A refund policy for coaching classes sets out when families can get money back, how much, and in what form. A good one covers six things: change-of-mind withdrawals, injury and illness, classes you cancel, how refunds are calculated, deadlines, and whether you offer credit instead of cash. It also has to work within the consumer laws where you run your classes.
It’s week 4 of term. A dad emails to say his daughter has broken her wrist at school and won’t be back this term. He’d like a refund for the remaining six weeks. An hour later another parent asks for a refund because her son “isn’t enjoying it”. You gave a full refund to a family in the same situation last term, but you can’t remember if that was for an injury or just because they asked nicely. You don’t have a written policy, so you decide each one on the spot, and each answer sets a precedent.
Key takeaways
- A written refund policy means you make the decision once, not every time a parent emails.
- Wherever you are, families have rights when you cancel or don’t deliver, and your policy can’t remove them.
- Change of mind is the area where you have the most freedom to set your own rules.
- Offering account credit as an option, alongside refunds, keeps more money in the business and is often what families prefer.
- Share the policy at enrolment and keep it somewhere families can find it later.
What does the law say about refunds for classes?
Refund rules depend on where you run your classes, but the basics are similar in most countries. You have a lot of freedom over change-of-mind refunds, and much less when you cancel or don’t deliver what families paid for.
Below is a summary for Australia and the US. Treat it as best practice, not legal advice. Laws change and vary by state, so check with a local lawyer before you rely on it.
Australia
Under Australian Consumer Law, services come with consumer guarantees. They must be provided with due care and skill, be fit for the purpose you promised, and be delivered within a reasonable time. If you don’t meet those guarantees, for example you cancel a run of classes and don’t replace them, families can be entitled to a remedy, which can include a refund. Your policy can’t exclude that. The ACCC’s consumer rights and guarantees page sets out the detail.
You don’t have to refund a family who simply changes their mind, as long as you’ve delivered what you promised. If your enrolment terms are a standard form contract, unfair terms can be void and penalties apply. The ACCC’s guide to contracts and unfair contract terms explains what that means.
United States
There’s no federal law that requires a business to give change-of-mind refunds on classes, so your refund policy is mostly your call. A few rules shape what it says and how you apply it:
- Do what your policy says. The FTC and state consumer protection laws ban deceptive practices. If your website promises a refund, honour it the way it’s written.
- Classes you don’t deliver. If you cancel and keep the money without a make-up, credit or refund, families can complain under state consumer laws. Families who paid by credit card can also dispute the charge for services not delivered as agreed. The FTC’s guide to disputing charges explains how that works. A chargeback costs you the payment and a fee.
- Autopay and recurring billing. If you bill weekly or monthly on a saved card, many states have automatic renewal laws. They usually require clear terms before signup, the family’s consent and an easy way to cancel. California’s rules are among the strictest, including letting customers who signed up online cancel online. A federal “click-to-cancel” rule was struck down in 2025, but state laws still apply.
- Fitness and martial arts memberships. Some states have health club or fitness contract laws that give members a short cooling-off period after signing, and refund rights in cases like moving away. If you sell gym-style memberships, check whether your state’s law covers you.
Rules differ from state to state. Your state consumer protection office is the best place to check.
Other countries
In the UK and the EU, families who book online or by phone generally have 14 days to cancel. If classes start within that period at their request, you can usually charge for the classes they’ve attended. Elsewhere, look up your national consumer protection agency.
Wording to avoid anywhere
- “No refunds under any circumstances.” Families still have rights when you cancel or don’t deliver, so this wording can mislead them about their rights. Say “no refunds for change of mind” instead.
- One-sided terms. Terms like keeping all fees when you cancel a class are hard to defend in Australia, the US or the UK.
What should a refund policy for coaching classes cover?
Work through these six decisions. Your answers become your policy.
