By Cedric Lavergne, Vending Business 101 — in vending since 2006. Last reviewed: October 30, 2026.
What goes in a vending machine placement agreement? At minimum: who the parties are, the exact spot, the term and renewal, any exclusivity, the commission and how it is reported, access hours, who pays for power, insurance and liability, who owns the machine, and how either side can end the deal and remove it. Put it in writing and sign it before the machine goes in.
This guide explains each clause in plain English, shows what real public vending contracts include and gives you a checklist to take into the conversation. It is general information, not legal advice. Have an attorney review any agreement before you sign it.
Table of contents
Why you need a written vending location agreement
A handshake works until the manager leaves, the building sells or a competitor offers a bigger commission. A written agreement protects your equipment investment and tells the location exactly what to expect. It also answers the questions that cause most disputes later: who pays for power, when you can get in, what happens if the machine is damaged, and how much notice either side has to give.
Keep it short and clear. A small business owner is more likely to sign two or three pages they understand than a long contract they have to send to a lawyer.
The clauses, one by one
Parties and placement
Use the legal names of both businesses and the name and title of the person signing for the location. Describe the exact spot (“break room, north wall, next to the sink”) and the machine type. Add a line on whether you may move it or add a second machine with the location’s approval.
Term and renewal
State a start date, a length and what happens at the end: automatic renewal unless one side gives notice, or extension only by mutual written agreement. A longer term helps you recover the cost of the machine. A shorter one is easier for a hesitant location to accept.
Exclusivity
Exclusivity means no other vending, cooler or micro market operator can place equipment at the location while your agreement is in effect. Spell out what it covers. Some locations already have a drink contract, so you may need to carve that out.
Commission
Write the rate or flat fee, what it is calculated on (gross sales, or sales after card fees, with or without sales tax and refunds), how often you pay and what sales report the location gets. If there is no commission, say so. Our guide to vending machine commission rates covers the structures and how to work out what you can afford.
Pricing and products
Say who sets prices and what products you will carry. If the location wants healthy options or bans certain items, write it down. Keep price control with you, and agree to give notice of big changes.
Access and service
List the days and hours you can restock and service the machine, who lets you in after hours and where you can park and unload. Add how quickly you will respond to a service problem, in terms you can actually meet.
Power and connectivity
State that the location provides a grounded outlet at the spot and pays for the electricity, if that is the deal. If your cooler will use the location’s network, write that too. See the power cost estimate below.
Insurance and liability
Some locations ask for proof of insurance and to be named as an additional insured. Both public contracts below require it. State the coverage you carry and that you will provide a certificate of insurance. Add who is responsible for damage to the machine, theft and injuries. Our vending machine insurance guide explains each coverage type.
Ownership and removal
State that you own the machine and everything in it, and that the location may not move, sell or hold it. Say how soon you will remove it after the agreement ends and who pays for removal.
Termination
Give two exits: termination for cause (a breach that is not fixed within a set number of days after written notice) and termination without cause (on a set number of days’ notice). Make sure the notice period is the same everywhere it appears.
Signatures
Both parties sign and date. Each keeps a copy.
Placement agreement clause checklist
| Clause | What to write | Question to ask the location |
|---|---|---|
| Parties | Legal names, signer’s name and title | Who can sign for the business? |
| Placement | Exact spot and machine type | Where will people see and use it? |
| Term | Start date, length, renewal, notice to not renew | Is a one-year or longer term workable? |
| Exclusivity | What is covered and any carve-outs | Do you have any existing drink or food contracts? |
| Commission | Rate or fee, basis, schedule, report | What are you expecting, if anything? |
| Prices and products | Who sets them; any required or banned items | Anything you want stocked or kept out? |
| Access | Service days and hours, after-hours entry, parking | When can I restock without disrupting you? |
| Power and network | Outlet provided; who pays for power; network use | Is there a grounded outlet at the spot? |
| Insurance | Coverage carried; certificate; additional insured | What coverage and limits do you require? |
| Liability | Damage, theft, injuries, indemnification | Who handles a damaged machine or a customer injury? |
| Ownership and removal | You own the equipment; removal timeline and cost | How much notice do you need for removal? |
| Termination | For cause with cure period; without cause with notice | What notice period is fair for both of us? |
What public vending contracts include
Public colleges post their vending contracts and requests for proposals online, so you can see how big institutions handle these clauses. These deals cover many machines and are not a template for a single small placement. But they show which clauses matter.
