There it was...a new "twist"!

Originally published as E-Newsletter #8 by Planner Protect (November 10, 2016)

Last week, I had the privilege of supporting a colleague with a VENUE CONTRACT REVIEW. As I typically find reviewing venue contracts, there were lots of details and clauses that I highlighted and questioned as I worked my way through every word....but it was on the second to last page that I found my "OMG - I love this stuff" moment - the "twist", the "something new", the "really?" moment! 

Here it is.......15% HOUSE CHARGE ON FOOD & ALCOHOL

Now, I can almost hear what you're saying...."Heather, this isn't something new"! A house charge / a service charge / a gratuity of 15 - 25% on food and alcohol is absolutely common and included in almost all venue contracts. Yes - I agree....my immediate reaction to this was the same - I expected it! And because of this, I almost glossed over the next few lines of fine print! However, I would have been sorely mistaken in this case.

Here's why!

In this specific venue contract, the "HOUSE CHARGE" is defined as: "a hospitality industry fee that covers many of the miscellaneous costs not covered by the food costs and the rental costs, including but not limited to: the credit card processing fees, peak hour energy costs and labour costs. The funds related to this House Charge do not get redistributed to our staff members."

WHOA....that's not what I "assumed" the 15% HOUSE CHARGE meant! Did you? Do you now have the same questions as I do?

Here are a few of mine:

1) will there be another charge added to my invoice that will be distributed to staff members? If so, what is the amount?

2) if you don't charge me a specific amount to be distributed to staff members, is there an expectation that I will be doing this independently?

3) if the House charge applies to miscellaneous costs - then why are you calculating the value of it based on "food & beverage" - why not on rental costs (which most often are significantly lower)?

4) what if I am holding an evening event when "peak energy costs" are not being incurred - is this charge still being applied?

5) if you are covering credit card processing fees in the House Charge - if I pay by cheque, am I relieved of this charge?

Now - please understand that I'm not highlighting this because it is wrong or illegal - it absolutely isn't and there is no wrongdoing on behalf of the venue.

What I am highlighting is this......you must read EVERY SINGLE WORD of a venue contract...no two contracts are ever the same...you need to challenge the wording of every clause to ensure that you UNDERSTAND, APPRECIATE and AGREE TO what is being requested.

If so - great. If not - be ready, willing and able to NEGOTIATE!