I bought a yoga studio – now what?!

Along with the joy and adventure of owning and operating your own studio, there is a lot of really exciting* legal stuff to consider. (*this is a little white lie… The legal stuff is not that exciting and may seem overwhelming, but consider with Jess to ensure that the process is much simpler for yourself, so you can concentrate on the studio.)

Firstly, consider your personal liability:

Are you intending to run your studio as a sole-proprietor or in partnership? If so, there are some benefits to these structures, including the fact that they are to set up, administer, and account for. However, you will be personally liable for all the debts of the business creditors may seek to repay your business debts, and your clients or employees may also make a claim against you. If you are personally liable your personal property may be sold to cover business debts, which will obviously put you in a precarious position.

Depending on your individual circumstances and your yoga studio, it may be worthwhile considering running the studio through a company.

Risk management- waiver and release forms:

These forms may afford you a little extra protection against claims arising from injury, or damage to personal property within the studio. Make sure students read, consent to and sign these forms before beginning classes with your studio.

Professional indemnity and public liability insurance:

The right insurance is necessary prior to opening your doors and teaching. Insurance companies are now marketing themselves towards yoga studios and teachers, and packaging their insurance accordingly. Items such as ‘portable business equipment’ can and should be covered, and employees should be covered through your policy.

Registering your business name, company name, for GST…

The list goes on. When starting a new business there are a lot of requirements to consider which you can either do yourself online by referring to the  web pages regarding small businesses which are provided by the Australian Government, or engage a professional to do so on your behalf. Amongst many other issues, there may also be intellectual property considerations with regard to your business name – remember, it is best to set a solid foundation from which your business can grow.

You will need a domain name, website and social media for your business…

When registering your business,it is a good idea to check whether the business name is available to use on the website, Instagram, Facebook, and so on. It is important that your clients are not confused when researching your yoga studio, and it is vital that your company  does not infringe the intellectual property rights of other businesses.

It is also worthwhile to protect your brand from the get-go through copyright and trademark rights.  Your business name, company logo, and website all cost a certain amount to set up and once you have a certain customer base become invaluable.

Employees or Independent contractors:

If you are planning  to hire other people  to teach at your studio, you will need to consider whether they will be classed as independent contractors or employees. This is not something that you get to decide as such –there are  a set of legal requirements which will you help you to determine the appropriate classification. It is important that you manage staff correctly as there are serious legal and tax-related consequences, implications and responsibilities.

Non-compete agreements, client lists and other trade secrets:

There are certain steps you can take to afford more legal protection – contractually and through your actions.

Employment agreements and studio policies:

Defined employment contracts and an employee manual are recommended. Yoga teachers are often (more than in other professions) travelling, they may have their own yoga businesses on the side, or teach at other studios. These circumstances could all  lead to a scheduling nightmare and should be considered when drafting employment contracts and employee manuals. It may save you many a yogi-headache later on.

It is also a good idea to implement  a sexual harassment policy for all employees, in case claims are brought by employees or clients. This is true of all businesses but particularly in a yoga studio situation where physical adjustments are a necessary part of the class.

Lease:

Get professional advice before signing a lease, and perhaps consider whether you would like to (or need to financially) hire out the space for other events when you are not using it as a yoga studio.

What to take away from this:

Setting up a yoga studio is exciting, but the above, well, maybe not-so-much. There is a lot to think about. While you work on your vision, services, uniqueness, cross-promotion, and how to install those floating floorboards, why don’t you also considers peaking to Jess about laying down the right legal foundations for your studio to flourish.

To get in touch with one of our lawyers, you can book a free 15 minute chat here.

Jessica Kerr is the Director of Sinclair + May, a female-led, boutique commercial law firm based in Clifton Hill. Sinclair + May work with small businesses to ensure their legals are in order. Book a free 15-min chat here to talk with one of our solicitors, Jessica Kerr, Anna Martin or Carolyn Wait.

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