Protecting Your Wellness Business: Legal Tips and Strategies

Legal Protection for Your Wellness Venture
Legal Protection for Your Wellness Venture

Hey there!

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What’s In It For Today’s Blog

Welcome back wellness entrepreneur! Today, I’m honored to have on special guest, Cory Sterling, who is a lawyer for wellness and health entrepreneurs.

So make sure to grab a pen and a notebook because there are a ton of golden nuggets in this blog. And this could be topics that feel uncomfortable that you don’t like talking about, especially because you are a soul and heart-based entrepreneur, you care about your people, the whole reason why you got into the wellness industry is to help more people. So it can feel uncomfortable to think about, “Well, what if some of those people get mad or a mishap happens or a worst case scenario happens?” No one likes to go down that road.

In this blog, Cory breaks it down how best you can prepare for this. You’re going to learn a ton of simple steps so that you don’t end up in the courtroom because he even says from what the majority of his clients, they don’t end up in court.

And there’s very simple practices that you can implement right now to protect yourself. And so you will learn all of this and more in this week’s blog, as well as some nuggets on for example, if you’re a physical therapist licensed in California with a brick and mortar, how can you best protect yourself if you want to bring in an online program and work with people all over the world?

We also cover topics like if you’re a health coach or a functional testing practitioner who uses functional tests, and how do you work with states that don’t allow you to do functional tests, for example. So make sure to grab out your pen and paper and dig right into this blog with Cory.

Also Read: How to Create a Health Coaching Program

Alison: I am so honored to have you on Cory! Welcome, welcome, welcome.

Cory: Thank you, Allison. And hello, wellness entrepreneur who is reading this blog somewhere in the world.

Alison: I know and you are in Ghana, right?

Cory: I’m in Ghana. I’m in West Africa at the moment and I’m just having a blast. I’m living at some eco lodge that it’s like jungle meets beach and no running toilets and showering out of a bucket and amazing stars at night and sunset. So I’m having a really great time here.

Alison: Wow, I love that.

Question to Cory: I’m kind of curious now and I’m sure you sparked a lot of people’s interest and curiosity is, you know, being a lawyer, how did you end up there?

Cory: Ah, that’s a good question. When I was a lawyer, I used to work for a big law firm and then I worked for a small law firm and then I was about ready to quit being a lawyer because I didn’t like my clients. I didn’t like how I was treated. I didn’t like the industry. I didn’t like the corporate culture and I was about to quit being a lawyer.

But one of my mentors was like, “Hey, man, just like be the lawyer that you would want to work with.” So I was like, “Okay, cool.” And I went to India, I did a yoga teacher training and I was like, “Why don’t I just be an online lawyer and go around to cool different places in the world and only offer services online and only work with our leading entrepreneurs?” And that’s how I got to Ghana today.

Alison: I love that because there are a lot of soul and purpose driven entrepreneurs reading right now. And I think you are, I just got goosebumps, are a wonderful inspiration to others to trust that nudges within yourself.

Question to Cory: Is that how you became the lawyer for wellness entrepreneurs specifically because you wanted to work with that group of people?

Cory: Yeah! It started at the time when I was working for those other law firms and companies, I was a group fitness instructor and I was like always when I wasn’t in the office, I would be playing sports or working out or at the yoga studio. And so the first sort of niche that I got into really was yoga and yoga law. And I was just like,
“Oh, they don’t understand anything and no one’s helping them. So why don’t I do that?”

And then as that sort of grew and my passions grew, I realized it was sort of the same with health coaches and it was the same with Pilates instructors and there’s the same with boutique fitness studios, like no lawyers paying attention to any of these people. And a lot of them are operating at risk and having problems. So it sort of was just a natural progression that it’s always been something related to a passion of mine.

So, for example, for 2024, I’m really getting into like retreat law and a lot of our more and more of our clients operate retreats and run retreats because like that just lights me up and that’s like a new phase of life that I’m into. So why not support awesome people and support them and work with them?

Alison: Yeah, I love this. Ok. So let’s get into some of these mini topics that you just kind of hit on.

