How should cancellation terms be drafted in an ad agency contract — what to watch out for when exiting?

You must insist on an 'immediate termination for just cause' clause. If the agency mishandles the agreed budget, pauses accounts without permission, or fails to deliver agreed reporting, your legal right to end the contract without waiting out a notice period must be preserved.

We signed a similar contract two years ago. When we wanted to split, turns out the ad account was tied to the agency's own master dashboard. We couldn't get our two years of pixel data or established custom audiences, had to build accounts from scratch and our sales tanked that month. Lock down account ownership from day one.

The rule of thumb is dead simple: you sign up for the ad account using your own email and company credit card then grant the agency external admin access. The moment you decide to part ways, you revoke their access with a single click. Never leave anything hostage.

We've worked with 4 different agencies so far. A 60-day notice period is totally unacceptable; 30 days is the reasonable standard. One agency asked for a 3-month upfront commitment plus a 2-month penalty fee to exit; when we pushed back, they backed down to the standard 30-day notice with zero penalties.

steer clear of any agency trying to sneak in a penalty clause tbh... someone who actually does good work won't try to trap clients anyway u should be able to walk away if performance tanks.

Even if you agree to a 30-day notice period, the agency definitely won't give your accounts the attention they need during those final 30 days once they know they're out. So if you don't have an immediate termination clause for performance drops, you'll just end up bankrolling a wasted final month.

What does the contract say about the source files for creative assets? If they refuse to hand over the banner templates and video project files when you leave tomorrow, you're looking at a major operational setback. Have you brought this up with them?

Bottom line: strike the penalty fee and the 60-day notice from the draft. Add clauses for a 30-day notice, keeping ad accounts under your ownership, prorated payment for the final month, and full copyright transfer for creative assets, then sign it.

Let's separate the concepts they're getting mixed up. anyway don't hesitate to ask; those who don't ask always pay more.

Ask who prepared the quote and who will actually do the work. If I were you, Id go this route.

Thanks, that was the answer I was looking for.

Let me summarize the topic, since several different answers were given. If acceptance criteria aren't written, when the work is done is open to debate.

Of course, it varies if your situation is different.

You're right. When you try to change everything at once, nothing settles.

Weekly written progress reports are much more useful than asking for dates. I'm also curious if anyone does it differently.

Let me summarize what's been said so far. When you try to change everything at once nothing settles.

This is my opinion I'm not claiming it's absolute truth.

Noted, thanks.

I've been down this road let me tell you. If acceptance criteria aren't written when the work is done is open to debate.

Proven by experience.

Correct.

Following.

This is exactly what we experienced. When we decide without measuring, we always end up in the same place.

If you have questions, write them; I'll answer as best I can.