Why You Need Terms & Conditions To Run A Subscription Service

If you are running a subscription service, a set of Terms and Conditions could greatly benefit your business, ensuring you and your customers are on the same page. 

Subscription terms and conditions set out key terms regarding payment, whether fees are refundable restrictions on use, delivery, and agreement termination.

Why Would I Need Them?

If your business is billing customers on a regular basis for regular access to physical goods and services, these Terms & Conditions can prevent future disputes. They clearly outline what is included in the subscription, that permission is given for recurring fees, and how and when payment takes place. 

For example, if there is a cancellation fee, you should bring this to the customer’s attention from the very start of your relationship. Often, businesses state their cancellation fee policy in their T&Cs, so customers agree to it before making payment.

We offer T&Cs for both online and offline subscription services. But what’s the difference between an online and offline subscription? 

An online subscription might be for software or digital access, like Netflix or Adobe. On the other hand, offline subscriptions could be for physical things like yoga or martial arts classes, or gift boxes. 

What Do They Cover?

Subscription terms and conditions usually include provisions relating to:

• Payment: how much is due and when is it due? How often is payment to be made? Can payment be made via direct debit? What are the consequences of late or declined payments? 
• Scope: what’s included within the subscription?
• Restrictions on using the subscription. For example, a yoga studio may offer different packages at different prices.
• How the subscription will be delivered.
• Ways in which the subscription can be terminated (i.e. cancellation).

An Example Of Subscription T&Cs

Ben operates a Brazilian Jiu-Jitsu academy. He offers different packages to his students with the major difference being the number of classes they are permitted to attend each week.

Upon signing up, Ben provides his students with a set of Terms & Conditions, which outlines the payment, the scope of what is included within the ‘subscription’, restrictions on the number of classes the students can attend as well as the ways in which they can cancel their subscription.

Get In Touch

If you think that you’re in need of some well drafted terms and conditions, or other legals for your business, get in touch at team@sprintlaw.com.au or 1800 730 617 for a free chat.

Mason Kemeny

Mason is a legal consultant at Sprintlaw. Having founded his own media production company, Mason has experience in both film and music industries. He is also currently working towards his law degree at Macquarie University.