by: Alexander R. McDaniel
Wolcott Rivers Gates P.C.
Operating a hospitality business isn’t just about offering great food, drinks, or accommodations—it’s about making sure your business is protected behind the scenes too. Contracts and agreements might not be the most exciting part of owning a restaurant, hotel, or bar, but they’re absolutely vital to long-term success. Without them, you could be leaving your business open to risks that could cost you down the line.
Operating or Partnership Agreements
The most important agreement to consider is your operating, partnership, or joint venture agreement. These agreements outline the roles, responsibilities, and profit-sharing arrangements between owners and partners. Without clearly defined expectations, you might find yourself in disagreements over decision-making or financial contributions, which can strain the relationship and potentially harm your business. Making sure everything is spelled out in writing can help prevent conflicts and keep the partnership, and your business, running smoothly.
Vendor-Supplier Agreements
Vendor agreements are the foundation of your relationships with suppliers. They spell out everything from delivery schedules to payment terms and quality standards. Having a well-drafted vendor agreement can help you avoid supplier delivery delays or products failing to meet your expectations. A clear agreement can protect your business from losses when issues arise with your vendors or suppliers.
Employment Agreements and Policies
In an industry known for its high turnover, it’s essential to have clear employment agreements or company policies in place. These documents should cover all the bases—wages, benefits, confidentiality, policies and procedures, and what happens if an employee moves on to another opportunity. Without a strong employment agreement or robust company policies, you might find yourself dealing with employee problems that could have been easily avoided.
Lease Agreements
Lease agreements are too significant to overlook. If your business operates in a rented space, your lease is one of the most important documents you’ll sign. Most commercial leases have five or ten year terms (or more); locking in favorable terms at the start is critical. It’s not just about the rent; you need to think about maintenance and modifications, renewal options, and what happens if there’s a disagreement with your landlord.
Conclusion
If all of this is overwhelming, don’t worry—you don’t have to handle it alone. Whether you’ve just opened for business or are looking to elevate your existing business, Wolcott Rivers Gates can help you get these contracts drafted right. Let’s chat about how we can protect your business together. Reach out to Alex McDaniel today to set up a consultation.
