Catering Contract: What to Include to Protect Your Catering Business

A catering contract is a written agreement between a caterer and a client. It sets out the food and service, the date and place, the guest count, and the price. It also says what happens if plans change. A good one protects both sides. It also settles the arguments before they start: the final guest count, the late delivery, the cancelled event, the leftover trays.

This guide lists the clauses a catering contract should cover, with plain-language examples. It’s written for caterers in Nashville and across Tennessee. It also covers the state’s sales tax rules for service charges and delivery fees.

This guide is general information, not legal advice. Have an attorney review your contract template before you use it.

Key takeaways

• Put everything in writing, even for repeat clients and small office orders.
• Set a final guest count deadline. Bill for the guaranteed count or the actual count, whichever is higher.
• Spell out deposits and cancellation terms, with dates and amounts.
• Word service charges carefully. In Tennessee, a charge added automatically to the bill is presumed mandatory and taxable.
• Delivery charges are taxable when the food is taxable.

Why Every Caterer Needs a Contract

Catering involves money up front, food bought days ahead, and staff scheduled weeks out. If a client cuts the guest count the morning of the event, or cancels a week before, the caterer has already spent the money.

A contract makes the rules clear before that happens. It also makes you look professional. Corporate clients and venues often won’t book without one.

Use a contract for every order, including drop-off office lunches. For small, repeat orders, a short order confirmation that references your standard terms works.

The 14 Clauses a Catering Contract Should Include

1. The Parties and Contacts

Full names of the caterer and client, the business names if any, and a day-of contact for each side with a phone number.

2. Event Details

• Date and times: arrival, setup, service start, service end, and breakdown.
• Venue address and the room or area.
• Type of event, such as a wedding, office lunch, or fundraiser.
• Service style: drop-off, buffet, family style, or plated.

3. Menu

List every item, portion sizes, and dietary items, such as vegetarian or gluten-free counts. Note that substitutions may be made if an ingredient is unavailable, with items of equal value.

4. Guest Count and Final Count Deadline

This clause prevents the most disputes. Set a date for the final count. A guaranteed guest count is the final number of guests the client agrees to pay for. It’s usually due several days before the event.

Example wording: “The client will provide a final guaranteed guest count by [date]. The client will be billed for the guaranteed count or the actual number of guests served, whichever is greater.”

5. Pricing and What’s Included

Show the price per person or per item, and list what that price includes: food, disposables, serving utensils, staff, rentals, and setup. List anything extra separately.

6. Deposits and Payment Schedule

State the deposit amount, when it’s due, whether it’s refundable, and when the balance is due. Many caterers take a deposit to hold the date and the balance before the event. Whatever you choose, put the dates and amounts in writing.

7. Cancellation and Changes

Spell out what happens if the client cancels or postpones, with a sliding scale by date.

Client cancels	What the client owes (example)
More than 30 days before	Deposit only
8 to 30 days before	Deposit plus a share of the total
7 days or fewer before	Full amount, since food and staff are committed

These numbers are only an example. Set terms that match when you actually buy food and book staff.

Cover your own side too: what happens if the caterer has to cancel, and what you’ll refund.

8. Delivery, Setup, and Access

For drop-off and delivered catering, this clause matters as much as the menu.

• Delivery window, such as “between 11:15 a.m. and 11:30 a.m.”.
• Who receives the order and signs for it.
• Venue access: loading dock, elevator, parking, and any building check-in.
• Setup included, such as unpacking and arranging trays, or drop-off only.
• What happens if access is delayed by the venue or building.

Get a signature or photo at delivery. Our guide to proof of delivery explains what to capture and why it settles disputes.

9. Service Charges, Gratuities, and Taxes

How you word these matters in Tennessee.

• Service charges. A service charge is a fee added to the bill for service, labor, or handling. Tennessee’s tax rule says a charge “automatically added to the customer’s bill by the seller shall be considered mandatory, whether styled by the seller as a tip, gratuity or otherwise.” Mandatory charges are part of the taxable sales price (Tenn. Comp. R. & Regs. 1320-05-01-.76).
• Delivery charges. A delivery charge “is taxable only if the sale of the product is taxable,” the state says. So if you deliver taxable food, your delivery fee is taxable too (Tennessee Department of Revenue).
• Sales tax. List it as its own line. Tennessee’s general state rate is 7%, plus the local rate (Tennessee Department of Revenue).

