{"id":274,"date":"2022-12-07T00:16:56","date_gmt":"2022-12-07T00:16:56","guid":{"rendered":"https:\/\/eclient.app\/missioncounsel\/?p=274"},"modified":"2022-12-07T00:34:32","modified_gmt":"2022-12-07T00:34:32","slug":"venue-contracts-explained-and-negotiating-the-best-possible-terms","status":"publish","type":"post","link":"https:\/\/eclient.app\/missioncounsel\/2022\/12\/07\/venue-contracts-explained-and-negotiating-the-best-possible-terms\/","title":{"rendered":"Venue Contracts &#8211; explained and negotiating the best possible terms"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_row _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_text _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h1>Venue Contracts: <em>Negotiating the best possible terms for your event.\u00a0<\/em><\/h1>\n<p><b>Are you the person in charge of selecting a\u00a0venue? \u00a0<\/b> If so, this little article might be\u00a0useful for you. \u00a0Below I discuss a few basic terms to be on the look out for in venue contracts. \u00a0Plus I share a few other important\u00a0considerations for selecting the venue for your event. \u00a0It doesn&#8217;t matter if you are booking a wedding or a conference, venue contracts are almost always negotiable. \u00a0Nothing herein contained should be construed as legal advice. \u00a0Always seek attorney review before you sign any contract. \u00a0Further, before you get to contract, consider allowing your attorney the opportunity to negotiate a few basic terms. \u00a0<\/p>\n<h2><b>Hosting an event such as a concert, a banquet or\u00a0fundraiser can be a fun and exciting undertaking. \u00a0But\u00a0contract mistakes can be terrible and\u00a0expensive. \u00a0So get it right\u00a0but making sure you understand the terms\u00a0upfront.\u00a0<\/b><\/h2>\n<p>There are so many elements for an event to consider the least of which is your selection of venue. \u00a0Other elements include capacity, event goals and technical requirements. \u00a0Venues can be thought of as any place where your event happens. \u00a0If you are hosting a birthday party and you rent a pavilion at your local park the park&#8217;s pavilion is the venue. \u00a0If you are bringing a band to perform on your campus the venue is likely the building or area of campus that you use to host the band and your guests. \u00a0 What about the <em>other elements<\/em> I mentioned at the top of this paragraph?<\/p>\n<p><strong>Trivia Question<\/strong>: <strong>When the March for Life hosts its annual national March for Life in Washington, D.C., what is the venue<\/strong>? \u00a0 Is it the streets where marchers march? \u00a0Is it the National Mall where the Rally is held? \u00a0 Is it the hotel where the March for Life Conference is held? <strong>\u00a0Answer: <em>All of the above<\/em>.<\/strong> \u00a0Each location where an aspect of the national March for Life occurs is technically a venue. \u00a0But for purposes of this article we are most focused on venues where contracts are created for hosting the event. \u00a0The venues I am thinking about include hotels, convention centers, stadiums, banquet halls, etc.<\/p>\n<ol>\n<li><strong>How do I select the right venue for my event<\/strong>? \u00a0 This article assumes you know your basic requirements for selecting the appropriate venue. Important considerations for\u00a0your event might actually impact your venue decision. \u00a0For example, how many people do you need to attend? \u00a0Do you need food and beverage? \u00a0Do you need parking? \u00a0Do you need hotel rooms? \u00a0Do you need audio visual or other technical assets? \u00a0 \u00a0If you are booking an artist of national figure does their contract (or rider) stipulate certain venue requirements for staging or production? \u00a0 The majority of this article assumes you know what you need in terms of venue selection. \u00a0If you don&#8217;t know what you need, feel free to drop me a line and we can speak about your event.<\/li>\n<li>\u00a0<strong>How do I negotiate the best possible terms for my venue contract<\/strong>? \u00a0The answer is in the question: &#8220;Negotiate!!!