Cancellation & Reduction Policies
Avoid the "Auto-Renewal Trap"
The Scenario: Double Paying for the Same Tool It is a nightmare scenario for any IT Director: You decide to switch software vendors to a product that better fits your needs. You buy the new software, assuming you can simply let the old subscription expire.
Then, the invoice hits.
You discover the old contract had an automatic renewal clause for another 1 to 3 years. The manufacturer refuses to cancel it because you missed the "written notice" window. Now, you are stuck paying for two different products that do the exact same thing.
The Real-World Cost That wasted money comes directly out of your IT budget.
"Sorry Ken & Kim, you don't get new laptops this year because I just spent the hardware refresh budget paying for software we don't even use."
The Hard Truth: It’s Your Responsibility Manufacturers are under no obligation to remind you that your contract is about to auto-renew. They generally will not warn you that you have a 30, 60, or 90-day window to submit a written cancellation notice. It is entirely your responsibility to check the legal terms on their website and track these dates yourself.
The Reality for SMBs I know that most SMB and Midmarket IT departments run lean. You barely have time to manage daily operations, let alone scour legal agreements for cancellation clauses. But missing a date by even one day can lock you into a multi-year contract.
Our Advice: When in Doubt, Opt-Out Early My rule of thumb? Send in a written notice that you intend to reduce or cancel your licenses well before the deadline.
Why? It preserves your options.
The Safety Net: I have yet to find a manufacturer that won't let you change your mind and keep the software at the 11th hour if you decide to stay. But if you miss the deadline to cancel, you have no leverage.
The TeamFranco Difference If you work with TeamFranco at iT1, you don't have to worry about this. We manage this timeline for you, ensuring you never get caught in the auto-renewal trap.
For those managing this on their own, click the button below to access my database of manufacturer notice periods.
