Reviewing a coffee machine or water cooler rental agreement

A coffee machine or water cooler rental is a small monthly charge attached to a long minimum term, an obligation to buy consumables from the supplier, a service commitment the supplier defines, and an exit charge for the remainder of the term. The agreement is the supplier's form. I review the agreement from the customer's side and return it marked up with a written explanation of what it commits the business to and the terms worth asking to change, for a fixed fee of £495 in three working days.

Who this is for

Offices, cafes, salons, gyms, surgeries, schools and other businesses in England and Wales renting a bean-to-cup coffee machine, a vending machine, a plumbed-in or bottled water cooler or a similar appliance from a supplier that also sells the consumables. The customer is a business; where the business is not a company the agreement may fall within consumer credit regulation.

What to look for in a coffee machine or water cooler rental agreement

The minimum term and the rolling renewal

The agreement will run for a minimum term and renew for a further minimum term unless notice is given in a window before expiry. The review compares the term with the life of the machine, which is short for a cooler and a vending unit, asks for the renewal to be monthly rather than a fresh fixed term, for notice to be valid whenever it is given before expiry, and checks the supplier's right to increase the rental during the term. Hire agreements with individuals, including sole traders and partnerships of up to three partners, can be regulated by the Consumer Credit Act 1974, which restricts enforcement and repossession.

Consumables: the tie, the minimum spend and the price

Coffee and water rentals are priced on the consumables: a minimum monthly spend or quantity on coffee, milk powder, cups or bottled water bought from the supplier, at prices the supplier can change. The review checks whether the customer may buy consumables elsewhere, asks for the minimum to reflect the customer's usage, for price increases to be capped and notified, for delivery charges to be stated, and for the supplier's right to substitute products to be limited. A tie of that kind between businesses is permitted, but a term fixing the price the customer charges its own customers would be resale price maintenance under section 2 of the Competition Act 1998.

Servicing, hygiene, breakdowns and the plumbed-in machine

The supplier will commit to servicing at intervals and to repairs within a response time, and the review checks that the commitments are stated, that a machine out of use beyond a stated period earns a rental credit and a right to a replacement, and who is responsible for sanitisation, filters and water quality. A plumbed-in cooler or coffee machine must be installed in compliance with the Water Supply (Water Fittings) Regulations 1999, which is the supplier's responsibility as installer, and the agreement should say so.

The equipment, the exclusions and the customer's obligations

The machine is hired, so section 9 of the Supply of Goods and Services Act 1982 implies that it is of satisfactory quality and fit for its purpose, and the supplier's terms exclude that. An exclusion in a hire contract is tested for reasonableness under section 7 of the Unfair Contract Terms Act 1977. The review checks the customer's obligations to insure the machine, to keep it at the premises, to use only the supplier's consumables and to allow access, and the charges for damage and for a machine that cannot be collected.

Exit charges, early termination and the salesperson's promises

The early termination charge in these agreements is the rental for the remainder of the term, sometimes with the minimum consumables spend added. The review tests it against the rule in Cavendish Square Holding BV v Makdessi [2015] UKSC 67, which strikes down a sum that bears no relation to the supplier's legitimate interest, and asks for a figure that gives credit for the machine's return and re-rental. Where the machine was placed after a cold call or a doorstep visit, the review compares what was said about a trial, a cancellation right or the length of the commitment with the document, because a false statement that induced the contract is actionable under section 2 of the Misrepresentation Act 1967 and misleading marketing to businesses is prohibited by the Business Protection from Misleading Marketing Regulations 2008. Interest on late payment either way is governed by the Late Payment of Commercial Debts (Interest) Act 1998.

What it costs

Standard review, £495. Marked-up document and a written explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the contract review page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• Your own contract returned with my amendments as tracked changes, plus a clean version with every change accepted, ready to send to the other side
• Comments in the document where a point needs explaining
• A written explanation of what I have changed and why, by email or as an attachment if it is lengthy, marking the points I would hold firm on and the ones that are negotiable
• A view on what is normal market practice and what is the other side pushing their luck
• One round of follow-up questions by email, included

What is not included

• Negotiating directly with the other side, which I quote separately once I know who is on the other side. Where the other side is willing to share a live document, I can work in that document directly
• Drafting a replacement contract from scratch
• Advice on the law of any jurisdiction other than England and Wales
• Tax, accounting or regulatory advice
• Disputes about a contract that is already signed

Questions I am often asked

We were told it was a free trial and now we have a three-year contract. What can we do?

That depends on what was said, by whom and whether the document excludes reliance on it. The review checks the agreement, the non-reliance clause and the marketing, and sets out whether a misrepresentation claim or the misleading marketing rules give you a way out.

Can we buy our coffee from someone else?

Only if the agreement allows it, and the rental is priced on the assumption that you will not. The review checks the consumables tie and the minimum spend, and asks for the minimum to match your usage and for price increases to be capped.

What will it cost to end the agreement early?

The termination clause decides, and it can be the rental and the minimum consumables spend for the whole remaining term. The review checks whether the charge reflects the supplier's real loss and asks for a settlement figure that does.

Related guidance and services

• Contract review, £495, the service this page describes
• Terms and conditions drafting, £995
• Reviewing a photocopier or office equipment lease
• Reviewing an equipment lease or hire purchase agreement

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.