Question to Cory: Where are these wellness entrepreneurs at risk?

Cory: They’re at risk depending what it is that they’re doing, but usually they’re at risk from liabilities. So the possibility of getting sued.

So in any wellness activity that you facilitate outlaw, there’s something that’s called a duty of care, which basically means you’re responsible to make sure someone doesn’t get hurt in plain English.

So someone’s doing a Pilates class with you, someone’s doing physiotherapy with you, someone’s doing a health coaching session with you, whatever it is, when you’re giving them advice and working with them and coming up with plans and making suggestions and whatever it is that you’re doing, they’re going to act on that advice and you have a responsibility to make sure that they don’t suffer damages. And obviously, if you think about the hundreds of thousands of people participating, I guess millions even, things go wrong, unfortunately. So the first thing has to do with liability.

Another issue that always comes up is intellectual property ownership. So coming up with an idea, creating a program, having a logo or a cool business name, you don’t register it. Someone else does. There’s a lot of problems if you’ve got a team designating workers, classifying them either as contractors or employees is a very real thing. And I think ultimately the biggest issue that I help clients with is being in control of the relationships that they have in their business.

So if you think about a service agreement or a membership that you have your clients sign, is that specific to what you’re doing and how you’re doing it? And does it communicate the expectations openly and honestly? And if someone’s behaving inappropriately, do you have the right to kick them out and not issue them a refund? Like these are on a day-to-day basis. These are more or less the issues that I’m going through with my clients.

Alison: I love this.

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Question to Cory: So back to the liability. Will a consent form, like consent to treat, like a waiver for the yoga teachers and their classes, does that cut it?

Cory: Depends how it’s drafted. But in theory, in theory, yes. And it’s a very helpful mechanism and a very helpful tool.

And just so you know, Alison, where the rubber always hits the road for me in my legal practice is I’ve worked with over a thousand clients and I’ve never had a client actually get sued. There’s never, it’s exactly double yay. So it’s not like the reality of the manifestation of the nightmare is not like, “Oh, we’re walking into court and they’re going to cross examine me.” That’s not in a practical sense. That’s not how it happens. What happens is someone gets hurt or injured or suffer damages or wants a refund or is going to allege you misclassify them as a worker. And the first question is going to be, is what was the signed agreement between the parties? So when we talk about a waiver of liability, can a waiver of liability work? Yes, but it will always be subject to what is written.

So the biggest obstacle I’m up against is people downloading agreements from the internet for free or copying or borrowing from their friend or their coach giving them a contract. Then a problem happens. The first question I ask is, “Well, send me a copy of the signed agreements.” And they’re like, “Ok, well, you’re going to be mad at me.” And like they always laugh, like, “You can be mad at me. But, you know, I downloaded it or I copied it or I got it from a friend.” And I’m like, “Ok, I’m not going to be mad at you. But now you just have to pay me a lot more money than you were going to have to pay me otherwise.” Right?

Because if when a problem manifests, when an issue arises, the first question always is going to be is, what was signed between the parties. And the more specific and well drafted and industry specific a document is that is being used, the more I can protect my clients and the less involvement is required of them and the less expensive the whole problem is. And usually, it can be resolved with a five-minute e-mail.

That’s the whole point. That’s why I’m around. That’s why I started my business to provide easy and simple solutions, because I’ve just spent so much time with clients crying on the phone and being very upset and all of this sort of stuff where it’s just like, “Ok, the solution is not that difficult. You just need customized specific agreements for what you’re doing.”

Alison: And that’s where people should go to someone like you to have these drafted.

Question to Cory: Now, how does that process usually work? Just because, I don’t, you know, there’s a lot of wellness entrepreneurs who are in the beginning phases of their business or maybe they are at the phase where they need to start to consider to have a lawyer on retainer. If, let’s talk both of these phases, if someone was just beginning, like I remember when I first had some of the contracts designed in in my online space, I paid a lawyer who designed my contracts and it was, you know, a significant amount of money, but I still use them to this day. So is that something you provide for your people or do you send, you know, referrals for that or should someone like have you on retainer? Can you get into some of that a little bit?