Change of mind
This is a family withdrawing because they’ve lost interest, found another activity or don’t like the schedule. Common approaches:
- No refund for change of mind once term starts
- Full refund if they withdraw before the first class
- Partial refund or credit up to a set week, such as week 2
A short window before or just after the start of term is fair to families and gives you time to fill the spot.
Injury and illness
Families who withdraw because of a serious injury or illness are usually treated more generously. Decide:
- Whether you need a medical certificate
- Whether you refund the remaining weeks or give account credit
- What counts as “serious”, such as missing three or more weeks
Short illnesses are better handled with make-up classes than refunds.
Classes you cancel
If you cancel because of weather, a sick coach or a venue problem, families should get a replacement or their money back. Most academies offer a make-up or credit first, with a refund if the family can’t use it. We cover this in detail in how to handle rain cancellations.
How the amount is worked out
Be specific. The fairest common method is pro rata: refund the classes that haven’t happened yet.
Some academies also keep an admin fee, such as $20, to cover processing. If you charge one, state it upfront and keep it reasonable.
Deadlines
Set a deadline for requests, such as before the end of the current term. It stops refund requests for classes from six months ago.
Credit instead of cash
Offer account credit as an option. It comes off the family’s next invoice, keeps the money in your business, and suits families who plan to come back next term. Make it a choice, not a condition, when the family is entitled to a refund.
Three example refund policies
Different academies need different rules. Here are three starting points.
| Flexible | Balanced | Firm | |
|---|---|---|---|
| Change of mind before term | Full refund | Full refund | Full refund, less $20 admin fee |
| Change of mind after term starts | Pro rata up to week 4 | Credit only, up to week 2 | No refund or credit |
| Injury or illness (3+ weeks) | Pro rata refund | Pro rata refund or credit | Credit for next term |
| Classes we cancel | Make-up or refund | Make-up, then credit or refund | Make-up, then credit or refund |
| Suits | New or growing academies | Most established academies | Programs with long waitlists |
Notice that every column handles cancelled classes the same way. That part isn’t really yours to change.
A worked example: pro-rata refund
A family pays $300 for a 10-week term, so $30 a class. Their daughter attends four classes, then breaks her wrist.
- Classes remaining: 6
- Pro-rata refund: 6 × $30 = $180
- Less admin fee (if your policy has one): $20
- Refund: $160, or $180 as account credit if you waive the fee for credit
Showing the maths in your policy, or in your reply to the family, heads off most follow-up questions.
Refund policy template for coaching classes
Copy this, fill in the brackets and adjust it to suit your academy.
[Academy name] refund policy
We want every family to feel they’ve been treated fairly. This policy explains when you can get a refund or credit, and how much.
Before term starts. If you withdraw before the first class of term, we’ll refund your term fees in full [less a $[20] admin fee].
After term starts. If you withdraw for any other reason after term starts, [we’ll give you account credit for the remaining classes, if you let us know before the end of week [2] / we don’t offer refunds or credit for change of mind].
Injury or illness. If a student can’t attend for [3] or more weeks because of injury or illness, we’ll refund or credit the remaining classes on a pro-rata basis. We may ask for a medical certificate.
Classes we cancel. If we cancel a class, for example because of weather or coach illness, you’ll receive a make-up class. If you can’t use it before the end of term, we’ll give you a credit or refund for that class.
How refunds are calculated. Refunds are worked out per class: the term fee divided by the number of classes, multiplied by the classes remaining.
How to ask. Email [address] or message us in the app before the end of the current term. We’ll reply within [3] business days and process approved refunds within [10] business days.
Account credit. You can choose to take any refund as account credit instead. It comes off your next invoice automatically.
This policy doesn’t affect any rights you have under consumer law where you live.
How should you share your refund policy?
A policy only works if families have seen it before they ask. Put it in four places:
- At enrolment. Link to it on your booking page and ask families to tick a box saying they’ve read it.
- On your website. A plain page or a section in your terms that’s easy to find.
- In your welcome email. One line and a link is enough.
- In your reply to refund requests. Quote the relevant part, so the answer feels like policy, not a personal judgement.
