service contract – floresville coffee co.
Service contract overview
This Service Agreement (the “Agreement”) outlines the terms and conditions between Floresville Coffee Company (“Provider”) and its client (“Client”) for coffee services. It’s effective as of January 1, 2020, and initially covers a two-year period, automatically renewing annually unless 60 days’ written notice is provided by either party. All terms are subject to adjustments with mutual agreement. This contract details coffee sourcing, pricing, equipment, delivery, and termination policies.
Coffee sourcing and certifications
Provider is committed to offering high-quality, certified coffees. Currently, the agreement specifies three USDA Organic Certified coffees: Honduras Copan (Cafescor Coop), Mexico Bella Vista (POTUS 44 Roast), and Honduras Capucas (Decaf). Provider prioritizes sourcing coffees with additional certifications such as Fair Trade, Direct Trade, Rainforest Alliance (RFA), and UTZ Certified. Client will be informed of these certifications, and a tasting session will be offered before any coffee changes.
Coffee pricing and adjustments
Coffee pricing is influenced by factors including agreement length, bulk purchase quantities, and importer availability. For a one-year agreement and monthly purchases between 50-300 pounds, the price is $13.00 per pound. Longer-term agreements (two or three years) offer discounted rates: $11.50 per pound for 75-300 pounds per month and $10.00 per pound for 80-300 pounds per month. These prices reflect a commitment to consistent supply and quality.
Equipment provisions
Provider retains ownership of all coffee equipment provided under this agreement. Provider is responsible for the equipment's maintenance, replacements, and sanitation. The equipment is warranted for 12 months, with Provider covering parts and service during that period. Client is obligated to purchase a minimum of 50 pounds of coffee per month to receive the equipment free of charge. Falling below this minimum may incur a monthly rental fee, not exceeding $100.
Delivery and quality assurance
Free weekly coffee and equipment maintenance delivery will be scheduled in coordination with the Client. Both delivery and maintenance are intended to occur simultaneously whenever possible, streamlining operations. Provider strives to maintain consistent coffee quality and equipment functionality, ensuring a seamless service experience for the Client.
Termination clause
This agreement can be terminated by either party due to a breach of contract. The non-breaching party must provide written notice and a 15-day cure period to rectify the issue. Upon termination, the Client must return the coffee equipment within 30 days. Provider reserves the right to discontinue service due to factors such as product unavailability, vandalism, or insufficient volume.
Payment terms
Payment is due within 15 days of the invoice date (Net 15). This ensures timely payments and allows for efficient financial planning. The signatures from authorized representatives of both parties are valid and grant Floresville Coffee Co. the authority to execute this agreement. Digital signatures are considered legally binding.