Dispatch Contract Checklist: 12 Things to Review Before You Sign

The commission structure is the heart of your dispatch agreement. You need to know not just the percentage, but how that percentage is calculated. A 7% commission on gross revenue is very different from 7% on gross after fuel surcharge deductions.

Ask these specific questions: Is the commission calculated on the total rate confirmation amount? Does it include fuel surcharges? What about accessorial charges like detention, layover, or TONU? Some dispatchers carve out accessorials from the commission calculation, which benefits you. Others take their percentage off the full amount, including charges you worked hard to negotiate.

Also watch for additional fees beyond commission. Some dispatch services charge a monthly technology fee, a setup fee, or a per-load administrative fee on top of the percentage. These effectively raise your real commission rate. A "5% commission" with a $50/month tech fee and $15/load admin fee could actually cost you 8-9% on a slow month. Run the numbers through our dispatch savings calculator to see how fees impact your bottom line.

This is where many owner-operators get trapped. Some dispatch companies lock you into 6-month or 12-month contracts with early termination fees of $500-$2,000. That means even if the service is terrible, you are paying to leave.

The best contracts are month-to-month with a reasonable notice period, typically 14 to 30 days. This gives both sides time to transition but does not lock either party into a bad situation. If a dispatcher insists on a long-term commitment before they have found you a single load, ask yourself why they need a contract to keep you rather than earning your loyalty through performance.

Also check what happens to loads that are already booked when you cancel. A fair contract specifies that you complete any loads currently in transit and pay commission on those, but no further obligation exists after the notice period.

What exactly are you paying for? "Dispatch services" can mean very different things depending on the company. At the most basic level, a dispatcher finds and books loads for you. But a full-service dispatch operation should also handle rate negotiation, paperwork management, detention and layover claims, compliance monitoring, and broker relationship management.

Get the scope of services in writing. If the dispatcher promises rate negotiation, the contract should say "rate negotiation on behalf of the carrier." If they promise paperwork handling, the contract should specify which documents. Verbal promises mean nothing when there is a disagreement six months from now. If it is not in the contract, it does not exist.

As an independent owner-operator, you have the right to accept or reject any load. This is one of the fundamental differences between being an independent contractor and being an employee. Your dispatch contract must preserve this right.

Watch for language like "carrier agrees to accept loads assigned by dispatcher" or "carrier must maintain a minimum acceptance rate of 85%." These are forms of forced dispatch, and they can jeopardize your independent contractor status with the IRS while also putting you in loads that do not make financial sense.

A good dispatch contract says the dispatcher will present load options, and the carrier retains sole discretion over which loads to accept. Period. No minimums, no penalties for saying no, no passive-aggressive consequences for rejecting a load.

How money moves from the broker to you is one of the most important details in any dispatch agreement. The safest payment structure is simple: the broker pays you (the carrier) directly, and you pay the dispatcher their commission separately.

Be extremely cautious of any arrangement where the dispatcher collects payment from the broker on your behalf and then distributes your share. This creates a situation where your dispatcher is sitting on your money, controlling when you get paid, and potentially using your revenue as their operating capital. If they run into financial trouble, your payment is at risk.

Also verify how commission is collected. Does the dispatcher invoice you weekly? Deduct from each load? Bill monthly? And what are the payment terms? Net-7? Net-15? Make sure there is no language allowing the dispatcher to withhold your payment for any reason beyond their agreed commission.

This determines whether you are truly independent or effectively leased on to someone else's operation. When a dispatch service books loads under your MC authority, you are the carrier of record. You control the relationship with the broker, you carry the insurance, and you build your own operating history.

If the dispatcher wants you to operate under their MC authority, you are not being dispatched in the traditional sense. You are leasing on to their carrier operation. This means they control the broker relationships, they are the carrier of record, and if the relationship ends, you leave with nothing but miles on your truck. Your SAFER profile does not benefit, your insurance history does not build, and you cannot take any of those broker contacts with you.

