Updated October 2026 · The independent truck dispatcher playbook

The Dispatch Service Agreement: What Your Contract Must Cover

The moment a carrier says "yes, dispatch my trucks" — before you book a single load — you need a signed dispatch service agreement. Not a handshake, not a text message thread. A written contract that says what you do, what you're paid, and how either side walks away. This is the document that turns a favor into a business, and it's the first thing that protects you when (not if) a payment dispute happens.

This guide walks through every clause your agreement needs, what each one means in plain English, and the traps to avoid. It won't replace a lawyer for unusual situations — but for a standard independent dispatcher-carrier relationship, these are the terms the industry runs on.

Why the Agreement Comes Before the First Load

Three things a signed agreement does for you from day one:

It defines your pay. "5% of gross" means nothing until it's written down — 5% of what, exactly? Gross linehaul? Including fuel surcharge? Paid when? The agreement answers all of it.
It sets boundaries. Are you booking loads, handling paperwork, doing check calls — or also invoicing, collections, and compliance? Scope creep is how dispatchers end up doing a carrier's entire back office for a dispatcher's fee.
It gives you an exit. Not every carrier relationship works. A termination clause means you can walk away cleanly instead of being held hostage by a bad fit.

Carriers expect this paperwork — legitimate ones want it. If a "carrier" resists signing anything, that's information. (More red flags in is truck dispatching legit.)

Clause by Clause: What Goes In

1. Parties and authority

Names, business entities, and a clear statement: you are acting as an independent contractor dispatching under the carrier's MC authority — not as their employee, and not as a freight broker. This one paragraph prevents a world of confusion about who's who. It also keeps you on the right side of the dispatcher/broker line explained in do dispatchers need an MC number.

2. Scope of services

List exactly what you do: search load boards, negotiate rates, book loads, send dispatch instructions, perform check calls, handle delivery paperwork. And list what you don't do unless separately agreed: invoicing/factoring, safety compliance, driver hiring. Specificity here is what stops scope creep later.

3. Compensation

The money clause — be precise: the percentage (e.g., 5%) or flat weekly fee (e.g., $250/truck), what it's calculated on (gross linehaul revenue is standard; spell out whether fuel surcharge and accessorials are included), and when it's paid (weekly is standard; invoiced Monday, due Friday is a common rhythm). Vague compensation terms are the #1 source of dispatcher-carrier disputes. Nail this down to the dollar definition.

4. Payment terms and late payment

How you invoice, when payment is due, and what happens when it's late. Many dispatchers include a simple late fee or the right to pause dispatching after 15–30 days of non-payment. You're a small business extending weekly credit to your client — the agreement should treat it that way.

5. Term and termination

Initial term (30–90 days is typical for a first agreement) plus termination without cause on 7–30 days' written notice for either party. This is your escape hatch and theirs. Avoid agreements that lock you in for a year with no exit — or that let the carrier terminate instantly while requiring 60 days from you. Symmetry matters.

6. Liability and indemnification

Each party is responsible for its own operations: the carrier for the truck, the driver, and cargo; you for the accuracy of your dispatch work. Include mutual indemnification — if your mistake causes a loss, you own it; if their truck breaks down mid-load, they own it. Keep it mutual and reasonable; one-sided indemnity clauses are a red flag.

7. Non-solicitation

The carrier agrees not to poach your other carrier clients, and you agree not to solicit the carrier's direct shippers behind their back. Note the distinction: non-solicitation (don't steal each other's relationships) is standard and fair. Non-compete clauses that bar you from dispatching for anyone else are overreach — push back on those or walk away.

8. Confidentiality

Rates, lane data, and business practices stay between you. Standard, uncontroversial, include it.

9. Authority limits

Spell out what you can and can't commit the carrier to: you may book loads up to an agreed rate floor, but (for example) can't sign the carrier up for dedicated contracts without written approval. This protects both sides when you're negotiating fast on the phone.

Common Traps to Watch For

Vague pay definitions. "5% of revenue" — revenue of what? Get the base defined or don't sign.
Auto-renewal with long notice windows. A 12-month auto-renew requiring 90 days' notice to cancel is a trap for the unwary. Prefer short initial terms.
One-sided termination. If they can fire you with 7 days but you need 60, the clause wasn't drafted fairly. Ask for symmetry.
Broad non-competes. A dispatcher who can't work for other carriers has no business. Non-solicitation yes; non-compete no.
"We don't do contracts." From a carrier, this usually means disorganization at best and payment problems at worst. Professional carriers sign. It's also worth noting that legitimate brokers operate under FMCSA-registered authority — you can verify the regulatory landscape at fmcsa.dot.gov — and legitimate business relationships in this industry run on paper.

Getting It Signed: Keep It Simple

You don't need a law firm for carrier number one. A clear 2–3 page agreement covering the clauses above, signed electronically (HelloSign, DocuSign, or even a scanned signature page), is the industry norm for independent dispatchers. As you grow — multiple carriers, employees, unusual arrangements — that's the time to have a transportation attorney review your template. The SBA's business guide has useful background on contractor agreements generally.

Pair the agreement with your broker packet paperwork knowledge, and your onboarding for each new carrier becomes a repeatable process: agreement signed, carrier packet collected, truck posted, first load booked. That's the machine. The milestone it serves is always the same: first carrier signed, then the next.

Bottom line: never book a load without a signed agreement. The nine clauses above — parties, scope, compensation, payment terms, termination, liability, non-solicitation, confidentiality, authority limits — cover everything a standard dispatcher-carrier relationship needs. Our Independent Dispatcher Launch Pack ($49) includes clause-by-clause agreement guidance plus the outreach scripts that get carriers to the signing table in the first place.

Frequently Asked Questions

Do I need a lawyer to draft my dispatch agreement?

For a standard first-carrier agreement, a well-structured template covering the clauses in this guide is the industry norm — most independents start there. Have a transportation attorney review it once you're scaling past 2–3 carriers or encounter unusual terms.

What percentage should I charge in the agreement?

3–6% of gross linehaul is the standard range; 5% is the most common starting point. New dispatchers sometimes start at 4% to win a first carrier, then standardize at 5%+. The full pay-model breakdown is in how dispatchers get paid.

Can the carrier cancel the agreement anytime?

Only if the agreement says so — which is why the termination clause matters. Standard is 7–30 days' written notice for either side. Never sign an agreement you can't exit.

Does the agreement need to mention the MC number?

Yes — it should reference the carrier's MC number and state that you operate under their authority. This documents the legal relationship correctly and keeps you clearly on the dispatcher side of the line. See MC number rules.