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Tire Shop Agreement

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TIRE SHOP AGREEMENT

This Tire Shop Agreement ("Agreement") is entered into by and between:

RECITALS

WHEREAS, Service Provider operates a tire sales and installation business and maintains facilities, equipment, and trained personnel to provide tire-related services; and

WHEREAS, Customer desires to engage Service Provider to perform tire inspection, sales, mounting, balancing, repair, storage, and related services on the terms and conditions set forth herein; and

WHEREAS, the parties intend for this Agreement to govern all work orders and transactions for tires and related services between them unless otherwise agreed in writing.

SCOPE OF WORK

Service Provider will provide the services described below. Customer acknowledges that specific tasks, quantities, and materials will be set forth in individual work orders or invoices and that such documents are incorporated by reference into this Agreement.

PAYMENT TERMS

Customer shall pay Service Provider the fees for parts and labor as set forth in each work order or invoice. Payment obligations include the following:

Any remaining balance is due upon completion of work and prior to release of tires or vehicles. Service Provider may require a deposit not exceeding the amounts stated in the applicable work order.

STORAGE, DISPOSAL, AND LIENS

Service Provider may store Customer's tires or other property at Customer's risk and may charge reasonable storage fees for items left beyond completion. If Customer fails to pay outstanding charges after notice, Service Provider may exercise a mechanic's or storage lien as permitted by law and sell or dispose of the property in accordance with applicable procedures.

TERM AND TERMINATION

This Agreement shall commence on the date signed below and shall continue until terminated by either party in accordance with this section.

Commencement Date:

Termination Date (if applicable):

Either party may terminate for material breach that remains uncured after the notice period specified above. Termination shall not relieve Customer of obligations to pay for services rendered prior to termination.

WARRANTIES; LIMITATIONS

Service Provider warrants that labor performed will be carried out in a competent and workmanlike manner for a period of time specified in the applicable invoice or work order. Except for express written warranties provided in a work order, Service Provider disclaims all other warranties, express or implied, including merchantability and fitness for a particular purpose to the fullest extent permitted by law.

Customer is responsible for inspecting tires and authorizing services. Service Provider shall not be liable for pre-existing tire damage not reasonably discoverable on inspection or for consequential damages except as expressly provided in this Agreement.

CONFIDENTIALITY

Each party shall keep confidential any non-public business, technical, or customer information received from the other party in connection with this Agreement and shall not disclose such information except to employees, contractors, or agents on a need-to-know basis or as required by law. Confidential information does not include information that is publicly available through no fault of the receiving party or that is independently developed without use of the disclosing party's confidential information.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state in which Service Provider's principal place of business is located, without regard to its conflict-of-law principles.

ENTIRE AGREEMENT

This Agreement, together with any written work orders and invoices expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, negotiations, and understandings, whether written or oral. Any amendment must be in writing and signed by both parties.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or such other address as a party may designate in writing. Notices are effective upon personal delivery, confirmed electronic transmission, or three (3) days after deposit with a nationally recognized overnight courier.

ADDITIONAL PROVISIONS

The parties acknowledge that they have read and understood this Agreement, that they are authorized to enter into it, and that they voluntarily accept its terms.

Service Provider (Tire Shop) — Printed Name:

Party Label:

Authorized Signature:

By:

Date:

Date:

Customer — Printed Name:

Party Label:

Authorized Signature:

By:

Date:

Date:

Enter text✕

What a Tire Shop Agreement Covers

A Tire Shop Agreement is a written contract between a shop and a customer that documents services, parts, pricing, warranties, and liability allocation for tire sales, mounting, balancing, repair, storage, or disposal. It sets expectations for timing, payment terms, vehicle access, and authorization to work on the customer’s vehicle. The agreement can also include damage waivers, roadside assistance add‑ons, and inspection findings. Properly drafted agreements reduce disputes, clarify warranty scope, and create an evidentiary record for billing, insurance, and regulatory purposes.

Why a Formal Agreement Benefits Shops and Customers

A written Tire Shop Agreement creates clear expectations on services, costs, timelines, and liability allocation, reducing disputes and supporting insurance or warranty claims.

Why a Formal Agreement Benefits Shops and Customers

Who Typically Prepares or Signs This Agreement

These agreements are used by service providers and customers to document terms before work begins.

  • Independent tire shops and auto repair centers with walk-in customers or appointments, documenting services and payment terms.
  • Fleet managers and commercial vehicle operators who need standardized terms, invoicing, and service records across multiple vehicles.
  • Franchise dealers and national service chains that enforce uniform warranty, returns, and storage policies across locations.

Clear role identification (shop representative, vehicle owner, authorized agent) speeds authorization and reduces signature disputes.

Step-by-Step: Filling Out a Tire Shop Agreement

Follow these sequential steps to complete the agreement accurately and avoid common disputes.

