SaaS Tips by Sapna | Tip No. 7 – Renewal Options

Unless you don’t intend to continue providing the service after the initial term, your SaaS contract will usually have some sort of renewal option built in. Renewals can take place automatically, at the customer’s option or on mutual agreement of the supplier and customer. Each renewal type has its pros and cons to consider when picking the right renewal option for your product.

How do you extend a SaaS contract?

When you first sign on to a SaaS service, you will likely sign on for a limited time period, anywhere from a month (usually for B2C services) to 5 years. Does that mean that after 5 years, you no longer have access to the service?

Ensure that your SaaS contract provides you a right to renew the contract after the initial term, otherwise the supplier has no obligation to continue providing you the service.

Renewal clauses can take various forms:

  • The contract will automatically at the end of every terms unless either the supplier or the customers says it doesn’t want to renew anymore.
  • The contract will renew only if the customer lets the supplier know that it wants it to renew.
  • The contract will renew only if both parties agree to such renewal.

To learn more and join in the discussion, check out my LinkedIn post.

About the Author

More Articles

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

SaaS Tips by Sapna | Tip No. 14 – Subcontractors

Your SaaS supplier will almost always subcontract part of the services to a third party so the SaaS

SaaS Tips by Sapna | Tip No. 13 – Pilots

There are similarities and differences between a pilot and a proof of concept in a SaaS agreement.

SaaS Tips by Sapna | Tip No. 12 – Proof of Concept

Before engaging a new SaaS system into your company, you will almost always start with a proof of

SaaS Tips by Sapna | Tip No. 11 – Open-Source and Third-Party Software

If the SaaS system includes open-source software, your SaaS contract should contain the appropriate provisions to ensure the

Most Recent

The Contracts Queen’s Guide to Creating a Practical Contract Playbook

Contract playbooks can be used to improve relationships, empower stakeholders, speed up the contracting process, and save time

Acceptance Terms in SaaS Agreements

Acceptance is an important commercial concept to understand as it pertains to implementation services in SaaS agreements.

Nine Financial Terms Every SaaS Negotiator Should Know

By having a strong grasp of finance aspects of SaaS agreements, you are helping the business win new

Elevating Your GC Brand: 3 Contract-Centric Strategies

A strong GC brand doesn't just bring more influence, compensation, and respect; it also opens doors to the

Subscribe to Contract Nerds weekly newsletter

* indicates required
Professional Role
Generic filters