Any time you sell a cake that’s over $100, it’s a good idea to have your customer sign a contract. This will protect you if the customer has an issue or dispute over the cake or tries to cancel their order at the last minute. Legally, you must obtain a signature from the customer that acknowledges their understanding of your agreement and binds them to it. Make sure to keep a copy of that signed document on file as well as to provide one to the client.
Click here to download a FREE copy of the Cake Contract and Order Form PDF version
First, the contract summarizes all aspects of the cake order, including the following details:
The contract’s general disclaimer, which is embedded into the center of the form, clearly outlines your cake ordering, cancellation, and refund policies. Here is what it says:
A deposit of 50% or more of the total cost of the order confirms and holds a reservation. The deposit is refundable in full 30 or more days before the event minus a $25 transaction fee for consultation services rendered. The remainder of payment is due no later than 14 days before the event. Late or no payment is subject to cancellation. Late payments may result in substitutions or modifications to the original order. Cancellations received on or within 14 days of the event may not be subject to refund. Design change requests are subject to additional fees. Design changes are not permitted within 21 days of the event. [Your bakery name here] reserves the right to exercise artistic license in order to guarantee the structural, visual, and creative integrity of a dessert structure.
Here is a line-by-line breakdown of the above disclaimer with explanations for each policy’s purpose.
A deposit of 50% or more of the total cost of the order confirms and holds a reservation.
Never agree to reserve a date or begin working on a cake order until you have the deposit in hand. It’s the only way to be sure that a customer is serious about placing their order. A 50% deposit is customary in the cake industry.
The deposit is refundable in full 30 or more days before the event minus a $25 transaction fee for consultation services rendered.
Unexpected things happen in life, so the deposit ought to be refundable if ample notice is given by the customer. However it takes intelligent man hours to plan and book a cake design. Time is spent on phone consultations, drawing up sketches, and possibly conducting a cake tasting with the client. Including a non-refundable transaction fee for those services will help account for the man hours in the event that the cake order is cancelled.
The remainder of payment is due no later than 14 days before the event.
I recommend putting a two-week deadline on the remainder of the payment so that you’re guaranteed it’s in the bank before you start baking the cake. Some bakers allow more leeway with the final payment, giving the customer up until the last week to submit payment. I don’t recommend cutting it that close because if a check bounces or the customer delays, you will find yourself in limbo at the last minute. Never agree to accept final payment at the event itself, as that will leave you vulnerable to failed completion of payment or a possible dispute.
Late or no payment is subject to cancellation.
It doesn’t make sense to reserve your time for people who don’t complete their payment, so this policy allows you an out. Use your discretion in terms of when/if to cancel an order in case the client has legitimate extenuating circumstances that delayed their payment. Also, make sure to notify the customer by phone if you’ve decided to pull their order off the books.
Late payments may result in substitutions or modifications to the original order.
This clause protects you from having to scramble around at the last minute if a customer is tardy in making their final payment. This way, in terms of cake flavor or decorations, you have the option to limit the order (within reason) to whatever you already have on hand. This policy means that customers who do not hold up their end of the bargain have to be more flexible about the details of their order so you don’t lose efficiency as a result of their mistake.
Cancellations received on or within 14 days of the event date may not be subject to refund.
Last minute cake cancellations can be costly in terms of time and materials wasted. If you had to decline other potential orders to save a date for a client or if you already began purchasing some ingredients or working on decorative elements of a cake that was cancelled at the last minute, this clause allows you to retain some or all of the money to cover those costs. It’s worded vaguely so you can base your judgment on the nature and timeliness of the cancellation.
Design change requests are subject to additional fees.
This clause is set up to protect you from dedicating extra time to indecisive clients. Use your discretion wisely when it comes to this policy. If the client makes a small change that doesn’t affect your time in any way, there is no need to charge a fee. On the other hand, if they request a complete design overhaul, charging them for the time it takes to revamp the order makes sense.
Design changes are not permitted within 21 days of the event.
Simply put, by this time, there is no turning back. You may opt to allow a looser deadline of up to 14 days before the event but I don’t suggest allowing any more leeway than that.
[Your bakery name here] reserves the right to exercise artistic license in order to guarantee the structural, visual, and creative integrity of a dessert structure.
The #1 most important part of a baker’s job is to deliver a stable cake that won’t collapse at the event. Especially when sculpting custom 3D cakes, the act itself is an intuitive, unpredictable process. This language is designed to give you some latitude so that you don’t get locked into an idea that compromises the quality of the cake. However, this policy should not be abused or used as an excuse when you’ve failed to produce a successful result.
Click here to download a FREE copy of the Cake Contract and Order Form PDF version
