As much as Q1 is tax season, it's also the time when we all try to jump back into fitness. Finding the right fit that will get results and keep you motivated are key. (We promise you – we'll get to the legal analysis soon.) But there are so many choices: the gym, personal trainers, fitness influencers, fitness apps, etc. The fitness industry is rife with opportunity and, as always, Froese Law can't help but to look at the legal underpinnings – this time as it relates to the fitness industry. Of course, each fitness professionals' career path varies but here's a quick reference guide of some of the legal issues that every fitness professional should consider as they build their fitness empire.
1. Be Legitimate
If you expect to become a leader in your field, do the necessary
work. Get the recommended certifications and professional
designations. In today's social media world, smoke and mirrors
is an unfortunate reality. Set yourself apart.
2. Structure Your Business
At Froese Law, we love helping entrepreneurs...but there's a
distinction between having a side hustle that has traction and a
hobby. We view our entrepreneur clients as empires in the making.
Incorporating your business is a wise and prudent first step to
building that empire. Not only will it protect your own personal
assets from risk, there may also be tax benefits to take advantage
of. In addition, if you are bringing on partners, it is a very good
idea to enter into a Shareholders' Agreement.
3. Protect Your Brand
In consumer facing industries, brand is key. In fact, arguably, it
is the most important corporate asset. The fitness professional may
have his/her own brand and the type of work out may have a brand.
Brand strategy and protection is key. Trademarks and copyright laws
will become a critical tool in protecting the brand.
4. Negotiate your Commercial Agreements
Much like raising a child, it takes a village to build an empire.
That means that a number of different third parties will be
involved in various different aspects of building your empire.
Here's just a sample of some of the players: investor, web
developer, photographer, social media strategist, agent, app
developer, sponsors, brands using your platform for influencer
marketing, etc. As your business grows, the opportunities should
also grow in a multitude of ways that increases the profitability
of your business.
Negotiating and entering into written commercial agreements that apply to the business nuances of the third party relationship is critical. Examples of the types of agreements include non-disclosure agreement, independent contractor agreement, sponsorship agreement, shareholders agreement, influencer agreement, agency agreement etc.
Important considerations should be given to term, termination, performance milestones, confidentiality, indemnification, representations and warranties, etc.
5. Curate and License Your Content
Content is king and there are a number of ways to monetize the
content. This is done through licensing. For example, creating a
signature style of working out, branding that style and then
licensing it to already established brands can be very lucrative
(think: "Zumba". Creating a personal brand that
translates into a lifestyle brand creates the ability to
merchandise the brand beyond fitness (i.e. fitness clothes,
supplements, water bottles, fitness equipment).
Bottom line: think big and diversify the reach of the brand to generate multiple revenue streams.
6. Establish Permanency
Ultimately, a successful empire has to have a home: a place where
consumers go to engage with your empire. In today's digital
world, there are so many permutations: a downloadable app., a brick
and mortar fitness studio, a multi-faceted online profile.
Depending on the permutation, there will be a number of legal
considerations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.