- Stephen F. Austin State University (2022): a five-year term that can be extended by mutual written agreement for two more five-year periods. The contractor is the university’s exclusive vending contractor, except for beverages under its separate pouring rights contract. Commission is due by the tenth of each month, with a monthly sales report by machine and location. The university pays for electrical and utility connections. The contract requires certificates of insurance and lists the university as an additional insured. The university is not liable for theft, fire or disruption. Either side can end it for cause after written notice and a chance to fix the problem, and the university can end it without cause on 90 days’ notice. The contractor must remove its machines at its own expense.
- Las Positas College (RFP 21-22-07): a three-year term with two optional one-year extensions. The college pays the utilities. Bidders had to guarantee a minimum annual commission. The contractor must name the district and college as additional insureds. One section allows termination on 90 days’ written notice, while an attachment says 30 days.
That last point is a lesson. Read your agreement for conflicting terms, especially notice periods and commission, before anyone signs.
Estimating the power cost for the location
A location may ask what the machine will add to its electric bill. Give them a number based on the published daily energy use of your model and their own electric rate.
Illustrative example — replace with your own numbers. Assumption: an electric rate of $0.15 per kWh. Use the rate on the location’s bill instead.
| Model | Published kWh / 24 h | kWh / 30 days | At $0.15 / kWh |
|---|---|---|---|
| HAHA 360 Mini | 2.0 | 60 | $9.00 |
| HAHA 542 Pro | 2.65 | 79.5 | $11.93 |
| HAHA 1200 Ultra (double door) | 6.2 | 186 | $27.90 |
| HAHA 550 Freezer | 8.33 | 249.9 | $37.49 |
Math: kWh per day × 30 × the rate. Actual use depends on room temperature, door openings and settings. Vendera does not publish a daily energy figure on the pages we checked, so ask for one. This is a cost estimate, not an earnings figure; see our earnings disclaimer.
Starting a draft with Contract Generator
Members can use the Contract Generator app to turn the deal into a clean placement agreement. The host, machine, commission and term carry over from the Sales Pitch app, and you add the signer and start date. It produces an agreement with the key terms, adjustable clauses, a PDF to send or print and a before-you-sign checklist that flags sections to have an attorney review. It makes a starting document, not legal advice.
If you have not pitched the location yet, start with how to pitch a vending machine location.
The free ROI Calculator shows monthly net profit and payback for one location, with any commission you enter. Try for free. Members also get Sales Pitch, Contract Generator and Commission & Profit.
Open ROI CalculatorSee membershipVending machine placement agreement FAQ
Do I need a contract to place a vending machine?
You should always have one. A written agreement protects your machine and sets clear terms for commission, access, power and removal.
How long should a vending placement agreement be?
Long enough to recover your equipment cost, short enough for the location to agree. The public contracts we read ran three to five years before extensions, but those were large multi-machine deals.
Who pays for electricity for a vending machine?
Usually the location, and both public contracts we read put utilities on the institution. Write it in the agreement either way.
What does exclusivity mean in a vending contract?
No other operator may place vending equipment at the location during the agreement. Define what it covers and any carve-outs, such as an existing drink contract.
Is the Contract Generator legal advice?
No. It makes a starting document. Have an attorney review the agreement before you sign, especially liability and termination terms.
This article is general information, not legal advice. Laws differ by state. Talk to an attorney licensed in your state about your agreement.
Sources
- Stephen F. Austin State University: Vending Services RFP and agreement (2022)
- Chabot-Las Positas Community College District: Las Positas College vending machine agreement RFP 21-22-07
- HAHA Vending: product specifications and Smart Cooler Supply HAHA product pages (daily energy use) (our sister company)
- Vending Business 101: apps (Contract Generator and Sales Pitch descriptions)
Ready to put your deal in writing?
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