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Can You Rent to Own a Food Truck in 2023? [Lease Rate Included]

In the United States, you can rent to own a food truck. Rent-to-own food trucks, also widely known as lease-to-own food trucks, enable you to make monthly installments before eventually possessing the truck. These leases frequently enable you to personalize the truck, and many even enable you to collaborate with creatives.

A lease-to-own alternative is an excellent arrangement for those who want to possess a truck but cannot pay it upfront. The food truck business is thriving! Proven restaurant owners and aspiring chefs are both venturing into the restaurant-on-wheels market.

Food trucks are attracting restaurateurs for a diverse range of reasons. Mobile kitchens necessitate less initial capital outlay than traditional restaurants. Furthermore, food trucks result in a greater recipe variety.

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Steps to Rent to Own a Food Truck

If you’re new to leasing or if you’ve never opened a shop, you’re probably unaware of what it takes to rent a food truck. Follow the steps below to satisfactorily obtain a lease and also get your food truck company off the ground:

  1. Make a Food Truck Business Plan

The very first move in obtaining a rent-to-own food truck is putting together a business plan. To compose an effective business plan, you would have to include details about your idea, supply chain, and layout.

  1. Prepare Financial Data

Make sure to add precise details about your financial status in your business plan. Even if you’re trying to apply for a loan, lease, or rental contract, you need to provide evidence that you’re able to take responsibility for your funds and that you are capable of making payments on time. The most frequently asked questions in this regard are:

  • What is your credit rating?
  • How many capital resources do you have right now?
  • How much funds are you willing to put down?
  • Have you ever been in trouble financially or declared bankruptcy?
  1. Enter negotiations and Complete Your Lease

It’s time to discuss your lease now that you’ve structured your business plan and financial details. There are numerous alternatives open to you, so it is critical that you select the contract that better matches your particular requirements.

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Discussions might be a back-and-forth procedure with numerous parties involved, such as yourself, the management company, and any solicitors recruited to review the contract. Seek information concerning the lease to ensure you comprehend what you’re going to sign.

  1. Obtain Insurance for Your Food Truck

The individual or organization renting their possessions to you will almost always demand insurance. If you struggle to offer evidence of insurance, the contract may be revoked. If the truck is compromised, insurance will safeguard both the leaser and the leaseholder.

Companies That Offer Lease-to-Own Food Trucks and Their Rates

When contrasted to renting, this leasing program offers distinct advantages (aside from vehicle ownership). Here are some top companies to consider if you are interested in these programs:

  1. OMG Grills

Tabatha Erwin and her father, Tim Erwin, established this corporation. After she returned from representing the Air Force, the duo proposed the concept of building a flexible Outdoor Mobile Grills (OMG) system that can offer food to people speedily, proficiently, and with very little personnel.

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Because the kitchen equipment was mounted on an ultra-light trailer, it can be conveniently pulled and navigated into a driveway, or through a throng of people.

They ended up going from one simple mobile grill constructed in their back garden to a couple of extra basic designs and a large number of personalized trailers throughout North America and abroad in the past six years, selling more than 700 trailers.

Rates and Requirements

With OMG Grills, you get a 12-month payment plan as long as you can put down a 10% deposit. Have it in mind that everyone gets accepted; no credit check is needed. The lease-to-own program is subject to a 5% fee.

  1. Roaming Hunger

Roaming Hunger formed a partnership with Prestige Trucks to provide food truck operators with something like a special lease-to-own program. Note that upon 36 months of on-time lease payments, you get to own your food truck completely with this scheme.

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They also provide a three-year warranty to support truck maintenance, which can put a food truck enterprise out of commission. If you want to start your own food truck business, this is a great chance. The program also incorporates a specialist food truck wrap and at least one food service chance per month.

Rates and Requirements

An existing company will be expected to show a credit score of 675 or higher, a threshold of two years of operation, observable credit of less than $20,000, 2 years of business tax records, and a three-year maturity period.

Meanwhile, an individual will be expected to have a 700-plus credit score, be a house owner, have less than $10,000 in credit card debt, have a proper business plan, show cooking or industry knowledge, and have a three-year rental period.

  1. Rent 2 Own Trailers

This corporation was formed by a Houston, Texas restaurant owner who spotted the pattern and development of the mobile food industry and started to move his enterprise by investing in a food trailer.

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He immediately learned that the mobile food industry is largely neglected or deliberately avoided by credit intermediaries, as such he had to indulge his own money to establish his first site. He launched his second store after several quarters in business.

Rates and Requirements

Despite the fact that there are no notable requirements with this company, the following are their rates and offerings:

  • 16 ft. Trailer: $7,875
  • 20 ft. Trailer: $8,900
  • 22 ft. Trailer: $9,900

Conclusion

Obtaining a food truck is the very first move towards becoming a food truck owner. Purchasing or renting are the most common options, however, leasing a food truck has also become quite prevalent. Aside from the fact that renting a food truck is a good way to cut startup costs, it’s a costly lengthy alternative because the monthly payments never stop. Moreover, equity in the truck isn’t ever established.