What should a restaurant equipment service contract include?

A good service contract should clearly state call-priority rules, covered equipment, parts and labor warranty terms, PM frequency and scope, after-hours charges, exclusions, documentation, and cancellation terms.

How long should I commit to an equipment service contract?

Start with a 6-month or 1-year contract. Avoid long-term multi-year agreements until you have verified the company delivers on their promises. A confident company will earn your renewal: they should not need to lock you in.

What is a good first-time fix rate for equipment repair?

There is no single useful benchmark across every equipment type and service model. Ask how the provider defines the metric, whether parts-only return visits count, and how it documents diagnosis, follow-up, and final resolution.

7 Questions to Ask Before Signing a Restaurant Equipment Service Contract

A service agreement can save you thousands: or lock you into a bad deal. Here are the seven questions that separate a good contract from a regrettable one.

1. How Are Calls Prioritized?

Get it in writing. "We'll be there as fast as we can" is not a commitment. Look for specific SLAs:
- Emergency calls: under 2-4 hours
- Standard calls: ask how they are scheduled and communicated

Ask what information changes priority, what the provider can realistically commit to, and how schedule changes are communicated. Put any material service-level commitment in writing.

2. What's Covered and What's Not?

Read the fine print. Common exclusions:
- Compressor replacements (most expensive repair)
- Refrigerant (charged per pound on top of labor)
- Parts over a certain dollar amount
- Equipment over a certain age
- "Acts of God" or power surge damage

The best contracts clearly list what's covered. The worst ones have a short covered list and a long exclusion list.

3. What Happens If the Job Requires a Return Visit?

If the tech diagnoses the problem but needs to order a part, what's the cost for the return visit? Some companies charge a full service call for every visit. Others include the return trip in the original call.

What to look for: "Return visits for the same issue within 30 days are covered under the original service call."

4. What's the Parts Markup?

Standard industry markup is 25-40% above wholesale cost. Ask for their markup policy in writing. Some companies mark up 100%+ on parts: this is where they make their real money.

5. Can I Cancel? What's the Penalty?

Things change. Your business may move, close a location, or switch service providers. Read the cancellation terms:
- Is there an early termination fee?
- How much notice is required?
- Can you cancel for cause (repeated poor service)?

Avoid contracts that auto-renew for another full year without a 30-day opt-out window.

6. Do You Carry Insurance?

Ask for a Certificate of Insurance (COI). Minimum coverage should include:
- $1M general liability
- Workers' compensation
- Commercial auto

If a tech is injured in your kitchen and the service company doesn't have workers' comp, your insurance may be on the hook.

7. Can I See Your First-Time Fix Rate?

This is the question that separates professional companies from amateurs. A company that tracks their first-time fix rate is data-driven and invested in quality. The industry average is about 70%. Good companies hit 85%+.

If they don't track it: or won't share it: that tells you something.

Bonus: The Relationship Test

Before signing anything, call their emergency line at 9pm on a weekday. Does a real person answer? How quickly do they respond to a text? This 5-minute test tells you more about the company than any contract clause.

TCS documents the agreed service scope, rates, access requirements, and communication pathway before recurring work begins. Any response commitment must be stated in the applicable customer agreement.

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