Cory: Sure. So the way firstly, and I’m really, I love your story, like I love that story of, “Ok, I was starting my business and I had to make an investment that wasn’t cheap, but I’m still using those agreements today.” And that’s like, that’s really good. I’m very, very happy to hear that because that’s how it should work.

The way that we work at my law firm, which is called Conscious Counsel, is clients will sign up, they get a package of documents, we work with them, we edit them, we customize them, we offer them a period of three months of support, unlimited edits, revisions and support so they’re comfortable using it. And then in the future, if they need something like, God forbid, someone gets injured in doing a service with them and we drafted the waiver, like I’ll speak to them as long as they send me the signed copy, I’ll send a short e-mail out and hopefully the problem goes away.

And in most cases, it goes away there. So I’ve built my legal practice on just fixed fee, because when I worked at other law firms, the biggest problem was always like hidden fees and it’s going to cost more. And then there’s a retainer. But what does it include? And all that sort of stuff. So the way I can only speak for my practice and the way that we operate. And it’s just it’s fixed fee for a certain number of documents, what you need for your business. We make it perfect for you. And then if problems come up in the future, we’re there to support you.

Alison: Yeah! I think it’s so good to have these details so these entrepreneurs know what’s available.

Question to Cory: And since we’re talking about your Conscious Counsel, why don’t you give them the information of where they can find you?

Cory: Yeah! You could just go to Google and put in Conscious Counsel. Our website is consciouscounsel.ca. So, yeah, it’s all there. My name is Cory Sterling. You can just throw it into Google. You’ll see a whole ton of stuff. And we’ve got 350 five-star Google reviews. So we only have five-star. Yes, thank you.

That’s like, that’s the thing that always driven me in my business to only get five-star reviews and to always get more and more because, you know, then people know that they can trust the service and that we’ve got our systems and processes in place. And we offer heart-leading law with love. So that’s what it’s about.

Alison: Ok! Yeah! Because I know, you know, for myself included, a lot of us get into this field where this is not our specialty. We’re just like, you were in it to help the people. And sometimes it’s really hard for our brains to go down this path that something bad might happen or how do we really protect ourselves? Do we need to protect ourselves? And then when we’re getting into the details, it can seem quite overwhelming. But you broke it down in a very simple way.

Question to Cory: So I have some questions specifically on some of the things that you mentioned and then common questions I see from my own clients and people who just messaged me on Instagram. So back to intellectual property, the IP, when should an entrepreneur consider like trademarking their IP and processes? Is there a certain revenue mark or just do it right from the beginning? What do you recommend?

Cory: When it comes to trademarking, just to be really clear, so trademark is when you register either a logo or a logo with words or a word or a series of words together. And I’m going through a really, really nasty trademark fight right now. Luckily, my client registered first, so we were in a much better position than we would be otherwise. But it’s just like, yeah, the legal fighting part is not fun. That’s why you want everything set up from the start.

To answer your question, when you know that you have either a word or a series of words or a logo that you’re building your business on, you’re really committed to it, you’re all in, you know that you’re going to be using it, and most importantly, like people in the world recognize either that word or slogan or logo with the services that you offer, that’s the right time to go for it. So if you’re at a point in your business where, you know, you’re trying out a couple of names, you’re asking your friends what they think and you’re not really sure, like, I don’t think it makes sense to trademark then.

But for example, with Conscious Counsel, like even before I started and opened, I knew that this was going to be my name. So it was like the moment that I got my first client and I did the first thing, I registered the trademark right away because I just knew. So it’s sort of like I call it the marriage test/the tattoo test, where it’s like if you’d marry it or if you get a tattoo of it, then it could make sense, it would make sense to trademark it.

And the other thing to remember about trademarks, there’s a couple of things. One is that it’s an investment. So it’s building an asset around your brand so that in the future, if one day you want to sell what you’re doing, registering, you know, having a registered trademark for that, for the name of the business or the slogan or the logo, is an asset that someone over time will become much more valuable to the goodwill associated with it. And so, it’s very it’s intelligent to do it for that. But also, you have to know that if you don’t register and someone else registers it before you, then there’s a lot of risks associated with that, mostly that they can stop you from using it. So it’s sort of like if you know that you’re in, if you’re all in on it and you’re going to use it, then that’s a great time to register your trademark.

