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If you are running a subscription service, having a comprehensive set of Terms and Conditions in place can greatly benefit your business by ensuring both you and your customers are on the same page – especially as subscription models continue to evolve in 2025.
Subscription Terms and Conditions outline key provisions regarding payment, whether fees are refundable, any restrictions on use, delivery details, and how the agreement can be terminated. They serve as a vital framework for managing expectations and reducing potential disputes.
Why Would I Need Them?
If your business bills customers on a regular basis for ongoing access to goods and services – whether physical or digital – these Terms & Conditions are essential to prevent misunderstandings and future disputes. They clearly define what is included in the subscription, confirm consent for recurring fees, and detail how and when payments are processed. In today’s dynamic market, having legally robust T&Cs can also help you comply with evolving Australian Consumer Law requirements.
For example, if there is a cancellation fee, you should inform customers from the very start of your relationship. Many businesses include their cancellation fee policy in their T&Cs so that customers agree to these terms before making a payment. It’s always a good idea to review your cancellation and auto-renewal clauses periodically – for further guidance, you might also find our guide on what makes a contract legally binding very useful.
We provide T&Cs tailored for both online and offline subscription services. If you run an online subscription – which might be for software, digital content, or streaming services – you may also need a robust set of website terms and conditions to cover digital interactions. Offline subscriptions, meanwhile, could involve physical goods or services such as yoga or martial arts classes, or even curated gift boxes.
2025 Update: As we navigate the business landscape in 2025, subscription services are becoming increasingly hybrid, combining digital and physical elements. Customers now expect flexible cancellation policies, transparent price adjustments, and clear dispute resolution mechanisms. It is therefore critical that your Terms and Conditions keep pace with these developments. Regular reviews and updates to your T&Cs – informed by resources like our guide to setting out good business terms and conditions – can make all the difference in protecting your business and your reputation.
What Do They Cover?
Subscription Terms and Conditions usually include provisions relating to:
- Payment: How much is due, when it’s due, the frequency of payments, and whether these can be made via direct debit. It also covers the consequences of late or declined payments.
- Scope: What is included within the subscription, clearly outlining the services or goods provided.
- Restrictions: Any limitations on the usage of the subscription. For example, a yoga studio may offer tiered packages at different price points with specific attendance limits.
- How the subscription will be delivered, whether it is accessed online, delivered physically, or both.
- Ways in which the subscription can be terminated – detailing cancellation processes and any applicable fees or notice periods.
An Example Of Subscription T&Cs
Ben operates a Brazilian Jiu-Jitsu academy and offers different packages to his students, with the primary distinction being the number of classes they can attend each week. His subscription model clearly sets out what students are entitled to, along with the payment structure and specific usage restrictions.
Upon registration, Ben provides his students with a detailed set of Terms & Conditions. These outline the payment schedule, the precise scope of the ‘subscription’, any restrictions (such as the maximum number of classes per week), and the procedures for subscription cancellation. This clarity helps in reducing disputes and building trust with his clientele.
Get In Touch
If you think that you’re in need of some well-drafted Terms and Conditions – or other legal documents to protect your business – get in touch at team@sprintlaw.com.au or call us on 1800 730 617 for a free chat. Whether you operate online, offline, or a hybrid subscription service, the right legal foundation is key to your ongoing success in 2025 and beyond.
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