Maintenance agreement

Definition

A contract for scheduled seasonal service, which buys predictable revenue and the first call.

Why It Matters

Maintenance agreements are the recurring, higher-margin core underneath a lumpy install business, and their count and renewal rate are much of what separates a 2x shop from a 4x one. Count them yourself against the invoices rather than the seller's summary, and check whether they transfer or need each customer's consent. Ask what happens at renewal too: a book sold on a discounted first year renews at a number nobody has tested.