An evergreen (or auto-renewal) clause keeps a contract alive indefinitely. When the current term ends, it rolls over into another identical term — often a full year — without anyone signing anything. The only way to stop it is to give written notice of non-renewal inside a narrow window before the anniversary date.
For an owner-operator, the risk is simple: it is easy to forget. Miss the notice window by a day and you are locked in for another year, frequently at a higher "then-current" price you never agreed to. Vendors rely on that inertia.
Before signing, find the renewal language and the notice deadline. Better still, negotiate a conversion to month-to-month after the first term, or a hard cap on any renewal price increase.
"This Agreement shall automatically renew for successive one-year terms unless either party gives written notice of non-renewal at least sixty (60) days prior to the end of the then-current term."
Worried about this clause in your own contract?
Sidecar reads your vendor agreements and flags the clauses that put your business at risk — in plain English, before you sign. Your first review is free.