6 Venue Clauses That are More Important Than You Think

Venue contracts vary from location to location. Often, the larger the venue, the bigger the contract, while one page contracts are common for smaller spaces. Some non-traditional venues don’t even have contracts. No matter the size of the contract, it’s important to remember that all contracts are negotiable.

We aren’t attorneys and don’t give legal advice, but here are a few things we look for in contracts:

1. Policies and Procedures: Convention centers and hotels usually have a line that says something like “I agree to abide by the polices and procedures as described on the Policies and Procedures document”. It is important to receive a copy of that document. Many times that document details out additional fees or requirements that are required when holding an event. Fees could include security or chef charges. It might also address power limitations or time limits that aren’t spelled out in the contract.
2. Music License: Often in fine print, there is sometimes a line that reads, “Lessee agrees to purchase all music licenses”. Any time copyrighted music is played (for any reason), the organization is required to have a music license. It doesn’t matter if the music is played by a dj or an ipod, the license is still required.
3. Condition of Premises: This is an add-in clause that says that at your event, the venue will be in the same condition or better at the time of contracting. This is especially important when the contract time is for a long period of time. Venues can change owners, go under construction, or undergo a natural disaster, all of which could alter the original condition.
4. Food and Beverage minimum: This is the minimum financial spend in food and beverage not including tax and service charges. Getting this as low as possible is ideal. Events change. Attendees decrease. Things happen.
5. Audit Clause: Another add-in clause. If beverages are being purchased on consumption, it is fiscally prudent to count the bottles at the end of the night to ensure you are only be charged for what was consumed.
6. Non-compete: Most people are familiar with the employment non-compete. This one is a slightly different, but serves a similar purpose. Many industries don’t want competing companies holding meetings/events at the same property at the same time. If this is an important issue, it is imperative to add language into the contract.