Terms of Business Template for Hospitality Businesses (UK 2025)
Last updated: February 2025
Why Hospitality Businesses Need a Terms of Business
Hospitality terms of business cover the standard conditions for catering services, venue hire, event management, and food service contracts. These must address the perishable nature of food, advance preparation requirements, cancellation terms that reflect irrecoverable costs, and strict food safety compliance obligations. The terms should establish clear booking confirmation procedures, deposit requirements, and the conditions under which the business can refuse service or cancel events.
Key Clauses for Hospitality
- Booking confirmation, deposit, and payment schedule
- Cancellation terms with graduated charges reflecting preparation costs
- Food safety, allergen management, and hygiene compliance
- Guest number confirmation deadlines and minimum charges
Common Mistakes
- Not implementing graduated cancellation charges that reflect the actual costs incurred at different notice periods
- Failing to require written allergen and dietary information from clients by a specified deadline
Template Sections
- Booking and deposit payment schedule
- Cancellation terms and charges
- Food safety and allergen management obligations
FAQ
What cancellation terms are appropriate for hospitality services?
Graduated charges reflecting actual costs are standard: no charge for cancellations with more than 28 days notice, 25% for 14-28 days, 50% for 7-14 days, 75% for 3-7 days, and 100% for less than 3 days. Adjust these based on your specific advance preparation and supplier commitment timelines. The charges must be a genuine pre-estimate of loss rather than a penalty to be enforceable.
How should hospitality terms of business handle allergen information?
Include a clause requiring clients to provide complete allergen and dietary requirement information by a specified deadline, typically 7-14 days before the event. State that the business will accommodate notified requirements but cannot guarantee an allergen-free environment. Require the client to indemnify the business against claims arising from undisclosed allergen requirements.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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