  • 01
    1. Identify Parties: Enter full legal names and contact details for the shop and vehicle owner.
  • 02
    2. Describe Services: List tires, part numbers, labor tasks, and any inspection notes.
  • 03
    3. Set Pricing: Show unit prices, labor rates, taxes, and total estimate or fixed price.
  • 04
    4. Sign and Date: All required signers sign and date; note any authorization codes or PO numbers.

How to Configure a Digital Agreement Workflow

Set up fields, routing order, and notifications so the shop and customer complete the agreement without errors.

Field Configuration
Signature Field Assign to customer; required
Date Field Auto-fill MM/DD/YYYY on signer action
Payment Request Optional: collect deposit or full payment
Routing Order Shop rep → customer → fleet admin (if applicable)

Typical Execution Flow for Electronic Agreements

A standard digital workflow moves the document from shop to signer and captures an audit trail for recordkeeping.

  • Prepare Document: Shop uploads agreement and places fields.
  • Send to Signer: Email or link sent to vehicle owner or agent.
  • Signer Authenticates: Authentication via email link, SMS code, or stronger ID check.
  • Completion and Archive: Signed copy and audit log saved to shop records.

Technical Considerations for eSigning and Storage

Use a solution that supports secure signatures, audit trails, and common file formats for customer records.

  • File Formats: Accept PDF and DOCX for predictable rendering.
  • Authentication: Email or SMS codes; add KBA for higher risk jobs.
  • Integrations: Connect to POS, CRM, or cloud storage for archiving.

Ensure the chosen platform meets industry compliance needs and can export signed documents and audit trails for insurer or audit requests.

Essential Clauses to Include in Every Agreement

A well-rounded Tire Shop Agreement balances clarity, liability limits, and operational details to protect both parties.

Scope of Work

Describe services precisely, including tire brand/model, mounting, balancing, repairs, and inspection items to avoid disputes over omitted tasks.

Pricing and Payment

Specify itemized costs, deposits, payment methods, late fees, and refund policy so both parties understand financial obligations.

Warranties

Spell out manufacturer and shop warranties, duration, coverage limits, and any conditional maintenance required to preserve warranty rights.

Liability Limitations

Limit shop liability for consequential damages and define maximum recovery (e.g., repair cost) to manage risk exposure.

Authorization to Work

Include written authorization allowing the shop to operate, move, or store the vehicle and to dispose of defective tires if specified.

Dispute Resolution

State governing law, venue, and whether arbitration or small claims will be used for disputes to reduce litigation costs and uncertainty.

Security and Compliance Elements to Track

Encryption in Transit: TLS 1.2/1.3
Encryption at Rest: AES-256
Audit Trail: Timestamped logs
Regulatory Standards: ESIGN and UETA
Healthcare Data: HIPAA (BAA required)
Certifications: SOC 2 Type II

Common Preparation Errors to Avoid

  • Using vague service descriptions that create scope disputes later; list parts and labor tasks explicitly, including brand and part numbers where relevant.
  • Failing to obtain an authorized signature from the registered vehicle owner or documented agent, which can invalidate permission to operate or dispose of tires.
  • Omitting payment terms or deposit requirements, leading to collections issues when customers dispute invoices after service completion.
  • Neglecting to note preexisting vehicle damage or tire conditions with photos or written inspection, increasing liability and warranty disputes.

Risks and Consequences of an Incorrect Agreement

Contract Voidance: Missing authorization
Liability Exposure: Uncapped damages
Insurance Denial: Insufficient documentation
Payment Disputes: Unclear terms
Regulatory Risk: HIPAA breach (if PHI involved)
Reputational Harm: Frequent customer complaints

Typical Timelines and Deadlines in the Agreement

Include clear timeframes for completion, claims, and payments so obligations are enforceable and auditable.

Service Completion:

Specify days/hours for work completion or an exact date.

Payment Due Date:

State net terms (e.g., due on receipt, NET 30) and late fee schedule.

Warranty Claim Window:

List warranty period and claim procedure for repairs or replacements.

Storage or Disposal Notice:

Specify notice period before disposal of stored tires (commonly 30–60 days).

Estimate Validity:

State how long the price estimate remains valid (e.g., 14 days).

Key Milestones from Estimate to Final Invoice

Track milestone dates to confirm progress, authorization, and final billing stages for each job.

01

Estimate Issued

Shop provides itemized estimate with parts, labor, and taxes; customer receives written copy.

02

Customer Approval

Customer signs estimate or authorizes work online or in person; note deposit if required.

03

Work Performed

Shop completes mounting, balancing, and inspections; documents any additional findings needing authorization.

04

Final Billing

Shop issues final invoice showing adjustments, captures payment, and provides signed receipt to customer.

Frequently Asked Questions About Tire Shop Agreements

Answers to common questions about signatures, validity, signing authority, and storage for Tire Shop Agreements.


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