Establishing secure connection…Loading editor…Preparing document…

Subscription Services Agreement

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

SUBSCRIPTION SERVICES AGREEMENT

This Subscription Services Agreement (the "Agreement") is entered into as of Effective Date: by and between Service Provider: and Subscriber: .

RECITALS

WHEREAS, Service Provider operates and maintains a subscription-based software-as-a-service platform and related services described herein; and

WHEREAS, Subscriber desires to obtain access to and use Service Provider's subscription services under the terms and conditions set forth in this Agreement, and Service Provider is willing to grant such access subject to the terms herein.

SCOPE OF WORK

Service Provider will provide the subscription services, ongoing maintenance, updates, and support described below. Subscriber shall receive access to the services in accordance with the subscription plan selected and the Service Level obligations set forth in this Agreement.

PAYMENT TERMS

Subscriber shall pay Service Provider the fees set forth below in consideration for access to and use of the subscription services. All fees are non-refundable except as expressly provided in this Agreement.

All invoiced amounts not paid within the Payment Terms shall accrue interest at the rate specified above and Service Provider may suspend access to services after providing Subscriber with written notice and a reasonable cure period as set forth in this Agreement.

TERM AND TERMINATION

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

Termination for material breach shall be effective if the breaching party fails to cure such breach within the notice period above. Termination shall not relieve either party of obligations accrued prior to termination, including payment of fees.

CONFIDENTIALITY

Each party (the "Receiving Party") shall keep confidential and shall not disclose to any third party any Confidential Information of the other party (the "Disclosing Party"), except as required by law or as permitted herein. "Confidential Information" means non-public information disclosed in tangible or intangible form that is designated as confidential or that a reasonable person would understand to be confidential under the circumstances.

The Receiving Party shall use Confidential Information solely to perform its obligations under this Agreement, restrict access to personnel with a legitimate need to know, and take reasonable measures to protect Confidential Information from unauthorized disclosure.

DATA SECURITY AND PRIVACY

Service Provider shall implement and maintain administrative, technical, and physical safeguards appropriate to the nature of Subscriber Data to protect against unauthorized access, disclosure, alteration, or destruction. Service Provider will promptly notify Subscriber of any confirmed security breach affecting Subscriber Data and shall cooperate in any remediation.

INTELLECTUAL PROPERTY

Service Provider retains all right, title and interest in and to its pre-existing intellectual property and the subscription service platform (collectively, "Service Provider IP"). Subscriber is granted a limited, non-exclusive, non-transferable license to access and use the services during the Term solely for Subscriber's internal business purposes. Subscriber retains ownership of Subscriber Data.

WARRANTIES AND LIMITATION OF LIABILITY

Service Provider represents that it will provide the services in a professional manner consistent with industry standards. EXCEPT AS EXPRESSLY PROVIDED, THE SERVICES ARE PROVIDED "AS IS" AND SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES. THE AGGREGATE LIABILITY OF SERVICE PROVIDER FOR DIRECT DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID BY SUBSCRIBER TO SERVICE PROVIDER UNDER THIS AGREEMENT IN THE SIX (6) MONTHS PRECEDING THE CLAIM.

NOTICES

All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, by certified mail, or by nationally recognized overnight courier to the addresses below or to such other address as a party may designate by notice in accordance with this provision.

GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. The parties shall attempt in good faith to resolve any dispute arising under this Agreement by negotiation; if the dispute is not resolved within 30 days, the parties shall submit to the exclusive jurisdiction of the state and federal courts located in the governing state.

ENTIRE AGREEMENT

This Agreement, together with any exhibits or order forms executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. Any amendment or waiver must be in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

Neither party may assign this Agreement without the prior written consent of the other, except that Service Provider may assign to an affiliate or in connection with a merger or sale of substantially all its assets. If any provision of this Agreement is held unenforceable, the remaining provisions shall remain in full force and effect.

Service Provider:

By:

Title:

Date:

Subscriber:

By:

Title:

Date:

Enter text✕

What a Subscription Services Agreement Covers

The Subscription Services Agreement establishes the contractual relationship between a service provider and a subscriber for recurring access to software, data, or ongoing services. It defines subscription term, access rights, permitted use, payment and renewal terms, support and service level obligations, data ownership, confidentiality, warranty disclaimers, and termination remedies. For U.S. transactions, electronic execution is generally enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA statutes, subject to statutory exceptions. Use this agreement to document scope, pricing, and legal protections when offering or purchasing subscription-based services.

Why a Clear Agreement Matters for Subscriptions

A clear Subscription Services Agreement reduces billing disputes, defines service expectations, and limits liability. It supports enforceability of electronic signatures under the ESIGN Act (15 U.S.C. §7001) and UETA, clarifies renewal and cancellation mechanics, and preserves audit evidence for compliance and records retention.

Why a Clear Agreement Matters for Subscriptions

Who Prepares and Signs These Agreements

Common preparers and signers vary by company size and function but share responsibilities for subscription terms and compliance.

  • Vendors and SaaS providers managing pricing, SLAs, and service delivery obligations.
  • Procurement or legal teams reviewing contract language, renewal clauses, and risk allocation.
  • Finance and accounts receivable staff responsible for invoicing, billing cycles, and collections.

