Coaching Agreements 101: What Every Coach Should Know

Are you ready to take your coaching business to the next level?

Understanding the importance of a solid coaching contract is the key.

In this article, I’m going to walk you through the essentials of putting together a solid coaching agreement. With over 10 years of experience under my belt, I’ll share some insights and handy tips to make sure your contracts align perfectly with both your professional aspirations and your clients’ needs.

So, let’s dive in and explore why creating a coaching contract is absolutely crucial for your success as a coach.

What Is A Coaching Contract?

A coaching contract is a formal agreement that outlines the specifics of the relationship between a coach and a client. It details everything from the scope of services provided to the expectations and responsibilities of both parties.

Essentially, it serves as a roadmap for your professional engagement, helping avoid misunderstandings and setting the tone for a structured and secure coaching experience. Ultimately, having a coaching contract strengthens your coaching business by clearly defining boundaries, expectations, and responsibilities right from the start.

Why Do You Need A Coaching Contract?

When I work with clients, the first thing I do is have them sign a contract. It’s not just about formalities; it’s about laying the groundwork for a successful partnership.

Here’s why it’s crucial:

1. Establishes Trust and Clarity

A well-defined contract clarifies the terms and expectations upfront, building trust. Both coach and client know exactly what to expect and are thus more comfortable investing time and resources into the relationship.

2. Sets Boundaries and Manages Expectations

By defining what constitutes a session’s duration and the scope of each session’s goals, the contract helps prevent scenarios where clients might expect continuous on-demand access beyond scheduled sessions.

It helps manage both parties’ expectations by clearly defining roles and responsibilities. This transparency minimizes the risk of conflict and ensures both parties are aligned from the start. This boundary ensures that clients understand and respect your time and other commitments, minimizing potential conflicts.

3. Ensures Professionalism and Legal Compliance

A contract portrays professionalism and shows that you take your coaching practice seriously. It also ensures you comply with legal standards governing client relationships and business practices.

4. Protects Your Business

By stipulating terms around payment, cancellations, and dispute resolution, a contract protects you and your business from potential legal issues and financial losses.

Say, a client may decide to suddenly stop their coaching sessions, citing various personal reasons. If your contract includes a cancellation policy that requires clients to notify you at least 48 hours in advance or face a cancellation fee, it protects your business from sudden financial losses. 

Another scenario is the refund policy. This clearly states under what conditions a refund might be applicable, such as non-delivery of promised services, thus preventing arbitrary refund requests and ensuring financial stability.

Must-Have Clauses in a Coaching Contract: A Checklist

I’ve identified 14 key clauses that should go into your coaching contract. These will make sure everything’s covered and clear, helping you and your clients stay on the same page.

1. Definition of Coaching
   
   This clause should clearly differentiate coaching from other service professions such as therapy or consulting. Explain that coaching focuses on setting goals, creating outcomes, and managing personal change, whereas therapy often deals with healing pain, dysfunction, and conflict within an individual. A clear definition helps set the right expectations and boundaries from the start.
   
   
2. Coaching Relationship
   
   Detail the roles and responsibilities of both the coach and the client, including the client’s responsibility for their own health, actions, and communication. Include adherence to ethical codes such as the ICF (International Coach Federation) Code of Ethics. This clause sets the foundation for the working relationship and ensures both parties are clear about their involvement and commitment.
   
3. Services
   
   Provide a detailed description of the services offered, including the length of the engagement, the number of sessions, and the duration of each session. This section might also highlight any additional support provided outside of sessions, such as email communication or brief calls.
   
4. Fees and Payments
   
   List all charges associated with the coaching services, acceptable payment methods, and payment deadlines. Be clear about any late fees or charges for additional services, which helps prevent financial misunderstandings later on.
   
5. The Coaching Process
   
   Outline the logistical details of how coaching sessions will be scheduled, the format they will take (e.g., in-person, video call, phone), and preferred methods of communication. This helps manage logistics smoothly and aligns expectations.
   
6. Coaching Approach
   
   Explain the coaching methods and approaches to be used, any ethical considerations, and what the client can expect from the partnership. This transparency helps clients feel more secure and informed about the process.
   
7. Confidentiality
   
   Commit to maintaining the confidentiality of all client information, unless otherwise required by law. This clause builds trust as clients need assurance that their personal details and session content are protected.
   
8. Client’s Expectations and Goals
   
   Assist clients in clearly defining their goals and expectations from the coaching relationship. This part can include how goals will be set, monitored, and evaluated, which is crucial for maintaining focus and measuring progress.
   
