As a business owner, the last thing you want to think about are your customers requesting refunds, and while I know it’s not what you’re hoping for when booking clients, but that doesn't mean you shouldn’t be prepared for it.
When you’re selling anything online, whether it’s digital products or 1:1 services, you need to realize that people are people and they’re going to do what people do… which includes requesting refunds every now and again.
Whether it’s a legit refund request due to certain life changes where they can’t fulfill the commitments of your 1:1 services or if it’s a not-so-legit refund request just because they “didn’t use the product,” a solid refund policy will save you every single time.
BUT, refund policies aren’t created equal! That’s why I always say that you should never use the same contract for all of your offers. The way you handle refunds for a digital product is likely very different from how you handle refunds for your service based offers.
And that’s what this blog post is all about. If you offer coaching services specifically, having a refund policy is non-negotiable and below we’re diving into why, along with discussing a “no-refund” policy, and sharing 5 things you definitely want to include in your refund policy for coaching services!
Why Your Coaching Services Need a Refund Policy
You might think a refund policy is just a formality, or that no one would ever ask for a refund once they’ve booked a coaching session, but in reality, clients sometimes change their minds, misunderstand what they’re signing up for, or claim dissatisfaction… even when you’ve delivered exactly what you promised.
That’s why having a refund policy for your coaching services is a MUST!
Having a refund policy in place does a few important things, including:
- Protect Your Income
Without clear rules, you could end up giving refunds on a whim, or dealing with disputes that cost you more time and money than you anticipated.
- Prevents False Claims
A clear refund policy sets the boundaries for your coaching clients upfront and clarifies what constitutes a valid reason for a refund, making it harder for clients to misrepresent your services.
- Reduces Stress
When everyone knows the rules, there’s less uncertainty and fewer uncomfortable conversations about money. Instead, you can focus on what you’re there to do – coach your clients!
Simply put, a refund policy isn’t about assuming your clients will ask for money back – it’s about creating structure, trust, and clarity in your coaching business.
Is a “No-Refund” Policy Legally Allowed for Coaching Services?
Butttt, what if you don't want to offer refunds for your coaching services, regardless of the reason? Is that legally allowed?
The short answer is yes. In most cases, a "no-refund" policy is legal for coaching services. Unlike physical products, which are often subject to consumer protection laws and cooling-off periods, coaching is considered a service and this gives you as the business owner a lot more flexibility in determining whether refunds are offered.
BUT (and this is a big but), there are some important legal requirements you need to follow to make sure your no-refund policy actually holds up:
Be Transparent
Your refund policy should be clearly stated in multiple places before the client purchases to ensure that the client is FULLY aware that they cannot get their money back.
This means you shouldn't just include your "no-refund" policy in the fine print in your contract. It should be there PLUS clearly visible on your sales page, purchase page, etc.
State Laws Still Matter
While coaching services generally have more flexibility than physical products, some states have specific consumer protection laws that could override your no-refund policy. This is especially true if you haven't delivered the services as promised or if there's been misrepresentation about what you're offering.
FTC Compliance is Non-Negotiable
You absolutely MUST deliver what you promise. If you fail to provide the coaching services as described in your marketing or sales materials, your no-refund policy won't protect you from refund obligations or potential FTC enforcement actions.
Exceptions Matter
While you technically can have a "no-refund" policy, as a business owner it's smart to include language for unusual circumstances, like illness, emergencies, or unforeseen events.
This shows your humanness, because let's face it – life really does happen and there's just some things we can't control. Your clients are more willing to buy from you again in the future if you offer some flexibility.
Even if you don't want to offer refunds, it can be wise to offer rescheduling options or something else that feels like you see them and you care about them based on the situation at hand.
Contracts Reinforce Your Policy
It never fails that someone will claim they weren't aware of your refund terms, which is why it's so important to make sure that ARE aware.
As mentioned earlier, be sure to include your "no-refund" policy everywhereeee, while also ensuring that your contracts reinforce the policy after the purchase.
The Bottom Line
A no-refund policy can absolutely work for your coaching business, but only if you do it right. Be upfront, be fair, and make sure your contracts back you up. Remember, even with a solid no-refund policy, you might still face credit card chargebacks or negative reviews, so consider whether some limited flexibility might actually serve your business better in the long run.
5 Things To Include in Your Refund Policy For Coaching Services
Now that you know why you need a refund policy for your coaching services and that a “no-refund” policy is legally possible, let’s break down the practical elements to include in your refund policy:
Eligibility for Refunds
If you plan to offer refunds in some instances, you need to make sure that your refund policy explains when a refund is available and under what circumstance.
Refund eligibility is completely up to you as the business owner, but whatever conditions you set, it’s important that you clearly state them.
For example, you limit the refund eligibility to a specific time frame (ex. within 7 days of purchase), state that they can only receive a refund if sessions were unused or materials untouched, or you might decide that refunds are handled on a case by case basis.
Having some sort of eligibility clause for your refund policy can set expectations for your clients from the very beginning and protect your income from frivolous claims.
Timeline for Requests
Next up, you want to specify how long a client has to request a refund if it’s allowed. This avoids “it’s been 6 months and I changed my mind” situations.
Example language could be:“Refund requests must be submitted in writing within 14 days of purchase. Requests made after this period will not be considered.”
Again, this keeps people from purchasing your coaching services and then later down the road deciding it’s not a good fit.