Your contract should clearly state that all loads are booked under your MC number and that you retain full ownership of your operating authority throughout the relationship. See our own authority vs leasing on guide for a deeper comparison.

An exclusivity clause means you can only use this dispatcher and cannot book your own loads, use load boards directly, or work with any other dispatch service. This is a major restriction on your independence and usually signals a dispatcher who is more interested in controlling you than serving you.

As an owner-operator, you should always retain the right to book your own freight. Maybe your cousin has a load that needs moving. Maybe you found a great lane on DAT while parked. A fair contract allows you to self-dispatch without owing commission on loads the dispatcher did not find, book, or negotiate.

Some contracts use softer exclusivity language like "right of first refusal" where the dispatcher gets to match any load you find before you book it yourself. This is more reasonable but should still have clear limits and timelines.

Your dispatch agreement should clearly define insurance responsibilities. As the carrier, you carry your own auto liability, cargo insurance, and any other required coverage. The contract should acknowledge this without adding hidden insurance obligations.

Watch for clauses requiring you to add the dispatch company as an "additional insured" on your policy. This is not always inappropriate (some broker agreements require it), but understand what it means: if there is a claim, the dispatch company is covered under your insurance. Make sure adding them does not increase your premium or create coverage conflicts.

The contract should also specify who handles claims. If cargo is damaged, who files the claim? Who negotiates? Who pays the deductible? Get this in writing before an incident occurs, not after when emotions and money are involved.

Good communication is the difference between a dispatch relationship that works and one that fails. Your contract should establish communication expectations for both sides: dispatcher response times, available hours, preferred communication channels, and whether you have a dedicated dispatcher or get whoever picks up the phone.

A dedicated dispatcher who knows your truck, your preferences, and your regular lanes is worth more than a call center where you explain your situation to someone new every time. If the dispatch company promises a dedicated contact, make sure that is in the contract. Also clarify after-hours and weekend availability. Trucking does not stop at 5 PM on Friday, and your dispatcher should be reachable when you need them.

You should see the broker rate confirmation for every single load. Not a summary. Not a verbal number. The actual rate confirmation document showing the full rate the broker is paying.

Any dispatcher who hides the rate confirmation is taking more than their stated commission. It is that simple. If a load pays $3,500 from the broker but the dispatcher tells you it pays $3,000 and takes their "6%" from that, they are actually keeping $680 ($500 hidden margin + $180 commission) instead of the $210 their commission rate would suggest. This practice is called rate skimming, and it is unfortunately common.

Your contract should include a clause guaranteeing your right to view the broker rate confirmation for every load dispatched on your behalf. If the dispatcher will not put this in writing, do not sign.

Every business relationship can encounter disagreements. Your contract should specify how disputes are handled: mediation first, then arbitration, then litigation as a last resort. Check which state's laws govern the contract. If your dispatch company is in Florida and you are based in Texas, does a dispute mean you have to travel to Florida for arbitration?

Also look for "indemnification" clauses that require you to cover the dispatcher's legal costs in a dispute, even if you win. Fair contracts share dispute costs or assign them to the losing party. One-sided indemnification clauses discourage you from ever challenging the dispatcher, even when you are right.

A non-compete clause restricts what you can do after the dispatch relationship ends. The most common version prevents you from working directly with brokers or shippers that your dispatcher introduced you to during the contract period.

Here is the problem: if you build great relationships with brokers through your reliable service and on-time performance, a non-compete could prevent you from continuing those relationships independently. The dispatcher introduced the contact, but you did the work that earned the broker's trust. A broad non-compete effectively lets the dispatcher keep "owning" your broker relationships even after you leave.

If a non-compete is present, negotiate these limits: it should apply only to specific named brokers (not "all brokers contacted during the term"), the duration should be short (30-90 days, not 6-12 months), and it should not apply if the dispatcher breaches the contract first. Better yet, look for dispatchers who do not use non-competes at all.