Alison: Ok, got it.

Question to Cory: And then so beyond that, let’s say you had a system or a process or a framework or it’s in your membership house or your course or part of your portal. What’s the steps that you should take for that? So you’re not copied, I guess.

Cory: So that’s usually registering it for copyright. So that’s not, trademark is for a word or a series of words or a logo. Copyright is the protection of artistic works, which usually can be photography, music, video and words as well and anything written.

So, for example, if I come up with an amazing system or process that I have an online membership group and I create this process for everyone to follow and people are paying me to use it, I’m going to get them to sign a licensing agreement, which is like, “Hey, you’re allowed to use these materials for under these conditions. As long as you’re paying member, you’re not allowed to profit off of it with anyone else.” Whatever I can choose, whatever it is that I want, however long it lasts, but also, you have to register the copyright. Registering the copyright is the best legal protection for it to say, “I’m letting you use copyright, you know, the copyrighted materials registered as Copyright Certificate ABC 123. And once I revoke your use of that, you’re no longer allowed to use that.”

And then you’ll see if what they’re doing is copying what you’ve done, then you have enforceable rights. And ideally, the licensing agreement would say, “You know, in the event that you’re copying me, I reserve the right to claim against you and you’ll pay my legal fees and you’ll pay for my lawyer and all these sorts of stuff.” So it’s like it can get granular, but ultimately what you’re talking about is copyright.

Alison: Ok. And I have two specific examples for the audience in my personal life. I taught yoga while doing teacher trainings. You can see the yoga wall there behind me. And so our manual, we copy wrote our manual because we were teaching teachers and they could actually like potentially take that manual and then lead their own teacher trainings or teach their students and use it. So we had it copyright. And then also for the podcast here, my music in the intro and the outro, I pay a licensing fee to the artist DTO to use that music. So I have permission to use that music. So those are some examples of practicality, how we can bring that work into our day to day.

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Question to Cory: So then I have a next question regarding to, switch gears a little bit. I have a lot of wellness entrepreneurs that are my clients that have brick and mortars. So, for example, they might be a physical therapist and they have a brick and mortar in California, the state of California. And that’s where they’re licensed to practice physical therapy. But yet they want to release an online program of some flavor of wellness. But, you know, they’re only licensed in California. So the program’s not physical therapy so much. It’s more on the wellness preventative side. But how can they protect like their actual brick and mortar when they start working with people all over the world?

Cory: It’s a really big issue and the solution is not so complicated and it is quite logical, but the proper steps need to be taken. Right?

That’s what’s really important. And so the biggest issue we’re talking about here is practicing outside of your scope. Right? And so the simplest way that I do this with my client is like, let’s say, and I do have some interesting partnerships with companies that we’re building out these programs because we see a very, very high demand for them right now. But let’s say in this particular scenario, you have this physiotherapist in California who has their brick and mortar physiotherapy studio, their license. But let’s just say, as an example, they want to do meditation and mindful eating online and they want to take clients from Norway and from Ecuador and from Mozambique and all over the world, plus all of the different states.

Now, my advice to them would be to create a separate legal entity that runs an online program to demonstrate that it’s different. And then you need a package of documents that outline very, very clearly what the scope of services are doing, what you’re doing, what you’re not doing, that you recommend people see a medical professional. They have any questions that nothing in this is related to physical therapy or anything related to that, because the biggest issue that will come up will be a business representation.

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So, hey, I know this studio does this. So now that I think now I think that they’ve got another offering, I think it’s related to physiotherapy could be one, but also that someone could allege that, you know, they could be at risk of losing their license because they’re now doing things outside of the scope for their particular business, which is a very real risk. So the whole point of the documentation process and creating a separate legal entity is essentially to let the business owner wear a completely separate hat and say, “Ok, cool, it’s a different legal entity. It’s something completely different.”

