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mlw
Master December 2016

Just reading over the contract from the reception venue.... and man

mlw, on May 20, 2015 at 12:33 AM Posted in Etiquette and Advice 0 41

They don't get held accountable for ANYTHING! Basically they could verbally lie to you and there's nothing you can do?? You can't sue, if you have to cancel they get a certain % of what they think they would have made on food and beverage costs, menu prices can change, they can charge extra labor, tax is a WHOPPING 28.25%- and that doesn't count gratuity,overtime is $500 @ 30 min, there's indemnification, hold harmless and force majeure clauses....

Is all of this NORMAL??? The restaurant is looking better and better....

41 Comments

Latest activity by annakay511, on May 20, 2015 at 6:35 PM
  • Mrs. Nicole
    Master May 2016
    Mrs. Nicole ·
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    Eh...this doesn't seem okay to me.

    For us if we cancel, we do forfeit all money we've given. But not a % of what they THINK they would make. We're subject to sales tax (6%) and 18% gratuity to pay wages (not tip I believe). Seems kind of weird,

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  • Maltese
    Master June 2015
    Maltese ·
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    I can't remember what our is, but its definitely not rigid like yours...what kind of venue is this? Banquet hall/golf course/barn/restaurant?

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  • Kelsie
    Super August 2015
    Kelsie ·
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    That seems really wrong. If we cancel we loose out deposit and that's it ($500) and our total cost is plus tax (HST 13%) and gratiuty (10%) ... If they don't cover anything make sure you get your own insurance to cover it and yourself!

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  • Janeen
    Master January 2015
    Janeen ·
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    Verbally lie to you how? The cancel clause is fairly normal. Menu prices don't typically change year to year, so I would strike that out. I had an estimate for the amount of labor needed and actually received a refund because they didn't bring that many people.

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  • S
    Master June 2015
    Sara ·
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    That seems excessive. I'd be asking a lot of questions before I signed that contract.

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  • JamieLynn
    Master June 2016
    JamieLynn ·
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    Something seems off with that - Maybe give them a call today to discuss and to help you better understand these terms that seem to be as @Maltese said, rigid.

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  • OGSue
    Master August 2016
    OGSue ·
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    That tax thing seems off, I would inquiry about that.

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  • J
    Expert September 2015
    Joni ·
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    I'm probably the only one but i think that's spot on. The clause about verbal lying is close to clauses in my career that say unless it's in writing, it's void.

    Our tax is 26% on everything but alcohol, alcohol is 20%.

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  • Lady O.
    Super March 2015
    Lady O. ·
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    Menu prices should be set at the time of contract signing. Cancel is fairly standard, for us we would lose our deposit until a certain time before the wedding at which point we'd still have to pay the minimum. Tax sounds super crazy, there is no way that doesn't count gratuity!? And overtime? Da Fuhhh? I would not sign that without some thorough negotiating.

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  • Ashley & Justin
    Devoted September 2015
    Ashley & Justin ·
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    Ours was more lenient that yours seems to be. We do have a cancellation policy where we would forfeit our 20% deposit as long as we give them notice 3 months in advance. Since our balance is due almost a month out - if we were to cancel last minute, I could foresee clauses like what you mention coming into play. But not with advanced notice?

    We signed our contract in late 2013 and they did have a menu change for 2014, but the items we were leaning towards were not affected. So you may be ok. Usually the beef options have the most variance in price over time.

    Taxes+gratuity for us ended up being 27% because in Pittsburgh, PA they have pretty crappy regulations on alcohol... So I feel your pain!

    They definitely should be contracted for the full time of the event - none of the "overtime" nonsense. What's the point of a contract?

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  • Ms. Versace
    Super June 2016
    Ms. Versace ·
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    Yeah that seems a bit heavy!! Mine does have a cancellation stipulation and I lose the deposit but how is tax that high?? Mine doesnt charge tax as they are a non profit but i thought it had to be state tax....could be wrong tho. MY contract states things like candles must have the glass higher then the flame and no glitter or confetti and no bubbles but nothing as extreme as yours.....id be running!!!

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  • Mrs. A & J
    Master December 2014
    Mrs. A & J ·
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    I'm not sure about the percentages they WOULD have made part. How do they calculate that? Unless its a percentage that's based on your signed contract, how much you've already paid, how many days out you are, etc.

