Facility Use Agreement Template

If you’re planning to share your facility with others, whether for events, workshops, or other activities, having a solid Facility Use Agreement (FUA) in place is crucial. This document outlines the terms and conditions of facility usage, protecting both you and the renter from potential issues. However, creating an FUA from scratch can be time-consuming and overwhelming.

To simplify the process, we’ve come up with a Facility Use Agreement Template that you can customize to suit your needs. Here are 10 essential clauses to include:

1. Purpose and Scope

The purpose and scope clause defines the primary objective of the agreement, specifying the type of activities allowed and the facilities involved. Clearly outline what you’re permitting the renter to do and where they can do it. Be specific to avoid confusion and misinterpretation. Be sure to include details like expected hours of operation and the number of attendees.

2. Rental Fees and Payment Terms

This clause outlines the rental fees, payment terms, and methods. Clarify how rent is calculated, when payments are due, and any late fees associated with missed payments. Be sure to include any additional costs such as utilities, equipment rental, or cleaning services.

3. Insurance Requirements

To protect your facility from potential liabilities, insurance requirements clause is essential. Specify the types of insurance the renter must carry, including property damage, public liability, and workers compensation (if applicable). Ensure that the renter provides proof of insurance before the facility is used.

4. Occupancy Limits and Capacity

Define occupant capacity to ensure that the number of people attending events does not exceed the facility’s safety guidelines. Clearly outline the maximum number of individuals allowed to occupy the premises, including staff, vendors, and attendees. This helps prevent overcrowding and minimize potential risks.

5. Facility Maintenance and Cleanliness

In this clause, assign responsibility for maintaining the facility in a safe, clean, and orderly condition. Clearly outline the tasks and expectations for both you and the renter. Include details on waste disposal, sanitation, and damage caused by tenants or their guests.

6. Security and Access Control

Define the security measures and access control procedures in place to protect the facility and its occupants. Specify the hours of access, any restrictions, and protocols for after-hours usage. Be sure to include requirements for security personnel, cameras, alarms, and other safety measures.

7. Parking and Transportation Arrangements

Outline the parking and transportation arrangements for events. Clearly specify the number of parking spaces, access routes, and designated areas for delivery vehicles, disabled parking, and drop-offs. If necessary, specify arrangements for shuttle buses or other transportation services for guests.

8. Cancellation and Termination

Establish a clear procedure for cancellation and termination of the agreement. Specify the notice requirements, penalties for early termination, and any applicable refund policies. Ensure that all parties understand the consequences of cancellation or non-compliance.

9. Compliance with Laws and Regulations

Emphasize the renter’s obligation to comply with all applicable laws, regulations, and ordinances while using the facility. Clearly outline the types of laws and regulations that apply, such as health and safety standards, fire safety codes, and environmental regulations.

10. Governing Law and Dispute Resolution

Finally, specify the governing law and dispute resolution procedures in case any issues arise between you and the renter. Designate the jurisdiction where disputes will be resolved and outline any mediation or arbitration requirements.

By incorporating these essential clauses into your Facility Use Agreement Template, you’ll save time, reduce conflicts, and establish a mutually beneficial agreement for both you and the renter. Don’t forget to customize the template according to your facility’s unique needs and regulations. Happy drafting!