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And before we allowed anyone to work with us or we accepted any money, we made it very, very clear. These are our qualifications. This is the scope of our practice. Here’s a medical disclaimer saying that, you know, we told you to see a medical professional and that this isn’t physical therapy and you get them to sign a waiver of liability and you get them to sign, you know, an online course agreement, all these different legal agreements. And that’s really the simplest, most straightforward way to do it. That, you know, just because I’m a physical therapist, it doesn’t mean I can’t also be a Pilates teacher. But what is the legal landscape behind me offering my Pilates classes? That’s really what this comes down to.

Alison: Yeah, I love this because it gives a physical therapist so much freedom because I remember when I had my brick and mortar physical therapy practice at first, like when I was venturing into the online space, I felt so restricted by my license. I’m like, well, how can yoga teachers and massage therapists, you know, it depends on now massage has a national exam, but like, how can these other practitioners like be offering these things all out, all over in the world? But I’m limited by my license. And it was finally when I spoke to a lawyer and I got my own agreements in place, then I felt that freedom and I felt protected where my license was more secure.

Question to Cory: This is more tactic based question, but do you recommend even when you say separate entity having separate e-mail lists for the brick and mortar and the online space or is that even needed?

Cory: I don’t. I think that’s less relevant because remember everyone’s going to, when they sign up to work with your online program, everyone’s going to be bound into a new legal relationship by signing the new documents. So what you could do is, what I would do is, and I actually started a second business and I, I sent an e-mail out to my whole mailing list for my law firm and I was like, “Hey guys, it’s me, Cory. I personally am up to something new and different and exciting. If you’re interested in being included in that list, click here.” And then like, I sent that at once and that was it. And if anyone didn’t, maybe they missed it and it didn’t happen, but that’s okay. There’s less of a legal issue around that. It’s all about the creation of a legal relationship and what those rights are.

Alison: Okay. Got it. That’s simple. All right.

Question to Cory:  Another question I have is more for the health coaches, because again, coming back to scope, some states allow certain functional tests and use of labs and interpreting those labs, evaluating the labs, and then passing the information onto the client where other states do not, you cannot perform some certain functional tests in certain states. What is your recommendation for these health practitioner or health coaches, functional practitioners?

Cory: Yeah, it’s a really fine line in a gray area and it’s really, really tricky. The first thing that I would say is if your particular state prohibits you from doing something, probably not a good idea to do it, right? I’ll just, I’ll put that out there.

You know what? In any industry, there’s a lot of people who do whatever they want and don’t have regard to the rules and I’ve seen people get in trouble for it in the past, but ultimately the most important thing you can do is, if the work that you’re doing is based in that particular state, get clear on what the rules are and follow the rules as best as possible. And like, I wish I had a panacea and a solution to say, “Oh, you actually don’t have to listen to anyone,” but I won’t say that and I don’t say that. And sometimes I don’t work with clients if they insist on doing particular things in a certain way that I know contravene the rules, just because it puts everyone at risk, but at the end of the day, individuals will make a decision of what it is that they want to do. And there will be consequences in the event that they get caught. And that’s all I could really say about it.

Alison: Yeah. And that brings to a more general topic. There’s a research study out there of doctors. I think it was surgeons specifically, if they were sued because of an accident in surgery or not. And the research study, if I’m remembering correctly, said that those surgeons with the best rapport with their patients, even though they might’ve made a major mistake in surgery, such as possibly operating on the wrong limb or leaving something in the body or just the surgery that didn’t have good results, they were less likely to get sued the better rapport with their patients.

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Question to Cory: So do you see that for your own practice and your own clientele where if that rapport, that relationship and that dynamic is present, then there is an easier time navigating a mishap?

Cory: Yeah, a hundred percent. And the first thing that I’ll always like, the amount of times that we actually have to rely on the documents themselves is quite small, but you always need it in place because that that’s the foundation for protection. But ultimately it’s a great study. And I just invite the reader to also think about their own experiences, right? Like even something as simple as an Uber, right? Let’s say you take an Uber and the person gets lost. If they were nice, if they were friendly, if they were understanding, if they were compassionate, okay, not about the Uber rating, but you’d probably leave the interaction, not feeling so negative as even if someone did a good job, but was rude and inconsiderate and was offensive and didn’t make you feel good. So what I always say to clients is the first and most important thing to do is manage the relationship, manage your relationship with your clients, because this is the truth and it’s such a perfect connection. So thank you for such an interesting point and a question.

