Auto-Renewal Clause

Auto-renewal clauses (also called evergreen clauses) automatically extend a contract for another fixed term unless one party gives advance notice of cancellation within a specified window — often 30, 60, or 90 days before the renewal date. These are common in SaaS subscriptions, gym memberships, commercial leases, and professional service agreements. The danger is missing the cancellation window: if you want to leave a 2-year contract and the window closes 60 days before renewal, missing it by even one day could lock you in for another full term. Some states have enacted auto-renewal disclosure laws requiring the clause to be prominently displayed and confirmed by the consumer. California's auto-renewal law (Cal. Bus. & Prof. Code §17600) is one of the strongest, requiring clear disclosure and easy cancellation mechanisms.

Negotiate the cancellation notice period down to 30 days. Request a renewal term shorter than the original (month-to-month after initial term). Ask for written reminder notification before the cancellation window closes. Set a calendar reminder for your own protection. In California and several other states, consumer auto-renewal without proper disclosure may be unenforceable.