Buying a Mobile Catering Van - High Contract Fees

Hi

I am in the process of buying a mobile coffee van. I also have the opportunity to buy an annual catering contract. Its an excellent opportunity as it is 3 racecourses.

However the cost is 4k upfront then 30% of the revenue fees per month. Does this seem high. I am not sure what other such contracts charge. It will mean around 56 set trading days per annum?

Thanks
Lu

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May 22, 2012
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£5000 Upfront For Catering Pitch On Racecourse
by: David

Hello Lu,

The 4k upfront is a concern to me; I would not feel too comfortable paying this amount of money upfront. As for the 30% this is a bit on the high side. I would try and negotiate around the 18-20% mark with 25% as a maximum.

Also it would be a good idea for you can ask around, do some research to make sure that this company/people are reputable, the last think you want is for them to disappear with your £4000.

Also make sure you get everything in writing, deposit amount, per month percentage, where you will be situated, and how many people attending the event and so on. Make sure all these details are in your contract to protect yourself.

Best of luck
David


p.s Get my free guide on Starting a Mobile Catering Business Guide

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