Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What resources or platforms should we use to create employee contracts?
Several practical routes are available, ranging from free templates to paid services. - **FSB (Federation of Small Businesses)** — Members consistently recommend this as the top option. Your membership includes a free legal hub with templates for every type of contract you'll need, plus access to free solicitor advice. Several members confirmed they use their FSB account for exactly this purpose. - **LawDepot** — A solid paid platform for contract drafting. Members note you can access a free trial subscription, or download a watermarked version and use an image-to-text tool to remove the watermark if you want to avoid the subscription fee. - **ChatGPT** — One member found this helpful for drafting, though this is less formal than the dedicated platforms above. The consensus is that FSB offers the best value for small drinks businesses, given the breadth of templates and included legal support.
What legal support do members recommend for reviewing and negotiating co-packing contracts?
Members recommend using specialist lawyers experienced with drinks-industry contracts. The go-to recommendation is **Justin Ellis at ilaw.co.uk** — described as "very good egg" by a member actively using them for co-packing agreement review. Members are happy to make introductions to their contacts if needed. No pricing or lead-time specifics were discussed in the excerpts.
What are the risks of auto-renewal clauses in commercial supplier contracts and how should they be managed?
Auto-renewal clauses in supplier contracts pose a significant financial and legal risk if not carefully managed. Members have experienced situations where suppliers have enforced auto-renewals on unfavourable terms (sometimes for periods much longer than the original contract), then threatened legal action when the auto-renewed terms were refused. **Key risks and management strategies:** - **PHS Group case study** — One member signed a 2-year contract that included an auto-renewal clause, which the supplier invoked for a further 3 years without explicit agreement. The supplier then threatened legal action for breach when the renewal was refused. This illustrates how auto-renewals can lock you into extended commitments with escalating costs and unfavourable terms. - **Sneaky clauses** — Members warn that some suppliers embed auto-renewal language deep in contracts in ways that are easy to miss during initial review. Always scrutinise the full contract terms, not just headline items. - **Prevention approach** — Be "super careful with what you sign now"; review all renewal clauses before signing and ensure they match your business needs. If auto-renewal is unavoidable, confirm explicit opt-out deadlines and procedures in writing. - **Response to threats** — If a supplier threatens legal action over a disputed auto-renewal, internal escalation to your legal department (even as a holding response) is effective and removes the emotional element from the negotiation. **Key caveat:** Auto-renewal disputes can escalate to legal threats quickly. Having a clear contract review process and documented opt-out communications are your best protection.