Arcade game/Vending route contracts/info

racerx1690

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Can anybody PM/email me a copy of your contract you use, so I can make one for myself? I am starting a route on the side here in N Texas, and need any info, ideas, NO NO's, goods, bads, and uglies of routes. I am starting with a few arcade games, some bulk candy machines, and capsules. HALP!
 
You can email replay magazine for a copy of a general vending/amusemnt contract. Get the email off of their website, www.replaymag.com.

As far as no no's etc., they vary from state to state, and from county to county, city to city. I suggest you check with the local county court office to see what permits are needed in certain cities or counties, and check with the state of Texas as to what they require as far as permits and taxes. Maybe someone on the group from Texas can help with specific questions?

Here in MD, they have a multi part tariff structure. You may have to buy an operator's license depending on what county you operate in. In Baltimore County and City, it is $200 per year for the op license. In Anne Arundel County, it is $2000 (yes, thousand). Then, you have to buy licenses for each individual game. In Baltimore County and city, that license is $230 per machine. In Anne Arundel, $100 per machine. Some counties like PG COunty and Harford have no license at all.

Then, you have to pay the state a percentage of your income, depending on what jurisdiction you operate. In Baltimore Co/city, the rate is 10%. In Howard County, the rate is 7.5%. Prince Georges County is 5%, etc. You pay this tax every month to the state, and they distribute the tax to the different jurisdictions. A couple of counties and towns don't have this tax, but not many.

Vending machine or bulk machine licenses will probably differ from the amusement machine licenses in that they will be much cheaper. While you're at it, you should look into a good insurance policy. I had a friend who had a pinball out on location, and some kid simply walked up to it and pulled back the ball plunger. He put the webbing between his thumb and index finger between the cabinet and the plunger, and when he released the plunger, it ripped some of the skin there off of his hand. Had to be rushed to the ER, and it cost my friend a couple thousand to settle. Also heard a story about a guy who broke his wrist on the trackball of a Golden Tee machine. Be prepared for dumb shit like this, and get insurance.

IT IS A PAIN IN THE ASS... but it's a living.

-Mike
 
Yea there is always the dumbasses. I deal with them every day up here at work. Does anybody know of insurance for machine damage (vandals), is there such a thing?
 
Insurance on equipment and general liability is very complicated. As with most vending routes you operate on a revenue share basis. The equipment is at their location, under their control and operates under a lease agreement. There are a few things you can do to "HELP" curb the cost of vandalism and of accidental injuries (or drunk injuries).

1. Be named on the location owner/proprietor's insurance as an additional insured. This helps cover you on general liability issues (ie. the examples from before).

2. TRY and make sure that the location has Personal Property of Others insurance. This is usually covered on their policy up to a certain amount of money. This will cover your equipment (or part of it) should it be destroyed, stolen, damaged or whatever. Although, this requires the owner to make a claim, and lets be honest, some owners are just plain assholes.

3. You can add an umbrella policy to your own insurance and should be able to list certain locations that may have a lot of your equipment.

Insurance is COMPLICATED. Try and find an independent agent that has worked with others in your industry or someone that may understand what exactly you do.... Don't expect the search to be easy.
 
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