Key Takeaways
- Agreements with large national providers commonly run three to five years, and some run longer.
- Most renew automatically unless you cancel in writing inside a notice window, often 90 to 180 days before the term ends.
- Leaving early usually triggers a buyout fee, often figured as about half your average weekly invoice times the weeks left.
- Yearly price increases and charges outside the per-piece price, like fuel, service and loss fees, are where costs grow.
- Find your renewal date and notice window now, even if you aren't planning to switch.
Why Linen Contracts Matter
Most restaurants, hotels and shops sign a linen agreement once and don't look at it again until something goes wrong. By then the terms that matter most, the renewal date and the notice window, have often passed.
Large national providers typically use multi-year agreements. The terms below appear again and again in agreements that cities, schools and other public buyers have published, and in the providers' own guidance to customers. Your agreement may differ, so read yours line by line.
The Terms to Find in Your Agreement
Term Length
Many commercial linen agreements run three to five years, and some public agreements run six. Some are written in weeks, such as 156 weeks, which is three years. The clock usually starts on your first delivery, not the day you signed.
Automatic Renewal
Most agreements renew automatically unless you cancel in writing before a deadline. Some renew for another full multi-year term, others for one year at a time. If you miss the deadline, you're usually committed for the next term.
The Notice Window
The notice window is the stretch of time when you're allowed to cancel. It's commonly 90 to 180 days before the term ends, though some agreements use 60. Notice often has to be in writing, sometimes by certified mail to a specific address. Notice sent too early or too late may not count.
Early Termination and Buyout Fees
Leaving before the term ends usually triggers a fee, often called liquidated damages. Common formulas include:
- A percentage of your average weekly charges, often 50%, multiplied by the weeks left in the term
- The replacement cost of all the linens assigned to your account
- Whichever of those two is greater
Courts have generally enforced these clauses when the amount is a reasonable estimate of the provider's loss. On a long term, the fee can reach thousands of dollars.
Service Failure Clauses
Many agreements let you end service if the provider fails to fix a problem after you report it in writing. These clauses usually require a written complaint and a set period for the provider to correct it. If you're having service problems, document each one in writing as it happens.
Price Increases
Many agreements allow a price increase every year. Some cap it at a fixed percentage, often around 5%. Others tie it to the Consumer Price Index or use whichever is greater. Over a five-year term, those increases compound, and they often don't apply to the extra charges below, which can rise separately.
Charges Outside the Per-Piece Price
Look for:
- Minimum weekly or per-delivery charges that apply even in a slow week
- Service, delivery, fuel or environmental charges added on top of the per-piece price
- Loss and replacement charges for items the provider says were lost or damaged
- Preparation or emblem fees for setting up new items or logos
- Exclusivity clauses that make the provider your only linen supplier for the term
What These Charges Look Like on an Invoice
Your weekly invoice shows how the agreement works in practice. Line by line, check:
| Invoice line | What to ask |
|---|---|
| Per-piece prices | Have they gone up since you started? By how much each year? |
| Service or delivery charge | Is it a flat fee, and was it in your original quote? |
| Fuel, energy or environmental charge | Is it a fixed amount or a percentage of the invoice? |
| Loss or replacement | Are you charged every week? Can you see what was lost? |
| Minimum charge | How often does it apply? |
If you can't explain a line, ask your provider in writing for the clause in the agreement that allows it.
How to Protect Yourself
- Find your renewal date and notice window now, and put both on your calendar.
- Keep a copy of the full agreement, including any terms printed on the back or posted online.
- Report service problems in writing, so a service failure clause is available if you need it.
- Send cancellation notice the way the agreement requires, and keep proof that you sent it.
- Count what's delivered and picked up for a few weeks before you leave, so replacement charges don't surprise you.
- Line up your next provider first, so there's no gap in clean linens.
How Five Star Linens Is Different
None of the terms above apply to service with us, because there's no agreement to sign:
- No contract. There's no term, no renewal date, no notice window and no buyout fee. You can stop service whenever you want.
- One price list. You're billed by the piece, with no fuel or delivery fees added on top.
- Counted both ways. Every pickup is counted at our facility in Dalton, so your invoice follows what was actually washed, and a shortage can be traced.
- A direct line. When you have a question about an invoice, you call the facility that washed your linens.
If you're under contract with another provider now, our free invoice review includes finding your renewal date and notice window, so you know when you can switch without a buyout fee. For the step-by-step process, see how to get out of a linen service contract.
Frequently Asked Questions
How long are most linen service contracts?
Agreements with large national providers commonly run three to five years. Some are written in weeks, such as 156 weeks for three years, and some public agreements run six years. The term usually starts on your first delivery, not the day you signed.
Can I cancel a linen contract early?
Usually only by paying an early termination or buyout fee. Many agreements also let you leave if the provider fails to fix service problems after written notice. Check your agreement for both clauses, and have an attorney review it before you stop service.
What happens if I miss the notice window?
In most agreements the contract renews automatically, either for another full term or for one year at a time. The next chance to cancel without a buyout fee is the notice window before the new term ends.
How much is a linen contract buyout fee?
A common formula is a percentage of your average weekly charges, often 50%, multiplied by the weeks left in the term. Some agreements use the replacement cost of the linens assigned to your account instead, or whichever amount is greater.
Does Five Star Linens use contracts?
No. Service is billed by the piece from one price list, with no fuel or delivery fees, and you can stop service whenever you want.
This guide is general information, not legal advice. Have an attorney review your agreement before you act on it.