. It's just, they're applying, they're applying this to opt outs for subscriptions.
A
I think whenever these sorts of new rulings come out, it's always a little bit of, okay, what does this really mean in practicality for, for studio owners? So it's always helpful to have your insights. Thank you.
B
With pleasure. With so much pleasure.
A
All right, so as we kind of look into kind of, you know, the, the legal landscape and the industry as a whole, what sort of recommendations would you make for studio owners new and perhaps those who've been in business for a while to make sure that they're protected legally more generally.
B
In the most simplistic sense, you want to get a package of documents to reflect the relationships that you want. And you want to register a trademark for your business name.
A
Yes. We did not talk about intellectual property yet.
B
Yeah, intellectual property. And we, and we can do it quickly because I want to be mindful of the time. But the way that it relates to Pilates studio owners is that copyright relates to protection of written works, teacher training manuals, studio manuals, anything related, anything that you write or that you create is protected by copyright. Trademark has to do with having exclusive use to a word or a series of words or a logo as it relates to your business. So they're both very, very important. And some of the biggest issues I see come around. Come around trademarks and not registering a trademark, especially in the Pilates place where. So it's actually amazing how similar so many of the names can be, which makes it tricky to navigate, but also enforces the importance of making sure trademarks are in place.
A
Yeah. And I know I've had many clients who have very. The same name for their studios. And I'm like, wait, is that. Is that Jane from that Pilates or is that Sally from that Pilates? It's the same name.
B
Yeah. There are a lot of them that are the same, like movement Pilates as an example like that.
A
I just, I could list them all, but I won't.
B
Yeah, it's just like there's a lot of movement Pilates.
A
Yeah, yeah, yeah. Well, this was so helpful. I really appreciate you coming on and sharing, Corey, all of your insights and the lovely reminders of how we can make sure that we are able to really be protected from a legal perspective and legal standpoint. And I know that people are going to want to be able to get in touch and to get your help. So what's the best way for people to connect with you and to perhaps make sure that they've got all of their ducks in a row?
B
Yeah, you can. You can shoot me an email. Corey at Conscious Counsel. Ca. We're going to put our website in the show night show notes Conscious Counsel Cat on Instagram. It's at Conscious Counsel. And yeah, and thanks so much for having me and for the opportunity to chat once again, I hope the information was. Was helpful. And it's just like the way that you just want to think about laws that like a. It's the cost of doing business. Like if you're going to hang up a shingle and put up, open up a space. You're going to need legal documents to make sure that you're protected. And like B, it doesn't have to be difficult or stressful or challenging. And it's not something that you, the end consumer, have to do. It's something that you have to work with someone who knows what they're doing in order to make sure that you're protected. And having a series of professional relationships, whether it's an accountant, whether it's a bookkeeper, whether it's your business coach, whether it's a marketing coach, whether it's a lawyer, whoever it is, it's like this is the team that helps you grow up and level up and and get to the next level without any issues. So thank you so much for the opportunity and it's a pleasure to chat with you, as always.
A
Always, always. Thank you. So I'm going to pop all of the key links in the show notes, you guys. So pop in there and grab those. And I really hope that this was helpful to you. I hope that it's given you perhaps a little bit of homework to go and just double check you have all of those documents we mentioned in place. And I hope this is really helpful to you as you go about building your boutique fitness studio business. If it was, be sure to never miss another episode. Just go to wherever you're listening to this and hit that follow or subscribe button. It would mean a lot. Take care. Did you love this episode and want more? Head to spring3.com and check out my free resources that will help you run a profitable and fulfilling studio business. And before you go, one last reminder. There is no one way to do what you do, only your way. So whatever it is that you want to do, create or offer, you've got this. Thanks again for joining me today and have a wonderful rest of your day.
Pilates Business Podcast: Episode Summary
Title: Protect Your Studio! The 5 Legal Essentials Every Fitness Owner Needs
Host: Seran Glanfield
Guest: Corey Sterling, Founder of Conscious Counsel
Release Date: December 2, 2024
In this insightful episode of The Pilates Business Podcast, host Seran Glanfield delves into the crucial topic of legal protections for Pilates studio owners. Recognizing that studio owners often focus on the dynamic aspects of their business—like teaching and studio aesthetics—Seran emphasizes the importance of not neglecting the legal foundations that safeguard both the business and its clientele.
