In the case of the vast majority of owners, it’s the first time we’ve had a global epidemic. The environment is constantly changing, and we need to be able to adjust to keep running an effective photo booth company.
This is why our special Catalina of MDRN Photobooth Company sat down with Aaron Arce Stark of Arce Stark & Haskell LLP in an episode of one of our Photobooth Podcasts to discuss possible changes that owners of photobooths should make to their contracts at this point.
It’s more essential than ever to consider adding a Dangerous Condition Clause in your agreement. Although your customers may be looking to organize events with a photo booth, they could violate health and safety guidelines established by their country or state.
If you have this clause on your contract, you are granted the option of not participating in the event and terminating the contract if you’re not at ease with violating these health guidelines.
Although the clause in question is now more essential than ever before, mainly because of COVID-19, It’s a clause Aaron suggests adding to your contract in any way.
1000 times yes!
Since our photo booth operators see the number of cancellations increase, it’s essential to explain the purpose of your retainer to ensure that you can quit without giving complete refunds to all customers.
Things such as administrative work, preparation, design, or booking the date for the event are only a few of the tasks that need to be included in your retainer provision in the contract.
It’s not difficult for people to think that the retainer or deposit they receive is just a means to secure funds before the event.
Don’t undervalue yourself!
You’ve likely put in a significant amount of time preparing for this event. You must compensate for your time spent doing it, regardless of the decision of the client to end the event.
It’s not just a way to ensure that you’ll leave with something, but it will also make it simpler to explain to your customers why the fee isn’t refundable.
Aaron suggests charging one-third of the total cost as a retainer or deposit. This allows you to save enough money. However, it’s not an unreasonable amount considering the amount of work you’ve put into it.
You can take it to the point of cost of 50%. However, the situation will become more difficult to explain, and your customer might be more likely to go to court to recover those funds.
Photobooths are a used item, and you don’t be sure if someone with a cold will get their hands on your booth only to make someone else sick.
It’s why you obtain an agreement to release liability in this kind of scenario.
However, you can’t be in a hurry with that being said. It is essential to keep the cleanliness of your booth. Cleaning the booth frequently or offering hand sanitizer to guests is a good way to prove that you’re not in any way negligent.
If you do not have this clause in your contract, you shouldn’t panic! It’s quite difficult to demonstrate that you were negligent unless you show up to the party sneezing and coughing.