Section 3: Daily Operations
- Item 300 -- Licensed Vendors Responsibilities
- Item 310 -- Approved Business Expenses (Rev. 01/01/09)
- Item 320 -- Tax Liability and Insurance
- Item 321 -- BEP Location Type and Profit Expectation for Each
- Item 330 -- Meeting Profit Expectations
- Item 340 -- Temporary LOFA (Licensed Operator Facility Agreement)
- Item 341 --Permanent LOFA (Licensed Operator Facility Agreement)
- Item 350 -- Short Term Leave Of Absence from Vending Facility
- Item 351 -- Long Term Absence from Facility Medical, Personal, Education Leave
- Item 360 -- Maintenance and Repair
- Item 361 -- Equipment Transfer
- Item 362 -- Equipment Warranties
- Item 370 -- Stocking Of Facilities
- Item 380 -- Health and Safety Standards
- General Liability
- Worker’s Compensation
- Federal
- State
- County
- Municipal (Other than County)
- Utilities paid to the owner of the property on which the business is located.
- Rent paid to the owner of the property on which the business is located.
- Storage Space Rental (Non-Highway Vending Facilities Only).
- Pest Control is required at all facilities. Current policy stipulates that the Vendor must engage the services of a licensed pest control contractor for this service if it is not provided by the agency by a blanket agreement.
- Equipment Rental is the actual amount paid to rent or lease any piece of equipment needed in the operation of the Facility.
- Snack Bar -- 15 percent
- Cafeteria -- 12 percent
- Highway Vending Machine -- 40percent
- Non Highway Vending -- 25 percent
Item 300 -- Licensed Venders Responsibilities
Each Licensed Vendor shall agree to do all of the following:
1. Perform the necessary duties in connection with the vending facility in accordance with the Division of Blind Services rules and procedures and the terms of their LOFA Agreement.
2. Workers compensation will be provided as required by law.
3. Operate the vending facility in accordance with all applicable health laws and rules.
4. Furnish such reports as the Division of Blind Services may require from time to time.
5. Pay for all merchandise purchased within the terms of credit policies of suppliers.
6. Licensed Venders are responsible for related miscellaneous expenses (bulbs, un-jamming change machines, etc.) that occur on a day to day basis.
7. Conform to the hours of operation as fixed by the Division of Blind Services, after consultation with the Vendor and the agency having charge of the property.
8. Participate in the in-service training programs provided by the Division of Blind Services.
9. Make payment of the set-aside fee by the due date.
10. Maintain appropriate levels of dress and grooming in accordance with community standards.
11. To accept responsibility for costs associated with normal business operations, including, but not limited to, cleaning supplies and services outside the scope of the Licensor responsibility, lighting replacement bulbs, and restoration of function for jammed mechanisms.
12. Product availability of self-service vending machines must be maintained at acceptable levels in order to ensure consistent customer satisfaction.
13. Maintain a reasonable physical presence at the property on which the business is conducted to the extent necessary for the performance of all managerial responsibilities.
Item 310 -- Approved Business Expenses
There are three categories of approved business expenses in addition to purchased goods, wages and payroll taxes.
These categories are:
These items are listed separately in Part III of the monthly business report. They are deducted from the gross profit and no set aside levy is paid on them. Each entry must be supported with an attached invoice.
The approved expenses have been mutually developed and agreed to by the State Committee of Vendors and the Division of Blind Services, and revisions may be made from time to time. When such revisions are made, all Licensees will be notified and the revisions will be incorporated into both the monthly business report and this Handbook.
There are legitimate business expenses, deductible on business tax returns that are not currently approved for inclusion on the BEP monthly business report. That being the case, a clarification of the approved items is hereby included as part of the Handbook.
If the Vendor has any question about these items the District Rep or BE Consultant should be contacted.
Item 320 -- Tax Liability and Insurance
The Licensed Vendor is responsible for the payment of Social Security, Income Tax, State Sales Tax, Unemployment and all other taxes applicable to an independent contractor and arising from the operation of the Facility.
InsuranceThe Licensee shall not be insured, in any manner, by or through the Licensor, in particular, the State of Florida, in general, as a result of this Licensed Operator Facility Agreement (LOFA).
The Vendor must provide annually as well as at such other times as needed proof that they have adequate coverage for public liability, business insurance, and other policies of insurance required by law to protect the Licensed Vendor from claims or actions arising from Licensed Vendor operation of the Facility.
Item 321 -- BEP Location Type and Profit Expectation for Each
Within the Business Enterprise Program, there are different types of facilities/locations. Each of these types of locations is expected to maintain a certain profit based upon the demands of the location, stocking mark-up and assistance needed in the form of employees to serve or vend the merchandise.
These types and profit expectations are listed below:
Snack Bar -- A facility engaged in selling limited lines of refreshment and prepared food items necessary for a light meal service, such as soups, salads and sandwiches. Food and refreshment items may be prepared on THE PREMISES or purchased from licensed purveyors and usually are wrapped or placed in containers at point of sale. There is an on-site manager and customers may or may not be provided with eating accommodations.
Cafeteria -- A food dispensing facility capable of providing a broad variety of prepared foods and beverages (including hot meals) primarily through the use of a service line. A cafeteria may be self-service or may have limited table service. Tables or booth seating facilities are always provided.
Highway Vending -- A location that has only coin or currency operated machines that dispenses a variety of food and refreshment items and services.
