» “Vendor shall fully comply with all pertinent federal, state and local laws, including but not limited to, wage and hour laws and required deductions including social security, unemployment, worker’s compensation insurance, other applicable taxes and disability insurance.”
» “Vendor shall make all personnel decisions based on fair and reasonable criteria and shall not discriminate based on race, creed, color, national origin, gender or sexual orientation.”
» “Vendor agrees to keep accurate, separate books and records of accounts in accordance with generally accepted accounting standards. These books and records shall, without limitation, show all income and commissions payable pertaining to this specific vending contract.”
» “Client may inspect all records and supporting documentation kept by Vendor relating to the management and operation of the vending contract, including, without limitation, checks, bills, vouchers, statements, cash receipts, contracts, and correspondence.”
» “Client agrees that the intended result of this Agreement is that Vendor will provide quality services and products to client’s employees and guests. Client acknowledges that in order to accomplish this objective, Vendor will need the support and cooperation of its professional and administrative staff and agrees to use its best efforts to provide such support.”
» “Vendor shall maintain standards of sanitation of equipment and supporting operations to the complete satisfaction of the Client. Vendor shall permit inspection of its operation and equipment at any time by the Client to determine that standards of quality and cleanliness are being met.”
» “Vendor agrees to perform the services specified under this Agreement with the standard of care, skills, and diligence normally provided by a fully proficient, professional organization. Vendor further agrees that, at all times, the employees furnishing or performing any of the services specified under this contract shall do so in a proper, professional, and dignified manner.”
» “Vendor will conduct an annual customer satisfaction survey. Results of the survey and subsequent action plan details will be shared with the Client in quarterly quality assurance meetings.”
These suggested clauses can be modified. The important point is to have locations under contract to clarify the expectations between the service provider and the customer. Contracts can make life easier for both parties.
MANUAL FEEDING CONTRACTS
AT A GLANCE
All vending/non-commercial foodservice contracts are derivatives of one of
1. Profit and Loss: Under this agreement, the contractor pays all costs, including commissions, if applicable, and retains any profit or bears all losses. The contractor is at risk and generally has little direct control over selling prices, hours of service, product categories, or points of service.
2. Management Fee: Under this type of contract, the contractor bears no risk of loss and is guaranteed a fee in a specified dollar amount or a percentage of sales, whichever the greater. Any excess profit remaining, after the contractor’s fees, is returned to the client.
3. Profit Limitation: This is a P&L agreement; the contractor assumes full risk of loss. Furthermore, the contractor agrees to limit profitability and pay all, or a percentage split, of the excess profit to the client. Under this type of an agreement the client may show some interest in maintaining profitability, as a certain profit floor must be reached before any commissions are shared.
4. Fee If Earned: This is a management fee contract which stipulates that the contractor must earn his fee if he is to receive it. The contractor risks losing the fee entirely, or in part, if they do not attain budget. The payment of the fee to the contractor is contingent upon the attainment of a mutually agreed upon budgeted profit or loss. All excess profits are returned to the client and all operating losses are absorbed by the client. The contractor has a clear incentive to manage the vending/foodservice operation creatively and efficiently.