The fourteen clauses every catering agreement needs, sample wording for each, and the mistakes that cost caterers money.
By Rob Bruni, founder of OpsEdge Hospitality, twenty years running restaurants, bars, clubs and resorts. Updated November 2026.
A catering contract does one thing: it settles, before any money is spent, who is providing what, for how many people, for how much, and what happens when plans change. Almost every catering dispute we have seen comes back to something the contract did not say. This guide lists the fourteen clauses a catering agreement needs, explains what each one protects, and gives sample wording you can copy and take to your attorney.
Read this first. This page is general information and a starting draft. It is not legal advice, and we are not attorneys. Contract law, deposit and cancellation rules, alcohol liability and sales tax differ by state. Have an attorney licensed in your state review your contract before you use it with a client.
| Clause | What it settles |
|---|---|
| 1. Parties and event | Who is signing, and the date, time, place and type of event |
| 2. Services and menu | What you will provide, with the menu and banquet event order attached |
| 3. Guest count and guarantee | The estimated count, the date the final count is due, and what you bill |
| 4. Price, service charge and tax | Prices per guest, fees, the service charge and what it is, and sales tax |
| 5. Deposit and payment schedule | How much is due and when, how to pay, and late fees |
| 6. Changes | How menu, count and timing changes are made and priced |
| 7. Cancellation by the client | What the client owes if they cancel, on a sliding scale |
| 8. Cancellation by the caterer and events beyond control | What happens if you cannot perform, or nobody can |
| 9. Alcohol service | Who provides it, who serves it, and your right to refuse service |
| 10. Food safety, allergies and leftovers | Allergy notice, holding times, and why leftovers stay with you |
| 11. Venue, access and equipment | Load in times, kitchen access, power, rentals and damage |
| 12. Staffing and overtime | Staff provided, hours included and the rate for extra time |
| 13. Liability and insurance | Responsibility for damage and injury, and proof of insurance |
| 14. General terms and signatures | Governing law, the whole agreement, and who signed when |
Copy the text into Word or Google Docs. Everything in brackets is a choice for you and your attorney to make. Delete what does not apply to your business.
CATERING SERVICES AGREEMENT
1. Parties and event. This agreement is between [Caterer legal name] (the Caterer) and [Client name] (the Client), dated [date]. The Caterer will provide catering services for [type of event] on [event date] from [start time] to [end time] at [venue name and address] (the Event).
2. Services and menu. The Caterer will provide the food, beverages, staff and equipment described in the attached proposal and banquet event order (the BEO), which are part of this agreement. If the BEO and this agreement conflict, this agreement controls unless the BEO is later in date and signed by both parties. The Caterer may make reasonable substitutions of equal quality if an item becomes unavailable and will tell the Client as soon as practical.
3. Guest count and guarantee. The estimated guest count is [number]. The Client will give the Caterer a final guaranteed count by [number] days before the Event. The Client will be billed for the guaranteed count or the number of guests served, whichever is higher. If no final count is given, the estimated count becomes the guarantee. The Caterer will prepare for up to [percent] percent above the guarantee. The guarantee may not be reduced after the due date.
4. Price, service charge and tax. Prices are set out in the attached proposal. A service charge of [percent] percent applies to [food and beverage / all charges]. The service charge is not a gratuity and is retained by the Caterer to cover the costs of the Event [except as follows: ____]. Applicable sales tax will be added. Prices are held for [number] days from the date of this agreement and may be adjusted for documented increases in food cost of more than [percent] percent, with written notice to the Client at least [number] days before the Event.
5. Deposit and payment schedule. A deposit of [amount or percent] is due on signing and holds the date. [A second payment of ____ is due on ____.] The remaining balance, based on the guaranteed count, is due [number] days before the Event. Charges added at the Client's request during the Event will be invoiced within [number] business days and are due on receipt. Balances not paid when due accrue a late fee of [percent] percent per month, or the highest rate allowed by law if lower. Payment may be made by [methods].
6. Changes. Changes to the menu, timing, location or services must be requested in writing at least [number] days before the Event and are subject to availability and price adjustment. Changes are not binding until confirmed in writing by the Caterer.
7. Cancellation by the Client. The Client may cancel by written notice. If the Client cancels: more than [number] days before the Event, the Caterer keeps [the deposit / ____]; between [number] and [number] days before, the Client owes [percent] percent of the estimated total; fewer than [number] days before, the Client owes [percent] percent of the estimated total. The parties agree these amounts are a reasonable estimate of the Caterer's losses, including turned away business, and are not a penalty. [If the Client reschedules within ____ days, ____ of the amount paid will be credited to the new date.]
8. Cancellation by the Caterer and events beyond control. If the Caterer cannot perform for reasons within its control, it will refund all amounts paid, and that refund is the Client's only remedy. Neither party is liable for failure to perform caused by events beyond its reasonable control, including severe weather, natural disaster, government order, utility failure, or closure of the venue. In that case the parties will try in good faith to reschedule. If they cannot, the Caterer will refund amounts paid less its documented, non recoverable costs.
