Vending Contracts

[Happy Vending]

I have been told by other vendors that vending contracts are a thing of the past. I still draw up a very basic contract because I believe that it keeps everyone a little more honest and outlines expectations from the beginning. So my question is, does everyone/anyone still have contracts in place with their locations? If so, is there anything special that you make sure to include in your contract? How long of a term do you usually push for?

[AZVendor]

Contracts are not a thing of the past. Maybe they are with the vendors you talked to but if you feel more comfortable with a contract then get a contract.

You are exactly correct in how you are using them. They serve as a tool to ensure you aren't booted out for frivolous reasons. A good contract is for a specific term that gets you through a period of time that allows you to recoup your investment (ROI) and some time beyond to enjoy clear profits. The contract should spell out a grievance procedure for either party to follow and a specific time period to cure the defect, You should be specific in what machines the contract covers and it should be worded to exclude any competitors inside or outside the building (mobile caterers) if possible. Mention any commissions or payments made to the account and how they are to be paid so there are no misunderstandings. Beginning pricing can be covered as well as a process for when and how prices will be increased in the future. The smaller the account the simpler the contract, but when you are in a large account with a large investment in equipment you want a more comprehensive contract. You should also spell out how the contract will be renewed.

Basically a good contract protects both the customer and you. Either party can terminate for cause if defects are not timely remedied. A contract also makes your location more valuable if you were to sell it.

Remember, however, a contract is only as strong as the will of one party to enforce it. If a situation arises where they are angrily going to turn your machines to the wall and let someone else come in, you may have to spend money on an attorney to solve the problem. Or you may find it better to just remove your machines rather than fight to operate machines in an account that doesn't want you there.

Still a good call for the good accounts out there.

[Priusjames]

Excellent food for thought.

[mission vending]

I don't do contracts except for large accounts that require a large investment to go into. For smaller locations I use a "service agreement", a one page document that spells out equipment, commissions etc. etc.

[dogcow]

i use a service agreement like mission says, if the account wants to terminate the contract it would have to be a very very large account to be worth trying to enforce, furthermore would you really want to service an account where you have a hostile relationship? im not interested in being somewhere i am not wanted, let someone else have that account. but i think its a good idea to have all commission arrangements and service level expectations spelled out on paper so there is no misunderstandings down the line especially if new management comes in. furthermore u want to make sure to ahve the serial # / asset id # of your equipment on the contracts to be able to prove ownership of this equipement in the event ur acct goes out of business. I have had an acct call me the day they were closing at 9am telling me to get my stuff out by 5p, if i had not been ab le to get it that day it would have ended up as property of the bankruptcy receiver and w/out a service agreement i would not have got it back.