If you have possession of equipment under a lease agreement:

  • Establish clearly within your own organisation who can sign lease agreements.
  • On the signature page of the lease agreement, check the name of the leasing company, its parent company where relevant, and whether this company is reputable and accredited.
  • Confirm with the supplier whether the equipment is new. If not, make sure that any used or refurbished equipment is suitable.
  • Always ensure that the completed contract corresponds with any oral or written quotations.
  • Read your contract carefully before signing it and ensure that it is correct, particularly in respect of the rental amount and the period of hire. Never sign an agreement that is only partially completed.
  • Make sure you understand and agree with all the terms and conditions of the contract. If you are unsure, seek advice.
  • Check that your lease company is a member of the FLA

 

Cost-per-cup plans

Cost-per-cup plans amalgamate the capital and running costs of a beverage vending service into a single charge per cup.

  • The cost per cup will include an element to cover the vending machine’s capital/lease costs, plus service and consumable elements that reflect the cost of cups, ingredients, filling, cleaning and maintenance.
  • A full breakdown of the elements making up the cost per cup will allow you to make valid comparisons.
  • Some users prefer schemes that base the financial relationship totally on cup usage. Buyers however, should make sure users understand this and can evaluate any cost per cup proposals. For example, if the value of a proposal is only stated in pence per cup, the full contractual commitment can be easily misunderstood.
  • The minimum number of cups you are asked to commit to should relate to the particular conditions obtained at the site during the contract term.
  • Proposals based on drinks consumed per person per day should allow for holidays, shut-downs and staff sickness.
  • Industry experience suggests that consumers will normally buy an average of two drinks per day, but will consume four if they are provided free. Taking into account holidays and sickness, each staff member is likely to be at work only 42 weeks per year.
  • Most cost-per-cup plans make provision for inflation during the contract term. A proposal should state how this is to be handled. Inflation should not be applied to the equipment element of the cup cost. Any inflation increases should be judged in the light of what is reasonable.

AVA members abide by a Code of Conduct. This ensures that they will provide you with full details if you opt for a cup plan.

Dealing with an AVA member also gives you the security of a clear path for resolving disputes in the unlikely event that one is needed.

 

VAT

You should ensure that it is clear where the responsibility for collecting & paying VAT lies, when discussing pricing and the cost of vended products. This could be with the user or the vending operator.