Subscription agreements are an essential tool for any company offering a recurring product or service. They establish the terms and conditions governing the relationship between a company and its subscribers. These agreements provide a framework for the ongoing delivery of products or services to customers on a recurring basis, such as monthly or annually.
Here are a few reasons why subscription agreements are important:
- Legal protection: Subscription agreements protect both the company and the customer by establishing the legal terms and conditions of the subscription. This can help to prevent legal disputes down the line.
- Clarity and transparency: Subscription agreements can help to ensure that both parties understand their rights and responsibilities. This can help to build trust and increase customer satisfaction.
- Payment and billing: Subscription agreements can outline the billing cycle and payment terms, including any late fees or penalties. This can help to ensure that customers are aware of their payment obligations and can prevent billing disputes.
- Cancellation and termination: Subscription agreements can specify the circumstances under which a customer can cancel their subscription or under which a company can terminate a subscription. This can help to avoid confusion and provide clarity on the cancellation process.
Template below was crafted by OCV’s legal counsel for OCV (open core) companies as of February 20, 2023. Companies must review and edit highlighted sections prior to executing the agreement with customers.