Many cafes and restaurants use companies specialized in the marketing of various drinks (coffee, tea, alcohol, etc.). This allows them to facilitate their installation and to benefit from financial support. However, the personal guarantee of a café or restaurant can present some risks.
The scheme is quite simple. The company specializing in the marketing of beverages first supplies equipment (coffee machines, beer dispensers, etc.). This is done either free of charge or at a favorable price for the entrepreneur. He installs it in exchange for the commitment to source exclusively from the said company.
Sometimes, the company that markets the drinks will even support the request for a loan taken by the entrepreneur from a banking institution as part of its installation. Within the framework of what is, in practice, a virtual tripartite agreement.
In principle, this does not pose any particular difficulty. However, particular attention should be paid to two standard clauses of such contracts.
The commitment to a minimum stock to order
Entrepreneurs are very often asked to commit to ordering a minimum stock of food and drinks. The supply of professional equipment at low cost as well as the attractive prices of drinks can seduce. What will happen if the establishment is not as successful as expected? The entrepreneur will still be forced to buy goods that he does not need.
Indeed, he will not be able to oppose a drop in turnover or attendance to the beverage marketing company. This can then worsen the institution's difficulties by depriving it of valuable cash flow.
At the time of installation, it is therefore necessary to try to limit the commitment to purchase goods as much as possible. This is essential to maintain greater flexibility in managing your business.
Commitment as a personal guarantee
The beverage marketing company as well as the banking institution very often ask the entrepreneur to provide personal guarantee for amounts that may be due under the contract.
In practice, negotiating such a clause will prove to be very complicated. This is why the entrepreneur must be well aware of the scope of his commitment.
Thus, if the institution experiences difficulties and is unable to pay the amounts due to the marketing company, it is from the personal assets of the entrepreneur that the creditors mentioned above will attempt to pay each other in the absence of solvency of the company, or even on the assets of his spouse, depending on the scope of the commitment undertaken.
It is therefore essential to try, during negotiations, to limit the duration and the amount of the guarantee as much as possible. It is essential to limit the risks in the event of a failure of the activity.
Otherwise, to protect his personal assets in the event of a failure of his business, the entrepreneur will then have, as the only means, to challenge the validity of the bond.
However, the entrepreneur must keep in mind that the bond is subject to very strict rules:
- mandatory information;
- annual information on the deposit;
- proportionality between the commitment and the personal assets of the guarantor.
Moreover, practice shows that a significant number of guarantees in the hotel and catering sector are questionable.
In these conditions, and taking into account the threat to the personal assets of the entrepreneur or even his family, it is strongly recommended to consult a lawyer in order to consider contesting the bond agreement concluded.
