# What Is a Maintenance Agreement?

A maintenance agreement is a contract in which a customer pays a set yearly or monthly fee for scheduled preventive service, such as two HVAC tune-ups a year, usually with perks like priority scheduling and repair discounts. For the contractor it creates recurring revenue, booked work in slow months and repeat customers who call them first.

## Key takeaways

- A maintenance agreement sells planned visits plus perks for a fixed fee, paid yearly or monthly.
- Price it so the visits themselves cover labor, materials and drive time. The repairs and replacements it leads to are the upside, not the subsidy.
- Profit per member = annual price − (visits per year × cost per visit).
- Renewal rate is the number that decides whether an agreement program grows or leaks. Track it every month.
- The agreement terms (what's covered, what isn't, renewal and cancellation) should be in writing and signed.

## How does a maintenance agreement work?

A maintenance agreement works by trading a predictable fee for a predictable schedule: the customer pays once a year or monthly, and you show up on set dates to inspect, clean and adjust their equipment. The agreement spells out how many visits are included, what each visit covers, and the perks members get between visits.

Most trades call them something slightly different: service agreements, maintenance plans, protection plans, comfort clubs or memberships. The mechanics are the same. When the perks and the customer relationship become the main selling point, the program is usually called a [membership program](https://www.brix.so/learn/membership-program).

### What a typical agreement includes

- **Scheduled visits.** The core of the agreement, for example a spring cooling tune-up and a fall heating tune-up.
- **A checklist for each visit.** Written tasks, so the customer knows what they're paying for and techs do the same work every time.
- **Priority scheduling.** Members get booked ahead of non-members when the phones are ringing in a heat wave.
- **A repair discount.** Often a percentage off repairs found during the agreement year.
- **Waived or reduced fees.** For example no trip charge or diagnostic fee for members.
- **Term, renewal and cancellation.** How long it runs, whether it renews automatically, and how the customer cancels.

## Why do contractors sell maintenance agreements?

Contractors sell maintenance agreements because they turn one-time customers into recurring revenue and keep crews busy in the shoulder seasons. A tune-up booked in April fills a week that would otherwise be slow, and it puts a tech in front of aging equipment before it fails in July.

- **Revenue you can count on.** Agreement fees arrive whether or not the phone rings this week.
- **Slow-season work.** You decide when the visits happen, so you can load them into the months your schedule has gaps.
- **Repairs and replacements.** Techs find worn parts on maintenance visits. Members already trust you, so they say yes more often and rarely shop the job around.
- **Retention.** A member with a visit on the calendar is less likely to call the company with the loudest ad when something breaks. That raises [customer lifetime value](https://www.brix.so/learn/customer-lifetime-value).
- **Business value.** A base of renewing agreements is recurring revenue, which buyers and lenders look at when they value a service business.

## How do you price a maintenance agreement?

Price a maintenance agreement from your cost per visit up, not from what the competitor down the road charges. Work out what one visit really costs you in burdened labor, drive time, materials and truck cost, multiply by the visits included, then add the margin you want. If the visits lose money, every new member makes the hole deeper.

**Profit per member**

```
Profit per member = P − (V × C)
```

Where:
- P = annual agreement price (monthly price × 12)
- V = visits included per year
- C = cost per visit: burdened labor hours (on site + drive) × burdened hourly cost + materials + vehicle cost

> **Worked example (illustrative numbers)**
>
> An HVAC company sells a two-visit plan at $21 a month, or $252 a year.
>
> Each tune-up takes about 1 hour on site plus 0.5 hours of drive time. At a [burdened labor cost](https://www.brix.so/learn/labor-burden) of $48 an hour, that's $72 of labor. Add $12 of filters and supplies and $10 of truck cost: $94 per visit.
>
> Two visits cost $188, so each member earns **$64 a year** before any repair work, a 25% margin on the agreement itself.
>
> With 300 members, the plan brings in $75,600 a year, $19,200 of it gross profit, and books 600 visits (about 900 tech hours) the company can schedule into spring and fall.

Run your own numbers with the [maintenance agreement pricing calculator](https://www.brix.so/tools/maintenance-agreement-calculator). If the repair discount is a big part of the offer, check that your repair prices still clear your target [gross margin](https://www.brix.so/learn/gross-margin) after the discount comes off.