When a request doesn’t fit the policy, you can still make an exception. Just make it knowingly, and note why, so you’re consistent next time.
How should you reply to a refund request?
How you say it matters as much as what you decide. A clear, kind reply keeps families on side, even when the answer is no.
A good reply does four things:
- Thanks them for letting you know.
- Quotes the part of the policy that applies.
- Shows the maths if there’s money involved.
- Says what happens next and when.
Refund reply template
Hi [name], thanks for letting us know about [student]’s [injury / change of plans], and sorry to hear it. Under our refund policy, [quote the relevant line]. [Student] has [6] classes remaining this term at $[30] each, so we’ll [refund $180 to your card / add $180 account credit to your profile]. You’ll see it within [10] business days. We’d love to see [student] back next term, so let us know when you’re ready. [Your name]
If the answer is no, say why in one sentence, offer what you can, such as a make-up or a transfer to another class, and leave the door open.
Common refund situations and how to handle them
Some requests come up every term. Deciding them in advance saves a lot of back and forth.
| Situation | Suggested approach |
|---|---|
| Family is moving away mid-term | Pro-rata refund or credit. It’s goodwill, and they may recommend you to friends. |
| Student wants to switch to a different class | Transfer them instead of refunding, and adjust the invoice for any price difference. |
| Sibling joins mid-term | Not a refund issue. Apply any sibling discount from the next invoice. |
| Coach leaves and the family doesn’t like the replacement | Offer a class with a different coach first. Refund as a last resort. |
| Family missed the first two weeks of term | Offer make-ups, not a refund, if the class ran as planned. |
| Student moved up a level and the new class costs more or less | Adjust the remaining invoice, don’t refund and re-charge. |
Common mistakes with refund policies
- Not writing it down. Every refund becomes a negotiation, and families compare notes.
- Copying a gym’s policy. Gym memberships and term-based classes work differently. Your policy should talk about terms and classes, not months.
- Hiding it. A policy families only see after they ask for a refund feels like a trap.
- Being stricter than the law allows. “No refunds, ever” can land you in trouble and doesn’t hold up anyway.
- Processing refunds outside your system. Refunds done straight from your bank account are easy to forget when you reconcile, and your invoice records won’t match.
How does Outcoach handle refunds?
Outcoach lets you process refunds directly, without going back and forth between your bank, your payment provider and your accounting software.
- Issue full or partial refunds directly in Outcoach
- Add notes to each refund, so you know why it was given
- Keep refund records matched to the original invoice and payment
- Sync changes to Xero, with a warning if you mark a Stripe-related invoice as paid in Xero
For families who’d rather keep the money with you, you can add account credit to their profile. It’s taken off their future invoices automatically and kept separate from make-up credits.
Read more on payments and invoicing, see the payments help guide, or read our guide to automating invoicing and GST.
Frequently asked questions
In most countries, including Australia and the US, you don’t have to refund a family who simply changes their mind, as long as you deliver what you promised. If you cancel classes or don’t provide the service, families usually have a right to a make-up, credit or refund.
You can have a no-refunds policy for change of mind. Avoid saying “no refunds under any circumstances”, because families still have rights when you cancel or don’t deliver, in Australia, the US and most other countries.
There’s no federal law requiring change-of-mind refunds. But you must follow the policy you publish, families can dispute card charges for classes you didn’t deliver, and many states regulate autopay and cancellation. Rules vary by state, so check with your state consumer protection office.
Divide the term fee by the number of classes to get a per-class price, then multiply by the classes that haven’t happened yet. For example, a $300 term over 10 weeks is $30 a class, so six remaining classes is a $180 refund.
Offer it as an option. Credit keeps the money in your business and suits families who’ll be back next term. When a family is entitled to a refund, let them choose rather than forcing credit.
Many academies do for change-of-mind refunds. State the fee in your policy upfront and keep it reasonable. Don’t charge it when the refund is for a class you cancelled.
