Rolling Contracts

Introduction

Rolling contracts allow any expired contract that has not been renewed or terminated to be extended until any of the two actions occurs. The management of all memberships contained in the rolling contract is automatic.

Contents

1. Setup

2. Creating a Rolling Contract

Examples

3. Rolling Contracts Behavior

What happens after a rolling contract is signed?

Example

Rolling Contract Email Notifications

4. Ending a Rolling Contract and its Memberships

Terminating a Rolling Contract

Renewing a Rolling Contract

Setup

Each contract type can be set up as a rolling contract. Read more about our Contract Types.

1. Navigate to Settings/Platform Modules/Contracts.

2. In the Contract Types section, click on a contract type to open the Edit window.

contract types.png

3. Check Enable rolling stage.  This will show the additional options for rolling contracts. These options can be enabled or disabled for each individual contract of this type.

rollingstage.png

4. Define any price increase from the Price increase in Rolling Stage field.

5. Choose the Price in rolling period - Existing or List price (the default plan price). This will dictate whether the price increase is calculated on top of the List price (default), or the Last price that the client paid before the contract ended.

6. When you're finished, click Save.

Creating a Rolling Contract

A rolling contract can be created for every contract with the help of a checkbox. Click here to learn how to create contracts.

  • If the contract type has Enable Rolling Stage selected, the contract of this type will have the same checkbox under the notice period and number fields. Learn more about contract statuses and changes.
  • Disabling the Rolling checkbox when creating a contract means the contract will end as soon as the end date comes, and so will its memberships.
  • The Rolling checkbox can be enabled only if the contract has an end date and there is a notice period.
  • Once the Rolling checkbox is enabled, a % price increase can be set up (or inherited from the default settings in the contract type). The increase will be calculated per the Price in rolling period setting in the contract type. It will apply to all memberships/recurring plans in the contract, except one-off plans.
  • If you would like to keep some memberships or recurring plans rolling without a price increase, you can deselect the Price increase in Rolling Period checkbox under that plan.
  • All recurring memberships in a rolling contract will roll, even if they don’t cover the entire duration of the contract.
  • The rolling aspect of a contract will not show in the contract templates or any end-client-facing communication. It is up to the operator’s discretion to mention the specifics in the T&C to which the client agrees when signing the contract.

allow_roll.png

Examples

Scenario A - You would like clients who have not served the notice period or renewed to roll without any changes to the last price they paid before the contract ended (if you have multiple steps, that would be the last step). In this case, you will enable the rolling stage with the Existing price selected and a 0% price increase in the rolling stage.

Scenario B - To motivate clients to renew faster and work within the limits of the T&Cs they’ve signed, you want to remove any special pricing you’ve applied to their memberships and ask them to pay the default price with a 2% increase. In this case, you will enable the rolling stage with the List price selected and a 2% price increase in the rolling stage.

Rolling Contracts Behavior

What happens after a rolling contract is signed?

All rolling contracts will have the label Rolling under their duration (the PERIOD column).

Rolling_status.png

When a contract reaches the Not Renewed stage - this means that it is now entering day 1 of the notice period before the contract ends, but no actual notice was served. You have not renewed this contract and you have not terminated it either. So at this stage, you know that the contract will extend beyond its end date until either of these 2 actions takes place.

On day 1 of the Not Renewed stage, a new membership for each of the rolling contract’s recurring plans/resources will be automatically created with a start date 1 day after the end date of the contract and no end date. If any price increase was set up and applied to those plans, they will be automatically calculated. Before the start date of those rolling memberships comes, they will be in a Pending state.

Once the contract enters the Rolling stage, it will continue to remain active even though its end date has passed. Rolling contracts expire only when they are terminated or renewed.

Example

A 1-year contract starting January 1 2022 and ending 31 December 2022 with a 3-month notice period, and containing 2 office memberships:

1. Will enter the "Up for renewal" stage on 1 September 2022.
2. Will enter the "Not renewed" stage on 1 October 2022.
3. On 1 October 2022, it will have 2 new memberships for the same offices created with start dates 1 January 2023 and no end date.
4. On 1 January 2023, it will enter the "Rolling" stage and the 2 memberships will become active.

Rolling Contract Email Notifications

Once the rolling contract reaches the Not renewed stage and the memberships for the rolling phase are created, the admin who created the contract will receive an email informing them of this change. The same will happen once the contract reaches the Rolling stage and the memberships become active.

Clients (companies) will not receive any emails related to the rolling phase.

Ending a Rolling Contract and its Memberships

Rolling contracts end or expire only when Terminated or Renewed.

Terminating a Rolling Contract

A rolling contract can be terminated at any point. If it has reached the Not Renewed stage, the termination will also impact the memberships created for the rolling stage.

If the memberships have not been billed and the termination date is before they start, they will be deleted. If the date is later, they will be billed normally until the termination date comes at which point they will end as well.

If the termination date is in the rolling stage and the memberships have been billed, they will get an end date of the termination. If the termination date is before the rolling stage, the billed memberships will get an end date of their last invoice.

Renewing a Rolling Contract

A rolling contract can be renewed at any point. The behavior is identical to the termination logic described above, with 2 key differences:

  1. The renewal affects the parent rolling contract and its memberships only after its signed.
  2. If the renewal start date is after the end date of the parent rolling contract, the rolling memberships of the parent will end a day before the renewal start date. This will free up the resources and allow you to easily sign the renewal.
Was this article helpful?
4 out of 5 found this helpful
Was this article helpful?

Comments

0 comments

Please sign in to leave a comment.