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Building a Refund Policy for your Business

Building a Refund Policy

Refund policies sound boring, tedious, and maybe to some, not necessary. But, with fairly minimal work and some key things kept in mind, even the simplest refund policy can protect you and reassure your families what they can expect should either of you be in an unprecedented situation. 

First, how can a refund policy help you?

  • It can save you from difficult conversations

  • It can help you budget for your year

  • It can help you market since it is attractive to families

Second, what should I keep in mind when writing one? 

Layman’s terms are always best.

You are probably not a lawyer (assumption), and most of the parents you are dealing with probably aren’t either. There isn’t a need to confuse anybody with your refund policy. Especially because an actual contract does NOT need to be written in complete legal terms in order to be legitimate. Write it how you and I and any parent would understand it. 

Make sure you are clear on situations that you will accept refunds for. 

For example, if one of your athletes breaks their leg and can no longer dance, that is probably a legitimate reason to give that family a refund. If one of your athletes decides mid-year that they aren’t interested anymore, that might not be grounds for a refund. Make a list- and add it in bullets!

Nail in that timeframe.

Using an example from the above. If that athlete broke their leg two days before the year is over, maybe it doesn’t make sense to give a full refund. Make sure it is listed that “refunds may be requested only during the first 60 days of the year” or whatever you think maybe an appropriate timeline.

Lastly, determine if you will honor full refunds no matter what, or if it may be less depending on the timeframe or situation that arises. 

Good luck!

*The information in this article is general refund policy information and should not be construed as legal advice to be applied to any specific factual situation. Please consult an attorney for any further advice*