Establishing secure connection…Loading editor…Preparing document…

Business Texting Service Agreement

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

BUSINESS TEXTING SERVICE AGREEMENT

This Business Texting Service Agreement ("Agreement") is entered into as of Effective Date: by and between Service Provider Name: with principal place of business at , and Client Name: with principal place of business at .

RECITALS

WHEREAS, Service Provider operates and maintains a platform and related services for sending text (SMS/MMS) messages for business purposes and related messaging infrastructure, and offers compliance, deliverability, and reporting services to business customers; and

WHEREAS, Client desires to engage Service Provider to provide business texting services for the purpose of contacting Client’s customers and prospects for the campaign types described as: , and Service Provider agrees to provide such services under the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties agree as follows:

SCOPE OF WORK

PAYMENT TERMS

Client shall pay Service Provider the fees set forth below in consideration for the Services. Fees are exclusive of taxes unless otherwise stated.

TERM AND TERMINATION

This Agreement commences on Start Date: and shall continue until End Date: , unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for convenience upon written notice at least days prior to the intended termination date. Either party may terminate immediately for material breach by the other party if such breach is not cured within thirty (30) days after written notice of such breach.

CONFIDENTIALITY

Each party (the "Receiving Party") shall hold in confidence and not disclose to any third party any Confidential Information of the other party (the "Disclosing Party"). Confidential Information includes non-public business information, customer lists, message content that is not public, and technical and pricing information. The Receiving Party shall protect Confidential Information with at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care.

Confidential Information does not include information that is or becomes publicly available through no fault of the Receiving Party, is rightfully received from a third party without restriction, or is independently developed without using the Disclosing Party’s Confidential Information.

DATA SECURITY AND COMPLIANCE

Service Provider will implement commercially reasonable administrative, physical, and technical safeguards appropriate to the nature of the data processed to protect message content and recipient data. Client acknowledges that messaging services involve third-party carriers and routing and that absolute message delivery cannot be guaranteed.

Client represents and warrants that it has obtained all consents and authorizations necessary under applicable law to send messages to each recipient and that the content and use of the messaging service will comply with all applicable legal requirements, industry standards, and carrier policies. Client agrees to indemnify and hold Service Provider harmless for claims arising from Client’s failure to secure required consents.

Client affirms that it has obtained prior express consent from recipients to receive text messages and that Client will maintain records of such consent for the retention period required by applicable law.

MESSAGE CONTENT AND OPT-OUT

Client is solely responsible for the content of messages sent through the Service. Messages must not contain unlawful, fraudulent, obscene, or otherwise prohibited material. Client must provide an automated and functioning opt-out mechanism (e.g., reply "STOP") and honor opt-out requests promptly as required by applicable standards.

INDEMNIFICATION

Client shall defend, indemnify and hold Service Provider and its officers, directors, employees and agents harmless from and against any and all claims, liabilities, losses, damages, and expenses (including reasonable attorneys' fees) arising out of or related to Client’s content, Client’s failure to obtain required consents, or Client’s breach of this Agreement.

LIMITATION OF LIABILITY

EXCEPT FOR A PARTY’S INDEMNIFICATION OBLIGATIONS OR A PARTY’S WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR LOST PROFITS, REVENUE, OR DATA, WHETHER IN CONTRACT, TORT OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SERVICE PROVIDER’S AGGREGATE LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE TOTAL FEES PAID BY CLIENT TO SERVICE PROVIDER IN THE SIX (6) MONTHS PRECEDING THE CLAIM.

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; AMENDMENT

This Agreement (including all exhibits and schedules hereto, if any) constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior or contemporaneous oral or written agreements, representations, and understandings. Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties.

NOTICES

MISCELLANEOUS

Assignment: Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except that Service Provider may assign or transfer this Agreement in connection with a merger, acquisition or sale of substantially all its assets.

Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Service Provider (print name):

Client (print name):

By:

By:

Date:

Date:

Enter text✕

What a Business Texting Service Agreement Covers

A Business Texting Service Agreement is a written contract that defines terms for using SMS/MMS or similar messaging platforms to communicate with customers, leads, and employees on behalf of a business. It typically allocates responsibilities for compliance with TCPA, state telemarketing and privacy laws, message content and opt-out handling, security and data protection, fees and service levels, and allocation of liabilities between the messaging provider and the business customer. The agreement also clarifies permitted use cases, frequency limits, list procurement and recordkeeping requirements that support legal defenses if disputes arise.

Why a Formal Agreement Matters for Business Texting

A written agreement reduces legal and operational risk by documenting consent, consent maintenance, opt-out flows, security controls, and responsibilities for message delivery and data protection under federal and state law.

Why a Formal Agreement Matters for Business Texting

Who Typically Enters a Business Texting Service Agreement

Common parties include vendors that provide bulk or automated messaging platforms and businesses that send transactional, marketing, or appointment reminders via text.

  • Retail and e‑commerce teams using two‑way SMS for order updates and promotions.
  • Healthcare practices sending appointment reminders and patient notifications (HIPAA considerations apply).
  • Financial services and collections teams sending transactional alerts and payment reminders.

The agreement should reflect each party’s role: who obtains consent, who stores opt‑out records, how message content is vetted, and who bears regulatory risk.

Core Clauses to Include in a Business Texting Service Agreement

A professional agreement groups commercial and compliance provisions so both parties understand operational limits, liabilities, and audit rights.

Scope of Service

Define channel types (SMS, MMS, RCS), volume limits, permitted message categories (transactional vs marketing), and geographic targeting restrictions.

Consent and Opt-Out

Specify how express written consent is obtained, how opt-outs are processed, and how records of consent are retained for TCPA defense.