Say clearly whether a service charge is a gratuity for staff or a fee kept by the business. Ask your accountant how to bill both.

10. Food Safety and Leftovers

Perishable food can’t sit out all afternoon. The USDA says perishable food shouldn’t stay between 40°F and 140°F for more than 2 hours, or 1 hour above 90°F (USDA FSIS).

Put this in the contract:

• How long food will be served, and when the caterer will clear it.
• Whether leftovers can go home with the client, and that the caterer isn’t responsible for food after it leaves its control.
• Food the client brings in, such as a family dessert, and who is responsible for it.

For cold spreads, our guide on how to transport a charcuterie board explains how long boards can safely sit out.

11. Allergies and Dietary Needs

Ask the client to list known allergies in writing by the final count deadline. The FDA names nine major food allergens, including milk, eggs, peanuts, tree nuts, wheat, and sesame (FDA). State that the kitchen handles common allergens, and that you can’t guarantee an allergen-free environment unless agreed in writing.

12. Rentals, Equipment, and Damage

List rented items (chafing dishes, linens, serving pieces) and who’s responsible if they’re lost or damaged at the venue. Set a time for pickup.

13. Liability and Insurance

Each side is responsible for its own staff and guests. Many venues ask the caterer to carry general liability insurance and name the venue as an additional insured. Note your coverage and how you’ll provide a certificate.

You’ll also need a valid food service permit for your kitchen. Our guide to the food service license in Tennessee explains which one applies.

14. Events Beyond Anyone’s Control

A force majeure clause is a contract term that excuses both sides when an event can’t happen for reasons neither controls. Severe weather and a venue closure are common examples. Say what happens to the deposit in that case, such as a credit toward a new date.

A Quick Catering Contract Checklist

• Parties and day-of contacts.
• Date, times, venue, and service style.
• Full menu with dietary counts.
• Guaranteed guest count and deadline.
• Pricing and what’s included.
• Deposit and payment schedule.
• Cancellation and change terms.
• Delivery window, access, and setup.
• Service charges, delivery fee, and tax shown separately.
• Food safety and leftover terms.
• Allergy disclosure.
• Rentals and damage.
• Liability and insurance.
• Force majeure.
• Signatures and date.

Contracts for Office and Drop-Off Catering

Office catering is faster and more frequent than events, so the contract should be shorter. Many caterers use a one-page standing agreement for each corporate client that covers payment terms, cancellation cutoffs, delivery windows, and invoicing. Each order then just needs a confirmation with the menu, count, and delivery time.

That setup helps you win repeat business, which our guide on how to grow a catering business covers in more detail. It also makes delivery fees easy to explain. Our guide on how much to charge for delivery walks through the math.

Frequently Asked Questions

What should be included in a catering contract?

Start with the parties, event details, menu, and guest count deadline. Add pricing, deposits, and cancellation terms. Then cover delivery, service charges and taxes, food safety, allergies, rentals, liability, and force majeure.

How much deposit should a caterer ask for?

There’s no set rule. Choose a deposit that covers your costs if the client cancels, such as food you buy early and staff you book. Put the amount and due date in the contract.

Is a catering service charge the same as a tip?

Not necessarily. A service charge may be kept by the business, while a gratuity goes to staff. In Tennessee, a charge added automatically to the bill is presumed mandatory and is included in the taxable sales price.

Are catering delivery fees taxable in Tennessee?

Yes, when the food being delivered is taxable. Tennessee treats delivery charges as part of the sales price of taxable products.

Do I need a contract for small catering orders?

Yes. A short order confirmation that refers to your standard terms works for small or repeat orders.

Who is responsible for leftover catering food?

Your contract should say. Many caterers state that they aren’t responsible for food after the event ends or after the client takes leftovers.

The Bottom Line

A clear catering contract protects your deposit, your food costs, and your reputation. Put the guest count deadline, cancellation terms, delivery window, and food safety rules in writing, and word service charges with Tennessee’s tax rules in mind. If delivery windows are the hardest promise to keep, see how catering delivery in Nashville works, from Downtown offices to venues across town, or price a delivery route.