The Food Truck industry has seen un[recedneted growth, and the fact that The Food Network and other shows that have shined the light on Food trucks has only fueled the business!
This video covers the 12 Dont's of running the Food Truck. There can be a number of things that can cause a problem and potentially cause you to lose money.
Here are some things to consider when starting a food truck
1. Maintenance Schedule
It is typically the responsibility of the truck owner to handle the regular maintenance of the truck. Prior to renting we strongly suggest you work out a plan for the upkeep of the truck and where the work will be done. If you are drafting a lease agreement, be sure to separate the responsibility of the repairs due to wear and tear (i.e. oil changes) vs. damage caused by the lessee.
2. Insurance
It is up to you if you want to include the insurance on the food truck you are leasing. Renters often provide basic auto insurance and leave it to the lessee to obtain supplementary insurance if they wish to do so (general liability, workers comp, etc.). Be sure to clearly define what you will and will not offer.
3. Security Deposits
Even if insurance will cover any major damage to the truck, a security deposit can come in handy. It can be used to cover any unpaid traffic or parking violations, unpaid claim deductibles, or small repairs that may not warrant an insurance claim. It also helps to ensure renters take good care of your truck.
4. Mileage Limits
Including limits for mileage in your lease agreement helps ensure the truck will be kept local. Due to the weight of the kitchen, food trucks don’t usually do well with long haul travel. It’s up to you if you want to make exceptions for lessees who want to attend festivals and events out of town. If it is more than 50 miles we recommend shipping the truck via flatbed.
5. Alterations / Modifications
In most cases, your renter will have chosen your truck because it has all the equipment he/she requires to operate. If you agree to allow modifications to the interior of the truck, be sure to check with your local health department. Changing the equipment may cause your current permits to be voided. Exterior modifications, like the installation of a graphic wrap, do not affect the permits of the truck but they can cause underlying paint damage. It’s a good idea to get a small deposit for paint touch-up if a wrap is to be installed. You can refund the money if the truck is returned with no external damage.