What should I ask about a tire shop’s fleet and municipal service contracts?

Start by gathering every contract and standing arrangement, including those that are only emails or purchase orders. Note the end date, pricing basis, service levels required and any penalty for missed response times. Ask which ones renew automatically and which must be won again.

Public bodies deserve special attention. Ask whether the agreement can be assigned to a new owner or whether the buyer must qualify again. Ask how the shop won it, who scored the bid and whether the same people remain in the role. Your lawyer should read the assignment and termination clauses before you rely on any account.

Then look at delivery. Fleet work often means roadside calls, after-hours service and tight turnaround. Ask whether the shop has the technicians, trucks and equipment to meet each promise. If a single account needs most of the capacity, ask what happens to margins if it leaves. Your accountant can test whether the remaining business still covers its debts. Finally, ask for the history. Has the shop ever lost a fleet account, and why? Were prices pushed down at renewal? Speak with the fleet managers if the seller allows it, and ask how they rate response time and billing accuracy. Their view of the shop is a better guide to renewal than any document.

Key takeaways

• Read each agreement for end dates, renewal and assignment terms.
• Find out how the public contracts were won and whether they can transfer.
• Check capacity to meet service promises, and what a lost account would mean.