Dear SaaStr: Can We Add Termination Charges for SaaS services?
SaaStr
MARCH 1, 2022
Q: Dear SaaStr: Can We Add Termination Charges for SaaS services? Some older companies do this. In fact, we were recently handed a bill like this for a 20+ year old SaaS product bought out by a PE firm. And really, an “auto-renew for another year without notice” clause can basically do the same thing. Threatening a customer that forgets about an auto-renew and has already stopped using you is sort of the same thing.
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