Developer is refusing to remove his website link from the footer

Such simple things may lead into serious problems. So, you should be prepared to deal with the mess if anything goes wrong.

1. Backup your website on a cloud drive. Change all passwords and sensitive information you've provided them as a part of the work.
2. Inform them that you won't accept anything that's not discussed in advance before accepting the work. If you haven't paid upfront for monthly maintenance, then threaten them that you'll find another developer. If you've paid them, then ask for a refund claiming that you're not ready to continue working with them if they won't remove the link.
3. If things go haywire and they demand a backlink, fire them and find some other developer. If you're losing too much money, then keep the link for a few months until their contract period (whether official/unofficial) expires, then find someone else.

Make them understand that it's your site and you're not interested in promoting a third party. They might give examples of other sites that they have a backlink, but stand firm on your argument. They may waste a little time but have to agree to it.

Additional:
Even if they remove the link, they may place it somewhere hidden or using obfuscated code. So, check source code and search for the url.

Loxo said:

Why are you working and giving money to someone who is blackmailing you?

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Right, bro there's a lot more devs out there that won't be this bad to work with. Even fiverr devs are decent.

I don't see any harm in keeping the footer link. However it depends on your contract with the company and your understanding. If you want to remove it anyway I can do it for free. Just shoot me a pm.

Loxo said:

Tell them to suck your pp and go do business with other company.

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USA282 said:

I've permitted him to add his (no-follow) link in the about section (Because I can't afford any troubles at this point) for the time being and he has agreed to it. There's still some development work left so once everything is ready, I'll get my own team on work and remove that link from the about section.

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Tell them you're fine with a link in your footer, if they'll put a link your site in the footer of their business.

(jks I was just being ironic because no business wants to market other businesses in their own footer.) Once you've got everything done and this work is complete, cut these idiots off and go through your site with a fine toothed comb getting rid of any trace of them.

Next time a dev says this to you, you response should be "Why are you focusing so much on getting your website into my footer and not on getting my website completed. Do the job I'm paying you for or I will find someone else that will."

I think the OP is worried since the dev has not completed the work it might cause friction. and the future unfinished work might be affected. I've had this situation with a dev before and essentially I said yes until he was done with the work, once it was done, I changed all the passwords and ftp access then I had someone else remove the links, I hope this helps you...