Contract And Deposit Requirements

Business By pj22 Updated 26 Sep 2011 , 8:12pm by stormrider

pj22 Posted 24 Sep 2011 , 9:48pm
post #1 of 9

Hi everyone!

I am just starting out and was thinking it would be a good idea to have a contract of some sort so customers know what to expect. I also wanted to get a deposit on my orders but I don't know how much or how much time in advance and how to handle cancellations and refunds.

I will be doing cakes and cupcakes and cake pops etc for birthdays only... no weddings. Please guide! Thanks so much! I really appreciate all your help!

8 replies
vgray Posted 25 Sep 2011 , 4:16am
post #2 of 9

You can get a sample contract at http://cakeboss.com/contract.aspx Be sure you have your lawyer look over you 'final' draft so he/she can determine if it goes along with your state's laws. Also, 50% of the total balance is usually the amount of the deposit, unless you want it to a set amount for every cake. Be sure you contract has something to the effect of "until the deposit is received, your order is not officially booked and no cake will be made if final payment is not received by the due day." Final due date could be a week before the order is due all the way up to a month before the order is due. Really depends on how quickly you book up. If you take an order that is due in less time than your final payment policy, then they need to pay full price to be able to even book you. If your states allows it, no deposits (or any money already paid) is refundable or transferable (unless you as the baker cancel on the customer). If you have a complaint about a cake but you know you were no responsible for the reason of the complaint, no money is due back to the customer. There are also lots of good answers here: http://cakeboss.com/FAQ.aspx HTH

vgray Posted 25 Sep 2011 , 4:26am
post #3 of 9

You can get a sample contract at http://cakeboss.com/contract.aspx Be sure you have your lawyer look over you 'final' draft so he/she can determine if it goes along with your state's laws. Also, 50% of the total balance is usually the amount of the deposit, unless you want it to a set amount for every cake. Be sure you contract has something to the effect of "until the deposit is received, your order is not officially booked and no cake will be made if final payment is not received by the due day." Final due date could be a week before the order is due all the way up to a month before the order is due. Really depends on how quickly you book up. If you take an order that is due in less time than your final payment policy, then they need to pay full price to be able to even book you. If your states allows it, no deposits (or any money already paid) is refundable or transferable (unless you as the baker cancel on the customer). If you have a complaint about a cake but you know you were no responsible for the reason of the complaint, no money is due back to the customer. There are also lots of good answers here: http://cakeboss.com/FAQ.aspx HTH

pj22 Posted 25 Sep 2011 , 12:08pm
post #4 of 9

Anyone??

vgray Posted 25 Sep 2011 , 6:51pm
post #5 of 9

I wrote a big paragraph! I cannot believe its never actually posted ugh.

http://www.cakeboss.com/contract.aspx
http://www.cakeboss.com/FAQ.aspx

Here are two pages to help answer some questions. Be sure your contract does not conflict with your state laws. 50% of the total amount of the cake is generally the deposit and it non-refundable (unless you cancel the contract).

pj22 Posted 26 Sep 2011 , 12:22pm
post #6 of 9

Thanks so much valerie! I appreciate it. Where do I check with state laws?

vgray Posted 26 Sep 2011 , 2:38pm
post #7 of 9

The easiest way would be to take your final draft to a lawyer. Be sure to add everything you want it to have and then a business lawyer will be able to help you word it correctly and ensure its legal. Other than that try to google your state laws or I think legal zoom may be helpful as well.

pj22 Posted 26 Sep 2011 , 7:54pm
post #8 of 9

Thanks Valerie!

stormrider Posted 26 Sep 2011 , 8:12pm
post #9 of 9

There are many post to the forums, including some with sample contracts. It will be easiest to find them by searching with google and adding cakecentral.com in the search criteria.

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