&#8221; \u00a0\u00a0Contracts for stadiums are going to be very different than contracts for hotels. \u00a0Either way, stadiums and hotels are in the business of making money. \u00a0These venues leverage their buildings and accommodations to maximize revenue. \u00a0One of the best ways for venues to earn money is to rent out their facilities to third-party event organizers. \u00a0Most big venues have iron clad terms and conditions along with boiler-plate designed to maximize their profits and minimize their risks. \u00a0 But it is important to remember that all contracts are negotiable. \u00a0It&#8217;s your money they want. <span style=\"text-decoration: underline;\">\u00a0A few considerations on leverage and your power to negotiate<\/span>:<\/li>\n<\/ol>\n<ul>\n<li>Where is the venue located? \u00a0Are there &#8220;other&#8221; venues nearby that have similar facilities? \u00a0If so, never go with the first offer. \u00a0Even if you love the particular location try to leverage the &#8220;other&#8221; locations as a way to gain concessions or more favorable terms. \u00a0 \u00a0For example. If Hotel One requires a food and beverage minimum of $100 per person. \u00a0See what Hotel Two can offer. \u00a0Try to negotiate each point where they will be flexible. \u00a0Do not be afraid to play both sides and let them know you are doing it. \u00a0 Try saying something like this: &#8220;<em>Hotel One &#8211; we are looking for the most competitive deal. \u00a0Can you beat or match Hotel Two<\/em>?&#8221;<\/li>\n<li>Does the venue require you to use their F&amp;B or their AV (audio visual)? \u00a0 Most venues have strict rules for F&amp;B requiring use of their F&amp;B departments. \u00a0Sometimes however you can negotiate a buy out or third-party vender to cover your F&amp;B needs. \u00a0 Why would this matter? \u00a0 \u00a0Well it would matter if you need to feed volunteers or staff. \u00a0 Pizza from Dominos for $100 might be all you need. \u00a0However it&#8217;s possible the hotel could charge you hundreds if you are required to use them (even for pizza).<\/li>\n<li><strong>Be Aware of Corkage Fees! \u00a0 <\/strong>Some venues,\u00a0in fact many\u00a0venues, have\u00a0so-called corkage fees. \u00a0Many years ago I fellow I know hosted a wine and cheese party in his hotel room. \u00a0There was a\u00a0major conference going on at the hotel at the time. \u00a0He invited guests from the conference to attend his wine and cheese party in his\u00a0room. \u00a0 A few hours later he received a knock from the hotel manager. \u00a0 They threatened to charge him a corkage fee per bottle of wine or boos that he had opened. \u00a0 Luckily it was an honest mistake and the hotel manager let it go. \u00a0But be aware!<\/li>\n<li>Corkage fees continued. \u00a0At another event I was part of we offered guests a wine hour. \u00a0The hotel required a $15 per bottle corkage fee! \u00a0 The wine had been donated and likely only cost around $5 a bottle. \u00a0Be aware!<\/li>\n<li>F&amp;B Exclusivity. \u00a0 Many years ago I rented out a baseball stadium for a charity concert in South Florida. \u00a0 The venue had an exclusive deal with a vendor for all concessions. \u00a0This means no one could sell or buy concessions at the facility without going through the venues exclusive concession vendor. \u00a0Somehow we managed to negotiate a deal whereby the vendor would give us a percentage of the F&amp;B sales. \u00a0This particular event was for charity so it worked out. \u00a0Our argument was we could get a few restaurant vendors to come in as sponsors. \u00a0In fact we did! \u00a0 Even though the vendor had an exclusive we also negotiated that one of our big sponsors (Miller&#8217;s Ale House) could host their own food at a particular location within the venue. \u00a0We negotiated the heck out of this deal.<\/li>\n<\/ul>\n<p><strong>Venue Contracts are generally one-sided (favoring the venue).