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  • Lara
    Master July 2015
    Lara ·
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    You are definitely able to negotiate your contract with them...

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  • Emily
    Master May 2014
    Emily ·
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    This contract is not as crazy as people are making it seem. All venues are different and some of these clauses are common.

    The tax seems high but I would clarify that. It is probably a Service Charge AND tax. A Service Charge is often not a gratuity - it pays the salaries of the staff.

    The overtime thing is because venues want your event to end at a certain time (12am / 1am usually). So they will add in charges as incentive to get you out by the stated time.

    Menu prices DO change. Food prices go up. Not all venue contracts have food prices set in stone in the contract. Mine didn't. Menu prices are often subject to change.

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  • SB821
    Super August 2015
    SB821 ·
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    The "what you would have spent" is a liquidation damages clause. It's very, very common; I'm a lawyer, and I assure you those are in a lot of contracts. My venue contract has one, and it's not shady.

    The reason is this: if you fail to perform the contract, like cancelling, they can't know 100% what damages they would incur because of that breach. So they set a reasonable amount beforehand to protect them from you bailing and them losing out on revenue for your date. My contract sets it up where if I cancel before X date, I owe 25% of my anticipated cost based on guest count; after that to Y date it's 50%, and so on until the month before the wedding and its 100%.

    And indemnity, hold harmless, and force majeure clauses are standard. You should really double-check on the tax thing, but everything else is quite standard.

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  • Brigit
    Master October 2015
    Brigit ·
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    I agree withe emily, the only thing that i would really want to look at again is that Tax (is it state tax or are they including fees in that too, i would want fees shown separate from the tax)

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  • mlw
    Master December 2016
    mlw ·
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    It's a country club. And basically what the contract said is anything that has been said before the contract is void. As for the tax, it states a 20% taxable labor charge AND regular sales tax will be added to all food and beverage charges. And then says something about if I wish to add a separate gratuity to my bill....

    Trust me, I am going to go over it with a fine tooth comb today. Any questions I have I will e-mail over to her before signing, and I will look up exactly what all those clauses mean. On top of everything I woke up to an e-mail from her stating she talked to her Chef who refuses to do a brunch for us based on such a small wedding *upstairs*, which is where the nicer room is. They offer a "Post Brunch Wedding Package", Executive and "Classical", which is the nicer of the 2 and charges a $50 Chef fee. However, nowhere is it stated there is a minimum, and she never even acted like this would be an issues when we did our tour and talked to her... or later when I told her I thought that's what we would do based on time of day (12:30-4:30) and the fact I believed it would allow the guests more food and options then some of the entree packages.

    I don't know.... this whole thing has just become a headache I think I don't want. I tell ya, Olive Garden is looking better and better... and who doesn't love Olive Garden?? LOL

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  • Emily
    Master May 2014
    Emily ·
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    OK, so now you have clarified the tax issue: "As for the tax, it states a 20% taxable labor charge AND regular sales tax will be added to all food and beverage charges. And then says something about if I wish to add a separate gratuity to my bill"...

    So, it is clearly not ALL tax. It is a service charge (labor charge) which means that amount is going to pay the salaries of the staff at the venue and it is taxable. Plus the usual sales tax on your food and beverage. That is not unusual. Many of us have had a separate service charge, usually 20%, added to the bill to pay employees (it has been discussed many times here). This is not a gratuity, it is their salaries. That is why they are noting that you have the option to add gratuities if you wish (not mandatory).

    Again, this contract does not sound outrageous. It sounds like the contract of a professional venue.

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  • LadyMonk
    Master September 2014
    LadyMonk ·
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    This contract doesn't sound outrageous to me either. If you have questions or don't understand some of the clauses, make sure you find out or ask them. You *Can* sometimes negotiate contract terms. Be sure you know exactly what is included and any additional costs that could be involve. Like if you're having cake, some venues have cake cutting fees. Where we are, there's a $60 to play music. etc.

    Our venue also had fluctuating menu prices etc.

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  • mlw
    Master December 2016
    mlw ·
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    But, am I understanding it right... If it's 20% taxable labor charge, AND my regular sales tax is 8.25%, isn't that a grand total of 28.25% added on top of the bill??

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