Negotiating a renewal clause at signing takes minutes. Trying to fix it two years later, when you want out, can take months. Before you sign, check these five things.
The five lines
- Renewal length. Does it renew for one year, or for the original (often longer) term?
- Notice period. How many days, and is that counted before the renewal date or the end of the term?
- Notice method. Email, letter, certified mail? To whom?
- Price on renewal. Is there a fixed increase, a cap, or "then-current pricing"?
- Termination for convenience. Can you leave mid-term, and at what cost?
Whatever you agree to, write it down somewhere other than the PDF. The clause only protects you if someone remembers it at the right time.
Put this into practice
Upload a few contracts and LicensorFlow will find the notice deadlines for you.