## Maintenance agreements by trade

**How common trades structure maintenance agreements**

| Trade | Typical visits | What a visit covers | What members usually value |
| --- | --- | --- | --- |
| HVAC | 2 a year (spring cooling, fall heating) | Clean coils, check refrigerant and electrical, test safeties, change or check filters | Priority service in heat waves and cold snaps, fewer breakdowns |
| Plumbing | 1 a year | Whole-home inspection, water heater flush, check valves, fixtures, drains and pressure | Catching leaks early, water heater life |
| Electrical | 1 a year | Panel inspection, test GFCI/AFCI and smoke detectors, check surge protection | Safety, peace of mind in older homes |
| Generators | 1–2 a year | Oil and filter change, battery and transfer switch test, run test | The generator actually starts in the outage |
| Garage doors | 1 a year | Lubricate, balance and adjust, test safety reverse and sensors | Fewer broken springs and stuck doors |
| Roofing and gutters | 1–2 a year | Roof inspection, gutter cleaning, flashing and sealant check | Finding leaks before ceilings stain |
| Pest control | Quarterly or bi-monthly | Exterior treatment, inspection, re-service between visits if pests return | Free re-treatments |
| Pool service | Weekly in season | Chemicals, cleaning, equipment check | Not thinking about the pool |

_Visit counts and checklists are common structures, not industry requirements. Match yours to manufacturer maintenance guidance and local code._

## What should a maintenance agreement contract include?

A maintenance agreement contract should say exactly what is and isn't covered, so a customer never hears "that's not included" for the first time on their doorstep. Put these terms in writing and get a signature or a recorded online acceptance. A [maintenance agreement template](https://www.brix.so/templates/maintenance-agreement-template) gives you a starting point.

1. Customer, service address and the equipment covered (make, model, serial if you have it).
2. Number of visits, the season or month of each, and the task checklist.
3. Member perks: priority scheduling, the repair discount, any waived fees.
4. Exclusions: parts, refrigerant, repairs, equipment that's beyond repair, damage from neglect or outside causes.
5. Price, billing frequency, and what happens if a monthly payment fails.
6. Term, automatic renewal (if any), how the customer is reminded, and how they cancel.
7. Whether the agreement transfers when the home is sold.

> **Automatic renewals have rules**
>
> If your agreements renew automatically and charge a card on file, check your state's automatic renewal law. California's, for example (Business and Professions Code sections 17600–17606), requires clear disclosure of the renewal terms, the customer's consent, and an easy way to cancel. This is general information, not legal advice.

## Maintenance agreement vs. warranty vs. membership

|  | Maintenance agreement | Manufacturer or labor warranty | Membership program |
| --- | --- | --- | --- |
| What the customer pays for | Scheduled preventive visits | Nothing extra (or a one-time fee for an extended warranty) | Ongoing perks and visits, usually billed monthly |
| Who provides it | Your company | The manufacturer, or your company for labor | Your company |
| Covers repairs? | Usually a discount, not free repairs | Covers defects in parts or workmanship for a set period | Usually a discount, sometimes waived fees |
| Main purpose | Keep equipment running, fill the schedule | Protect against defects | Keep the customer for life |

Many manufacturer warranties require proof of regular maintenance, so check the warranty terms for the brands you install. If they do, the agreement visit record is useful evidence for the customer.

## How do you measure a maintenance agreement program?

Measure a maintenance agreement program with four numbers: active agreements, renewal rate, visits completed on time, and revenue from work sold on agreement visits. Renewal rate matters most, because every agreement that lapses has to be replaced by a new sale just to stand still.

**Renewal rate**

```
Renewal rate = agreements renewed ÷ agreements up for renewal × 100
```

> **Example**
>
> Of 300 agreements that came up for renewal this year, 234 renewed. The renewal rate is 234 ÷ 300 = 78%. To keep 300 members next year, the shop has to sell 66 new agreements before it grows at all.

## Common maintenance agreement mistakes

- **Pricing below cost.** A $99 plan with two 90-minute visits loses money on labor alone for most shops. Price from cost per visit.
- **Selling it and never scheduling it.** Unscheduled visits mean unhappy members who don't renew. Book the visits when the agreement is sold, or remind members well before each season.
- **Cramming every visit into one month.** Spread visits over the shoulder months so they fill gaps instead of competing with emergency calls.
- **Vague coverage.** "Full maintenance" means different things to you and the customer. Use a written checklist.
- **Discounts that eat the margin.** A 20% repair discount on prices that were already thin turns every member repair into a low-profit job.
- **No renewal process.** Renewals don't happen on their own. Remind members before expiry and call the ones who don't respond.