If there’s going to be a problem, there’s two things that’s going to happen. One is you work with a client, they suffer some damage or get hurt. And then they’re going to choose to come after you, right? Secondly, and I see this happen too, is sometimes other people will report other business owners and operators because like out of spite or anger or like, “Oh, I know that this person’s doing this, but they really shouldn’t be doing this, right?” And so at the end of the day, the golden rule always is just like treat others with kindness, be respectful, be nice, be loving, be as helpful as you can to your clients.

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And in a lot of these issues, like let’s say we take the specific issue of let’s say a health coach who’s acting out of scope, right? I would venture, and this number is completely made up, but just from my experience, I would say less than 10% of the time that a complaint is filed against that person. It’s done a hundred percent autonomously by a governmental body, right? Like I don’t, I think it’s very, very rare that governmental bodies themselves will look into this. And it’s happened once in my career that I had to work with someone who there was a governmental body that on their own, saw what the person was doing online, took an issue with it, sent them a letter, open an investigation in a file against them, and we had to respond. All of the other times that it’s come up that I’ve seen, it’s always some problem, some relationship issue or problem.

So you’re totally right in, you know, I guess, yeah, treating the, I forget that expression, treating the cause or treating the symptom, even though we don’t say symptoms when we deal with health coaches, it was a little joke out there for the wellness entrepreneurs. But yeah, manage your relationships, have great relationships with the people you work with, have great relationships with your peers. And that’s like the first and most easiest and inexpensive thing you can do to set yourself up to succeed.

Alison: And I think a lot of wellness entrepreneurs now just breathing a sigh of relief because again, I think a lot of people reading this blog are in this to help others. And that is always the first and foremost in their minds. So keep doing what you’re doing because, you know, the whole reason why you’re in this to help people, that’s also going to keep you protected in the long run as well. So thank you for sharing that. And thank you so much for sharing your time and so much great wisdom nuggets today here, Cory.

Question to Cory: Any other parting words of wisdom that you want to make sure the wellness entrepreneur has in their mind as they go forward, embarking on their entrepreneurial journey here?

Cory: Well, firstly, it is a journey, so I hope everyone enjoys it. And I think exactly like you intimated, everyone does this because they want to help people.

And I think, and I’ll just share very briefly from my experience. It’s like, when I became an entrepreneur, I didn’t know anything about accounting and I didn’t know anything about numbers. And I can tell you after seven years of doing this, I still don’t know anything about accounting and I still don’t know anything about numbers, but I have an awesome accountant. And I think, Alison, your story is amazing where it’s like, you’re, you know, you’re very successful. You’ve done a lot of things. And when you started, you work with a lawyer who set up everything up, up for you. And like, you don’t need to know all the ins and outs and the details of what it is that’s involved. You just need to work with someone who does.

So I think my closing words would be for all the entrepreneurs is not only as it relates to law, but just other aspects of your business that maybe you don’t love or you’re not lit up about, or you find heavy or consuming or bring you down. There are professionals in all of these different industries who are really, really good at what they do and rely on them and work with them and leverage them so that you can spend the most amount of time doing what you love and making the world a healthier place.

Alison: Yeah, solid advice there. Well, thank you so much for your time again. And again, you want to tell the website and where they can find you Conscious Counsel, is that correct?

Cory: Yeah, Conscious Counsel on Instagram @consciouscounsel, the website’s consciouscounsel.ca. My name is Cory Sterling, C-O-R-Y. So you can just reach out and say hi. And I hope you enjoyed this. And we always love working with awesome health and wellness entrepreneurs. So you’re very welcome.

Alison: Thank you.

Cory: Thanks, Alison.

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Alison McLean

"I help the Entrepreneur reduce stress and live a more fulfilled and balanced life."