Do food trucks legally need a commissary agreement?

In most U.S. jurisdictions, yes. Health departments rarely permit a food truck to use a home kitchen or street parking as its base. They require a written agreement with a licensed commissary that provides food prep, potable water, wastewater disposal, and overnight storage, and many require the commissary to sign a "commissary letter" verifying the arrangement before they issue your mobile food permit.

How much does a food truck commissary cost per month?

Monthly fees commonly run $400–$1,200, depending on the market and what is included. Shared kitchens that charge hourly typically run $15–$35 per hour of prep time, plus separate fees for cold or freezer storage ($50–$200/month) and overnight parking ($150–$400/month). Always confirm whether the quoted rate includes water fill, gray-water dumping, and grease disposal or bills them separately.

What is a commissary letter and who signs it?

A commissary letter (sometimes called a commissary agreement form or letter of agreement) is a short document the commissary operator signs confirming that your truck uses their facility as its base of operations. The health department requires it as proof before issuing or renewing your mobile food facility permit. It is separate from, but should match, your full commissary rental agreement.

Can a commissary terminate my agreement and shut down my truck?

Yes. Because your mobile food permit is tied to the commissary, losing the agreement can suspend your ability to operate legally. That is why the termination clause matters: negotiate for written notice (30–60 days) for convenience terminations, a cure period for fixable breaches, and a commitment that the commissary will not revoke the commissary letter without that same notice.

Does the food truck operator need insurance for the commissary?

Almost always. Commissaries typically require the truck operator to carry general liability insurance, $1 million per occurrence is standard, and to name the commissary as an additional insured. You may also need commercial auto coverage for the truck and workers compensation if you have employees. Provide a certificate of insurance before your first day and keep it current.

Food Truck Commissary Agreement Guide

Learn what a food truck commissary agreement should include: kitchen access, storage, fees, the commissary letter, insurance, and common mistakes to avoid.

If you run a food truck, the most important contract you sign may not be with a customer or a caterer, it's with your commissary. A commissary is the licensed commercial kitchen a mobile food business uses as its legal base of operations: where you prep food, store inventory, fill potable water, dump gray water, and often park overnight. In most of the United States, you cannot get a mobile food permit without one.

This guide explains what a food truck commissary agreement is, every term it should contain, realistic costs, the "commissary letter" health departments demand, and the mistakes that get trucks shut down.

What is a food truck commissary agreement?

A food truck commissary agreement is a contract between the commissary operator (the owner of the licensed kitchen) and the mobile food operator (you). It does two jobs at once:

Operationally, it spells out exactly what facilities and services you get (kitchen time, storage, water, waste disposal, parking) and what you pay for them.
Legally, it satisfies the health code. Most local health departments treat a food truck as an extension of a fixed kitchen and will only issue a mobile food facility permit once you prove you have a commissary base. The agreement (plus a signed commissary letter) is that proof.

Because your permit depends on it, this contract carries more leverage over your business than almost any other. A weak or vague one can leave you locked out of the kitchen on a Saturday morning, hit with surprise fees, or, worst case, without a valid permit.

Why health departments require a commissary

Food safety regulators want every food handled by your truck to trace back to an inspected, plumbed, refrigerated facility. A residential kitchen or a parking lot doesn't qualify. The commissary covers the gaps a truck physically can't:

Potable water filling from an approved source
Wastewater (gray water) and grease disposal into proper sanitary drains
Cold and dry storage that holds temperatures and keeps food off the ground
Warewashing: a three-compartment sink and often a separate handwashing sink
Overnight parking in a secure, often plumbed location

When the inspector reviews your permit application, they're checking that all of this exists and that you have a documented right to use it. That documented right is your agreement.

Key clauses in a food truck commissary agreement

1. Parties and facility identification

Name both parties by full legal entity name, and identify the commissary by its physical address and health permit / facility number. The permit number matters: the health department cross-references it. If the commissary's own license lapses, your base of operations evaporates, so it's reasonable to require the commissary to keep its facility permit in good standing for the life of your agreement.

2. Scope of services: be specific

This is where most disputes start. "Use of the kitchen" means nothing until you define it. Spell out each service and whether it's included or billed separately:

Food prep space: square footage or station, and which equipment (ranges, ovens, prep tables, hoods)
Kitchen access hours: e.g., "24/7 keycard access" vs. "by reservation, 6 a.m.–10 p.m."
Dry storage: shelving units or square footage
Refrigerated and freezer storage: number of shelves or cubic feet, and whether it's shared or dedicated
Potable water fill and gray-water / grease disposal
Restroom and handwashing access
Overnight truck parking: secured lot, electrical hookup, and whether it's plumbed

Example language: "Operator shall have non-exclusive access to Prep Station 3 and one (1) dedicated reach-in refrigerator, plus shared use of dry shelving (one 4-foot unit), potable water fill, and gray-water disposal, available Monday–Saturday between 5:00 a.m. and 11:00 p.m. by online reservation."

