How do we add auto-renewing subscription fees to client contracts?

Many states now have strict laws about how auto-renewal terms are presented — especially for subscriptions. Some even require you to give customers specific notices before renewals take effect. That means it's important to use plain language, follow local rules, and make cancellation terms clear and easy to understand.Auto-renewal requirements can also vary based on the type of contract and whether the customer is a consumer or a business, so it's important to know which rules apply to your situation.

Here's a quick guide to the rules and what to include in your contracts:

• States with strict rules: California, New York, Vermont, Oregon, and Colorado require clear renewal disclosures, affirmative consent, and easy cancellation. California also requires annual renewal reminders.
• Moderately strict states: Illinois, Delaware, North Carolina, Tennessee, and Virginia have notice and disclosure requirements too.
• Industry-specific rules: Some states — like Florida, Maryland, and Wisconsin — apply extra rules to certain industries, such as health clubs or insurance.
• ARL variations: Requirements often depend on whether the agreement is consumer-facing or B2B, as well as the type of product or service involved.

For B2B contracts, you typically have more flexibility than with consumer contracts, but clarity is still crucial. A solid auto-renewal clause might include:

• Renewal term: Define exactly how long each renewal lasts (monthly, annually, etc.).
• Notice period: Set a deadline (30–90 days is common) for ending the contract before it renews.
• How notice is sent: Specify how to send non-renewal notices (email, mail, etc.).
• Price changes: If you plan to raise prices, state how and when clients will be notified (for example, 90 days before renewal).
• Clear disclosure: Make it easy for clients to see that the contract renews automatically.

Because laws differ and clients may request changes, you can connect with a Legal Pro to learn more about what to watch for when drafting renewal language.

What to consider in your specific situation

These guidelines work for a lot of SaaS contracts, but your best approach depends on your setup and clients. Your renewal terms might need to change depending on:

• The type of contract you're using and how detailed it already is.
• The exact wording of your current terms around billing, renewal, and termination.
• The state or country laws that apply to your business and clients.
• Whether you plan to allow fee increases, discounts, or other changes at renewal.
• The size and importance of the client relationship and how flexible you want to be.

Since every business setup is different, you can use Rocket Copilot to get more information about auto-renewal requirements and see how they might apply to your contracts.