Do I really need to spend thousands of dollars to get out of my current food service contract?
Unfortunately, a trend we have been seeing in the foodservice market is contract terms that require a penalty fee to get out of the contract. That's just bad business. At Greek House Chefs, we’ll help you navigate these clauses and explain, in detail, what to look for when you are negotiating the terms of your meal service.
Do I really need to spend thousands of dollars to get out of my current food service contract?
Sadly, we are actually seeing this in the current foodservice contract market and it’s not right. You should never enter into a contract with a foodservice provider where you have to pay money to exit it. Before you sign a contract, be absolutely certain that there is a clear, concise and fair termination clause. This clause should release you from the contract if the current company you have isn’t meeting the contractual obligations that are set forth in the agreement. This should NEVER include paying money to get out of your contract.
Pro tip: pay attention to the contract dates and date of renewal. Unfortunately, we are seeing some companies utilize an early and impractical contract renewal date in order to auto-renew before your chapter has even had the chance to think about making a change. If your contract has those terms included, ask for them to be taken out or set multiple calendar reminders months prior to ensure you are able to get out of the contract if you are ready for a change.
Fraternity and Sorority food service contracts should be straight forward and fair for both parties. The companies that you are vetting should be very transparent about how to exit the contract if you are unhappy with your service. We suggest NOT prepaying your contract so that you don’t lose money by leaving your food service provider mid-year. Your contract should have an easy-to-understand payment schedule that allows you to terminate without any penalties. In addition, we strongly recommend having your legal team review any contract you are interested in signing.
At Greek House Chefs, we’ll help you navigate these clauses and explain, in detail, what to look for when you are negotiating the terms of your meal service. We are your partners. And when your chapter house thrives, we thrive too. It’s that simple.