Ready to grow the program? See [how to sell maintenance agreements](https://www.brix.so/learn/how-to-sell-maintenance-agreements) for scripts, timing and what techs should say at the door.

BRIX keeps every member in one customer record with their equipment, visits, quotes and invoices, schedules agreement visits to the right tech, and follows up on repair estimates techs write on those visits. Invoices sync to QuickBooks, so agreement revenue shows up in the books without retyping.

- [CRM](https://www.brix.so/features/crm): One record for every customer, lead, call, job, quote and invoice.
- [Scheduling and dispatch](https://www.brix.so/features/scheduling-dispatch): Assigns the right crew to the right job based on skills, location and availability.
- [Sales automation](https://www.brix.so/features/sales-automation): Follows up every lead and open estimate automatically by text and email, and asks every customer for a review after the job.
- [QuickBooks sync](https://www.brix.so/integrations/quickbooks): Syncs customers, invoices and payments with QuickBooks so the books match the jobs.

## Frequently asked questions

### What is the difference between a service agreement and a maintenance agreement?

In the trades the two terms usually mean the same thing: a contract for scheduled preventive visits for a set fee. Some companies use "service agreement" for broader contracts that also cover repairs or commercial equipment, so read what's included rather than relying on the name.

### How much should I charge for an HVAC maintenance agreement?

Start from your cost per visit (burdened labor including drive time, materials and vehicle cost), multiply by the number of visits, and add your target margin. For example, two visits that cost $94 each need a price above $188 a year just to break even. The maintenance agreement calculator does the math for your numbers.

### Are maintenance agreements worth it for a small contractor?

They usually are if the price covers the visits, because the agreement fills slow months, brings repair and replacement work, and keeps customers from shopping around. They aren't worth it if the plan is priced below cost or the visits never get scheduled, since unhappy members don't renew.

### Should maintenance agreements be billed monthly or yearly?

Monthly billing lowers the price the customer sees ($21 a month sounds smaller than $252 a year) and often makes the plan easier to sell. Yearly billing brings cash in up front and is simpler to administer. Many shops offer both and price monthly slightly higher.

### What should not be covered in a maintenance agreement?

Most agreements exclude repair parts, refrigerant, major repairs, equipment replacement, and damage from neglect, weather or other trades. List the exclusions in writing so the first time a customer hears about them isn't on a service call.

### How do I track maintenance agreement renewals?

Keep each agreement's start and end date in your CRM or field service software and run a list of agreements expiring in the next 60 days every month. Send a reminder before expiry, call members who don't reply, and calculate your renewal rate as renewed ÷ up for renewal.

## Related

- [Maintenance Agreement Pricing Calculator](https://www.brix.so/tools/maintenance-agreement-calculator)
- [Maintenance Agreement Template (HVAC, Plumbing and More)](https://www.brix.so/templates/maintenance-agreement-template)
- [What Is a Membership Program for Home Services?](https://www.brix.so/learn/membership-program)
- [How to Sell Maintenance Agreements](https://www.brix.so/learn/how-to-sell-maintenance-agreements)
- [What Is Customer Lifetime Value (CLV)?](https://www.brix.so/learn/customer-lifetime-value)
- [What Is Labor Burden?](https://www.brix.so/learn/labor-burden)
- [What Is Gross Margin?](https://www.brix.so/learn/gross-margin)
- [Scheduling and Dispatch Software That Puts the Right Crew on Every Job](https://www.brix.so/features/scheduling-dispatch)
- [CRM for Home Service Businesses That Fills Itself In](https://www.brix.so/features/crm)
- [Lead Follow-Up Automation That Chases Every Lead and Estimate for You](https://www.brix.so/features/sales-automation)

## Sources

- [California Legislative Information: Business and Professions Code §17600–17606 (Automatic Renewal Law)](https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=BPC&division=7.&title=&part=3.&chapter=1.&article=9.) (checked 2026-10-12)

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Written by BRIX Editorial Team. Last updated 2026-10-12.
Canonical: https://www.brix.so/learn/maintenance-agreement