Common Food Truck Legal Mistakes you can Easily Avoid

Standing out from your competition is something required for survival in the food truck business. However, there are some things that are quite similar to a lot of food truck businesses.

Examples include the following food truck legal mistakes. These legal mistakes can go a long way to determine if your food truck business becomes successful or you are bogged down in legal difficulties.

Doing Food Truck Legal Agreements Yourself

The internet is awash with a lot of services and websites that offer you the ability to create legal agreements just by filling some forms. This is usually one mistake food truck business owners make.

Trying to create a complex legal agreement just by filling online forms is a sure path to disaster.

This is because these agreements usually contain a lot of legal terms that you will not understand if you do not have legal training. Without legal training, you will not be able to tell when an important part of the agreement is missing. You also won’t be able to modify the legal terms to suit your own situation.

Not Following Your Employment Agreement

When you employ workers for your food truck business, you have to agree on terms like the pay, working hours and other conditions of employment. A lot of food truck business owners usually decide to disregard this agreement on the fly. This exposes them to costly litigation from their employees. Something they would have avoided by sticking to the employment agreement.

Not Having A Buy-Sell Agreement

You will need a buy-sell agreement if your food truck business has other partners or multiple owners. The buy-sell agreement determines what happens if one of the owners or partners dies or decides to leave the business. Not having a buy-sell agreement can lead to dispute when one partner decides to leave, dies, or is unable to continue with the business.

Not Getting Your Agreements In Writing

You might be tempted to make a lot of your contracts with just a handshake. You might reason that an oral agreement has lesser complexities compared to a written one.

However, when it comes to important contracts, not having something in writing can be quite disadvantageous. This is because it is usually harder to establish the existence of an oral contract. Even if the other party agrees there was a contract, there could be disagreements on the details.

On the other hand, if you have written down the agreement, both parties have a point of reference that can be used to resolve any possible disputes.

Keeping Your Food Truck Lawyer In The Dark

Although you do not need a lawyer at every point of your business, you need to review decisions and actions with your lawyer on a regular basis. During these meetings, your lawyer can give you valuable legal advice that will benefit your food truck business in the long run.