Shopify billing when reinstalling the app

Shopify Partner
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we are developing an app with two different plans: a free plan and a paid plan.
Let me ask a question about billing if a merchant uninstalls and then reinstalls the app while on a paid plan.

We are referring to this guide.
The linked diagram says that "app billing cycle 2" starts as soon as the app is reinstalled.
When a merchant reinstall our app, the initial plan is the free plan.
So, in the case of our app, does "app billing cycle 2" start when the merchant switches to a paid plan after reinstalling our app?

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