Corporate family days are the ideal way to reward your hard-working staff and their families and young. It is important for catering businesses to have an agreement that they can have clients sign before agreeing to cater an event for them. An agreement not only offers a business legal protection but is also a good way to avoid confrontation with customers by letting them know exactly what they will be getting for their money.
Remember that two
parties have to agree before such a contract is valid. If you stack all
of the clauses in favor of your business then you will risk losing
clients to the competition. As well as protecting your own interests,
give some thought to the reassurances that a client is looking for. Be
as flexible as you can to the point that it doesn’t cost your catering
business money or force you to take on unnecessary risk.
This page
sets out some of the points and clauses that you might consider
including in your catering business agreement. You should consult with a
lawyer before coming up with a final agreement though.
Details of the Parties Involved
The
contract should set out the responsibilities of both parties, the
catering business and the client. A specific person should be appointed
as a representative of each party and all business dealings and
communication should go through them. Include basic details such as
names, addresses and phone numbers.
Basic Event Details
The
date, time and location of the event should be specified and details
should be given about any right that the client has to change these key
details. Clarify the duration of the event and have the client agree to
additional charges should the event run for longer than expected.
Give
some thought to problems that are likely to arise. If you are catering
an outdoor event then you will want to be in firm agreement with the
client as to what will happen if you are rained out.
Catering Service and Menu Description
The
agreement should set out to describe what the catering business will
provide in terms of the menu, food preparation, delivery and service.
It
should be clear if the caterer is using an on-site kitchen or preparing
food off-site. No matter what, caterers will need space to prepare food
so it should be made clear as to exactly which rooms they will be
permitted to use.
Go into detail to describe the menu that you
have promised to the client. You may want to reserve the right to make
small changes to the menu should you later find that key ingredients are
unable to be sourced for various reasons. Set a clear policy on
leftover food and alcohol and who has the right to take them home.
It
should also be clear as to which party will be providing cooking
equipment, serving equipment, utensils, decorations, furniture and other
items for the event.
Specify how many staff you will be providing
for an event and what their responsibilities are. The party responsible
for cleaning up afterwards should also be specified.
Compliance with Regulations
Include
some clauses in the agreement to reassure the customer that your
business is reliable. Let them know that you carry liability insurance,
are licensed and operate in compliance with all local regulations with
regards to the hygienic preparation and service of food.
Payment
Make it clear as to what options the customer has in terms of payment and offer them a small discount if they pay promptly.
The
price should be set out clearly in the catering contract. If an event
is scheduled for a date that is well in the future then you may want to
reserve the right to raise your price slightly in the case that prices
rise, causing your costs to increase.
Deposits
Make
your clients pay a deposit to reserve your company’s services and set
out details of the deposit in your contract. Let the client know under
what situations the deposit is refundable and what their obligations are
if they want to cancel. You should give the client some flexibility in
terms of changing guest numbers but insist that they confirm final
numbers at least three or four days before so that you have time to
order stock and prepare.
Most caterers charge a small deposit at
the time of booking and another several weeks before an event when
supplies are being ordered. Finally, the balance is usually due on the
day of the event or shortly after.
Waivers
To protect
your catering business you should include some clauses in the agreement
that waive your liability for certain situations such as when guests
get drunk and inflict damages on property or other guests. You may also
want to insist that the client compensates you for any damages to your
catering equipment caused by their guests.
Clients may want to organize some of the food or beverages independently for an event that you are catering. Having them sign a waiver that removes your responsibility for these items can save you from being sued in situations where food or beverages cause harm to people.
Dispute Resolution
The contract should specify how any disputes that result between the catering business and the client are to be resolved.
These are just a few ideas that you may consider incorporating into your catering business agreement. A good agreement will let both parties know where they stand while still offering them some flexibility to make changes if necessary.
For the information that you need for your catering business plan check out some of the top catering business startup guides at – Catering Business Start-Up Guide Reviews
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