9. Rescheduling and Cancellation Policy
   
   Define the terms for rescheduling or canceling appointments, including any penalties or fees involved. Having a clear policy helps manage time and ensures that both parties respect each other’s schedules.
   
10. Termination
    
    Specify the conditions under which the coaching contract may be terminated by either party. This should include any notice period required and the process for concluding the contract.
    
11. Limited Liability
    
    Clarify the limitations of the coach’s liability in the relationship, protecting the coach from claims exceeding the scope of the coaching services.
    
12. Dispute Resolution
    
    Outline preferred methods for resolving any disputes or disagreements that arise during the coaching engagement, such as mediation or arbitration, providing a clear path for addressing issues.
    
13. Waiver, Applicable Law, Binding Effect
    
    Discuss any waiver rights, the laws that will govern the contract, and the binding effect of the agreement. This legal groundwork ensures that the contract is recognized and enforceable under local laws.
    

14. Signature

Include a space for both the coach and the client to sign the contract, symbolizing their mutual agreement to the terms laid out in the document.

What to Do When a Client Violates Your Coaching Contract

If a client violates the agreement, it’s important to address the issue directly and professionally. Refer back to your contract for guidance on handling such situations, and consider mediation if necessary. Always aim to resolve disputes amicably while standing firm on your professional boundaries.

Handling violations of a coaching contract is a challenge that many coaches face at some point, including myself. It’s an inevitable part of working closely with individuals who have varying expectations and commitments. 

Here’s how I approach these situations based on my experiences:

Step 1: Review the Contract
I start by reviewing the specific clauses of our coaching agreement that relate to the violation. It’s crucial to understand the exact terms that have been breached to address the issue accurately and fairly. 

This review prepares me for the discussion and reminds me of our agreed-upon expectations and the procedures for handling disputes.

Step 2: Communicate Directly and Professionally
I schedule a private meeting with the client—preferably in a neutral setting if in person or via a scheduled call if remote. I address the violation calmly and professionally, using specific examples to clarify the issue. 

Clear communication without personal judgment or emotional responses is key. I always make sure to listen to the client’s side of the story, as there are often misunderstandings or extenuating circumstances to consider.

Step 3: Refer to the Contract
During our discussion, I refer directly to the contract. I point out the specific clauses that have been violated and discuss the implications of these breaches. 

This step is about enforcing rules and reinforcing the importance of mutual respect and adherence to our agreed terms. Reminding both of us of our commitments under the contract can often help realign our coaching relationship.

Step 4: Explore Resolution Options
Together with the client, I work to find a resolution that respects both of our needs and maintains the integrity of the coaching process. If the violation is minor, I might consider a warning or a corrective action plan.

For more significant breaches, I discuss the consequences outlined in the contract, such as termination of the agreement or other penalties. Whenever possible, I offer options for remediation or adjustments to prevent future issues.

Step 5: Consider Mediation
If we cannot resolve the issue through direct communication, I consider mediation. This involves a neutral third party who helps both the coach and the client reach a satisfactory resolution. Mediators specialize in conflict resolution and can offer solutions that might not be apparent to us. I include the option for mediation in my initial contract, which can be very beneficial for handling disputes more formally without resorting to legal action.

Step 6: Document Everything
Throughout the process, I keep detailed records of all communications, meetings, and decisions regarding the violation and its resolution. Documentation protects both parties if disagreements about the resolution later arise or if legal action becomes necessary.

Step 7: Implement and Follow-up

Once a resolution has been agreed upon, I implement any changes or consequences as discussed. I follow up with the client to ensure that the resolution is effective and that no further violations occur. This follow-up is also an opportunity to rebuild trust and ensure the coaching relationship can continue positively.

At Coach Foundation, we are committed to helping you grow your business as a coach. From guiding you on what it takes to run a successful coaching business to helping you create a program that sells, we provide the support and resources you need every step of the way. Whether it’s refining your coaching skills, developing effective marketing strategies, or building strong client relationships, we’re here to empower you with the tools and insights to achieve lasting success. 

Let’s work together to turn your coaching passion into a thriving business!

Conclusion

A robust coaching contract is more than just a formality—it’s a foundational tool for professional coaching. It safeguards your practice, clarifies expectations, and builds trust, setting the stage for a fruitful coaching relationship.

If you have any questions regarding how to create your coaching contract, feel free to ask in the comments section.