An owner-operator lease agreement is the document that determines how you get paid, who is responsible for what, and how cleanly you can walk away if the arrangement stops working. It is also, in practice, one of the least-read documents in the industry — many owner-operators sign based on a verbal summary of the pay rate and never work through the rest of the contract line by line.
This is not legal advice, and every lease is different — provincial and contract law both vary, and terms are negotiable before you sign. What follows is a checklist of the sections worth reading carefully, and the specific questions to ask about each one, before you commit your truck to a carrier's authority.
Pay Structure
Confirm exactly how you are paid and how that number is calculated:
- Percentage or per-mile. Which structure applies, and is it stated as a percentage of the carrier's billed rate or a fixed per-mile figure?
- Fuel surcharge. Is it paid on top of your rate, or is it already baked into the percentage or per-mile figure you were quoted?
- Deadhead and empty miles. Are they paid at the same rate as loaded miles, a reduced rate, or not at all?
- Accessorial pay. Does the lease guarantee you a share of detention, layover, or stop-off charges the carrier bills the customer, or does the carrier keep those in full?
Once you have a signed lease, your settlement statement is the document that shows whether the pay structure on paper matches what actually lands in your account.
Equipment and Maintenance Responsibility
If you own or finance the truck, the lease should state plainly who covers routine maintenance, repairs, and downtime — and whether the carrier provides or requires specific equipment (a trailer, an ELD, a specific make of transponder) that comes with its own cost or deduction. A lease that is silent on maintenance responsibility is a lease that will produce a disagreement the first time something expensive breaks.
Escrow, Deposits, and Chargebacks
Most lease agreements include some form of escrow or security deposit — money withheld from settlements and held in reserve, typically to cover cargo claims or damage. Before signing, get clear, written answers to:
- What is the total escrow amount the carrier is entitled to hold?
- What specifically can escrow funds be applied against?
- What is the process and timeline for returning your escrow balance when the contract ends?
- What categories of chargebacks (cargo claims, preventable accidents, shortages) does the lease explicitly permit, and what documentation is the carrier required to provide before applying one?
A lease that describes escrow and chargebacks in vague terms gives the carrier wide discretion later. Specific, written terms protect both sides.
Insurance Requirements
Confirm which insurance the carrier provides under its authority (typically cargo and liability) versus what you are required to carry or pay for yourself (often physical damage / bobtail coverage on your own equipment). Get the actual coverage limits and deductibles in writing, and confirm whether any portion of the carrier-provided insurance is passed through to you as a settlement deduction.
Exclusivity and Trip-Lease Terms
Some leases require you to run exclusively for that carrier for the term of the agreement; others permit trip-leasing to other carriers between loads. Confirm which applies, since it directly affects how much control you retain over your own schedule and equipment utilization.
Termination and Notice Period
Look specifically for: the required notice period to end the agreement, whether either side can terminate for cause with shorter notice, any early-termination penalty, and — critically — what happens to your escrow balance and any equipment provided by the carrier when the lease ends. This clause matters far more once you are trying to exit a lease that isn't working than it does on the day you sign.
Questions Worth Asking Before You Sign
- Can I see three or four recent, real settlement statements from a driver on this same lease structure (with identifying details redacted), not just a sample rate sheet?
- Are there any fees or deductions this document does not mention that I should expect to see on my settlement?
- What is the process if I dispute a chargeback — who reviews it, and on what timeline?
- Is anything in this agreement negotiable, or is it presented as-is?
Comparing the Numbers Over Time
A signed lease only tells you the terms — your actual settlement statements over several weeks are what tell you whether those terms produce a profitable operation for your specific truck, lanes, and expenses. Tracking gross revenue, deductions, and net pay per mile in one place, rather than reconstructing it from paper statements after the fact, is what makes it possible to catch a bad lease early instead of a year in. A transportation management system built for owner-operators keeps that comparison running automatically alongside dispatch and compliance tracking.