Establishing secure connection…Loading editor…Preparing document…

Business SMS Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

Business SMS Agreement

This Business SMS Agreement ("Agreement") is entered into as of Effective Date: by and between Service Provider: with address and Client Name: with address .

WHEREAS

WHEREAS, Provider operates an SMS messaging platform and associated services for the delivery, management and reporting of text messages to end users; and

WHEREAS, Client desires to engage Provider to send text message communications to Client's subscribers, customers, or other recipients on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows.

Scope of Work

Services include but are not limited to: message delivery, campaign scheduling, reporting, handling opt-out requests, and basic deliverability support. Provider will attempt reasonable efforts to deliver messages but does not guarantee delivery or delivery times.

Payment Terms

Client shall pay Provider for the services as follows:

Late payments shall accrue interest at on overdue balances, or the maximum rate permitted by law, whichever is less. Client is responsible for all taxes, assessments, or levies related to services, excluding taxes based on Provider's net income.

Term and Termination

The initial term of this Agreement shall commence on Start Date: and continue until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon written notice of days to the other party. Provider may suspend or terminate services immediately for material breach, unlawful activity, non-payment, or actions that threaten network integrity or violate applicable law.

Upon termination, Client shall pay Provider for all services performed and messages transmitted through the effective date of termination. Provider will, at Client's written request and subject to payment of outstanding fees, provide a reasonable export of Client message data.

Confidentiality

Each party shall maintain in confidence and not disclose to any third party Confidential Information of the other party, defined as non-public information marked or identified as confidential or that should reasonably be understood to be confidential. Confidential obligations shall continue for years following termination, except where a longer retention period is required by law.

Data Security and Privacy

Client is responsible for obtaining all consents and authorizations required under applicable telecommunications, privacy and consumer protection laws prior to submission of any recipient contact information to Provider. Client warrants that it will not submit numbers for which it does not have valid consent to receive SMS messages.

Opt-out and Message Compliance

Client shall include in each message clear opt-out instructions (e.g., reply STOP). Provider will honor opt-out requests and implement suppression of opted-out numbers. Client agrees to accept and handle inbound replies, and to comply with carrier and industry standards governing content, frequency, and prohibited material.

Client represents and warrants that it has obtained prior express written or electronic consent from all message recipients to receive the messages described in this Agreement.

Indemnification and Liability

Client shall indemnify, defend and hold harmless Provider and its officers, directors and agents from any claims, losses or liabilities arising out of Client's content, violation of law, or failure to obtain required consents. Provider's sole liability for direct damages arising under this Agreement shall be limited to the lesser of actual damages or USD. Neither party shall be liable for special, incidental, punitive or consequential damages.

Representations and Warranties

Each party represents that it has the full power and authority to enter into this Agreement and perform its obligations. Provider warrants that it will exercise commercially reasonable efforts to provide the services in a professional manner consistent with industry standards.

Force Majeure

Neither party shall be liable for delays or failures in performance caused by events beyond its reasonable control, including but not limited to acts of nature, telecommunications failures, or governmental actions. Affected obligations shall be suspended for the duration of the force majeure event.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of law principles.

Entire Agreement

This Agreement, together with any exhibits or addenda executed by the parties, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements, proposals, or communications, whether written or oral.

Notices

Additional Provisions

No waiver of any breach or default hereunder shall be deemed a waiver of any subsequent breach. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

Service Provider

Printed Name:

By:

Date:

Client

Printed Name:

By:

Date:

Enter text✕

What a Business SMS Agreement Is and When Organizations Use It

A Business SMS Agreement is a contract establishing terms for sending commercial text messages between a business and its contacts. It documents consent, message frequency, content limits, opt-out mechanics, and liability allocation. The agreement helps demonstrate compliance with federal communications and consumer-protection rules and records the parties’ obligations for message delivery, handling of responses, and data privacy. Businesses use this agreement to standardize opt-in processes, minimize regulatory risk, and make responsibilities clear for vendors, resellers, or marketing teams involved in SMS campaigns.

Why a Formal Agreement Matters for SMS Programs

A written Business SMS Agreement creates clear consent records, allocates compliance responsibilities, and documents opt-out and data-handling procedures to reduce legal and operational risk under federal communications and privacy laws.

Why a Formal Agreement Matters for SMS Programs

Typical Organizations and Roles That Complete This Agreement

Parties sign to ensure each has a defined role for consent collection, message content control, opt-out processing, and record retention.

