Vending Machine Contract
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This vending machine agreement is essential legal tool for a variety of businesses and individuals who are involved in the vending machine industry across the U.S.
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What is a vending agreement?
A vending machine agreement is a legally binding contract between a vending machine operator and a property owner who allows the placement of vending machines at their place. This type of commercial contract outlines the terms and conditions for installing, operating, and maintaining vending machines on a specified property.
The parties involved in a vending machine contract are a client and a vendor business. A client is a business or a property owner who wishes to install vending machines at their property, whether rented or owned. A vendor is a self-employed person or a business that operates vending machines, including their maintenance, installation, and repairs.
This agreement defines legal responsibilities, revenue-sharing arrangements, product stocking requirements, equipment ownership, liability coverage, and the rights of both parties in the event of service issues, damages, or termination.
A solid vending machine agreement template could be helpful for:
- property owners of office buildings (to offer extra perks for their visitors or staff);
- retailers (to enter new markets and increase customers’ engagement with their products);
- vending businesses (to supply their machines for new businesses and organizations);
- entertainment facilities like hotels and gyms that want to increase clients’ satisfaction and engagement, etc.
What’s included in the vending machine contract?
Operation of a vending machine is not rocket science. Therefore, a vending machine agreement is not the most difficult or complex legal document. However, there are a number of important legal considerations parties have to discuss together before the start of cooperation.
Placement and installation
According to a vending contract, a vendor should be solely responsible for placement and installation of vending machines at the client’s property. Therefore, the parties to this agreement must agree upon:
- the exact number of machines that should be placed;
- their parameters (size, height, aesthetics); and
- list of products that should be available for sale in machines.
If a vending machine needs repair, a vendor should perform such repairs at their own cost. There is an exception to this rule, however. If a repair is caused by a client’s negligence or wrongdoing, in that case the repair should be made at the client’s cost.
Ownership of equipment
The text of every vending machine agreement template must define that a vendor remains the sole owner of all provided vending machines.
Once the agreement ends, a vendor should be given a period of time sufficient to safely de-install vending machines and remove them from a client’s property.
As an owner, a vendor should have a right of access to vending machines during business hours to examine, repair, stock, or perform necessary checks.
Revenue structure
A well-drafted vending machine contract must provide a clear revenue structure to answer the following questions: how much, when, and how a vendor should share generated revenue.
Parties may agree to either of the payment models listed below:
- a fixed recurring fee (e.g., weekly, monthly);
- a fixed percentage from generated weekly or monthly cash sales;
- other arrangement (e.g., a flat annual fee, etc.).
Besides that, the text of a contract must define available payment deadlines by which payment should be performed by vendors.
Termination
A good vending machine contract example must define the process of a contract’s termination. Usually both parties could end the contract at any time, provided a reasonable prior notice is being sent in advance.
The vending contract could also end naturally, for example, when its initial period expires, or either party dies or is liquidated.
If the text of a contract does not provide a right for earlier termination, in that case a contract could be ended only upon mutual consent of both parties.
How to customize a vending machine agreement at FasterDraft?
To get a fully customized legal document, follow a few easy steps below:
- Click the “Create Document” button.
- Answer simple questions in the form.
- Select a template’s format—vending machine contract PDF or Word.
- Make a payment.
- Download, print, sign, and use this document in your business.
Table of content
Frequently Asked Questions (FAQ)
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1. What is a vending machine agreement used for?
The vending machine agreement is used to agree on terms and conditions of placement of vending machines in various locations aimed to facilitate sales of snacks, beverages, and other products.
A vending machine business is quite popular across the U.S. and allows lots of companies and businesses to order vending machines for the usage of their customers, employees, visitors, or staff.
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2. Is a vending contract legally required?
No, neither federal nor state laws require parties to enter written vending machine contracts. However, in most of the cases having a written business document is a must, as it ensures clarity of business terms and prevents disputes along the road.
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3. Who keeps the earnings from vending machines?
There is no specific regulation stating how earnings generated by vending machines should be divided between a vendor and a business or client. The details regarding allocation of earnings are usually the subject of a vending contract. Thus, parties may agree which portion of earnings should belong to either party to this agreement.
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4. How long should a vending machine contract last?
A vending machine contract could last until a specific date, for a defined period of time, or indefinitely. The exact duration of each contract depends on the parties’ arrangement.
For example, a famous network of gyms wishes to have vending machines serving cold iced tea at every gym. Since the network of gyms has been operating without interruption for quite some time and most of their clients like drinking cold beverages during the training, they may agree to sign a vending machine agreement for an indefinite period of time.
Contrary to that, it is also possible to enter a vending machine contract for several weeks or months. This is especially a good solution if your business is testing a new vendor.
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5. Can I use this template for multiple locations?
Yes, this vending machine agreement template could be customized for usage in one or several locations.
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6. Does this contract cover maintenance responsibilities?
Yes, a well-drafted vending machine contract template must always cover in detail a vendor’s maintenance responsibilities. Those responsibilities usually include:
- replacement of stock in a timely manner;
- compliance with local and federal legislation related to safety and food standards;
- timely repair and replacement of spare parts, etc.
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7. Can the agreement be canceled early?
Yes, either party can end a vending machine contract any time by sending a prior written notice to the other party. Such a termination could take place with or without a cause.
The notice period could be between 3 and 30 days on average. The bigger the initial duration of a contract, the longer a notice period should be.
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8. Does this template work for snack, drink, or combo machines?
Yes, this vending contract would be suitable for various types of vending machines, including combo machines, as well as different types of food that could be potentially sold.
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