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Bakery Contracts And Deposits

6 min read

Most home bakers do not use contracts — until they get burned by a cancelled order or a client dispute. A simple written agreement and a clear deposit policy...

Most home bakers do not use contracts — until they get burned by a cancelled order or a client dispute. A simple written agreement and a clear deposit policy protect your time, your ingredients, and your income. Here is what every home baker needs to have in writing before accepting an order.

Why every custom order needs a written agreement

A contract does not have to be long or formal. For a home bakery, a written order confirmation — even sent via email — that covers the key terms is enough to protect you legally. The act of putting terms in writing also reduces miscommunications: clients who have agreed to a cancellation policy in writing are far less likely to dispute it later.

At minimum, get written agreement on: what was ordered, the price, the event date, the deposit amount, and your cancellation terms. Everything else can be informal — but these five items must be documented.

What every bakery contract must include

A complete home bakery order agreement should include:

  • Order details: Product type, quantity, flavors, design description, and any dietary notes
  • Event date and deadline: When the order must be ready and the pickup or delivery arrangement
  • Total price and payment schedule: Deposit amount, when the balance is due, and accepted payment methods
  • Cancellation and refund policy: What happens to the deposit if the client cancels, and your cutoff for cancellations
  • Allergen disclaimer: A statement that your kitchen handles common allergens
  • Photo permission: Whether you can photograph and share the order on social media

Setting and enforcing a deposit policy

Require a non-refundable deposit of 25-50% to hold the date and begin any design or ingredient preparation. For wedding cakes or orders over $200, lean toward 50%. The deposit compensates you for the work you do before you bake a single item — the consultation, the planning, the specialty ingredient orders, and the reserved time slot.

Make deposits non-refundable, not non-transferable. Allowing clients to move a deposit to a future order (within reason) builds goodwill while still protecting you from last-minute cancellations. Communicate the deposit policy before you take any booking details. See our guide on custom cake pricing for how to factor deposits into your pricing structure.

Cancellation and change policies

Define clear cutoffs for cancellations and changes. A reasonable policy for custom cakes: full order changes accepted up to two weeks before the event; no changes accepted within one week; cancellations within 48 hours forfeit the full order amount. Whatever you choose, be consistent — one exception sets a precedent.

Late additions are common — clients who ordered a 6" cake want to add a 4" smash cake two days before the event. Set a policy: late additions are accepted at a surcharge (10-20% of the add-on cost) and only if you have capacity. Having this in writing lets you enforce it without the conversation feeling personal.

Track agreements and payments without the admin mess

Keeping contracts, invoices, and payment records organized is as important as having the policies in the first place. Threecus lets you manage client records, track deposit and balance payments, and keep order notes in one place — so when a question arises about what was agreed, the answer is a few clicks away rather than a search through old text messages. Read our guide on bakery client management for how to keep all your orders organized.

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