Method of Refund
If you do allow refunds, you’ll want your policy to include how refunds will be issued.
Will you refund the original payment method? Offer credit toward future sessions? Or something else?
This prevents misunderstandings and keeps things professional!
Exceptions & Special Circumstances
As mentioned earlier, if you decide to enforce a strict no-refund policy, you might want to acknowledge unusual situations, such as:
- Client illness or family emergencies
- Program cancellations by you
- Force majeure events
Including exceptions shows that you’re fair and reasonable without opening the door to unlimited refund requests.
Reference to Your Coaching Agreement
It’s been mentioned a few times that your refund policy should be clearly displayed in multiple places to ensure that buyers are fully aware of what’s available to them, but at the end of the day, your refund policy is only legally enforceable when it lives inside your contracts!
This will give you maximum protection for the services that your policy is tied to.
How Your Refund Policy Should Differ: Group Coaching vs. 1:1 Coaching
Not all coaching services are created equal, and your refund policy shouldn't be either! If you offer both group coaching and 1:1 services, you need to understand how your refund approach should differ for each.
Group Coaching Refund Considerations
Group coaching programs come with unique challenges that make refunds trickier to handle – here’s a few to consider:
- Community Disruption
When someone leaves mid-program, it can disrupt the group dynamic and affect other participants' experience. Your refund policy should account for this.
- Shared Resources
Group programs often include community access, group calls, and shared materials that can't be "taken back" once accessed.
- Timeline Restrictions
Consider shorter refund windows for group programs since the experience begins immediately with community access and group interactions.
Example refund language for group coaching:"Refunds are available within 48 hours of purchase and before the first group call. Once you've participated in any group session or accessed the private community, no refunds will be issued due to the collaborative nature of the program."
1:1 Coaching Refund Considerations
One-on-one coaching offers more flexibility, which should be reflected in your refund policy – here’s a few things to consider:
- Scheduling Flexibility
You can more easily reschedule or pause sessions without affecting others, so consider offering alternatives to refunds.
- Personalized Investment
The coach's time is exclusively dedicated to one client, making unused sessions easier to quantify.
- Relationship Building
1:1 relationships can be paused and resumed more naturally than group dynamics.
Example refund language for 1:1 coaching:"Refunds for unused sessions are available within 14 days of purchase. After this period, we offer rescheduling or session credits that expire within 6 months of original purchase date."
Key Differences in Your Contracts
Overall, your group coaching agreement should emphasize the collaborative nature and community aspects, while your 1:1 coaching agreement can focus more on the personalized service and scheduling flexibility.
This is exactly why you need separate contracts for each type of service – because the legal considerations, refund policies, and client expectations are completely different!
For a deeper dive into the differences of group coaching and 1:1 coaching contracts, CLICK HERE!
Income Protection Alert: What "No Clear Policy" Really Costs You
So, I’ve made it clear that you need a solid refund policy, but let’s take a minute to explore what’s really at stake if you choose to skim over this policy…
💰 The $5,000 Nightmare: Without clear refund terms, a client could complete your entire 3-month program, claim they "didn't get value," and demand a full refund – even after receiving all your coaching and materials.
💰 The Chargeback Trap: Unclear refund terms lead to credit card disputes. Even if you win, you'll pay processing fees and spend hours dealing with paperwork. (Click here for a deeper dive on chargebacks vs refunds!)
💰 The Scope Creep Spiral: Clients without clear boundaries will push for "make-up sessions," extended timelines, and additional services – all while threatening to request refunds if you don't comply.
💰 The Reputation Risk: One unhappy client without clear expectations can leave negative reviews that cost you future sales worth thousands.
Overall, a clear refund policy isn't just about handling refunds – it's about protecting every dollar you earn and maintaining the professional boundaries that keep your business profitable.
Group Coaching and 1:1 Coaching Contracts
So, if you’re a coach and provide both, group and 1:1 coaching services, make sure you have the correct coinciding contracts to ensure that BOTH of your offers are fully protected!
If you offer BOTH (plus have other offers), you may find that the Chief Legal Officer Suite is the best fit for you!
The CLO Suite is essentially your business’s legal department in a box with 40+ attorney-drafted templates that cover every corner of your business, including:
- Client & Service Agreements (for coaching, group programs, creative services, and contractors)
- Sales & Purchase Protection (like Terms of Purchase, refund policies, and payment plan clauses)
- Website Compliance (including Terms & Conditions, Privacy Policy, Cookie Policy, and disclaimers)
- Marketing & Affiliate Agreements (for influencers, affiliates, and testimonials)
- Media & Community Protections (like speaker agreements, podcast guest releases, and community guidelines)
And the best part is that it's a one-time purchase and every future contract template or update is automatically included. That means you’ll never have to wonder if your contracts are outdated or scramble to buy a new one when your offers evolve.
You’ll have exactly what you need, when you need it!
So whether you’re onboarding new coaching clients, launching a course, or scaling your digital product shop, the CLO Suite ensures you’ve got the right contract for the job – no guesswork, just full protection.
ABOUT THE AUTHOR, AMBER GILORMO – ATTORNEY AND FOUNDER OF THE BOUTIQUE LAWYER
Amber Gilormo is the cool lawyer behind The Boutique Lawyer – a one-stop contract template shop for creative entrepreneurs, online business owners, coaches, and service providers.
From client agreements to digital product terms and everything in between, our lawyer-drafted templates take the guesswork out of staying legally protected online (no legal jargon required).
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