Forecourt operators are signing more leases and ‘as-a-service’ deals for EV chargers and valeting equipment, and many are selling recurring services to customers too. It is important not to get caught out with unfair contract terms, warns David Emery, a partner in Winckworth Sherwood’s corporate team.
So, what do you need to know about unfair contract terms when leasing EV chargers or valeting kit and when dealing with your customers?
The short answer is this: keep your customer terms clear and honest, and be tough on any lease clause that ties your hands, shifts risk unfairly or makes it costly to leave. UK consumer law expects fairness and transparency, and the regulator has sharp teeth. In business-to-business leases, limits on liability and “gotcha” terms still have to be reasonable. A few simple checks will keep you on the right side of the line and protect your margins.
Why this matters now
As more sites add chargers and modernise wash kit, suppliers are offering long-term packages that bundle hardware, software, maintenance and sometimes revenue sharing. The headlines can look attractive, but the small print decides what happens when things go wrong, costs rise or your plans change. At the same time, new consumer rules are clamping down on “subscription traps”, hidden charges and misleading offers. That brings two sets of risks for forecourts: being stuck in one-sided supplier contracts, and being challenged over how you sell to customers on-site.
Leasing EV chargers or valeting equipment: the key watch-outs
Start with liability and remedies. Many templates cap the supplier’s liability at a very low figure and exclude losses from downtime. A fairer position is a sensible cap linked to the contract value and no exclusion for direct loss when the kit is down due to the supplier. You should not end up carrying all the pain if the kit fails. Look hard at early exit fees too. A term that makes you pay all remaining rentals with no discount or mitigation looks like a punishment, not a fair estimate of loss, and can be challenged or negotiated.
Renewals and price changes deserve special attention. Auto-renewal of a three-to-five-year term is not illegal, but it should be clearly flagged with plenty of notice and a simple opt-out. If the supplier can change prices “from time to time”, ask for a link to a published index with a cap, or a right for you to exit if the increase goes beyond that cap. Where revenue is shared, build in transparency on tariff setting and reporting so you can see how your income is calculated.
Service levels should be practical and measurable. “Reasonable endeavours” and vague targets are weak. Ask for defined response and fix times, an uptime target and meaningful service credits. Credits should not stop at a token cap; they should give a real incentive to put things right quickly. If the supplier wants site-wide exclusivity, pair it with performance commitments and rollout milestones. Exclusivity without performance ties you in without leverage.
Do not forget the nuts and bolts. Spell out who is responsible for surveys, groundworks, permissions and grid upgrades. If landlord consent or network works delay the programme, each party should carry the risks they control. At the end of the term, agree a fair approach to removal and making-good that reflects the limited footprint of the kit, not a full rebuild of the forecourt. Keep control of site access and insist the supplier remains fully responsible for any subcontractors.
Your customer terms: keep them clear, honest and easy to use
When selling to consumers, the law asks a simple question: is the term transparent and fair, or does it create a significant imbalance against the customer? In practice, that means obvious pricing and “no nasty surprises”. If you advertise a 99p wash, do not reveal mandatory extras at the till. If you sell wash passes or memberships, show key features upfront, explain how to cancel and make cancellation as easy as sign-up. The Competition and Markets Authority can now take direct action and seek meaningful penalties for unfair practices, so it pays to keep things clean.
Think about context and vulnerabilities. Forecourt customers decide quickly and often from a car window, so signage must do the heavy lifting. Avoid pressure tactics, fake “limited time” claims or small print that changes the deal after the fact. Train staff on what they can and cannot say, and review the whole journey from poster to payment to make sure a reasonable customer would understand the price and the key conditions.
What is “reasonable” in business contracts
In business-to-business deals, the law does not ban tough terms, but it does expect reasonableness. You cannot exclude liability for death or personal injury caused by negligence. Caps on liability should reflect the size and risk of the contract. Early termination charges should reflect real loss, not act as a deterrent. Unilateral changes to price or service without a matching right for you to exit are unlikely to feel fair and are worth pushing back on.
If a clause would make you say “I would never have agreed to that if it had been explained to me plainly”, it probably needs changing.
Quick hygiene checks that catch most problems
Walk your customer journey yourself. Is the full price obvious before the customer commits? Are any ongoing payments and the cancellation route clearly shown and easy to use? For supplier leases, jump straight to term and renewal, price variation, service levels, liability, termination and data access. If those seven areas look balanced, you are most of the way there. Get any sales promises written into the contract; if it matters to you operationally or financially, it belongs in the document, not in an email.
Final thought
Fair, clear terms are not just a legal nicety; they keep revenue steady and relationships healthy. With your customers, aim for simple, honest and an easy to cancel option. With your suppliers, aim for balanced risk, proportionate remedies and no traps. If a clause feels “not fair”, it probably is not. Ask for it to be fixed, and explain why in practical terms. Most reputable suppliers will move when you put it that way, and you will sleep better knowing the small print will not bite when you can least afford it.
- This advice was given by David Emery, a partner specialising in commercial contracts and corporate governance at Winckworth Sherwood. If you have any questions on this article or would like to discuss anything relating to commercial law, please do contact him.
Neither of Winckworth Sherwood or Forecourt Trader shall be liable for any decision or action taken on the basis of this column. Nothing in this article constitutes legal advice or gives rise to a solicitor/client relationship. Specialist legal advice should be taken in relation to specific circumstances.
