A physiotherapy business, like other health practices, comes with its own legal considerations that are specific to the services the practice provides. Prominent legal concerns people have when purchasing a physiotherapy business include those involving the lease of the premises as well as the equipment or fixtures.


The location of a physiotherapy business is probably going to contribute a lot to its success. The Sale of Business Agreement is usually connected in some way to the continuation of the lease, either by assignment or by creating a new lease directly with the landlord or their agent. If this were the case, review the Disclosure Document that is commonly provided with any commercial lease in order to determine the viability of the location for attracting new customers.

The premises could, in some instances, be occupied under a sublease or licence. This is more common for physiotherapy businesses that operate within a medical centre. If you are taking over a sublease or licence, remember to ask the appropriate questions regarding client exposure or even the demographic of the area where the physiotherapy will be located. It would also be important to know what other services are available in the medical practice as well as opening hours and your obligations to the medical practice generally.


Many physiotherapists already have an established list of clients who they’ve maintained a relationship with over the years. If the vendor of the business is planning to stop practising, it may be a good idea to include goodwill in the sale of the business. In this way, you will be able to expand outside your current client network. Of course, although you have a client list, you will still need to work to maintain those former client relationships. If there are existing employees of the physiotherapy practice already, keeping them on board may assist in client retention.


If your prime reason for purchasing an established physiotherapy business was the equipment and fixtures that usually come with the sale, this can certainly assist in speeding up the process to set up your own practice. Make sure you check equipment thoroughly and consider including warranties in the Sale of Business Agreement to ensure you are protected in the case of failure or the need for unexpected repairs.

Ongoing Contracts

Doing your legal due diligence on the physiotherapy business includes having a look at any ongoing contracts. This could be an ongoing business that has agreed to use you as their exclusive physiotherapist, for example a sports club. This could also relate to contracts with suppliers, maintenance of equipment or existing employee agreements. Understanding all the legal relationshipa the business is currently in at the moment will give you an idea of its current success and any liabilities you want to remove yourself from.


Our specialist team of LegalVision lawyers can guide you through the Sale of Business Agreement and highlight your legal obligations as soon as the business is settled. As with all contracts, it is best to get the Agreement checked so as to avoid any surprises once you are in operation! To speak with a LegalVision lawyer, call us on 1300 544 755!

Kristine Biason
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