How to Get Out of a Uniform Rental Contract (part 1)
Are you wondering how to cancel a contract with your uniform or facility supply rental vendor? Simply put, this is not easy. You will quickly discover that the contract you were pressured to sign by the Sales Rep does not benefit both parties equally. Shocking, right? These companies rely on the fact the business owners are busy and not legal experts. They write these agreements to be vague on matters relating to their responsibilities to you as a supplier, yet they contain black and white, iron-clad terms on what you owe them for early termination.
There are two ways to get out.
Option 1: The first way is simple…sort of. You can wait for the contract to expire. Easy enough, right? Actually, even this is difficult to do. Buried deep in the agreement, most rental contracts state the following;
“Renewal will be automatic for another term unless either party gives the other party written notice of termination at least 60 days before the end of the then current term by certified mail, return receipt requested.”
What does this mean? You need to get a copy of your service contract from them, look at the exact date it was signed, then do the math to figure out your expiration date. This is typically 60 months from the date it was signed, but varies by vendor.
Now, you have have 60 days before this date to send a certified letter saying you reject the auto renewal of your agreement. This letter does not need to be complicated. Put it on your business’ letterhead, address it to your local branch for the vendor, and write something similar to this;
“To whom it may concern,
This letter serves as formal notice of a rejection of the automatic renewal of the service contract between (name of vendor) and (name of your business).
Signed,
Business Owner”
Send it certified through the US Post Office and make sure to get a return receipt (i.e. make them sign for the letter). Now, it is a run-out the clock situation. Make sure to mark your final day on your calendar and tell your driver or their manager to stop service on a date of your choosing.
The second piece to this would be to determine what your “minimum weekly invoice charge” will be. Standard across the industry is $25 per week, for the remainder of the term. It will be detailed on your service contract. Cut as much product as you can until you reach this minimum threshold, and ride out the remainder of the agreement.
To be continued...
