Subscription Agreement Template — What to Include
If your business charges customers on a recurring basis — monthly, annually, or otherwise — a Subscription Agreement is the contract that governs that relationship. It defines what customers are paying for, how billing works, what happens when they cancel, and what you're responsible for delivering. Without one, recurring revenue becomes recurring legal exposure.
What Is a Subscription Agreement?
A Subscription Agreement is a contract between a business and a customer that establishes the terms of a recurring payment arrangement. It covers the scope of the service, pricing and billing terms, renewal and cancellation policies, and the legal framework that governs the relationship.
It is distinct from Terms of Service, which governs platform use broadly. A Subscription Agreement focuses specifically on the commercial terms of the recurring relationship.
When Do You Need One?
You need a Subscription Agreement when:
- You offer a SaaS product or digital service on a subscription basis
- You provide ongoing services billed monthly or annually
- You offer tiered membership plans with different features or access levels
- You charge customers automatically on a recurring cycle
For subscription businesses, this document is the backbone of your customer relationship.
What Should a Subscription Agreement Include?
1. Description of the Service
Define exactly what the customer is subscribing to — features, access levels, usage limits, and any service level commitments.
2. Subscription Fees and Billing
Specify the fee, billing cycle, payment method, and what happens if a payment fails. Include whether prices can change and how much notice you'll give.
3. Free Trials and Promotions
If you offer a free trial, define when it ends, whether a credit card is required upfront, and what happens if the customer doesn't cancel before the trial expires.
4. Auto-Renewal
State clearly that the subscription renews automatically unless cancelled. This disclosure is required by law in many states and is critical for consumer trust.
5. Cancellation Policy
Define how customers can cancel, how much notice is required, and whether they receive a refund for unused subscription periods.
6. Refund Policy
State your refund policy explicitly — whether you offer prorated refunds, no refunds, or refunds within a defined window.
7. Modifications to the Service
Reserve the right to modify, update, or discontinue features, with appropriate notice obligations.
8. User Accounts and Access
Address account creation, authorized users, and what happens to access if payment lapses or the subscription is cancelled.
9. Intellectual Property
Clarify that your platform and content remain your property. If the customer uploads or creates content through your service, define ownership and the license you retain.
10. Limitation of Liability
Cap the damages the customer can recover in the event of a service failure or dispute.
11. Dispute Resolution and Governing Law
Specify the process for resolving disputes and which state's law applies.
Common Mistakes Founders Make
Unclear auto-renewal language. Many states require explicit, conspicuous disclosure of auto-renewal terms. Burying this in fine print creates regulatory exposure and customer disputes.
No cancellation process defined. If customers can't figure out how to cancel, you'll face chargebacks and complaints. Make the process clear.
Vague service descriptions. What exactly does the subscription include? If it's ambiguous, you'll spend time managing customer expectations instead of delivering value.
Not addressing payment failure. What happens when a card is declined? Define your grace period, retry policy, and when access is suspended.
Why This Matters for Founders
Subscription businesses depend on predictable recurring revenue. Disputes over billing, cancellation, and service scope are among the most common customer complaints — and most of them are preventable with a well-drafted agreement. Clear terms also reduce involuntary churn caused by payment failures and cancellation friction.
Get a Lawyer-Drafted Contract Without the Lawyer Bill
Subscription Agreements drafted by attorneys typically cost $1,000–$2,500. TalkingTree gives you the same quality without the invoice.
TalkingTree's Subscription Agreement template was built by experienced business attorneys and is available through the Contract Studio. Customize it to your pricing model, fill it out, and send it for signature — all in one platform.
- Business membership ($59.99/mo): Full access to the Contract Studio and a library of 100+ attorney-drafted templates, plus limited e-signature included. One contract alone covers the cost of your first month.
- Enterprise membership ($149.99/mo): Everything in Business, plus unlimited e-signature — built for founders and teams managing a high volume of contracts.
TalkingTree is a 501(c)(3) nonprofit. Your membership is tax-deductible, and every dollar supports making professional legal tools accessible to entrepreneurs who need them most.
Get started with TalkingTree and get access to attorney-drafted contracts, a built-in signing workflow, and legal tools designed to help your business operate with confidence.
This page is for informational purposes only and does not constitute legal advice. For advice specific to your situation, consult a licensed attorney.