How to Structure a Food Truck Agreement

With respect to a formal agreement between a commercial property owner and a prospective food truck operating on the owner’s property, a revocable license agreement may be best. That’s because it doesn’t create a landlord-tenant relationship and the owner would be able to terminate the agreement immediately.

As with any license agreement, you’ll want to include certain protections in the agreement covering such issues as: definition of the license area, confirmation that the license will be nonexclusive, revocable and nontransferable, requirement to keep the license area clean and safe, compliance with all applicable laws and regulations, maintenance of liability insurance, and other controls to minimize any adverse impacts on the building’s occupants.

While food trucks are becoming more and more popular and there may be many benefits to having them on your property, there are many potential drawbacks as well. Before allowing food trucks on your property, make sure you consider all the factors. See our homepage for the Insider’s February feature, “The Truck Stops Here—Or Should It?”

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