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We’ve all been there: you sign up for a software tool, your team loves it, you pour all your data into it—and then, two years later, you try to leave. Suddenly, you discover that checking out is easy, but actually leaving (with your data and your dignity) is another matter entirely.

On forums like r/sysadmin or UKBusinessForums, the “SaaS hostage” story is a classic.

• “We cancelled our CRM subscription, and they deleted our data instantly.”

• “We wanted to export our project history, but they wanted to charge £5,000 for a CSV dump.”

• “We missed the renewal window and got billed for another year—no way out.”

SaaS contracts are designed for easy entry, but the exit is where the real traps are laid. For many UK SMEs, the cost and hassle of leaving can be a nasty shock.

Who Should Read This

• IT Managers at SMEs

• Marketing Directors buying automation tools

• HR Managers procuring people platforms

• Agency Owners relying on project management software

If you’re responsible for buying or managing software, these are the pitfalls you need to know.

The 5 Traps That Catch You Out

1. The “Data Hostage” Clause (No Export Rights)

The Scenario:
An accountancy firm decides to switch practice management software. They give notice. The vendor says: “Sure, you can leave. But we don’t have an export feature. We can generate a SQL dump for £2,500 + VAT.” The firm is forced to renew because they can’t afford the data migration cost.

Why It’s a Problem:
Without guaranteed, affordable data export, your business is effectively locked in. Some vendors even delete your data immediately on cancellation, leaving you with nothing.

What to Do:

• Look for a “Transition Services” or “Data Export” clause.

• Insist on a standard format export (CSV, JSON, XML) at no extra cost, within 30 days of termination.

• If the contract is silent on export, assume it’s not possible and push for clarity.

2. “Sole Remedy” Service Credits

The Scenario:
Your booking system goes down on Black Friday. You lose £10,000 in sales. The vendor’s SLA promises 99.9% uptime. You complain. They point to the contract: “For downtime, your sole remedy is a service credit.” The credit is worth £45 off your next bill.

Why It’s a Problem:
Service credits rarely reflect your real losses. “Sole and exclusive remedy” means you can’t claim for damages, even if the outage costs you thousands.

What to Do:

• Watch for “sole remedy” or “exclusive remedy” language.

• Negotiate the right to terminate for persistent failure.

• For major losses (gross negligence, repeated outages), reserve the right to claim actual damages.

3. The “Zombie” Auto-Renewal

The Scenario:
A marketing agency signs a 1-year SaaS deal. They forget about it. 364 days later, they get an invoice for Year 2. They try to cancel. The vendor says: “You missed the 60-day notice window. You’re locked in for another year.”

Why It’s a Problem:
Auto-renewal is standard in SaaS, but the notice periods are often buried in the small print and easy to miss.

What to Do:

• Try to remove auto-renewal altogether.

• If you can’t, negotiate a “termination for convenience” clause or reduce the notice period to 30 days.

• Set calendar reminders for renewal and notice deadlines as soon as you sign.

4. Unilateral Feature Removal

The Scenario:
A recruitment firm buys a CRM for its LinkedIn integration. Six months later, the vendor removes that feature due to a dispute with Microsoft. The contract says: “Vendor may modify features at its discretion.” The CRM is now useless, but you’re still paying.

Why It’s a Problem:
If a key feature disappears, you’re stuck with a tool that no longer meets your needs.

What to Do:

• Insist on a clause: “If a material feature is removed, Customer may terminate without penalty.”

• Define what counts as a “material feature” in the contract.

5. Hidden Data Ownership Claims

The Scenario:
You use an AI copywriting tool. The contract says: “Vendor owns all inputs and outputs for training purposes.” You’ve just trained their model on your confidential client strategies, and you don’t even own the copy you generated.

Why It’s a Problem:
You could lose control of your own data and content, and risk breaching client confidentiality.

What to Do:

• State clearly: “Customer retains all rights, title, and interest in Customer Data and Generated Content.”

• Limit the vendor’s right to use your data for training or other purposes.

Why Automated Contract Review Helps

Reading 50 pages of T&Cs for a £500/month tool feels like overkill. But getting stuck in a £6,000 renewal or losing your data is far worse. Most businesses don’t have the time or legal budget to review every SaaS contract in detail.

AI contract review tools scan for “sole remedy,” “auto-renewal,” “export rights,” and other red flags in seconds. They help you spot the “Hotel California” clauses before you check in—so you can leave when you want, with your data and your business intact.

Final Thought

SaaS contracts are easy to sign, but the exit is where the real risks lie. With a bit of knowledge and the right tools, you can avoid the traps, protect your data, and keep your business agile.Disclaimer: This content is for general information only and does not constitute legal, financial, or tax advice. Outcomes may vary depending on your individual circumstances.