\u00a0<\/strong>\u00a0 Make sure you are protected against unilateral changes. \u00a0 A few basic terms I would attempt to negotiate into any contract:<\/p>\n<ul>\n<li>Mutual Consent for <strong>modification<\/strong> to terms including changes to facilities or particular rooms. \u00a0 This is critically important. \u00a0Be sure your contract very clearly states which room or rooms your event will utilize. \u00a0Be sure the contract indicates these rooms are necessary for the event. \u00a0Last include language that requires notice by the venue of any changes along with mutual agreement. \u00a0 In other words the venue should not be able to arbitrarily change rooms or other terms without first getting your approval. \u00a0 Why would a room change? \u00a0This would most likely happen because the venue double books the facility. \u00a0But other factors could also cause a venue to change facilities or rooms such as renovations for example.<\/li>\n<li><strong>Termination Clauses<\/strong>. \u00a0Most venues require termination far in advance of your event dates. \u00a0Many venues even require you to pay out of pocket fees such as hotel rooms or F&amp;B minimums even if you cancel the event. \u00a0So make sure you negotiate some &#8220;outs&#8221; for your event.\n<ul>\n<li>During COVID it became necessary to include COVID and more broadly &#8220;pandemic or public health crisis&#8221; language as a mechanism for termination without fault.<\/li>\n<li>Some hotels will insist on payment schedules based on the amount of time between cancelation and the event date. \u00a0These schedules are almost always negotiable.<\/li>\n<\/ul>\n<\/li>\n<li>Vendors. \u00a0 Many venues require use of their vendors for things like conferences, booths and expos. \u00a0These services can be ridiculously expensive. \u00a0At a recent event an exhibitor at an expo asked for an extra 8&#8217;foot table. \u00a0The vendor who had the exclusive services contacted wanted $500 to move a table! \u00a0 These sort of terms and exclusive deals can seem arbitrary and unfair. \u00a0The bottom line is to make sure you understand your needs and the venue requirements upfront.<\/li>\n<\/ul>\n<p>There are many more parts of a venue contract to consider. \u00a0Remember all terms are negotiable. \u00a0If the venue is unwilling to negotiate then consider other venues. Particularly in big cities never settle for terms that don&#8217;t work for your event. \u00a0Remember the venue wants your business. \u00a0So make them work for it by carefully reviewing their terms and conditions. \u00a0Negotiate!<\/p>\n<p>Contact Royce to discuss your venue contract. \u00a0Royce can also help you negotiate the most favorable terms possible. \u00a0<a href=\"https:\/\/eclient.app\/missioncounsel\/about\/client-scheduling\/\">Book a consultation today<\/a>.<\/p>\n<p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/eclient.app\/missioncounsel\/wp-content\/uploads\/sites\/7\/2022\/12\/PNG-image.png&#8221; title_text=&#8221;PNG image&#8221; _builder_version=&#8221;4.17.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are many more parts of a venue contract to consider. \u00a0Remember all terms are negotiable. \u00a0If the venue is unwilling to negotiate then consider other venues. Particularly in big cities never settle for terms that don&#8217;t work for your event. \u00a0Remember the venue wants your business. \u00a0So make them work for it by carefully reviewing their terms and conditions. \u00a0Negotiate!<\/p>\n","protected":false},"author":3,"featured_media":277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[17,27,16],"tags":[34,33,35,26,32],"class_list":["post-274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-legal-tips","category-quick-tips","tag-event-contracts","tag-hotel-contracts","tag-how-to-pick-a-venue","tag-royce-hood","tag-venue-contracts"],"_links":{"self":[{"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/posts\/274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/comments?post=274"}],"version-history":[{"count":5,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/posts\/274\/revisions"}],"predecessor-version":[{"id":282,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/posts\/274\/revisions\/282"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/media\/277"}],"wp:attachment":[{"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/media?parent=274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/categories?post=274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eclient.app\/missioncounsel\/wp-json\/wp\/v2\/tags?post=274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}