9. Alcohol service. [The Caterer / The Client] will provide the alcohol. Alcohol will be served only by the Caterer's trained staff, only to guests of legal drinking age with valid identification, and in line with applicable law. The Caterer may refuse service to any guest who appears intoxicated or underage and may end bar service if guests' safety is at risk, without refund. [No outside alcohol may be brought to the Event.] [Bar service ends ____ minutes before the end of the Event.]
10. Food safety, allergies and leftovers. The Client will tell the Caterer in writing of any guest food allergies or dietary needs at least [number] days before the Event. The Caterer will take reasonable care but cannot guarantee that any item is free of allergens. For food safety reasons, food will not be left out for more than [number] hours, and leftover food remains with the Caterer [unless the Client signs the Caterer's release form].
11. Venue, access and equipment. The Client will arrange access to the venue for the Caterer from [time] for setup until [time] for breakdown, including [kitchen, water, power, parking, loading]. The Client is responsible for venue fees and permits unless the proposal says otherwise. Rented and Caterer owned equipment remains the property of its owner. The Client is responsible for loss of or damage to equipment caused by the Client or its guests, at replacement cost.
12. Staffing and overtime. The price includes staff for [number] hours of service plus setup and breakdown as described in the BEO. If the Event runs past the scheduled end time at the Client's request, additional time is billed at [rate] per staff member per [half hour / hour], and is subject to staff and venue availability.
13. Liability and insurance. The Caterer carries general liability [and liquor liability] insurance and will provide a certificate on request. The Client is responsible for the conduct of its guests and for injury or damage they cause. Each party will indemnify the other against claims arising from its own negligence or breach of this agreement. Except in cases of gross negligence or willful misconduct, the Caterer's total liability under this agreement is limited to the amount paid by the Client.
14. General terms. This agreement, with the attached proposal and BEO, is the entire agreement between the parties and replaces any earlier discussions. It may be changed only in writing signed by both parties. It is governed by the laws of the State of [state]. [Disputes will be resolved in the courts of ____ County / by mediation before any court action.] If any part of this agreement is found unenforceable, the rest remains in effect. The date is not held until this agreement is signed and the deposit is received.
Client signature: ______________________ Printed name: ______________________ Date: ____________
Caterer signature: ______________________ Printed name and title: ______________________ Date: ____________
Sample wording only. Limits on liability, liquidated damages, late fees, deposits and indemnity are enforced differently from state to state, and some consumer protection laws restrict what can be kept from a deposit. Your attorney should decide the final language.
A sliding scale is fairer and easier to defend than a flat rule, because it tracks what you have actually lost: first the chance to sell the date, then the food you ordered, then the staff you scheduled. This is one common pattern. Set your own with your attorney.
| When the client cancels | A common approach | The reasoning |
|---|---|---|
| More than 90 days out | Caterer keeps the deposit, or part of it | The date was held and other inquiries were turned away |
| 90 to 31 days out | Around 50 percent of the estimated total | Harder to rebook, and planning time is spent |
| 30 to 8 days out | Around 75 percent | Rentals are reserved and staff are scheduled |
| 7 days or less | 100 percent | Food is ordered and prep has started |
Offer a way to move the date instead of cancelling. A client who reschedules is revenue you keep.
All four should show the same event name, date, count and prices. When they do not, the latest signed document is the one you will be held to. Price the event first with the catering pricing calculator.
The Catering BEO Template and Contract Kit produces the BEO, proposal, quote, contract, order form and invoice from one set of event details, so the documents always agree.
See the BEO and Contract Kit See the Catering BundleThe parties and event details, the services and menu, the guest count and guarantee date, prices with service charge and tax, the deposit and payment schedule, how changes are handled, cancellation terms for both sides, alcohol service, allergies and leftovers, venue access and equipment, staffing and overtime, liability and insurance, and signatures.
That depends on what the contract says and on state law. Many caterers make the deposit non refundable because it holds the date, with a sliding scale of charges as the event gets closer. Have an attorney confirm what your state allows.
Commonly 7 to 10 days before the event, and earlier for large events or special orders. After that date the count can go up if you can accommodate it, but not down.
The contract sets the legal and payment terms. The banquet event order is the detailed plan for the day: counts, timeline, menu, bar, room setup and staffing. The BEO is attached to the contract and updated as details are confirmed.
You can draft your own from a template, but have an attorney licensed in your state review it once. Rules on deposits, cancellation charges, liability limits and alcohol differ by state, and a single review costs far less than one disputed event.
The contract should say when. Typically the caterer may cancel if the client does not pay on time, and neither side is liable when an event outside their control, such as severe weather or a venue closure, makes the event impossible.