  • Marketing teams and agencies responsible for campaign strategy and subscriber lists
  • Compliance, legal, and privacy teams who manage regulatory risk and recordkeeping
  • Vendors, CPaaS providers, and integrators who send messages on the business’s behalf

Core Elements to Include in a Professional Business SMS Agreement

A robust agreement balances operational detail with legal clarity: define consent, campaign parameters, opt-out mechanics, security, liability, and audit access so each party knows its obligations.

Consent Record

Specify how consent will be captured, formatted, and retained, including required opt-in language and affirmative action demonstrating the subscriber’s willingness to receive texts.

Message Parameters

Define types of messages allowed, maximum frequency, permissible content (promotional vs transactional), and any prohibited content to avoid TCPA issues.

Opt-Out Process

Describe the unsubscribe keyword(s), required response handling timeline, confirmation message, and how suppressed numbers are shared between parties.

Data Handling

State how subscriber data is stored, transmitted, encrypted, retained, and deleted; include privacy responsibilities and any limits on secondary use.

Security & Compliance

Require technical controls such as TLS for transmission, access controls, incident notification obligations, and specify applicable law frameworks (ESIGN, UETA, TCPA, HIPAA if relevant).

Liability & Indemnity

Allocate responsibility for regulatory fines, consumer complaints, and third-party claims; include indemnity language and limits on damages where permitted.

Step-by-Step: Preparing and Executing a Business SMS Agreement

Follow these steps to ensure the agreement is complete, enforceable, and integrated into your SMS operations.

  • 01
    Draft Terms: Assemble consent, opt-out, data, and liability clauses before circulation.
  • 02
    Confirm Legal Review: Have counsel check TCPA, state TCPA analogs, and privacy implications.
  • 03
    Collect Signatures: Obtain authorized signatures from each party and record the Effective Date.
  • 04
    Integrate Procedures: Update opt-in flows, suppression lists, and reporting to reflect agreed processes.

Configuring an Online Workflow for the Agreement

Design the digital workflow so consent capture and audit trails are retained automatically.

Field Configuration
Consent Checkbox Make explicit and required with timestamp and IP capture
Signature Field Collect signer name, signature, and date in MM/DD/YYYY
Opt-Out Field Record keyword and processing SLA (e.g., 24 hours)
Audit Trail Enable full event logging and downloadable certificates

Technical and Platform Considerations for eSigning and Delivery

Consider whether you need a Business, Business Premium, Enterprise or Site License plan; signNow, for example, offers plans with no envelope cap and programmatic site-license options for high-volume usage.

  • Document Formats: PDF, DOCX supported
  • Authentication: Email, SMS code, or advanced methods
  • Integrations: CRM and cloud storage connectors

Typical Document Flow for Online Execution and Delivery

A consistent flow ensures legal records and operational handoffs remain intact from signature to distribution.

  • Upload Document: Prepare final agreement and upload to the signing platform
  • Place Fields: Add signature, date, and consent fields with conditional logic
  • Send to Signers: Use email or secure link; include consumer disclosure if applicable
  • Store Records: Archive signed copy and audit trail for retention

Essential Information Elements to Collect and Protect

Legal Entity: Registered business name
Authorized Signer: Name and title of signer
Contact Details: Business phone and email
Consent Proof: Timestamped opt-in record
Suppression List: Numbers opted out
Retention Note: Record retention policy

Common Mistakes to Avoid When Preparing This Agreement

  • Using vague consent language that fails to clearly describe the type or frequency of messages, which can jeopardize TCPA compliance and invite consumer disputes.
  • Failing to capture or retain timestamped opt-in records and authentication metadata, making it difficult to defend consent in regulatory or civil claims.
  • Neglecting to define opt-out handling and suppression synchronization, leading to repeated messages after a consumer has attempted to unsubscribe.
  • Overlooking vendor responsibilities for message content and deliverability, leaving the business exposed to fines and brand-reputation risks.

Potential Penalties and Operational Risks from an Incorrect Agreement

Regulatory Fines: High
Private Litigation: Possible
Business Interruption: Moderate
Brand Damage: Significant
Data Exposure: Risky
Contract Voidance: Possible

Representative eSignature Pricing and Feature Comparison

Selected vendors for context; compare starting prices and common feature availability relevant to Business SMS Agreement execution.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies by vendor Varies Varies Varies
Bulk Send Yes (Business Premium) Varies Varies Varies Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About the Business SMS Agreement

Answers to common questions about signing, consent, revocation, and privacy when using a Business SMS Agreement.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users