Compliance Obligations

Allocate responsibility for TCPA, CAN-SPAM, state telemarketing laws, and any industry-specific rules such as HIPAA.

Security and Data Handling

State data encryption, access controls, breach notification timelines, and which party is data controller or processor.

Service Levels and Reporting

Include message delivery SLAs, uptime commitments, delivery reporting, and remediation steps for outages or systemic failures.

Liability and Indemnity

Address indemnification for regulatory fines, third‑party claims, limits on consequential damages, and insurance requirements.

Essential Data and Security Elements to Specify

Encryption: TLS 1.2/1.3 in transit; AES‑256 at rest
Access Controls: Role-based access and MFA
Breach Notification: 72‑hour initial notification or per contract
BAA Option: Business Associate Agreement for covered health data
Audit Trails: Message logs, timestamps, sender metadata
Data Residency: Specify region and data export rules

Key Risks and Potential Penalties to Allocate

TCPA Liability: Statutory damages per unsolicited call/text; class action exposure
Regulatory Fines: State AG or FCC enforcement actions
HIPAA Violations: Civil penalties; requires BAA for PHI
Data Breach Costs: Notification, forensics, and remediation expenses
Reputational Harm: Customer loss and brand damage
Contractual Penalties: Service credits, termination rights, indemnity triggers

Common Implementation Challenges

  • Maintaining up‑to‑date consent records across CRMs and messaging platforms can be complex and error‑prone.
  • Failing to provide an immediately honored opt‑out or incorrect opt‑out handling leads to regulatory risk and user complaints.
  • Confusing transactional and marketing categories can invalidate consent and trigger penalties.
  • Insufficient audit logs or missing metadata weakens legal defenses in disputes or investigations.

Step-by-Step: How to Complete a Business Texting Service Agreement

Follow a clear sequence: verify business authority, confirm data flows and consent mechanisms, set security obligations, and document operational procedures for opt‑outs and audits.

  • 01
    Identify Parties: Record full legal names and business types
  • 02
    Describe Services: List messaging channels, volumes, and use cases
  • 03
    Assign Compliance Duties: Specify who obtains consent and maintains records
  • 04
    Finalize Signatures: Obtain authorized signatures and date the agreement

Typical Operational Flow Covered by the Agreement

A concise operational flow clarifies where consent is captured, how messages are sent, and how opt‑outs and logs are handled during normal operations and incidents.

  • Consent Capture: Record source, language, and timestamp for consent
  • Message Preparation: Template approval and categories assigned
  • Delivery and Monitoring: Provider sends messages and reports delivery
  • Opt‑out Handling: Immediate unsubscribe and suppression of future sends

Configure Online Workflow Controls

When implementing the service, configure workflow controls to ensure compliance, traceability, and clear escalation paths.

Field Configuration
Consent Source Form, checkbox, or API capture with timestamp
Auth Method SMS code or account authentication
Opt‑out Tagging Global suppression list with immediate effect
Delivery Logging Persistent logs with IP, timestamp, and message ID

Technical and Integration Requirements

Define platform capabilities, integrations, and file formats required to operate safely and reliably.

  • Integrations: Support for CRM and ERP integrations such as Salesforce, NetSuite, Microsoft 365, and Google Workspace
  • File Formats: Accepts PDF, DOCX, and HTML for message templates and consent records
  • Authentication: SMS OTP, SSO, and optional KBA for high‑risk actions

Confirm integration points, API rate limits, and retained metadata fields before finalizing operational responsibilities.

Key Timing and Processing Expectations

Timelines in an agreement should cover opt‑out processing, log retention windows, SLA response times, and dispute handling deadlines.

Opt‑out Processing:

Immediate suppression on receipt; confirm update within 24 hours

Breach Notification:

Initial notice typically within 72 hours, or per contractual term

Record Retention:

Retention starts on effective date; minimums follow regulatory basis

SLA Response:

Provider acknowledges incidents within 2 hours for critical outages

Dispute Resolution:

Specify escalation timeline and mediation/arbitration windows

eSignature and Execution Pricing Considerations for Agreement Signing

Compare basic vendor pricing and capabilities relevant to executing agreements and retaining execution records. Prices reflect common per-user or per-invite models; verify with vendor pricing pages for plan details.

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 Yes, 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA required) Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year cap Varies by plan Varies by plan Varies by plan

Examples: How Businesses Use This Agreement

Real-world scenarios show how clauses change based on use case and industry constraints.

Opt‑in Capture for Appointments

A clinic captures SMS consent during online booking using a checked consent box and timestamped record

  • The provider stores consent and links it to the patient record
  • The agreement required a BAA and defined opt‑out handling to meet HIPAA and TCPA expectations, reducing regulatory exposure.

Promotional Campaigns

A retailer runs promotional blasts to opted‑in customers and segments by preference

  • The vendor provides bulk send and suppression lists
  • Contractual clauses limited promotional frequency, required preapproved templates, and assigned liability for noncompliant content.

Practical Tips to Improve Accuracy and Compliance

Adopt clear internal processes and technical controls to reduce errors and simplify audits.

Centralize Consent Records
Use a single authoritative store for opt‑ins and opt‑outs to prevent duplicate or conflicting records across systems.
Categorize Messages
Classify templates as transactional or marketing and require legal review for marketing content to ensure proper consent is held.
Automate Suppression
Enforce global suppression lists at the messaging platform level to ensure immediate opt‑out handling.
Retain Audit Logs
Keep immutable logs of message content, delivery events, and consent metadata to support regulatory defenses.

Frequently Asked Questions About the Agreement

Answers to common questions about legality, signatures, consent, and practical enforcement for Business Texting Service Agreements.


Need help? Contact support

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