The legal contracts that beauty brands must have in place to establish a foundation are not something you think about when you get started with your new business. It may seem expensive to hire a lawyer, so you decide to do it yourself or skip the legal contract writing. Many beauty entrepreneurs skip contracts because they consider legal requirements to be too burdensome for their small businesses.

It is possible that you are not familiar with all the legal terminology. You may not be familiar with the legal requirements for setting up your own beauty brand . You should be familiar with all legal agreements for your beauty business, especially if you are considering outsourcing formulation production to a manufacturer.

This blog post will show you why it is important to incorporate legal agreements into your business. We also run through the 5 most important legal contracts that you should be aware of.



A Non-Disclosure Agreement, also known as a confidentiality agreement, is a legally binding document that two parties sign to keep confidential information between them. As the ‘disclosing person’, you might have information you would like to share with a specific company or individual, but you don’t want anyone else to see it. Business NDAs are common, especially if you need to keep certain information confidential.

Not to be overlooked is the fact that confidentiality agreements, or NDAs, are more used as deterrents rather than legal documents. Your NDA will not hold if your case is brought to court. This is a costly, stressful, and time-consuming process. It is also necessary to show evidence that the information was leaked. This is often very difficult and most claims don’t even make it to court. It is difficult to enforce a NDA. A person would only sue you if the information was deemed to have a significant impact on your business.

2. A trademark

A trademark is an easily identifiable sign, design, or slogan that allows you to be identified by others. Your trademark is unique to you business. Think of it like a badge that identifies your origin. While it’s not a legal contract, trademarks must be used commercially and must be paid for. A trademark is protected for a period of 10 years in certain countries. The EU, and for a lifetime in other countries.

You should begin researching the claims of any brand name you are considering. This is crucial before you begin manufacturing, packaging, and investing in digital and marketing strategies for your brand. You could lose all your hard work if you don’t do your research.


Every employee who works for you should be aware of what they are expected to do and have an employment contract. An employment contract protects both the parties and clearly outlines the roles and responsibilities.

Although it is important to keep your employees happy, many business owners ignore the importance of an employment contract. They believe that people will do the right things all the time. This is often not true. Disputes can lead to legal claims, arguments, and even the loss of customer or IP information. You may have accidentally created a competitor. Onboarding employees requires creating a process for setting up payroll, HR policies, and other perks.

You will need to have a service agreement signed by contractors you hire. You must protect your company by ensuring that the contractor is not an employee. The contract will outline exactly what work they will do for you, how much they’ll be paid, and when they pay. It includes confidentiality, intellectual property and data protection clauses. Both you and the contractor will be able to specify the length of their work and have the right to terminate the contract at any time.


We recommend that you hire a lawyer to assist with the preparation of a manufacturing agreement. You will need to make it unique to your brand. Do not rely on templates or contracts from the manufacturer. Protect your brand and beauty products.

A good legal contract is essential. If a manufacturer notices the popularity of a product, they might decide to create their own version. If you have increased sales and don’t have a legal contract, there is no reason to worry about them creating a copy of your product or changing some ingredients to make it more affordable for their customers. While most manufacturers won’t steal your ideas, we are seeing more manufacturers and ingredient suppliers creating their own beauty ranges.


You may choose to co-found your beauty brand with a friend, business partner or colleague. It is easy to get lost in the excitement of starting your new business, and you may not think about forming a legal agreement.

It is vital to have a legal agreement in place with your co-founder. This will ensure that you both are protected if there are any problems, if anyone wants to leave, or if investors want to invest. While future problems are unlikely to be a concern when you launch your beauty brand it is important to make sure you have a contract in place. As a minimum, your co-founder agreement should include details about roles and responsibilities, payment terms and equity.

Moglow Beauty School International is co-founded by several of its graduates. We also provide some advice on starting a beauty brand.

While there will be many other legal contracts that beauty brands will need as they grow, these are the five we recommend you start with when you set up your business and when you scale up. Although your beauty brand might be small, it will grow and become a successful business. Protect your brand, your formulas, your products and your customers. Good legal documents can help you with this.

We would love to hear from you if you have any experiences, but not confidential information, about the legal aspects of your company. This is especially important as the legal contracts that beauty brands require can vary around the globe.

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