financing vending machines...

Contract Options

RENTAL AGREEMENTS

The main difference between a lease agreement and a rental agreement is that with the latter, the agreement is with the vending company. Rental Agreements are usually for a shorter duration, are often for refurbished or reconditioned equipment, and are sometimes more restrictive and harder to get out of than leasing agreements! For example, some vending companies have clauses in their rental agreements that would prevent you having any similar equipment on your premises from any other vending company. This means that if you are looking to have additional machines, but you are unhappy with the service of the existing company, you cannot rent machines from another company until the existing rental agreement has expired. Unlike Lease Agreements, Rental Agreements are usually not fixed term and will continue until you give notice, so make a note of the expiry date...just in case! Some Rental Agreements also include Operating Agreements, so beware! If you are unhappy with your supplier, you are tied in, not only for the Rental of the machine but you are also contracted to continue to use the supplier for cleaning and filling. This is not the case with a Lease Agreement, with a separate Operating Agreement. (see below)

OPERATING AGREEMENTS
This is the Agreement that covers the cleaning, replenishing, sanitising, cash collection, (sometimes VAT accounting) of your equipment. Basically the all the details concerning the day to day running of your machine are contained in the Operating Agreement. This would include the following.

The Management Fee. A fee charged by the vending company to cover the cost of their staff, travelling to and from and providing the service to your machine.

The Cup Charge. This is the cost per cup charged to you for each cupvended from your machine. This is subject to VAT. The Vend Price This is the price that your staff or customers pay for each drink from the machine. Remember, the Vend Price is INCLUSIVE of VAT, the cost per cup is EXCLUSIVE of VAT. The balance between the two will usually be returned to you. Occasionally vending companies may offer to provide a fully managed Operating Service in exchange for the takings from the machine. It is customary for Snack Vending machines to be operated in this way. Remember your lease agreement is ONLY to finance your equipment. It is NOT for cleaning and replenishing. This is the Operating Agreement. It IS possible to have a lease agreement over six years, for example, and a 12 month Operating Agreement. This means that if for any reason you are unhappy with your Operator, you can change and get someone else to clean and fill your machines.

vendingabc is from cafe azzurro limited