3. Fees, deposits, and what triggers extra charges

Commissary pricing comes in a few shapes, and you should know which one you're signing:

Flat monthly membership: common for full-time trucks; typically $400–$1,200/month depending on the market and inclusions.
Hourly kitchen rental: common at shared/incubator kitchens; $15–$35/hour of prep time.
À la carte add-ons: cold storage $50–$200/month, overnight parking $150–$400/month, extra water fills, grease disposal surcharges.

Most agreements also require a security deposit of $200–$500. Pin down:

What the base fee includes vs. what's metered
When fees are due and the late-fee amount
How much notice is required for a price increase (push for 30–60 days' written notice)
Whether the deposit is refundable and the timeline for its return after move-out

4. The commissary letter / verification

Separate from the rental terms, the agreement should obligate the commissary to provide and maintain a commissary letter, the short signed form your health department needs to issue or renew your permit. Tie its survival to the contract: the commissary should agree not to withdraw the letter without the same notice that applies to termination. Otherwise a landlord dispute can instantly invalidate your permit.

5. Insurance and indemnification

Commissaries almost always require the truck operator to carry general liability insurance, $1 million per occurrence is standard, and to name the commissary as an additional insured. Expect to provide a certificate of insurance before day one. You may also need commercial auto coverage and, if you employ staff, workers' compensation.

The agreement will usually include a hold-harmless / indemnification clause shifting responsibility for your operations onto you. Read it closely so it's mutual where it should be. You shouldn't be on the hook for the commissary's own negligence (a faulty walk-in that spoils your inventory, say). If you're new to this language, see our guide on how to write a hold-harmless clause.

6. Cleaning, equipment use, and shared-space rules

Shared kitchens live and die by housekeeping. The contract should state who cleans what, the condition equipment must be returned in, and the consequences of leaving a mess (cleaning fees, warnings, eventual termination). If you store food in shared coolers, define labeling and the commissary's right to discard unlabeled items.

7. Term, renewal, and termination

Because your permit rides on this agreement, the termination terms are critical:

Term length: month-to-month offers flexibility; a 6–12 month term often buys a better rate.
Termination for convenience: negotiate 30–60 days' written notice in both directions.
Termination for cause: a cure period (e.g., 10 days) to fix a fixable breach before you lose access.
Effect on the commissary letter: confirm it stays valid through any notice period so you have time to secure a new base.

8. Governing law and dispute resolution

Specify the state whose law applies and where disputes are resolved. For agreements with significant monthly fees, a clause requiring mediation before litigation can save both sides money.

How to set up a commissary arrangement: step-by-step

Step 1: Confirm your health department's rules. Requirements vary by county. Ask specifically what the commissary letter must say and whether the commissary itself needs a particular license class.

Step 2: Shortlist commissaries by what you actually need. A breakfast truck filling water and parking overnight needs different things than a from-scratch kitchen prepping ten hours a day. Match the facility to your workflow.

Step 3: Get the full fee picture in writing. Ask for the all-in monthly cost including water, gray-water, grease, storage, and parking, not just the headline rate.

Step 4: Review the agreement against this checklist. Scope, fees, insurance, commissary letter, termination, cleaning. Flag anything vague.

Step 5: Verify the commissary's own permit is current. Ask for the facility's health permit number and confirm it's active before you sign.

Step 6: Provide your certificate of insurance. Get the commissary added as an additional insured and hand over the COI before your first prep day.

Step 7: File the commissary letter with your permit application. Don't start operating until your mobile food permit is issued.

Common mistakes to avoid

Treating the commissary letter as the whole contract. The letter satisfies the health department, but it doesn't protect you on fees, access, or termination. Sign a full agreement too.
Assuming "kitchen access" means anytime. A truck that preps for a Saturday market needs Friday-night or early-morning hours. If access is reservation-only and slots fill up, you're stuck. Lock down hours in writing.
Ignoring the disposal details. Gray-water and grease disposal are exactly what the health code cares about. If they're not clearly included, you may be violating your permit without realizing it.
No notice on price hikes or termination. Without a notice clause, a commissary can raise rent or end the deal on short order, and your permit goes with it.
One-sided indemnification. Don't accept responsibility for the commissary's equipment failures or facility hazards. Push for balance.
Letting insurance lapse. An expired COI is a common reason commissaries suspend access. Calendar your renewal.
Verbal side deals. "Sure, you can park out back" means nothing if it's not in the agreement. Get every promise documented.

When a commissary agreement overlaps with other contracts

A commissary deal rarely stands alone. If you lease or finance the truck or trailer itself, that's a separate contract, see food trailer lease agreement terms and contract terms for renting a food trailer. If you book private events, you'll also want a solid catering agreement. And if you co-own the business, sort out responsibilities in a food-service partnership contract. Keeping each relationship in its own clear document prevents one dispute from cascading into another.

Related guides

Generate Your Food Truck Commissary Agreement with Contractable

A commissary agreement protects the single thing your food truck can't operate without: its legal base. Getting the scope, fees, insurance, and termination terms right is the difference between a smooth season and a Saturday locked out of the kitchen. Contractable generates a customized food truck commissary agreement in seconds, with the clauses health departments and commissary operators expect, so you can review, sign, and start prepping. No lawyer or legal background required.