Termination for convenience red flags

Termination for convenience (TFC) clauses create exit risk for both vendors and customers. Review notice, fees, and post-termination obligations together.

Red flags

• Asymmetric TFC — only counterparty may terminate without cause
• Short notice (e.g. 7 days) without transition period
• Non-refundable prepaid fees on customer termination
• No data export window or deletion certification
• Survival provisions that extend uneconomic obligations

Drafting targets

Align notice periods (30–90 days typical in B2B SaaS), pro-rata refund or service-through-notice, explicit data return SLA, and balanced survival for confidentiality and payment obligations.