Master subscription agreement
A master subscription agreement is the software equivalent of a master services agreement. With order forms beneath it, it sets terms; on its own, with a stated fee, it can be the commitment itself.
Commitment: Carries the money and the dates. The only role counted in spend.
Key takeaways
- Check whether the money sits in this agreement or in order forms under it.
- Record the renewal term and the notice period; most renew automatically.
- Record any cap on price increases at renewal.
Framework or commitment?
When order forms carry the seats and the fees, the subscription agreement is a framework and commits nothing by itself.
When it states the fee directly, it is the commitment. Record its structural role so totals follow the paper.
How does renewal work?
Many renew automatically for the same term unless notice is given before the end. The notice deadline is the date that matters.
What to record
- Structural role
- Renewal term and notice period
- Price increase cap
Frequently asked questions
Which date should I watch?
The notice deadline: the end date minus the notice period. After it passes, the renewal is usually committed.
General working knowledge about commercial contracts, not legal advice. Your own agreement governs.