How do I review contracts with venues at an event planning company?

Ask for a schedule that lists each venue, each upcoming event it covers and the money already paid in. Compare that list to the contracts themselves. Gaps between what the owner describes and what the paper says are the first thing to chase.

Next, read the clauses that move risk. Look at what happens if an event is cancelled or moved, who refunds a deposit, and whether the planner or the client signed with the venue. A contract in the founder’s own name may not carry across to the company, so check the parties.

Preferred vendor relationships deserve their own look. Ask whether venues give the company special treatment because of a personal tie, and whether that would survive a change of owner. A call to a few venue managers, with the seller’s consent, can be useful. Finally, look at insurance requirements the venues impose and whether the current cover meets them. Your insurance broker and lawyer can answer that. Keep a note of any verbal promises the owner mentions, and ask that they be put in writing before closing. Also ask which venues the company would struggle to replace, and whether any of them have refused repeat business in the past.

Key takeaways

• Build a table of venues, upcoming events and deposits, then check it against the contracts.
• Check the signing party and whether each contract can pass to a new owner.
• Ask venues, with permission, whether the relationship depends on one person.