What is a linen service agreement?
Restaurants, salons, clinics and hotels run on clean linen, and most arguments with a linen company come down to three things: counts that don't match, charges for items that went missing, and contracts that are hard to leave. A clear linen service agreement deals with all three, so the customer knows the price of every napkin and the company knows what it will be paid for.
This template covers rental programmes, customer-owned goods or a mix. You list each item with its weekly quantity and price, set the delivery and pickup days and an optional minimum charge per delivery. Items that don't meet the standard are rewashed or replaced for free, and soiled or hazardous items are handled safely. Rental items are counted both ways, with a loss allowance before replacement charges and normal wear at the company's cost. Price rises need written notice, and the customer can leave instead of accepting one. The contract also sets an initial term, what happens after it, and how rental stock comes back at the end.
- Best for
- Commercial laundries, linen and uniform rental companies
- Signed by
- The linen company and the customer
- Pricing
- Per item or per person, with a loss allowance
- Length
- About 2 pages
When to use a linen service agreement
- Tablecloths, napkins and chef jackets for a restaurant
- Towels and robes for a spa or salon
- Scrubs and patient gowns for a private clinic
- Entrance mats changed weekly for an office building
- Laundering a boutique hotel's own sheets and towels
What you fill in
18 blanks, then the name and email of each person who signs: linen company, customer.
1 The parties
- Linen company (your business)*
- Your phone or email*
- Customer*
- Customer phone or email*
- Service address*
2 The service
- Service type* rental: the Company supplies and owns the items and launders them · customer-owned goods: the Company launders items the Customer owns · both: some rented items and some customer-owned items
- Items, quantities and prices*
- Delivery and pickup schedule*
- Minimum charge per delivery (optional)
3 Charges
- Currency*
- Loss allowance (rental items)*
- How lost or damaged rental items are charged*
- Notice before a price increase (days)*
- Invoices payable within (days)*
4 Term
- Start date*
- Initial term (months)*
- After the initial term* continues month to month until either party gives 30 days' written notice · renews for another term of the same length unless either party gives 30 days' written notice before it ends · ends, unless both parties sign a renewal
- Governing law*
5 Who signs
- Linen company signature and date, job title · The laundry or linen supply business.
- Customer signature and date, job title · The business receiving the service.
What the linen service agreement covers
- The service
- Quality and rewash
- Rental items, loss and damage
- Charges and payment
- Term and cancellation
- General
Using the linen service agreement, step by step
1 Choose the service
Pick rental, customer-owned goods or both, and enter the service address.
2 List items and schedule
Enter each item with its regular quantity and price, the delivery and pickup days, and any minimum charge per delivery.
3 Set the charges
Adjust the loss allowance, how lost items are charged, the price-increase notice and the payment terms.
4 Term and send
Set the start date, initial term and renewal, add the governing law and send it to the customer.
Tips before you send it
- Attach a replacement price list. The template charges lost rental items at the prices on it.
- Count with the customer's staff at delivery for the first few weeks. Agreed counts prevent loss-charge disputes later.
- Tell clinics and spas how to bag items soiled with blood or bodily fluids before the first pickup.
- Send quarterly loss statements even when they're under the allowance, so there are no surprises.
Sign it online in minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
Linen service agreement: frequently asked questions
Does the customer pay for every lost towel?
No. Losses and damage up to the loss allowance aren't charged. Above it, items are charged as agreed, with a statement showing the calculation. Normal wear is the company's cost.
What if a delivery comes back stained?
The customer returns the item with the next pickup, and it's rewashed or replaced for free and not charged.
Can the company raise prices?
Yes, with the written notice you set. If the customer doesn't accept the increase, it can end the agreement without charge before it takes effect.
Is there an early termination fee?
Not unless the parties agree one in writing. Before the term ends, either side can leave for a serious breach that isn't put right, and the customer can leave instead of accepting a price rise. At the end, rental items must be returned, and items not returned within 14 days are charged.
Is the template free?
Yes. It's free with FileIt eSignature, and the customer signs from the email link without an account.