Summer means street fests, big BBQs, state fairs, outdoor concerts, art exhibitions, book sales, and everything else that comes with the nice weather. At any event worth its salt, you’ll have vendors and concessionaires selling you everything from elephant ears to cold beer, from delicious carnival food to wholesome snacks.
What most people don’t think about is the relationship these vendors have with the property on which they are operating. Concessionaire bonds are a crucial part of the contract to sell on someone else’s property, be it a public park or private land. These bonds will become more and more important as we move toward a freelance economy. Indeed, concessionaire bonds are a template for the future of work.
If you want to operate a concession stand like this, you’ll need your concessionaire bond.
Understanding Concessionaire Bonds
Concessionaire bonds are a surety you need when you operate your business on property you don’t own or rent. It is food-and-drink based, so this doesn’t apply to valets, ticket-sellers, or other services. The bond is needed to protect two different parties.
- The entity whose land you are using — There is typically a fee charged for operating on someone else’s property. You negotiate this in advance, of course, and it may be based on a percentage of your sales. While the baseline rental price can be paid in advance, the percentage cannot. Therefore, the bond ensures the public or private property owner that you will be able to meet the amount that you owe and that you will pay it. If you don’t, the surety bond holder will pay, and then you will be legally obligated to them.
- Your customers — Serving food and drinks come with potential health issues. The bond ensures that your food or drinks meet all relevant health and safety standards. If there is a problem with what you serve, the bond guarantees that the owner of the property isn’t liable, but you and your insurer are. The bond serves as a pledge that you can meet your legal liabilities.
Concessionaire Bonds and Winning Bids
Concessions can be a great area in which to make money, especially because cities experiencing budget crunches are turning more toward private partnerships. When cities or private entities are looking to outsource to contractors, there are some factors they have in mind that you should be aware of as you prepare a bid. It’s an extremely competitive field, so anything that helps you get the edge is crucial.
- Understanding local tastes. This seems obvious, but keeping ahead of foodie trends and desires is extremely important. If you are in a health-obsessed city, you can do a small tweak so that your taco truck, for example, specializes in healthier fare, such as fish tacos. While people do seek diversity, especially at events, understanding how to appeal to the widest audience is the best way to impress the bidding agents.
- Having an environmental plan. This is very important for people in the planning stages — do you have a method for cleanup, for disposing of waste, and for creating as small a footprint as possible? There are numerous moving parts involved for even the smallest street fair, and letting organizers know that you are prepared and that you can fit into their needs can set you apart.
- A concessionaire bond from a trusted surety company. Most places require bonds and every organizer will be happier if you have one. This demonstrates that they aren’t taking a gamble on you. Obtaining a bond from a reliable company like Surety1 can alleviate any concerns organizers might have.
As independent concessionaires become more prevalent, these bonds will become more important. The idea of the concessionaire bond across all fields is going to become more prevalent. Get ahead of the game now and get bonded.
Getting work for your concession business requires the backing of a formidable Surety company with a dependable reputation. Contact Surety1 today for a quick and fair bonding process that’ll get you to work.