Running a nightclub can be hectic. From ensuring that enough food and beverages are being ordered regularly to hiring enough staff to adequately operate the facility, the responsibilities of a nightclub owner can quickly become overwhelming. As a result, nightclub owners often outsource the responsibility of bringing in patrons to a promoter. Notwithstanding, to ensure a clear understanding between the nightclub owner and promoter, it is advised that several important issues be discussed and agreed upon via a written contract.
The first section of a nightclub promoter agreement should be the introduction. The information contained within this section clearly denotes who the agreement is between. Given that nightclub promotion agreements can be made between a promotion company and the nightclub, or directly between a promoter and an owner of a nightclub, it is essential to specify the type of arrangement the agreement will structure.
This section should contain the obligations of the promoter as understood by the nightclub. Such obligations could include the establishment of a promotion team to distribute fliers and printed materials. Conversely, also contained herein are the obligations of the nightclub as understood by the promoter. Examples could include adequate sound, lighting and security.
As perhaps the most negotiated clause within the agreement, this section explicitly outlines the payment structure between the nightclub and promoter. According to ClubPromotersGuide.com, there are several ways that payment can be agreed upon. A nightclub owner can establish a fee to rent out the facility. As a result, the promoter would pay the rental fee and recoup his investment by setting an entrance fee and bringing in enough patrons.
Another common payment arrangement could be a predetermined split in which the promoter and nightclub owner split money derived from the entrance fee. When negotiating such an arrangement, experienced promoters usually push to keep all of the money generated by the entrance fee, since nightclub owners also make income from selling drinks at the bar.
Costs & Expenses
This section outlines how costs related to promoting the nightclub will be covered. The nightclub owner and promoter can decide to split the costs of promotion efforts such as printing fliers, advertising on television and radio, etc. Additionally, certain promotion efforts may be covered by either party as agreed upon. Generally speaking, however, a promoter will push for most--if not all--of the income generated from the entrance fee if most of promotion efforts will be paid for by the promoter.
This section specifies how long the terms contained within the agreement will remain in effect. Also, this section outlines the procedure to prematurely terminate the agreement. In addition to the acceptable conditions needed to do so, the stipulations resulting from either party's request to terminate the agreement early are also contained in this section.