A cream-colored banner featuring a gold stripe, labeled "Contracts" in bold, showcases "Membership: How to have a legally legit membership program" in a larger, elegant typeface, with the website founddlegal.com displayed.

Membership: How to have a legally legit membership program

If you've been toying with the idea of launching a membership program for your business, you're not the only one.  

These days, PLENTY of businesses are hitching a ride on the loyalty-boosting, revenue-generating bandwagon! 

But, before you hop on board, it's crucial that you jump through a few legal hoops. 

In this blog, we'll reveal what those hoops are and how you can gracefully navigate them like a pro. 

What Is a Membership Program?  

A membership program is like a VIP club that requires customers to pay upfront, either as a one-off payment or a subscription, in order to unlock a whole host of amazing benefits.  

These programs go way beyond your run-of-the-mill loyalty schemes, offering customers some seriously cool rewards, such as discounts, digital courses, freebies, and exclusive insider perks.  

If you want to keep your customers coming back for more, then introducing a membership program that shows them some serious love is a smart move. It's a clever marketing hack that will keep them hooked for the long haul. 

What Legal Hoops Do I Need to Jump Through Before Kickstarting a Membership Program? 

If you're thinking about starting a membership program, make sure you get your legal ducks in a row first. Otherwise, you might end up with a wallet as empty as your reputation, and more legal headaches than you can handle.  

Right off the bat, here are some of the legal bases you should cover before kickstarting your business’ membership program. 


If you're gathering, using, or storing the data of your members, it's crucial to have an ironclad privacy policy that ensures that you are not breaking any privacy laws. Give this link a click if you need a hand. 

Terms and Conditions 

Come up with some Terms and Conditions that lay out the responsibilities of your program and its members. Don't make it too complicated, folks! If you need some inspo, we’ve got some for you here

Payment Terms 

Don't leave your clients in the dark about payment terms for your membership program.  

Lay it all out for them like a buffet spread - what they're signing up for, when they need to fork over the dough, and what happens if they have to bow out early or don’t wish to renew.  

Crystal clear communication beats a game of hide-and-seek when it comes to money matters. 


Make sure to add fancy legal terms like "liability waivers" and "indemnity" in your Terms and Conditions, especially if you're planning to host any face-to-face events.  

Liability waivers are a must-have as they keep your liability in check in case any member gets hurt or incurs damages while participating in your membership program.  

On the other hand, an indemnity is a lifesaver because it makes members responsible for compensating you in case they cause any harm to your business or fellow members. 


Arrange a little one-on-one chat about your tax obligations with your accountant.   

Don't be caught with your hand in the cookie jar - make sure you're playing by the rules and staying on the right side of the tax man. 


Ensure that your membership program follows all Australian laws and regulations, especially those related to discrimination, accessibility, and marketing. If you need a little hand-holding, we've got you covered here

How Do I Protect My Business’ Intellectual Property Within a Membership Program? 

Looking to safeguard your business’ intellectual property in a membership program? 
Here are some tips to keep your brainchild protected. 


If you want to keep the creative masterpieces, like written content, images, and videos, created by your team or your organisation safe from copycats, then copyright law is your friend.  

Just make sure to slap on a copyright notice, like © [year] [business name], on everything that needs protection and you’ll be good to go. 

Trade marks 

Did you know that trademarks are like a superhero for logos, slogans, and other branding elements? They swoop in and protect them from any potential harm. All you have to do is register them and they'll be ready to save the day. You can read more about the trade mark registration process here


Patent law is your best friend if you've come up with a brilliant new invention, like some kind of futuristic gadget or an innovative process. Just make sure to file for a patent with IP Australia, and you'll be protected from any copycats trying to steal your thunder. 

Terms and Conditions  

If you want to keep your sensitive information safe from prying eyes, make sure to add a confidentiality clause in your membership program’s Terms and Conditions. That way, you can protect any confidential information that gets shared amongst your members or between the organisation and its members (provided that you have everyone sign the T&Cs before they jump on board the membership train).  

Also, don't forget to add a little something-something about licensing and intellectual property in your Terms and Conditions. These fancy clauses will lay out who is the boss of your business' intellectual property and what kind of permissions your members have. It's like having a bouncer for your IP, making sure no one gets too rowdy with it. Just make sure your members sign on the dotted line before getting any wild ideas about using your protected assets. 

Digital Rights Management 

Think of digital rights management technology like having a burly doorman at the door of your virtual party, ensuring that only the VIP guests (a.k.a the right people) get access to your exclusive e-books and videos. The best kind of protection for your business’ intellectual property right? 

Over to You 

If you're looking to build a loyal customer base and secure a steady income, implementing a membership program within your business is a brilliant strategy. 

But, before you roll it out, ensure that it’s legally legit so you can enjoy the benefits. 

Feeling doubtful? No need to fret, we're all ears and ready to listen! 





***Disclaimer. Please read!!***  


This article is for general information purposes only and should be used solely as general guidance. It does not and is not intended to represent legal advice or other professional advice. 


All rights reserved. © Foundd Legal Pty Ltd 


Explore our legally legit templates!