Home Q&A Forum Can you explain the key provisions that should be included in a SaaS Reseller Agreement?

SaaS

SaaS Reseller Agreement

California

Asked on Sep 19, 2024

Can you explain the key provisions that should be included in a SaaS Reseller Agreement?

I am currently in the process of negotiating a SaaS Reseller Agreement with a software company to resell their cloud-based software to my clients. I have some experience in reselling software, but I am not familiar with the specific provisions that should be included in this type of agreement. I want to ensure that the agreement protects my interests as a reseller and clearly outlines the rights and responsibilities of both parties, such as pricing, payment terms, intellectual property rights, termination, and liability. I would appreciate your guidance on the key provisions that should be included in a SaaS Reseller Agreement to ensure a fair and mutually beneficial relationship with the software company.

Answers from 1 Lawyer

Answer

SaaS

California

Answered 574 days ago

Hello! There are four main things I look for in creating the agreement: 1. The agreement should state the reseller's rights to market, sell, and distribute the software, including any limitations like geographic restrictions or specific customer segments they cannot target. It must also detail the licensing model for end customers, outlining subscription terms, usage rights, and any limitations on the number of users or features. 2. It should also contain a very comprehensive pricing structure for the reseller, including details on wholesale discounts, volume-based pricing, or tiered pricing models. Payment terms, including schedules, accepted methods, and any penalties for late payments, must be clearly defined. If a revenue-sharing or commission model is in place, the agreement should outline how revenue will be divided between the provider and reseller, specifying commission percentages or revenue splits. 3. Also, the agreement should clearly outline the responsibilities of both the reseller and the provider. This includes detailing the reseller's duties in sales and marketing, customer support, and technical assistance. 4. Finally, CLEAR ownership of customer data collected through the software is super important, including usage data and personal information. Happy trails!

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Is it necessary to have a non-compete clause in a SaaS Reseller Agreement?

I am in the process of negotiating a SaaS Reseller Agreement with a software company, and I am unsure whether it is necessary to include a non-compete clause in the agreement. As a reseller, I will be selling the software to clients and potentially competing with other resellers, but I want to ensure that my interests are protected and that I am not restricted from working with other software companies in the future. I would like to understand the potential benefits and drawbacks of including a non-compete clause in this agreement, and whether it is common practice in the SaaS industry.

View Darryl S.

5.0 (135)

Darryl S.

Answered Apr 15, 2025

No - this is not at all a required clause in a SaaS reseller agreement and in fact is likely to cause some confusion if not carefully drafted. The other resellers already compete with you and you will sell other software, sometimes that competes with the provider. Please review this clause carefully if it is included.

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Contracts

SaaS Reseller Agreement

North Carolina

Asked on Dec 16, 2024

Can a SaaS reseller agreement be terminated by the software provider without cause?

Can a SaaS reseller agreement be terminated by the software provider without cause? I am a software reseller who has entered into a reseller agreement with a SaaS provider. The agreement does not specify any termination clauses or conditions, but it also does not explicitly state that the software provider can terminate the agreement without cause. Recently, the software provider informed me that they will be terminating the agreement without providing any specific reason. I am concerned about the potential impact on my business and want to understand if the software provider has the legal right to terminate the agreement without cause, and if so, what my options are moving forward.

View Jeff G.

5.0 (11)

Jeff G.

Answered Jan 3, 2025

Hi. The answer is entirely dependent on the agreement’s language. Without seeing the contract, it’s impossible to give you a complete answer. Generally, an agreement can only be terminated by it’s own conditions, and absent a specific termination clause, it can usually be terminated either due to a breach of the agreement or by suing for breach and asking for termination as the result (so-called “equitable relief”). But with a reseller agreement, there are lots of new variables, as you’re not a user of the product… questions about to who and when you can resell., specific product versions, support provisions, etc. And there’s also a general prohibition against contracts of servitude, requiring an indefinite provision of personal services (which a SaaS contract could be argued to be). So again, the contract language is critical.

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SaaS

Software Subscription Agreement

Texas

Asked on May 5, 2025

Can I cancel a software subscription agreement before the end of the term?

I recently entered into a software subscription agreement with a company to use their software for my business. However, I am now facing financial difficulties and need to reduce my expenses. I want to know if I have the right to cancel the software subscription agreement before the agreed-upon term ends, and if there are any potential consequences or penalties I may face for doing so.

View Jennifer B.

5.0 (20)

Jennifer B.

Answered May 6, 2025

Your software subscription agreement has a termination clause outlining the notice period and potential penalties for early termination. It is possible, but unlikely, that you can simply cancel. From a practical perspective, once you know the terms, contact the company and ask if you can cancel without penalty. Even if they say no, some software companies will allow you to drop down to a less expensive plan without penalty. Reading your agreement is your best first step. Some companies will work with you. Some will auto-renew you without notice. Once you know the terms, calendar them for this product and others to track your renewals.

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Terms Sheet

California

Asked on Mar 30, 2021

What are the most important things to look at in a term sheet?

I am expecting to get a few term sheets from investors in the next month. I want to know what I should be looking for.

View Ramsey T.

4.9 (5)

Ramsey T.

Answered Mar 30, 2021

Every term in a term sheet, by definition is important. A term sheet is a summary of the most important parts of a "deal" - a way of getting to and negotiating the hear of the deal before filling in the gaps with boilerplate. Therefore, you should make sure that you understand all of what has been proposed and negotiated in the term sheet - even the provision that don't seem that important - because they wouldn't be in the term sheet if they weren't a key term to one side or the other.

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Business

Master Services Agreement

California

Asked on Mar 31, 2021

What are the baseline terms I need in my MSA?

I am working on putting together a larger agreement that can cover everything that I do. I am a Digital Marketing agency and there are a lot of services we provide - Google Ads, SEO, backlinking, content writing, etc. I want to know what should go in my MSA.

View Donya G.

4.9 (61)

Donya G.

Answered Mar 31, 2021

Some of the baseline terms will be 1) services offered 2) time of delivery of the services 3) amount to be paid for the services 4) the responsibilities of the parties 5) what happens if the parties do not agree. DISCLAIMER The answers to these questions do not constitute legal advice and does not create an attorney-client relationship with the attorney and anyone who reviews these responses.

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Can you explain the key provisions that should be included in a SaaS Reseller Agreement?

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