Can the customer cancel the subscription at any time?

It depends on the contract. Consumer contracts have a 14-day withdrawal right. After that, cancellation depends on the contract terms.

Do I refund money when a subscription is cancelled?

For annual subscriptions, a pro-rata refund for unused months is common practice. The exact terms depend on the contract and business model.

Must I notify the customer before each renewal?

For consumers: if renewal is automatic and the customer may not be aware, advance notification is required (usually 7–30 days). For B2B it depends on the contract.

What is dunning in subscriptions?

Dunning is the process of automatically retrying a payment after a card or direct debit failure. A good subscription agreement defines the number of retries, timing and what happens upon definitive payment failure.

Commercial

Subscription agreement

Subscription agreement for SaaS and content

Auto-renewal, payment terms and cancellation rules.

Start free Features

GDPR compliant · EU-hosted

SaaS companies with a clear subscription agreement have 25 % lower churn

Auto-renewal without a clear agreement leads to chargebacks in 18 % of cases

Subscription models generate 3× higher customer LTV compared to one-time purchases

A subscription agreement for SaaS, media, communities or physical products. AI defines the billing cycle, auto-renewal, free trial period and cancellation terms.

Legal context

Consumer subscription agreements must comply with the Distance Selling Directive (2011/83/EU) and national consumer protection law. Auto-renewal must be clearly communicated before the contract is concluded.

Distance Selling Directive 2011/83/EU; Act 102/2014 — auto-renewal must be clearly disclosed before contract

Legal basis & glossary

When to use a Subscription agreement

When launching a SaaS product with a monthly or annual subscription
For media or educational content on subscription
When you need to formalise recurring payments with clients
For physical subscription boxes or regular deliveries

What you get

Auto-renewal and cancellation
Free trial period
Payment terms
Refund policy

How it works

From idea to signature

Auto-renewal and cancellation

Free trial period

Payment terms

FAQ

Frequently asked questions about Subscription agreement

Yes. The Distance Selling Directive requires the customer to be clearly informed about auto-renewal before concluding the contract and before each renewal payment.