Legal Term
Vending Machine Placement Agreement: Revenue Share vs Flat Fee
Legal Definition
The two primary compensation structures in a vending machine placement agreement: a Revenue Share model, where the location owner receives a predetermined percentage of gross sales, and a Flat Fee model, where the location owner receives a fixed, predetermined sum per period (e.g., monthly) regardless of sales volume.
In Plain English
It's the difference between getting a cut of every sale (like a commission) or getting the same set payment every month (like rent).
Example in a Contract
PAYMENT STRUCTURE. Operator shall pay Location Owner as follows: (a) a flat fee of $150.00 per month, payable on the 1st of each month; OR (b) 25% of Gross Sales (as defined below) generated from the Placed Machines, with statements and payment due within 10 days following the end of each calendar month. 'Gross Sales' means all revenue from cash, credit, and mobile payments, before any refunds or taxes. Location Owner shall have the right to audit Operator's sales records for the prior 12-month period upon 30 days' written notice.
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