I will start renting a kitchen from a caterer I work with at a wedding venue to make wedding cakes. We agreed on $25 a day, basically $300 a month for rent. I asked my tax person if I needed a receipt from the caterer and she advised I get a contract from the caterer. Has anyone ever done this? Not even sure what the contract would say? Thanks in advance for any advice
That's a great rate, a contract will protect you. Think of this as a sublet contract. Include all the important points such as lease term, amount of rent, your rights as renter (equipment you're allowed to use, when you're allowed on premise, if you're allowed to prepare cakes for other customers/venues, etc. Good luck!
get a lawyer to help you draw up the contract -- for example -- if the caterer or the venue goes under say for taxes and gets padlocked can you get your equipment out of the building? can you get your bride's cake toppers, supports, flowers, plateaus etc. out in time to use them -- lots of things
and while a contract clearly is important keeping it friendly is more important -- like interacting with their employees and vendors that you have no control over and vice versa -- in other words you need to have a contract but woe is you if you're ever forced to use it -- hopefully you'll never need to use it -- but business is business and real nice people play hardball when push comes to shove --
that sounds more dire than I mean it to sound but it's important stuff
my best to you
Here are some things to consider. I rented from someone for a few months and it was a disaster.
1. She was a small operation and at the end of the night, she was too tired to clean. I had to clean up her mess before I could even use the kitchen.
2. When she would run out of ingredients, she would "borrow" mine and leave me a note promising to replace it. Imagine coming in at 10 p.m. to find out you have no eggs!
3. Missing and broken equipment. I don't know if it was her or her employees - but my stuff wasn't treated with care.
4. I came in one morning and discovered that her shop had been left unlocked all night. Thankfully, nothing was missing, but I don't want that kind of risk because of someone else's carelessness.
5. Hours need to be clearly defined. Imagine needing the kitchen, but you can't use it because the person you are renting from got a large order. You should have first dibs on the space during your time, and if they have to wait until you are done - so be it.
I think it can be a great arrangement with the right person and if everything is clearly defined so there are no misunderstandings.