Vending Machine Contract: What to Include in a Location Agreement
Quick answer: a vending machine contract (also called a location or placement agreement) is the written agreement between the vending operator who owns the machine and the business that provides the space. It should name both parties, the exact placement spot, the term and renewal, whether the operator has exclusive rights, any commission paid to the location, who pays for electricity, access hours for restocking and repairs, responsibility for damage and theft, insurance, and how either side can end the agreement and remove the machine.
This guide is general information, not legal advice. Have an attorney review any agreement before you sign it.
What to include in a vending machine location contract
| Clause | What it should say |
|---|---|
| Parties | The legal names and addresses of the operator and the location owner (or tenant with authority to agree) |
| Placement | The exact spot, how many machines, and whether the location may move them |
| Term and renewal | The start date, the length of the agreement and whether it renews automatically |
| Exclusivity | Whether the operator is the only vending provider on the premises, and for which products |
| Commission | Whether the location receives a share of sales, on what basis (gross or net), and how often it is paid and reported |
| Utilities | That the location provides a suitable outlet and pays for the electricity |
| Access | The days and hours the operator can restock, collect cash and carry out repairs |
| Products and prices | Who decides what is sold and at what price, and any products the location does not allow |
| Service | How quickly the operator responds to an out-of-order machine or a refund request |
| Damage and theft | Who is responsible for vandalism, theft and damage to the machine or the premises |
| Insurance | The cover the operator carries and whether the location must be named on the certificate of insurance |
| Termination | How either party can end the agreement, the notice period, and how long the operator has to remove the machines |
Commission: does the location get paid?
Many small locations take no commission: the machine is a convenience for their staff or customers. Busier locations often ask for a percentage of sales. If you agree to one, define whether it is calculated on gross sales or on sales after tax and card fees, how you will report sales, and when you will pay. Telemetry and card-reader dashboards make the reporting simple and verifiable.
Term, renewal and termination
Placement agreements often run for one to several years and renew automatically unless one side gives notice. The termination clause matters most: a clear notice period protects the location if service is poor, and protects the operator’s investment in the machine. Include how long the operator has to collect the machines and remaining stock after the agreement ends.
Damage, theft and insurance
Agree in writing who pays if the machine is damaged, broken into or stolen, and who is responsible if the machine damages the premises. Many property owners ask operators for a certificate of insurance showing general liability cover, sometimes naming the property as an additional insured. See vending machine insurance for the types of cover operators carry.
Before you sign
- Confirm the person signing has authority for the property: a tenant may need the landlord’s permission.
- Check the outlet, the floor and the delivery path for the machine you plan to place; see vending machine installation.
- Agree the product mix and prices; see what to stock in a vending machine.
- Have an attorney review the agreement, and keep a signed copy.
Still looking for a location? Read the best places to put a vending machine and how to start a vending machine business.
Vending machine agreement template: clauses to include
Use this checklist to draft or review a vending machine placement agreement. It is general information, not legal advice; have an attorney review your final contract.
- Parties and location: the operator, the location owner or manager, and the site address.
- Placement: the exact spot, the power outlet, and the hours the operator may access the machine.
- Ownership: the machine and its contents remain the operator’s property.
- Products and prices: who chooses the product mix and prices, and any items the location does not allow.
- Commission: the rate, whether it is paid on gross sales or after sales tax and card fees, how often it is paid, and the sales report that comes with it.
- Service: how often the machine is restocked, how refunds are handled, and how quickly faults are fixed.
- Utilities: who pays for the electricity and any connection the card reader needs.
- Insurance and liability: the operator’s general liability cover, and who is responsible for damage, theft and vandalism.
- Exclusivity: whether other vending machines may be placed at the location.
- Term, renewal and termination: the length, automatic renewal, notice period and how the machine is removed.
- Assignment: whether the agreement transfers if the operator sells the route or the location changes hands.
- Signatures and date.
Example commission clause: “Operator will pay Location ___% of monthly gross sales, less sales tax and card processing fees, by the 15th of the following month, with a sales report for each machine.”
Frequently asked questions
Do you need a contract to place a vending machine?
It is not always legally required, but a written agreement protects both sides: the operator’s right to keep the machine in place, and the location’s right to service standards and to end the arrangement.
How long is a typical vending machine contract?
Terms vary; many agreements run one to several years with automatic renewal and a notice period for termination.
What percentage do locations get from vending machines?
There is no standard figure. Many small locations take no commission; busier ones negotiate a share of sales, which the contract should define precisely.
Who pays for the electricity?
Usually the location, which provides the outlet. State it in the contract either way.
Is there a vending machine contract template?
Yes: the clause checklist above covers parties, placement, ownership, products and prices, commission, service, utilities, insurance, exclusivity, term and termination, and assignment. Have an attorney review the final agreement.