Non Highway Vending -- An automated coin or currency operated facility, which has single or multiple location(s) that dispenses a variety of food and refreshment items and services.
Item 330 -- Meeting Profit Expectations
Meeting the net profit requirement contained in the LOFA is a contractual obligation. Consistent failure to meet that obligation will have negative consequences. The first of these is loss of income to the LOFA holder. Additionally, the Selection Panel uses profit data as one of the determining factors in recommending applicants for appointments. Finally, any consistent breach of contract may result in termination of that contract.
At any time, Licensees may request from the Regional BE Consultant a review of their profit percentage expectation and profit performance.
In addition, the Regional BE Consultant for each facility will regularly review profit performance with the Licensed Vendor. If the Licensed Vendor is not meeting the profit expectation, the Regional BE Consultant will provide assistance to the Vendor to return the facility to profitability.
After the Division has provided assistance and the profitability is not reached within a six month period then this can be considered a breach of the LOFA.
Item 340 -- Temporary LOFA (Licensed Operator Facility Agreement)
A Temporary LOFA is issued for a location when that location is under assessment or is being placed on the Facility Availability Announcement. A Temporary LOFA is usually issued for a period of three to 12 months. On highway vending a Temporary LOFA is issued on a month-to-month basis.
Item 341 -- Permanent LOFA (Licensed Operator Facility Agreement)
A permanent LOFA is generally issued through the selection process and lasts for perpetuity absent breach. However, the Licensee shall have the right of first refusal on the next subsequent Agreement offered to any Licensee on this Facility.
Item 350 -- Short Term Leave Of Absence from Vending Facility
When a Licensed Vendor finds it necessary to be absent from the facility for a period of three (3) to thirty (30) days, the Regional BE Consultant must be notified no later than 24 hours prior to the planned absence. The Vendor should state the reason for the absence and provide a contact phone number in case of emergency. It is the responsibility of the Licensed Vendor to ensure that service is provided in accordance with the terms and conditions of the LOFA during such absence.
Item 351 -- Long Term Absence from Facility Medical, Personal, Education Leave
Long- term absence from a location is defined as a period of 30 or more days when the Licensee will not be present at the facility.
The Licensee must observe the following requirements:
1. Notify the Regional BE Consultant of the extended leave of absence and arrangements for continued service of the facility.
2. Make the necessary arrangements to ensure that service is being provided in accordance with the terms and conditions of the LOFA.
3. Provide a contact phone number in case an emergency arises.
Leave of absence for illness or injury.
A licensee incapacitated by illness or injury shall be granted a medical leave of absence by the Agency for a period of time not to exceed six (6) months. If at the end of 6 months, the Licensee is not able to return to managerial duties, he or she may request an extension of the medical leave. The Licensee or a personal representative must provide to the Agency a reasonable assurance of improvement and that full recovery is expected. If this requirement is met, the Agency may grant an additional three (3) month extension of medical leave. During any leave of absence the licensee shall provide and pay for all management services necessary for the continued operation of the facility.
The Regional BE Consultant should contact the state office to ensure that facilities are running efficiently during the Vendors absence.
Item 360 -- Maintenance and Repair
Each Licensed Vendor is responsible for maintaining or causing to be maintained all assigned equipment. Property Management should be notified of incidental expenses tied to the building (e.g. light bulbs).
Repairs will be managed as follows:
The Licensees may authorize repairs up to $400.00 without consulting the Consultant and later be reimbursed.
If the Vendor is unable to make a repair or if the cost of repair is over $400.00, he/she will contact the Regional BE Consultant. After consulting with the Regional BE Consultant, the Vendor will follow through with any recommendations.
Item_361 -- Equipment Transfer
A Vendor shall not transfer equipment between Vendors or facilities. Transferring equipment is the responsibility of the Regional BE Consultant or State Office Staff. If such transfers are needed, the Regional BE Consultant or State Office Staff should be contacted. Equipment shall only be used in the assigned vending facility.
Any equipment purchased by Client Service for a Vendor is the possession of that Vendor.
Item_362 -- Equipment Warranties
The primary responsibility for completion and submission of warranty registrations is that of the Regional BE Consultant. However, since the deductible may not apply to any necessary repairs not covered by warranty due to lack of registration, it is in the best interest of the Licensed Vendor to follow up with the Regional BE consultant concerning the submission of such warranties.
Item 370 -- Stocking Of Facilities
The Division of Blind Services will provide initial working capital for each facility.
The itemized stock inventory is attached to the LOFA. The assigned inventory is recorded on the Facility Check in Form. The Licensed Vender must be present throughout the time the inventory is being conducted.
The total amount of the assigned working capital is entered on the agreement. By signing the vending facility agreement, the Licensed Vender accepts full responsibility for this amount of working capital and agrees to maintain that level of working capital until he/she leaves that facility. The Division of Blind Services has no obligation to adjust the inventory or reimburse for outdated or otherwise non-salable products after this agreement has been signed.
Item 380 -- Health and Safety Standards
All Licensed Vendors are expected to comply with state, county and local health and safety standards.
All Licensed Vendors must apply for health licenses when required. Each Vendor shall submit a copy of the health licenses to the Division when it pertains to snack bars and cafeterias.
Florida Business Enterprises Program
Providing Tools and Support for the Blind and Visually Impaired in the Food Service Business