Protecting Your Business at Seasonal Events: Understanding Event Contracts

Christmas fayres and seasonal events are a fantastic opportunity for catering businesses to showcase their culinary delights and grow their customer base. However, with these opportunities come contractual obligations, and it’s vital to read the fine print before signing on the dotted line.

As a member of NCASS, you’re already a step ahead in ensuring your business operates smoothly. However, when it comes to event contracts provided by organisers, there are key clauses that could significantly impact your business. Below, we’ll guide you through the most important terms to watch out for and explain how McKenzie Consultancy & Legal can help protect your interests.

Deposits and Cancellation Clauses

One of the most common issues small catering businesses face is the refundability (or lack thereof) of deposits. Event organisers often require deposits to secure your attendance at events. However, the terms surrounding cancellations can vary:

• Organiser Cancellations: If the event is cancelled due to unforeseen circumstances, will your deposit be refunded? Some contracts include force majeure clauses that absolve the organiser of liability for events like bad weather, leaving you out of pocket.
• Caterer Cancellations: If you need to cancel due to unforeseen circumstances, check whether the organiser has included penalties or a non-refundable deposit clause.
  Tip: Ensure the cancellation terms are fair and don’t disproportionately penalise you. If they’re unclear or seem excessive, seek clarification or advice from McKenzie Consultancy & Legal.

Liability Clauses

Liability clauses outline who is responsible for incidents like food-related illness, equipment damage, or accidents during the event. Key considerations include:

• Are you expected to hold public liability insurance?
• Does the organiser’s insurance cover accidents that aren’t your fault?
• Will you be held liable for losses caused by event issues, such as power outages affecting your equipment?

Make sure the liability is shared fairly and confirm that your own insurance adequately covers you for the event.

Venue Restrictions and Requirements

Contracts often include specific requirements for catering businesses, such as:

• Waste disposal obligations
• Adherence to health and safety regulations
• Restrictions on the types of cooking equipment or ingredients you can use

These requirements could incur additional costs or operational constraints, so it’s crucial to read these sections carefully.

Termination Clauses

Some contracts allow the organiser to terminate your agreement at any time. While this is not uncommon, look out for clauses that allow termination without reasonable notice or compensation. Such terms could leave you unable to recoup losses for stock purchased or staff hired in preparation for the event.

The Importance of Contract Review

It’s easy to get caught up in the excitement of participating in an event, but signing a contract without fully understanding its terms can have serious consequences. At McKenzie Consultancy & Legal, we specialise in helping small businesses like yours navigate contractual obligations.

From just £15, we’ll review your event contract and highlight any areas of concern, ensuring you’re fully aware of your rights and potential risks. With our help, you’ll have the peace of mind to focus on what you do best: serving delicious food to your customers.

Case Study: Protecting a Small Catering Business

One of our clients, a food truck owner, was excited to secure a spot at a Christmas market. However, their contract included a non-refundable deposit clause and a penalty for withdrawing, even if the event was cancelled. After reviewing the terms, we advised them to negotiate a fairer cancellation policy. The result? They secured an amended contract that protected their deposit in the event of organiser cancellation, saving them over £500 when the event was ultimately postponed.

Let’s Get Your Business Ready for Success

Don’t let unclear contracts hold you back. Whether you’re preparing for a Christmas fayre or any other event, McKenzie Consultancy & Legal is here to support you.

Visit our website to learn more about our contract review services. Have questions? Get in touch via our Contact Page or call us today on 0118 321 4188.

By taking the time to review and understand your contracts, you’ll ensure your business is protected and ready to thrive during this busy festive season.