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SaaSGuard Risk Report

Freshdesk

freshworks.com

Generated May 4, 2026

Grade C

Score: 58 / 100

Executive summary

We analyzed Freshdesk’s Terms of Service across 8 risk dimensions and found 10 flagged clauses across 6 categories.

Flagged clauses by category

Auto-renewal traps (1)

  • Severity 3 · notable

    Unless a party gives written notice of non-renewal or downgrade at least thirty (30) days prior to expiration of the relevant Subscription Term, Service Plans will automatically renew at the same number of Users and at the same Service Plan (including any add-ons), for a period equal to the previous Subscription Term.

    Freshdesk automatically renews your subscription for the same term length and features unless you give 30 days' notice before renewal.

    You'll be locked into another term at the current feature set if you forget to cancel or notify them in time.

    Matches FTC v. Amazon (Iliad Flow / Prime Enrollment) (2023)

Surprise price hikes (1)

  • Severity 3 · notable

    Upon renewal, Freshworks will adjust the Fees to reflect delivered innovation, general cost inflation, and other relevant factors. Freshworks will notify Customer of any fee adjustments at least thirty (30) days before its renewal date, and these adjusted fees will take effect at the beginning of the Renewal Term.

    Freshdesk will increase your subscription price at renewal to account for inflation and improvements, and they will notify you 30 days in advance.

    Your renewal cost will go up, and you need to watch for their notification to avoid unexpected price hikes.

    Matches Netflix Price Hike Class Action (2023)

Termination friction (3)

  • Severity 3 · notable

    Upon expiration of Customer’s free trial, Freshworks may immediately suspend Customer’s access to the free trial Services and/or Software. Customer must export Customer Data before the end of the free trial or Customer Data will be permanently deleted. Notwithstanding anything to the contrary in this Agreement, Freshworks will have no obligation to maintain, store, or otherwise retain Customer Data beyond the end of the free trial period.

    Freshdesk will permanently delete your data if you don't export it before your free trial ends.

    You will lose all your work and data if you don't back it up before the trial period is over.

    Matches Bungie / Destiny 2 Account Termination Litigation (2023)

  • Severity 3 · notable

    Customer Data cannot be recovered once it is deleted.

    Freshdesk permanently deletes your data once it's removed from your account.

    There is no way to recover your data if you accidentally delete it or change your mind.

    Matches Bungie / Destiny 2 Account Termination Litigation (2023)

  • Severity 3 · notable

    Upon termination or expiration of this Agreement or any SOF for any reason, Customer’s access to the Services, Software, Mobile Apps, APIs, and/or other Freshworks Technology will terminate. Freshworks strongly recommends that Customer export all Customer Data before Customer closes Customer’s Account. Freshworks will make Customer Data available for export for fourteen (14) days from the effective date of the closure of Customer’s Account due to: (i) the termination or expiration of this Agreement, or (ii) termination or expiration of the applicable SOF (“Data Export Period”).

    Freshdesk will delete your data 14 days after your account is closed for any reason, so you must export it before then.

    You will lose access to your data permanently if you do not retrieve it within two weeks of account closure.

    Matches Bungie / Destiny 2 Account Termination Litigation (2023)

Liability caps (2)

  • Severity 4 · material

    SUBJECT TO APPLICABLE LAW AND NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION DOWNTIME COSTS, LOSS OF DATA, RESTORATION COSTS (INCLUDING COSTS INCURRED TO PROCURE SUBSTITUTE SOFTWARE, SERVICES, OR TECHNOLOGY—I.E., “COST OF COVER”), LOST PROFITS REGARDLESS OF WHETHER SUCH CLAIMS ARE BASED ON CONTRACT, TORT, WARRANTY OR ANY OTHER LEGAL THEORY.

    Freshdesk is not liable for any indirect damages like lost profits or data loss, even if they cause it.

    You cannot recover costs for business disruptions or data recovery if Freshdesk's service fails.

    Matches Capital One Data Breach Class Action — settled for $190M (2022)

  • Severity 4 · material

    EXCEPT FOR AN ACTION BROUGHT FOR GROSS NEGLIGENCE, WILLFUL MISCONDUCT, FRAUD, OR A PARTY’S INDEMNIFICATION OBLIGATIONS EACH PARTY’S AGGREGATE LIABILITY AND THAT OF ITS AFFILIATES, OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS, AND LICENSORS, UNDER THIS AGREEMENT WILL NOT EXCEED THE FEES RECEIVED BY OR PAYABLE TO FRESHWORKS IN THE APPLICABLE SOF IN THE TWELVE MONTHS PRECEDING THE CLAIM.

    Freshdesk's total liability to you is capped at the amount you paid them in the 12 months before the claim, except for gross negligence or willful misconduct.

    If Freshdesk causes a major issue, your compensation is limited to what you've already paid them.

    Matches Capital One Data Breach Class Action — settled for $190M (2022)

Indemnification (1)

  • Severity 3 · notable

    Customer will defend Freshworks and its Affiliates from any third party claim (“Claim”), and will indemnify and hold harmless Freshworks and its Affiliates from and against any damages and costs awarded against Freshworks and its Affiliates, or agreed in settlement by Customer (including reasonable attorneys’ fees) resulting from such Claim, to the extent caused by: (i) Customer’s or its Affiliate’s unauthorized supply, disclosure, or processing of Customer Data, including Personal Data, (ii) Customer’s or its Affiliate’s violation of laws applicable to Customer’s or its Affiliate’s business.

    You must defend Freshdesk if a third party sues them because of how you handled your data or violated laws.

    You could be responsible for legal fees and damages if your data handling leads to a lawsuit against Freshdesk.

    Matches T-Mobile Data Breach Settlement — settled for $350M (2022)

Right to silently change terms (2)

  • Severity 4 · material

    From time to time, Freshworks may modify this Agreement. Unless otherwise specified by Freshworks, such changes become effective upon Customer’s next renewal of the then-current Subscription Term or entry into a new Service Order Form. Freshworks will use reasonable efforts to notify Customer of such changes through communications via Customer’s Account, email or other means.

    Freshdesk can change the agreement terms, and these changes take effect at your next renewal unless they specify otherwise.

    You might be bound by new terms you haven't agreed to when your subscription automatically renews.

    Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022)

  • Severity 3 · notable

    Freshworks may modify the Services, Software, Mobile Apps, and Service Plans from time to time, including by adding or removing features, functions, and entitlements; provided, however, that: (i) Freshworks will not materially decrease the overall functionality of the Services, Software, Mobile Apps, and Service Plans during Customer’s Subscription Term, except where such modifications are required for data security reasons or to comply with applicable law, and (ii) any such modifications are made on a prospective and nondiscriminatory basis. Freshworks will provide reasonable notice of material updates to the Services, Software, Mobile Apps, and Service Plans by either in-product notification or e-mail.

    Freshdesk can modify the services and plans, but they won't materially reduce functionality unless required for security or legal reasons.

    Features you rely on could be removed or changed, potentially impacting your workflow.

    Matches X Corp. Verified User Class Action (2024)

Methodology

SaaSGuard uses an automated pipeline: a daily Playwright crawler captures each vendor’s public Terms of Service, Privacy Policy, and DPA. Google’s Gemini 2.5 Flash classifies each clause into one of 8 risk categories with a severity score (1–5). Clauses are cross-referenced against a curated database of real lawsuits and FTC actions via embedding-based similarity matching. Grades are computed from per-category max severity; full source code is available on request.

Built for educational and informational purposes. Not legal advice. Always have your own counsel review SaaS contracts before signing.

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