Seran welcomes Corey Sterling, a seasoned attorney and founder of Conscious Counsel, an online law firm dedicated to providing heart-led legal services tailored for the health and wellness industry, including yoga, Pilates, and health coaching. Corey brings a wealth of experience, having assisted over 1,400 clients and earning accolades such as the 2024 Best Health and Wellness Lawyers award.
Corey Sterling [04:00]: "We provide heart leading legal services and legal solutions for professionals in the health and wellness industry, specifically yoga, Pilates and health coaching and retreats."
Seran sets the stage by highlighting a common oversight among studio owners: neglecting legal safeguards in favor of more tangible business elements. Corey concurs, stressing that while the creative aspects of running a studio are fulfilling, the absence of robust legal agreements can lead to significant vulnerabilities.
Seran Glanfield [06:26]: "You don't want to make any missteps in that area."
Corey outlines the primary legal documents every Pilates studio should have in place to ensure comprehensive protection:
A cornerstone of client relations, membership agreements define the terms of engagement between the studio and its clients. Corey emphasizes the need for these agreements to cover various aspects such as automatic subscriptions, payment terms, behavioral expectations, and procedures for rescheduling or cancellations.
Corey Sterling [10:04]: "If anything comes up, you have a superior legal position, you can address it immediately."
He advises against using generic templates or platforms like ChatGPT to draft these agreements, as customized documents better reflect the unique operations and expectations of each studio.
With the increasing importance of data security, Corey highlights the necessity of having a comprehensive privacy policy. This document should clearly state how personal information is collected, used, and protected, especially in light of the rising number of data breaches among small businesses.
Corey Sterling [13:25]: "60 plus percent of data breaches in a professional context happen to small business owners."
Essential for mitigating risks associated with physical activities, waivers inform clients of potential risks and protect the studio from lawsuits should injuries occur during classes.
Corey Sterling [14:22]: "We have the waiver of liability signed. It goes away."
For studios that utilize testimonials, photos, or videos in their marketing, media release forms and social media disclaimers are vital to protect against unauthorized use of client images and to clarify the nature of any professional advice given online.
One of the most frequently overlooked areas, the distinction between employees and independent contractors, has significant legal and financial implications. Corey explains the differences and the importance of correctly classifying staff to avoid legal disputes.
Corey Sterling [16:38]: "What I see missed the most are not paying enough time, not paying enough time or attention to the independent contractor, independent contractor slash employee question."
He also discusses non-compete and non-solicitation clauses, advising that while non-competes are often unenforceable, non-solicitation agreements can effectively prevent former contractors or employees from poaching clients.
Seran and Corey explore the newly introduced Click to Cancel rule, designed to enhance consumer protection in recurring subscription models. This rule mandates clear and straightforward processes for clients to opt out of memberships without deceptive hurdles.
Corey Sterling [23:45]: "It's for consumer protection... it's not going to hurt studios."
Corey reassures studio owners that the rule primarily targets deceptive practices and emphasizes the importance of transparent membership agreements. He advises including termination clauses that reflect the actual usage and services provided, thereby safeguarding studios against potential financial losses from sudden cancellations.
Beyond operational agreements, Corey touches upon the significance of protecting intellectual property. This includes registering trademarks for studio names and copyrights for any original written or digital content, ensuring that studio-specific materials and branding remain exclusive.
Corey Sterling [30:02]: "You want to register a trademark for your business name."
To ensure comprehensive legal protection, Corey recommends that studio owners:
Corey Sterling [32:01]: "You have to work with someone who knows what they're doing in order to make sure that you're protected."
Seran wraps up the episode by reiterating the importance of legal preparedness in running a successful Pilates studio. Emphasizing that legal measures shouldn't be viewed as daunting, she encourages studio owners to integrate these essentials seamlessly into their business operations.
Seran Glanfield [33:04]: "There is no one way to do what you do, only your way. So whatever it is that you want to do, create or offer, you've got this."
For studio owners seeking personalized legal assistance, Corey Sterling can be reached via email at Corey@ConsciousCounsel.ca or through their website ConsciousCounsel.ca. Additionally, their Instagram handle is @ConsciousCounsel.
This episode serves as a comprehensive guide for Pilates studio owners to navigate the often complex legal landscape, ensuring their businesses remain secure, compliant, and poised for growth.