Guidelines for Venue Agreements
Casting a light on how important it is for a venue to have an agreement template in place with its potential clients who may have any interest in hiring it…
The term venue agreement shouldn’t scare anyone away and should not be something you fear either if you are on a hunt for a place to meet the needs of the gathering you are hosting. You may have other names to describe this type of document such as a rental agreement, service agreement, full rental proposal (which I advise against the use of due to the fact that it is too involved and too open and leaves too much subjectivity to it) or even a venue hire form – but really they are all the same thing.
I would suggest that it may be easier to call it an agreement template instead of a venue hire form as the former is more binding and obliges you to be in accordance with the terms outlined in the document.
So what actually is a venue agreement?
Avenue agreement is a contract between the venue or service provider and the potential client outlining the key terms and conditions of use of the property and such.
What’s the purpose of having a venue agreement?
The purpose of all agreements is to ensure that the potential client understands the requirements of use of the space which you occupy and operate. As an example , depending on your venue type, you may have restrictions on certain aspects of the use of the property or the services you provide. A venue agreement is a way to inform the client what those restrictions are so that they are clearly advised before proceeding with use of the property.
Avenue agreement should also safeguard the service provider from claims that may arise from use of the property. For example, in the case of a landlord and a tenant, the agreement places an adventure on the tenant to be responsible for all claims that may arise out of or in connection with use of the property.
Why is it so crucial to have a venue agreement in place?
The most important reason why a venue agreement is so crucial to have in any situation is because it sets the ground rules of a client’s engagement with the service provider and essentially the expectations on the engagement on both parties. It is a tool for you to refer back to if there is frustration in the engagement and certainly if there is a dispute or claim for damages.
A Venue Agreement Template will Include
A venue agreement template should cover a number of important areas to ensure that neither the venue provider nor the client is put at a disadvantage. This agreement does not have to be extremely extensive in order to be legally enforceable, but it does at least need to cover some key aspects of your agreement.
Payment Terms: Payment terms are an obvious and essential part of a venue agreement template. It clarifies that the client will be charged a deposit fee and sets a clear date for when the total bill must be paid in full before the client will be allowed access to the venue.
Usage Limitations: In any leased space, the venue should state roughly how many people the venue is able to comfortably accommodate and even what kinds of people that can be admitted. It can even be useful to specify that people will only be allowed into certain parts of the venue or that the venue has specific hours of availability.
Cancellation Policies: A cancellation policy is crucial for both the venue provider and the client. Naturally, a client is going to want a concrete cancellation policy stating that they are able to cancel their event within a particular time limit and still receive a refund for all or part of their advance payment. The venue provider is also going to need a similar clause. For example, if the client were to cancel their event at the last minute or even reschedule it for another day, the venue provider should have a specific structure for the extent to which that client will be reimbursed or expected to pay.
The Advantages of a Venue Agreement Template
One of the common reasons for having problems with contracts is due to omissions and ambiguities. An experienced attorney may come up with more clauses and other information than a layperson would. However, it is also possible to use a detailed venue agreement template and still create a legally-valid contract that includes enough information to prevent problems. Overall, having a good template for drafting contracts provides several benefits that can help keep your contracts legally-valid and reduce issues and disputes between you and your clients.
First, a template document can provide legal protection for the business owner and client. By using a well-written template, you can make sure that the contract is formalized in case of any disputes. If the venue agreement hasn’t been signed, an oral contract could be considered valid in some cases, but it’s more difficult to prove that compared to a signed contract. Verification of the venue agreement template being signed and dated by the involved parties is easy enough to do for a court. It is always better to have something in writing, which is why having any contract in writing is important.
Clarity is another major advantage of using a venue agreement template. A good agreement helps both parties to understand what is expected of them. This clarity prevents miscommunication between the involved entities and can help preserve business relationships. This is beneficial for the business to be able to keep working with clients who have signed contracts in place, because it increases the chances that a contract will be honored and therefore improves the firm’s cash flow.
