What is a Wedding Venue Contract?
A wedding venue contract is a crucial legal document between a couple and their selected venue. It outlines the specific obligations of both parties, such as the provision of services by the venue, and specific requirements for the couple. This will likely include a finalized guest list, and even delineate who can remain in the venue during a specified time period. Many venues will extend to the happy couple a credit towards a selected vendor. If this is the case, the contract will specifically list out the vendor and the exact terms of the credit.
The signed contract will demonstrate that the couple has satisfied all requirements of entry into the venue . These requirements can be very specific, and can even include certain times for arrival for hair and makeup or set up. Venues, like any business are typically worried about liability and crowd control. They may require a certain number of security personnel in attendance at the event.
Because of these contingencies, and the considerable amount of money a couple is likely required to pay, it is imperative that the contract process is properly navigated. If you have not read a venue contract before, I highly recommend that you do some research prior to initialing the document.
Major Provisions Found in a Venue Contract
Many couples are overwhelmed by the fine details of planning their wedding. It’s easy to overlook a clause in a contract that could come back to haunt you. Read the contract in detail, and ask questions about anything you do not understand. Below is a summary of some of the most common clauses in wedding venue contracts.
The date and time for the ceremony and/or reception must be stated. If you are anticipating a rehearsal or rehearsal dinner with the venue, that time period should be covered as well. Review the times for start and ending to allow for time between activities.
Payment terms for venue use are also important, and should be carefully reviewed. Many agreements require a deposit, typically using a credit card retainer or e-transfer. Every venue is different so review the terms carefully.
Many venues have strict cancellation policies, which can be onerous. It may be difficult to get your money back. Ensure you are clear on the policy, especially as it relates to your deposit. This can be a difficult conversation if a couple has to cancel due to unexpected circumstances.
Most venues have restrictions on decor and A/V equipment. For example, a venue may not want to see plaster on the walls and ceilings, and may have a preferred vendor for use of the A/V equipment required.
It is always worth getting the advice of a lawyer to review the contract before you sign the agreement, but here are some tips from a former wedding planner:
- Venue: If you have more than one location, such the garden and the ballroom, make sure it’s clear which location your event will be at.
- Day-of Wedding Coordinator: When does your wedding planner need to show up for the ceremony, and how long do they need to stay? Your wedding planner will have insight into this, and it’s important to make sure you have your bases covered.
- Day-of Wedding Décor and Equipment: When will your door decorations and wedding rental equipment be delivered? Does your equipment need to be picked up by a specific time?
Clarifying Venue Fees and Payment Terms
When budgeting for a wedding venue, the types of fees and the payment terms may be the most important factors to investigate in your sample venue contract. While many people will look only at the base rental fee, there could be many more costs in addition to the base fee. Depending on how your venue charges, any of the following fees may be included in the total cost: rental fee, security/reception staff fee, setup fee, breakdown fee, bartender fee, gratuity, sales tax for the caterer, room fee, bar fee, rental of furniture, cleaning fee, special catering fees, corkage, bar service fee, or anything else.
Then there are the payment terms, which can vary widely from one venue to another. Some venues require a non-refundable deposit to hold the date for its clients. This deposit is frequently equal to the total rental fee for the use of the space, but other venues calculate it differently. If the client cancels the event, even by accident, the venue may specify that it will not refund the client any portion of the deposit. Many venues list payment in sections. For example, several people might review a venue on the same day, so the venue has no way of knowing when it will receive another deposit from one of those interested clients, if at all. When clients are not making their final reservations and paying their fees all at once, a venue may need some flexibility. As such, it may start out requiring a deposit for a portion of the total rental fee to hold the date as soon as it has been agreed upon, and then require the rest of the rental fee to be paid some amount of time before the event itself. Then, the venue may also require that other added fees be broken down and paid separately.
Many of these terms are laid out in detail in sample contracts. Couples should take the time to read any venue contract carefully before signing it. No matter how much or how little a couple decides to pay in advance, they should be able to cancel the contract and get some of their money back should the venue become unavailable for the event, for any reason. It is important for the couple to know whether or not the venue will allow for a refund or credit that would allow them to make arrangements with another vendor, should it be forced to do so.
