Last Updated February 28, 2024
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What is a Catering Contract?
A Catering Contract is a service agreement between a caterer and a client. It is suitable for a catering service covering one or more specific events or for hiring a regular catering service for your business.
You can use a Catering Contract for any type of catering service, including:
- Wedding catering
- Food truck catering
- Sandwich catering
- Corporate catering
- Other event catering
A Catering Contract is also known as a:
- Catering agreement
- Catering services contract
What is catering?
Catering is the professional service of providing food and drink at an event or gathering. Catering providers are also often responsible for:
- Creating a food menu based on the choice and budget of the client
- Coordinating with an event
- Preparing and serving the food
- Transporting the food
- Setting up the serving area and/or guest seating
- Cleaning up
- Providing catering equipment
What is a catering licence?
A catering licence is a document that grants a business permission to supply catering services.
In Australia, each state or territory has their own regulations for food business licensing, including catering. The licences you require will depend on your location and business specifications. For example, if your catering company supplies alcohol, that will require additional licensing.
Apply for the appropriate licences through your local council. If you run a mobile catering company (such as a food truck), you may also need a licence from your state or territory.
Why do I need a Catering Contract?
A Catering Contract establishes the relationship between the client who requires the catering and the catering provider. The document should define the service to be provided, the contract price or payment rate, the responsibilities of both parties, and the length of the agreement.
By outlining important details relating to the catering and ahead of time, both parties gain a mutual understanding of their role. Clarity helps avoid misunderstandings and legal disputes. A Catering Contract gives either party leverage to insist the other party uphold their end of the arrangement. With a written, signed, contract, it is much easier to establish the terms of the contract in court.
How do I write a Catering Contract?
You can create a Catering Contract for a single event, multiple events, or regular scheduled catering. Our simple Catering Contract template will help you create a complete and legally sound document. Follow these steps to ensure you create your document properly:
1. Provide catering details
Select the state or territory where the catering will take place. If you are using LawDepot’s Catering Contract template, we will use this information to customise your document. Provide the full address of the venue along with the time (e.g., 1-5 January 2023, from 11:00 am to 2:00 pm every day).
Provide a brief description of the caterer’s services (e.g., prepare table settings, decorate the banquet hall, supply catering equipment, and cook and serve the agreed menu items for the banquet). Be clear and specific when describing the tasks required, and indicate any important dates.
There are also some catering menu and guest details you may wish to include:
- Determine if the client may request specific menu items
- Decide if you wish to specify a deadline for changes to the menu
- Decide if you wish to specify a deadline to confirm the number of guests
2. Provide details for both parties
Begin with providing the caterer's name and address. The caterer can be an individual or a corporation/organisation.
Next, provide the client’s name and address. The client can also be an individual or corporation/organisation.
3. Provide the billing details
The billing options available depend on the duration of the contract. A flat fee is often suitable for a one-off event, but an hourly, weekly or monthly rate will be needed for longer term contracts. If there is a required deposit, enter the amount here.
Next, for contracts where payment will be periodical, set the frequency of payment. Additionally, determine when the client is required to pay the invoice. Typically, 15-30 days is enough time. You can also decide to set an interest rate on late payments. Reasonable late payment charges are up to 25% per year on unpaid sums. Legislation prohibits extortionate interest rates, even if the parties agree to them.
4. Establish contract terms
To ensure that your contract suits your needs, be sure to address the following terms.
Cancelling the contract
Sometimes events have to be cancelled. Decide whether either party may cancel the contract and how much notice is required.
For longer term contracts or contracts of indefinite duration, there must be a mechanism for ending the contract. Typically, one week's notice is sufficient for most short-term contracts. If the contract is for more than a few months, it’s better to require a notice of at least 15-30 days.
Intellectual property
Determine who will own any intellectual property (such as recipes and menus) created under this contract. Intellectual property is any work that is a creation of the mind. The client can receive ownership of intellectual property, or the caterer can retail ownership.
Confidentiality
During some contracts, parties may exchange confidential information. Confidential information refers to any of the Client's business or personal information that isn’t publicly available. If this is relevant to your arrangement, decide whether obligations of confidentiality will last indefinitely or only until the end of the agreement. Bear in mind that information which is considered a trade secret must always be kept confidential.
5. Include additional clauses, if necessary
If your contract requires it, include additional clauses. Most contracts don’t need additional clauses. However, if you wish to include any terms that aren’t addressed above, this is the place to include them.
6. Sign the contract
If you know when both parties will sign the contract, you can include the date. You can choose to include witness signatures if you like, though it isn’t a legal requirement. Including witness signatures gives the document more credibility if you later need to rely on it in court.
A witness should be an adult who doesn’t have any interest in the document and is capable of understanding the witnessing process.
What is a typical catering deposit?
The amount of a catering deposit will depend on the circumstances of the job. For example, a couple getting married may wish to serve a special dish at their wedding that may require the caterer to preorder the item in advance. On the other hand, a deposit probably won’t be relevant in a contract for a caterer running a canteen in an office building.
A standard catering deposit will typically be between 10-50% of the total catering bill. Caterers should determine how much of the deposit is refundable in the event that the client cancels the event. For example, if a client cancels within one month of the event, the deposit may be fully refundable. However, if they cancel within a week of the event, the caterer may determine that they will not return the deposit. Whatever the caterer decides, it’s important to communicate this information clearly when the client submits the deposit.