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. What's the Response Time Guarantee?
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: same day or next business day
If they won't guarantee a response time, their schedule is unpredictable — and you'll be waiting when it matters most.
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 You Don't Fix It on the First 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.
True Commercial Service believes in transparent agreements, guaranteed response times, and earning your business every visit. We track our metrics because we believe accountability drives excellence. Serving Oklahoma City, OK.
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