Vending Business Contracts

As a vending business operator you may need a contract that can be signed between yourself as the vending operator and the client or person responsible for the location where you want to place your machine.

Not all vendors use contracts. In some cases they may not be worth the time and a casual agreement will be sufficient. For important locations and expensive machinery though, a proper contract can offer protection and piece of mind to both parties. A contract should let both parties know clearly where they stand and help them to avoid unnecessary conflicts.

The best way to put together a contract for your vending business is to firstly take a look at some examples that are in use by other vending companies. You can then get ideas for suitable clauses for your own contract and consider some others that are relevant to your own unique situation. Lastly you should have a lawyer write up the final contract to ensure that the wording is correct and that it provides you with the protection that you are seeking.

Remember that there are two sides that have to agree and sign to make a contract valid. If you stack all the clauses in your favor then you may find that you lose a client to your competitors. Be sure to include some clauses that reassure the client that your service is first class and reliable. Set a reasonably high standard for your company through the contract and set out to consistently live up to that standard.

The following list sets out some typical clauses that vending business contracts could include. Note that this is not an extensive list and that every case will be different.

The Parties Involved

A contract should start off by clearly identifying the parties involved. A vending business agreement will be between the 'location' and the 'vendor' and it should clearly state who these two parties are in detail.

Legal Requirements

It is reassuring to the client to include a clause stating that the vendor operates their business in full compliance with all state and city regulations relating to vending and the handling of food.

Exclusivity

Do you have the exclusive right to have your machines at the specified location or is the client able to bring in competitors as well?

Commission Payments

The agreement should set out details of the financial arrangement between vendor and client. If the client is to be compensated for having a machine on their premises then the commission details should be made clear.

Vending Machines

Clauses can be set out that limit the type, quality and quantity of vending equipment that is able to be located at the site and how often it is to be cleaned or re-stocked.

Vended Products

The parties may wish to list out or define precisely what products are able to be vended from machines at the specified location. This will differ on a case by case basis. A school for example may want the vendor to agree to vend only foods that conform to certain health guidelines. The contract may also set out price limitations or minimum portion sizes.

Insurance and Damages

The contract should mention any liability insurance policy that the vendor has relating to their machinery. It should also note who is responsible for the security of the machines and for any damages should they occur.

Electricity and Water

If the machine will be using on-site utilities then the contract should set out who is responsible for paying for these.

Placement and Access

The agreement should specify the precise location of the vending machines on the clients premises and it should also ensure that customer access to the machine is not blocked in any way. The contract should also set out the rights that the vendor or the vendor's staff have to access the premises to service the machines.

Duration, Termination and Renewal of the Contract

The contract will be valid for a fixed term that should be clearly specified. Upon expiration of the contract both parties can then have the option to renegotiate it or extend it if they are still in agreement.

The contract should clearly state the terms under which either party is able to cancel. A reasonable amount of notice should be given in writing so that the operator has time to remove the machine or the location manager has time to find another company to organize a replacement. Representatives of the location may also insist that the space occupied by the machine is left in the same condition as it was prior to the installation of the machine. 

Operators should always give themselves an exit option in the event that a location turns out to be unprofitable or unexpected problems occur.