Location contract

Definition

The agreement putting machines in a host site, setting the term, the commission, and the exit.

Why It Matters

The contract book is the asset, not the machines. A route on multi-year terms at a low commission is worth materially more than the same equipment sitting in locations that can end the arrangement with a phone call, and the second is what most sellers actually have. Read every contract for term, commission, and exclusivity, and ask which locations are up for renewal in the next year, because those are the ones a competitor is already courting.