How to Avoid Rookie Legal Mistakes in Your Wedding Business - Ticora Davis

WEDDING INDUSTRY STATS • Average cost of wedding $35,329 • Couples are more concerned about their Guests’ experience. Dropping the number of Guests while increasing the price.

• Use of Social Media in weddings on the rise.

Wedding #Hashtags Source: BRIDES American Wedding Study

WEDDING INDUSTRY STATS • Parents take on most of the wedding costs.

• On average, Bride's parents contribute 44% of the overall wedding budget & the bride and groom contribute 42% to the overall budget.

• Couples continue to wed far from home.

• More than 340,000 destination weddings each year with 89% taking place in the continental US and 11% at international destinations.

WHAT MAKES WEDDING VENDORS DIFFERENT? • Many first time business owners • Collaboration is industry norm • Contracts with heavy “legal” language scares brides/ grooms • Principal/Agency Relationship where vendors make decisions on behalf of engaged couple • Tendency for other business owners to not take wedding professionals seriously. Be firm.

SETTING UP YOUR WEDDING VENDOR BIZ • Choose the best entity for you

• Sole Proprietor easy to form, but most risky • LLC or S-Corp easy to form and protects personal & business assets

• Multiple Businesses under ONE Umbrella

• Analyze risks for each business • Determine whether business organized in a manner where it can be sold/transferred

SETTING UP YOUR WEDDING VENDOR BIZ • Zoning & License Requirements

• Check with your state’s Secretary of State & local laws to ensure you’re compliant

• Business License

• Business & Privilege License may be required

PLANNERS

• If something goes wrong, the BRIDE will look to you for answers first • Principal/Agency Relationship where Planner make decisions on behalf of engaged couple

PLANNERS • DETAILED Scope of Work / Services • •

Who, What, When, Where, Why # of Hours present on wedding day, # of Meetings, # of Guests

• “House Rules” • Review Venue House Rules •

Limitations with candles, flowers, etc.

PLANNERS • Food

• Vendors that work long hours should be fed • Request “catered” meals

• Travel

• IRS Standard for Travel (update yearly) • Stipends for Meals • Hotels if “x” number of hours or miles away from Planner’s home

PLANNERS • Model Releases

• Not just for photographers • Use for advertising & commercial purposes • Use apps on phone or tablet

• Getting photos from photographer

• Contract between planner and photographer • Negotiate the “license” of photos with photographer to ensure credit is shown to both parties in blogs, mags, etc.

PLANNERS • Liquidated Damages

• Use “Sliding Scale” Payments

• Cancellation and Force Majeure

• Refer a vendor of similar experience and high industry standard

• Anticipate Contract Modifications

PHOTOGRAPHERS • Copyright law 101 (17 U.S.C.)

• “Works made for hire” by employees vs. works done by independent contractors

• How to grant use of a copyright • Copyright transfer agreements

PHOTOGRAPHERS • Social Media and the right to reproduction and derivative works • Model releases and how to do them • “No specific images” clause

PHOTOGRAPHERS • Styled shoots - Who is responsible for what?

• • • •

Public places and locations that require a license Who is liable if something goes wrong?

Who owns the copyright?

Attribution: it’s not the answer

• Limiting recovery in instance of film or technology malfunction

FLORISTS • Exclusivity clause

• Florist is the exclusive vendor for certain event

• Clause addressing transporting flowers across state lines

• Check laws and regulations through the National Plant Board • Tip: Plants that are shipped bare-rooted are subject to less restrictions than those rooted in soil. (Soil can harbor pests.)

• If you cannot transport you aren’t responsible

VENUES • Insurance

• Venue insurance AND insurance for the event via the wedding couple (can be purchased online!)

• Open flames

• Sparklers & the danger presented

• Dealing with unruly guests

CATERERS / BAKERS • Commercial Kitchen • Cottage Food Laws • FDA Concerns • Who decorates the cake?

• Baker or Florist?

EMPLOYEES VS INDEPENDENT CONTRACTORS • What classifies someone as an employee?

• What classifies someone as an independent contractor?

• Be aware of scrutiny from the IRS, Department of Labor, and what it means for your business

LEGAL PRO TIPS • Get agreements in writing • •

Set Client Expectations & Your Responsibilities Deposit or Retainer

• Best thing to do – thoroughly explain to the client what the fee that they’re paying means

• Protect your unique Intellectual Property

INTELLECTUAL PROPERTY • Trademarks • •

Protect your unique business name & logo Protect any signature training programs

• Copyright •

Consider protecting popular photos via copyright registration