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Towing Term

Police rotation contract

Definition

A place on the rotating list police call for tows, won by bid and carrying set rates.

Why It Matters

These are hard to win, limited in number, and awarded to the operator rather than to the business, so whether one survives a change of ownership is the central question in the deal. Ask when the contract was last bid, when it comes up again, and what the municipality's rules say about assignment. A company whose revenue leans on rotation work is renting it on terms someone else renews.

Where to Go Next

More Terms in Towing