Examining Cancellation and Rescheduling Terms
Cancellation and rescheduling policies are typically included in both the contract and the brochure(s) of the wedding venue and adjacent hotel(s). Conventional terms for cancellation include forfeiture of the security deposit and/or the initial two to four installments, forfeiture of all or a substantial portion of payments made to the venue made after the initial two to four payments are due, or a combination of the two. So if an initial balance is due upon booking (for example, payment in full for the date to be reserved), then cancellation may necessitate forfeiture of that balance. The security deposit is generally forfeited as well. Other installments made after the initial installment may require forfeiture if the cancellation does not coincide with another event being scheduled in the venue on short notice.
When the cancellation policy is strict and forfeiture of all funds is required, there are other considerations you can try to negotiate as an alternative to forfeiture. This includes a substitution date for the same year with no fee for changing the date. For example, if your wedding is in June, and you have to cancel or are thinking of postponing the wedding to late July or August to accommodate one of the guests’ schedules, the venue may allow it at no additional charge. It’s best to indicate this policy in writing, as it is in your and the venue’s best interest to keep a date in the same year.
Another option is to include in the contract a caveat giving you the right before the next two installments become due to cancel and receive a partial refund of the funds already paid. As discussed above, for the initial installment of a balance, cancellation will likely result in total forfeiture. If you have a very last-minute cancellation for any reason — even a month before the wedding when the majority of your payments have already been made — this likely will not help you very much. However, if you cancel 120 days or more in advance, this gives you some negotiating power. You may be able to substitute an upcoming available date; however, if there are no other dates available at the venue, then cancellation with a partial refund will be an option. At least you will have recouped some of that money. If the venue is a single-event venue, it may not have another date available within the same year.
Most venue contracts do offer the right to re-schedule with the same consideration. These provisions may state that if you need to change the date of your reception, the parties can mutually agree on an open date and the venue will accommodate it. Often the only payment needed will be for the additional costs associated with food and beverage and/or linens for the new date.
Negotiating Terms with the Venue
It is very common that fees and other contractual obligations may be negotiable. A venue will most likely sign an agreement if either they are able to move dates, or increase your package price without losing your business. Of course, you will want to address the fees as early as possible. Once the venue knows you really want a specific date, they may try to increase the additional fees . Do not be afraid to ask for fees and terms to be adjusted or omitted as more often than not the venue will be willing to do so. However, if they are not, or if the negotiation becomes challenging, it is helpful to know your options. For example, if you are looking for an evening wedding but the venue only does 2:00 PM weddings, ask the venue if there is an alternative package for 2:00 PM weddings that can meet your needs. Never be afraid to ask questions. You should be your own best resource!
Altering the Terms for Your Wedding
Before you sign your venue contract, it is critically important that you read it carefully and thoroughly. You may also want to have your attorney read it, especially if there are multiple addenda which further modify the terms of the contract. Some couples have let me read their venue contracts, and I have been able to help them understand some of the more unreasonable clauses and help them get some of them removed or modified. Though a contract should ideally be crystal clear, when it is not, having an experienced professional read your contract may help illuminate some of the issues that could come up later. At minimum, you will want to clearly understand any extra fees or restrictions for using the space.
When it comes to customizing the contract for your unique wedding needs, it is important to communicate those needs clearly to the venue. If there are unusual needs for set up times, guest counts, blocking off rooms, or anything else, make sure your venue approves and works them into the contract, or provides you with a separate addendum or other writing which references the original contract. Not all venues will accommodate your needs, especially in high-demand situations.
Potentially Concerning Terms in Venue Contracts
A few red flags to watch for are these:.
• Does the contract address issues such as cancellation and/or postponement caused by an act of God or the venue’s unexpected unavailability? You may wish to negotiate your ability to reschedule the event at the venue if such an event occurs (or if caterers , photographers or bands cannot perform on the scheduled date.
• Does it limit the time for seeking venue liability against the venue for personal injuries or property damage? You may wish to limit the liability to issues that the venue was aware of or that were brought to the venue’s attention before or during the event.
• Are the insurance and indemnification provisions reasonable? Are any of the provisions onerous? Often times a venue will require you to add them as an additional insured under your insurance coverage. If your homeowner’s policy is sufficient you may wish to remove this requirement and any obligations as to liability for damage to the venue’s property.
• Are you agreeing to allow the venue to use your photos for advertising or marketing without your consent or proper credit? This often happens despite your need for copyright protection inform your photographer to be cognizant of your need for copyright protection.
• Is the contract clear that no one can sign for you unless you authorize them to? Often times, venues have multiple people who can sign for them. You need to know that only people who are so authorized can bind the venue.