How do I check the location agreements on a vending route?

On a vending route, the machines are the easy part. What you are taking over is the right to keep them where people walk past. Those rights are the location agreements, and they can be anything from a signed contract to a nod from a manager. Read them as carefully as you would a lease.

Written or verbal

Ask the seller for a site list that shows, for each placement, whether there is a written agreement. A verbal arrangement can end whenever the host decides. That means you are relying on a relationship. Mark those sites and learn who the contact is and how long the machine has been there.

Term, notice and commission

For each written agreement, note how long it runs, how it renews and how much notice either side must give to end it. Check the commission or rent the host receives and how it is calculated and paid. Compare the host payments with the site’s sales records, so that you know what each machine really earns for you.

Exclusivity and consent

Some hosts promise that no competitor will place machines on the premises, and some agreements prevent the operator from adding more. Ask whether each agreement allows a change of operator, or needs the host’s approval. Your lawyer can read the key agreements and tell you what the wording means for a sale.

Call the key sites

With the seller’s permission, speak to the hosts at the busiest locations. Ask how the service has been, whether they plan to stay and whether they would continue with a new owner. Their answers are often more useful than any document. The guide to buying a vending machine business covers permits and products.