Finally, using a standard legal form such as Venue Agreement Template allows the company to save time during the drafting process. There is no reason to begin from scratch when a form has already been created for these purposes. The only time-consuming effort is making sure that the legally-valid contract is fully filled out, but nothing else is necessary.
Understanding the benefits of using a venue agreement template can help you improve your management of contracts. It is critical to make sure that your contracts are legally-valid and that you have everything spelled out within it to prevent any potential problems in the future.
Personalizing your Venue Agreement Template
Once you have selected a venue agreement template that is appropriate for your event, you may be tempted to copy it verbatim. Although this would be an easy way to avoid any work on your part, it would not produce the best results. You must customize your venue agreement template to fit your particular circumstances or you risk being taken advantage of by unscrupulous venue operators. For example, in most venue agreements, an indemnification and hold harmless clause is included to protect the venue operator from any lawsuits filed by guests attending any function arising out of injuries incurred on the property. This clause is usually one-sided in favor of the venue operator. That being said , when a lawsuit is filed against the venue operator, it will also include your company as a co-defendant in the lawsuit. The first step in customizing your venue agreement template is to ensure that the indemnification and hold harmless clause protects both the venue operator and your company. In addition, you should consider to add to your agreement that your company has the right to conduct its own defense at its own expense or to hire its own lawyers to defend any claim arising out of any such lawsuit. This allows you the flexibility of negotiating a settlement with the venue with respect to any such claim, instead of simply relying on the advice of the venue’s public relations or loss prevention department.
Problems You May Encounter
Common mistakes abound when it comes to venue agreements, and often you’ll find yourself at a stand-off: Do I want to pay for quality and risk a rejection now, or roll the dice on a cheaper alternative that could run out? Whatever the case, even when you think you’ve written and created the most foolproof agreement, others are not above a bit of fine print trickery. So what are some of the common mistakes people make either when writing or putting a venue agreement template to use? Here’s the skinny: Consider this: You’ve secured the perfect spot, but the agreement you have with the venue says final payment needs to be rendered three months before the date. Technically, this means you’re agreeing to provide them with your final headcount and schedule of how you plan to set up, do you see issues here? As with most things around an event, it helps to over-communicate with the venue. Don’t be afraid to let if they are going come back to you with something confusing, or outright impossible. Again, communication can help you here. If you’re making the agreement to prohibit the use of alcohol, specify whether this is for the entire building, or just in the event space. Make sure anyone who will be at the location, even briefly, knows about any restrictions that you or your team will need to abide by. Make sure both you and the venue give the contract a going-over before you sign it — like a fool proof contract starter kit. The two biggest issues here being to ensure you have reserved the correct amount of time, and that you’ve provided accurate contact information. These seem simple enough, but it would surprise you how often these details need to be amended.
Negotiating Venue Agreements
Having a proper strategy set prior to the negotiation process with a venue is always key to achieving favorable terms; and saves time, money and even your event.
Here are some tips before heading into a contract negotiation with a venue: Don’t assume the venue has your best interest at heart. Venues are in the business of making money. So make sure you have all the meeting space you requested, are getting a fair catering rate, and are not being charged for anything you’re not receiving value for. Venues rarely give anything away for free. While I understand the instinct to lock in the best meeting space, I believe it’s better to get a three-day hold and negotiate a contract for that meeting space in order to assure you get the best deal. (The difference between a hold and a contract – well that’s another blog post!) If you see something in the contract that is out of line for your event , trust your gut instinct and either question it or seek legal assistance. Don’t get caught up in the moment with the venue manager, and forget your business position. Stand your ground early in the negotiation process about what is most important to you such as food and beverage, room rates, sleeping room pick-up, hard costs, complimentary items, access to space for rehearsals and meeting rooms, etc. This will help ensure you have a contract that works for you – and your attendees. Negotiating a contract for only one area, such as food and beverage, can leave you vulnerable when negotiating the rest. Think about the terms you might need to renegotiate later. For instance, if your conference is in November, and you need a room block for one room for each day that week, the venue manager may give you a September 1 rooming list due date. But you might need to extend that to help sell out that hotel. So negotiate a later due date in the contract. Never ever guarantee room nights you know you cannot sell.