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Commissary Services Agreement

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COMMISSARY SERVICES AGREEMENT

This Commissary Services Agreement (the "Agreement") is entered into as of by and between:

Service Provider Name:    Address:

Client Name:    Address:

Recitals

WHEREAS, Service Provider operates a commissary facility offering preparation, storage, refrigeration, and support services compliant with applicable health and safety laws; and

WHEREAS, Client is a licensed food vendor seeking use of commissary facilities and related services for the preparation, storage, and staging of Client's food products; and

WHEREAS, the parties desire to set forth the terms and conditions under which Service Provider will provide commissary services to Client.

Scope of Work

Service Provider shall provide the following services at the commissary located at (the "Facility"): access to preparation tables, approved refrigeration units, dry storage, dishwashing facilities, waste disposal, refrigeration monitoring, and reasonable use of equipment as expressly listed in an attached equipment addendum.

Payment Terms

Client shall pay Service Provider the fees set forth below for access to the Facility and services. All fees are exclusive of sales, use, and other taxes for which Client is responsible.

Any undisputed amount not paid when due shall accrue interest at the lesser of the maximum rate permitted by law or per month, plus all costs of collection, including reasonable attorneys' fees.

Term and Termination

Term Commencement Date:    Term Expiration Date:

Either party may terminate this Agreement for convenience upon days' prior written notice. Either party may terminate for material breach if the breaching party fails to cure such breach within ten (10) days after receiving written notice of the breach. Termination shall not relieve Client of amounts accrued or obligations that, by their nature, survive termination.

Use and Compliance

Client shall use the Facility only for permitted food preparation and storage activities described in the Scope of Work. Client shall comply with all applicable federal, state and local laws, regulations, and health department requirements, and shall maintain all required permits and licenses. Client shall carry general liability insurance with limits not less than and shall provide certificates of insurance upon request.

Confidentiality

"Confidential Information" means all non-public business, technical and financial information disclosed by one party to the other in connection with this Agreement. Each party shall (a) hold Confidential Information in confidence using at least the same degree of care it uses to protect its own confidential information, but no less than a reasonable degree of care; (b) not use Confidential Information other than for performance under this Agreement; and (c) not disclose Confidential Information to any third party except as permitted herein. Confidential Information does not include information that is or becomes publicly available without breach, is independently developed, or is rightfully obtained from a third party without restriction.

Notwithstanding the foregoing, a party may disclose Confidential Information as required by law, provided the disclosing party uses reasonable efforts to give prior notice to the other party where legally permissible. Please indicate if disclosure to regulatory authorities is acknowledged: Acknowledged

Indemnification and Liability

Client shall indemnify, defend and hold harmless Service Provider and its affiliates, officers, agents and employees from and against any claims, liabilities, losses, damages and expenses (including reasonable attorneys' fees) arising out of Client's use of the Facility, Client's breach of this Agreement, or Client's negligence or willful misconduct. In no event shall Service Provider be liable for consequential, incidental, special or punitive damages except for claims arising from Service Provider's gross negligence or willful misconduct. The aggregate liability of Service Provider for any claim arising out of this Agreement shall be limited to the fees paid by Client to Service Provider in the twelve (12) months preceding the event giving rise to the claim.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

Entire Agreement; Miscellaneous

This Agreement, including any written exhibits and the equipment addendum (if any), constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. No amendment or modification shall be binding unless in writing and executed by both parties. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Notices

All notices under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party may specify in writing. Notice is effective upon personal delivery, one (1) business day after deposit with a nationally recognized overnight carrier, or three (3) days after deposit in the United States mail, postage prepaid.

Service Provider:

By:

Date:

Client:

By:

Date:

Enter text✕

What a Commissary Services Agreement Covers

A Commissary Services Agreement is a legal contract that sets the terms under which a commercial kitchen operator (the commissary) provides workspace, storage, utilities, and support services to food vendors, caterers, mobile food operators, or other food businesses. The agreement defines permitted uses, hours, access rules, health and safety obligations, fee structure, insurance and indemnity requirements, equipment and storage allocation, waste disposal, and termination conditions. It allocates operational risks and regulatory responsibilities so each party understands inspection, permit, and compliance duties while documenting remedies for noncompliance or breach.

Why a Formal Commissary Agreement Matters

A written commissary agreement clarifies responsibilities, reduces operational disputes, and documents compliance with local health and safety rules. It protects each party by defining insurance, indemnity, and termination terms while enabling consistent enforcement of kitchen rules and regulatory requirements.

Why a Formal Commissary Agreement Matters

Who Typically Uses This Agreement

Use the agreement to document operating rules, insurance requirements, fees, and regulatory compliance expectations between kitchen owner and tenant operators.

  • Food truck operators and mobile vendors who need licensed kitchen access for prep and storage.
  • Caterers and pop-up restaurants that require production space and staging for events.
  • Ghost kitchens and delivery-only brands outsourcing food production to a commissary.