Smaller businesses may rely on the founder or operations lead; enterprises use cross-functional approvals and delegated signature authorities.

Core Clauses to Include in the Agreement

The agreement should set term and renewal rules, fees and payment schedules, service levels, data treatment, liability limits, and termination processes.

Term & Renewal

Specify initial term, automatic renewals, notice periods for nonrenewal, renewal rates, prorated charges, and termination fees.

Fees & Payments

State currency, billing cadence, late fees, invoicing procedure, payment methods, taxes, and suspension rights for missed payments.

Service Levels

Define uptime commitments, maintenance windows, support response times, remedies for SLA breaches such as credits or termination rights, and reporting frequency.

Data & IP

Clarify customer data ownership, provider processing rights, export/deletion procedures, intellectual property ownership, and cross-border transfer rules.

Confidentiality

Define confidential information, nondisclosure obligations, permitted disclosures, return or destruction obligations, and injunctive relief procedures.

Liability & Indemnity

Limitations of liability, caps, consequential damages exclusions, indemnity scope, claim procedures, insurance requirements, plus duty to mitigate.

Step-by-Step: Execute the Agreement Electronically

Follow these steps to complete and execute a Subscription Services Agreement electronically using an eSignature platform that records an audit trail.

  • 01
    Prepare Document: Assemble terms, exhibits, and pricing schedules.
  • 02
    Assign Fields: Place signature, date, and initial fields where required.
  • 03
    Add Signers: Enter signer emails and role order.
  • 04
    Send & Track: Distribute for signature and monitor completion status.

Configure an Electronic Approval Workflow

Configure an electronic workflow to match approval order, authentication, and retention requirements and set notifications and conditional routing.

Field Configuration
Approval Order Sequential or parallel signer routing.
Authentication Email, SMS code, or KBA.
Retention Automatic export to secure archive.
Notifications Email reminders and status alerts.
Conditional Fields Show fields by role or value.

Typical Electronic Signing Flow

Typical routing for electronic execution includes document preparation, signer authentication, and capture of a detailed audit trail.

  • Upload Document: Upload PDF or Word template to platform.
  • Place Fields: Add signature, date, and checkbox fields.
  • Authenticate Signer: Use email link, SMS code, or KBA.
  • Complete Audit: System records timestamps, IP, and actions.

Technical Capabilities to Verify Before Deployment

Verify the eSignature platform supports required integrations, authentication strength, and retention before deployment and bulk sending for large subscriber lists.

  • Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
  • Formats Supported: PDF, DOCX, HTML, Excel input/output
  • Authentication Options: Email, SMS, KBA, SSO/SAML

Security and Compliance Essentials

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: ISO 27001, SOC 2 Type II, PCI DSS
HIPAA: Compliant — BAA required for PHI workflows
Regulatory: ESIGN and UETA compliant
Audit Trail: Tamper-evident logs, timestamps, signer IP
Accessibility: WCAG 2.0 Level AA support

Key Dates to Track in a Subscription Agreement

Key dates affect billing, tax reporting, and renewal notices; track calendar deadlines and notification windows.

Renewal Notice Window:

30–90 days before renewal; contractual clause controls.

Billing Cycle Start Date:

Date set by agreement; determines invoices and late payment timing.

Payment Due Date:

Net 30, Net 45, or specified date; late fees apply per clause.

Tax Reporting Triggers:

Ensure TIN and W-9 collection to avoid backup withholding.

Cancellation Notice Period:

Standard 30 days unless otherwise negotiated in the agreement.

Milestones from Negotiation to Renewal

Use a milestone timeline to manage negotiation, signature, onboarding, billing, and renewals for each subscription.

01

Negotiation

Finalize scope, pricing, and key terms before legal review.

02

Execution

Collect signatures from authorized signatories and confirm dates.

03

Onboarding

Provision accounts, configure integrations, and deliver welcome materials.

04

Renewal & Audit

Send renewal notices, reconcile billing, and archive executed files.

Common Preparation Mistakes to Avoid

  • Unclear renewal language that creates automatic rollovers without notice, leading to billing disputes and potential regulatory scrutiny.
  • Missing or inconsistent legal entity names across payment systems, tax forms, and contracts can trigger backup withholding and collection delays.
  • Failing to collect valid tax identification (W-9) from U.S. payees risks backup withholding at 24% and IRS penalties.
  • Relying on weak signer authentication for high-value accounts increases fraud risk and weakens enforceability in contested litigation.

Penalties and Legal Risks of Errors

Backup Withholding: 24% withholding if TIN missing
1099 Penalties: Late filing penalties range $60–$330 per form
Intentional Penalty: $660+ per form, no cap
I-9 Violations: Civil fines $281–$2,789 per violation
Contract Risk: Ambiguous terms invite disputes
Data Breach: Breach may trigger HIPAA, state notices

eSignature Pricing and Feature Comparison

Compare common plan features and starting prices for eSignature providers relevant to subscription agreement workflows.

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 free trial, no credit card required No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions About Execution and Enforcement

Answers to common questions about executing, amending, and enforcing Subscription Services Agreements, including eSignature and retention considerations.


Need help? Contact support

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