What’s in a good out of home sales contract? There’s a tension between keeping a short term ad agreement to one page and the need to avoid conflict by being specific. Here’s a one-page static billboard ad contract. We’ve added our comments in italics explaining the importance of each section.
Advertiser:
Billing Email:
Billing Address:
Phone:
Gather the info to execute, coordinate, bill and collect the contract. Make sure you know where the bill goes. Not always the same as the address person who generates the art or signs the contract. Billboard Insider prefers to email billing.
We, the undersigned hereby authorize Out of Home Advertising, LLC. (collectively “Owner”) to install an outdoor display on the terms and condition of this contract as follows:
Term: Advertiser agrees to pay the sum of $__ per 4 week period for ___ consecutive 4 week periods, commencing on the day the display is erected. Thereafter the term shall automatically renew for consecutive 4 week periods unless Advertiser or Owner gives notice of termination at least 3 weeks prior to the expiry of the initial Term or any additional 4 week period.
A 4 week billing period is the industry norm and will give you 13 billed months in a year. Some smaller, less sophisticated companies will want to be billed monthly. It’s also good to have evergreen language which says that a contract rolls over month to month automatically unless terminated in case your renewal discussions are dragging on. Never give your client the right to unilaterally extend an ad contract at a fixed annual increase. An out of home company did this in Wisconsin and regretted it.
Projected Install Date:
Display Size:
Display Location:
Sign:
Face:
Illuminated: Yes. No
Clarify the address, location and projected install date of the ad so that there are no misunderstandings.
Production: Advertiser agrees to pay all production charges in the amount of ________ in advance of the display date.
Most out of home companies charge clients for the cost of the vinyl and some portion of the install. This is especially important for short term contracts of 6 months or less. Some advertisers, especially agencies, don’t want to be billed separately for production costs. In that case just increase the monthly rate to include production costs.
Payment: Invoices shall be sent to the email address shown above. All payments are due on receipt of invoice. A 1% per month service charge will be added to any payment more than 30 days past due and will accrue at the same rate per month for each additional month payment is past due.
Clarify what your payment terms and late charges are. Agencies will ignore this so price your agency contracts up to reflect 90-120 day payment.
Other Terms: Advertiser shall furnish acceptable artwork to Owner in a timely fashion. Owner may refuse or withdraw any ad copy which in its reasonable opinion is considered unlawful, objectionable or in violation of a land lease. Advertiser represents that it has the authority to use any trademark, logo or copyrighted material used in a display.
Make the client promise to furnish art in a timely fashion so that the contract starts even if the client is late in getting you the art. Also make the client rep that they have the right to any trademarks or material on the sign. Billboard Insider knows of one out of home advertiser threatened with a $25,000/day fine for making unauthorized use of a logo
Owner shall maintain the ad copy in good condition during the Term. If the ad copy is damaged or destroyed by fire, vandalism, wind or other cause, Operator will extend the term of Term for the Sales Contract for the time the copy is damaged or destroyed.
If the sign must be removed by order of the city, county or other governing body before expiration of the Contract this Contract shall become null and void as of the day the sign is removed and Owner shall refund payment on a prorated basis.
In the event of a loss of illumination, Advertiser shall be entitled to a credit of ten percent (10%) of the applicable 4 week rate, pro-rated for the period of non-illumination.
The previous 3 paragraphs itemize what makegoods will be for damaged copy, loss of illumination or removal of the sign.
This Sales Contract represent the complete understanding of the parties and supersedes any prior writer or verbal agreements. This Sales Contract cannot be modified except as approved in writing by both parties.
You need this language to protect you from you-said-I-said-allegations-of-promises after the fact. Written agreements trump verbal agreements in most states especially if your contract says so.
Advertiser
By:
Name:
Title:
Date:
Owner
Name:
Title:
Date
Make sure you know who is signing a contract on behalf of the advertiser and if they are authorized.
Credit Card Addendum
I would like to make payments automatically via credit card using the following card:
Card Number:
Card Expiry:
Name on Card:
Zip Code:
Security Code:
It’s way easier to collect credit card payments than billed payments. If you’re going to take credit card payment make sure you get that info when the contract is signed.
What have we left out of this contract? Email billboardinsider@gmail.com or use the form below.
[wpforms id=”56784″]
Paid Advertisement