Core Clauses to Include in a Professional Agreement

A thorough Commissary Services Agreement organizes operational, legal, and financial responsibilities so both parties can operate safely and predictably.

Scope of Services

Define exactly which kitchen areas, equipment, and services are provided, including access hours, storage allocations, waste removal, and janitorial duties.

Fees & Payment

Specify rent, service fees, payment schedule, late fees, security deposit terms, and any passthrough costs such as utilities or permit fees.

Health & Safety

Allocate responsibility for food safety compliance, sanitation practices, permit maintenance, and cooperation during health inspections.

Insurance & Indemnity

Require commercial general liability, product liability, and workers' compensation limits; set indemnity scope and notice procedures for claims.

Equipment & Storage

Document assigned refrigeration shelf space, dry storage, equipment use rules, maintenance responsibilities, and replacement procedures.

Termination & Remedies

Detail notice periods, cure opportunities for breaches, termination for cause, and post-termination access and property removal rules.

Step-by-Step: Completing the Agreement

Follow these practical steps to complete and exchange a signed Commissary Services Agreement.

  • 01
    1. Gather documents: Collect business licenses, health permits, and insurance declarations.
  • 02
    2. Draft terms: Define scope, fee schedule, and operational rules in clear language.
  • 03
    3. Review compliance: Confirm local health code and zoning compliance for the intended uses.
  • 04
    4. Sign and retain: Execute with authorized signers and store copies per retention rules.

Setting Up an Online Signing Workflow

Configure the digital signing process to capture intent, attribution, and a verifiable audit trail for enforceability.

Field Configuration
Signature Field Required for each authorized signer
Authentication Use email plus SMS code or stronger ID verification
Conditional Fields Show insurance upload only if vendor checks 'uses employees'
Notifications Enable email reminders and final copy delivery

Where to Send and Store the Signed Agreement

Identify destination and distribution channels so all parties and regulators can access executed copies when needed.

  • Primary Recipient: Commissary retains original executed copy
  • Vendor Copy: Vendor receives an identical executed PDF
  • Permitting Authority: Provide copies on request for health inspections
  • Digital Archive: Store in secure cloud with versioning and access logs

Digital Signing and File Format Considerations

Ensure the platform you use can export ISO-compatible signed PDFs, retain audit logs, and integrate with your document management system.

  • File Types: PDF and DOCX are widely accepted
  • Integrations: Look for Salesforce, NetSuite, Google Workspace support
  • Authentication: SMS, email, or advanced signer verification

Essential Information Fields to Include

Parties: Commissary and vendor legal names
Addresses: Full street address and ZIP
License Numbers: Food service and business licenses
Insurance: Carrier, policy number, coverage limits
Permits: Local health and zoning permit references
Payment Terms: Fee amounts and billing cycle

Common Timing, Notice, and Renewal Rules

Set explicit timing provisions so both parties understand effective dates, renewal windows, and cure periods.

Effective Date:

Agreement starts on the MM/DD/YYYY effective date entered

Term Length:

Specify fixed term (e.g., 12 months) and renewal mechanics

Renewal Notice:

Require written notice 30–90 days before expiration

Cure Period:

Allow a 10–30 day cure period for nonpayment or violations

Insurance Proof Due:

Require current certificates before initial occupancy

Penalties and Legal Risks of an Incomplete Agreement

Regulatory Fines: Health code violations and permit lapses can trigger civil penalties
Insurance Denial: Lack of required coverage may void claims
Contractual Liability: Indemnity clauses can create significant financial exposure
Operational Shutdown: Local authorities can suspend operations for noncompliance
Tax Penalties: Improper recordkeeping can lead to IRS penalties
Dispute Costs: Litigation or enforcement increases legal and operational costs

Common Mistakes to Avoid When Preparing the Agreement

  • Using vague scope language that leaves equipment, storage, or hours undefined, which leads to disputes over access and charges.
  • Failing to require current insurance certificates naming the commissary as additional insured, risking claim denials after an incident.
  • Not confirming local health or zoning permits for intended uses, which can lead to fines or immediate closure by authorities.
  • Allowing unsigned or improperly authorized signers to execute documents, potentially rendering the agreement unenforceable.

Illustrative Scenarios: How Agreements Are Used

Two practical examples show how clauses and timelines work in real operations.

Vendor Sharing Space

A food truck rents prep time and storage weekly

  • Parties set specific fridge shelf and dry storage allocations
  • The agreement required vendor to provide current insurance and health permit copies before first use and specified 10 days to cure any safety violations.

Caterer Short-Term Use

A caterer rents commissary space for a one-month event series

  • Parties define temporary equipment access and waste disposal responsibilities
  • The contract included a short-term fee schedule, a refundable security deposit, and immediate termination for public health violations.

eSignature Platform Pricing and Capabilities (for executing agreements)

Choose a compliant eSignature provider that supports audit trails, required authentication, and necessary integrations for your workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

FAQs: Common Legal and Practical Questions

Answers below address enforceability, signatures, permits, and common operational issues for Commissary Services Agreements.


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