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How Common Are Exclusivity Clauses? (Long)


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So the email has exploded in the local handmade community here. The promoter/organizers of a series of large craft shows across Canada has announced an exclusivity clause for their Christmas sale in their second largest centre in the West. It's something to the effect that if you show with them, you can't do any other craft shows in a certain radius within a certain time frame. (At Christmas!!). They sprang this on applicants after they had been accepted, and when withdrawing would mean forfeiting a $200 deposit. This show expects 30,000 shoppers through the door over 4 days, to give you an idea of the size. The table fees and display requirements are such that only professionals do these shows. People who need additional small and medium shows to earn their living now have choices to make.

 

I know OOAK in Toronto has an exclusivity clause, but they advise people of this in the application form, and it is more than possible to make half a year's income (and a serious number of residual contacts for sales later) in the space of that show. (I understand the American version of OOAK has a somewhat less positive reputation?)

 

My question is, how common are exclusivity clauses in other areas?

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I would think that legally they could not withhold returning a deposit given that the exclusivity clause was not disclosed until after that money had been paid. A simple letter from an attorney might take care of it (for those applicants that wanted to pull out) and prevent them from doing it that way again in the future. I'm not especially familiar with shows here (U.S. Northeast) but I have not ever heard of any being exclusive. 

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Sounds like a bad deal. Foe a show I've never heard of such a thing. For a gallery -yes.

After the fact stuff usually gets challenged and dismissed .I do not think its over and done yet.

Only 30.0000-hey the Half Moon pumpkin gets 350,000 in 2 days-ok its a big show I get it.

Mark

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Wow. That sounds majorly shady, dude. Seriously, they just can't be throwing stuff out like that AFTER they take a fatty chunk of cheese out of your wallet. They are probably screwing over a lot of people with that cute little rule. Dunno how things operate in Canada in terms of legal stuff, but that really sounds fishy. :/

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Shouldn't be legal if they've already accepted money. Get a lawyer on it. Plus it's just crappy PR to limit people with a clause like that. And are they really going to police the other shows to see if their vendors are breaking the clause? They are foolish to think this won't hurt their reputation.

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This was well said by Neil above. This is an under handed deal and not enforceable.

Two ways to go here;

1. If it's a huge part of your income, you suck it up and do the show. If you have other sales, as in your studio, they cannot stop you.

2. Withdraw your deposit, and if they make a stink about it, go to the media. go to lots of media.

Get other artists on board to back you up.

Do not employ flaming torches or guys with pitch forks. You could get legal advice.

TJR.

Too bad.

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^ Doesn't seem legit to add such a clause after the contract has been signed.

 

Set up another LLC  if you need to do other shows.  I had such a clause in a mall lease once .. .never heard of it for shows.  What is the time frame and the radius?

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How on earth would they enforce it? The only shows that would matter to their sales would be the ones before I heir show. What are they going to do , take pictures and compare at the set up. If they are concerned about shows after theirs,they are trying to put the other shows out of business. Which makes them both stupid and ugly. The better and more people see crafts, the more you they will buy.

I would do as I pleased , let them incur costs if they wanted to enforce.it would get thrown out. But they will not sign you the next year if they do enforce. I am pretty sure that I wouldn't want to deal with them, might be worth trying to get into Mark's pumpkin festival

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I think you have to get a group together and go public with this. Of course they will not sign you again for next year.

We had a shop once at the Winnipeg Airport. She jacked our prices up without telling us and kept the profits. I was president of the Manitoba Craft Council. We put the word out, boycotted her and put her out of business. 250 members in the group.

No lawyers were injured at the time.

TJR.

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I do think a lawyer could get the promoter to back down, but sometimes the cost of a lawyer is not worth the amount of money at stake. One lone artist probably can't justify the cost. Getting a group of artists to "pitch in" for a lawyer sounds dicey, it would take a feat of leadership and organization. If I was one of the artists, I would do what jolieo suggested: Do as you please. If the promoter wants to enforce their silly rule, let them do it at their own expense. They're going to lose that fight, and if they make the situation ugly, they will hurt themselves twice.

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Guest JBaymore

What's the best way to make money in the crafts field?

 

Make it OFF OF the craft artists.

 

If they were saying they wanted "exclusivity" from ME, I'd immediately be asking what THEY were going to give me IN ADDITION to that whey already gave me without the exclusivity agreement.

 

If there was a written CONTRACT that was signed BEFORE this "exclusivity" idea..... then the only way they can add that is to have all parties (willingly) sign a NEW contract.  And I believe that they cannot void the OLD contract without the agreement of the parties involved unless there was a clause in THAT original contract that said they can amend the contract from their end at any time without such agreement (read the fine print).

 

Smells like last weeks fish wrappers.

 

best,

 

.................john

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I personally have not been nailed by this, which is lucky.

The exclusivity clause has only been put out in one city on this organizer's 12 city circuit. It states that you can not sell at another craft show that has 40 vendors or more 30 days prior to their sale date (Dec.3-6) within a 50 Km radius of Edmonton City centre (roughly 25 miles.). If vendors do this, they won't be invited to any further Signatures shows (which are highly lucrative for many artists) anywhere in Canada. 8 of those 12 cities are here in Alberta.

It seems it's being done in reaction to another show becoming quite successful. Signatures offered to buy out Make It, and Make It refused, as they really like their jobs and what they've created. It's looking like a hostile takeover attempt of a craft fair (!?!). And vendors are the battlefield.

 

Make It doesn't seem to be inclined to take this lying down, and they have been community builders for the last few years. And we're all fired up after a HUGE election that just turned this province on its head. I think Signatures may have chosen a poor time to pick a fight.

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Man, this is getting goo-od! I loves me a good forum. I even know the cities Diesel is talking about and Signatures. This is a group that makes money on the booth fee and doesn't do much for the artists. I also know the polical situation in Alberta.

Can we say "left turn".

T.

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Guest JBaymore

I should clarify something. I did find out that Signatures has said that the vendors can have their deposits back if they wish to opt out in light of the new clause.

 

It still screws with vendors in the Edmonton area.

 

 

IF I already had a CONTRACT with them to be in the show under the prior terms they gave............ there would be NO way I'd voluntarily pull out based upon attempted changes after the fact.  THAT would be 'lawyer time'...... on the matter of principle and for the good of ALL craftspeople.

 

best,

 

......................john

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I am not a lawyer, I did study prelaw for a few years in college before changing to economics, I remember a lot about basic contract law. I am pretty sure that any clauses added to a contract have to be resigned with the original contract and any added append. If they are not signed they don't mean anything, 99% of the time, even most signed contracts can be broken if your willing to get a good enough lawyer. Now I know state to state varies in laws and it also depends on what that local area has for judges and how stickler they are. However I presume that there is no way they can enforce this clause. 

 

I would do the show and ignore the clause if you never signed it. That is my personal opinion. I highly doubt they will ever check on other shows. Is there a stated penalty in the clause if they find you doing other shows?

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Grype, they state that you won't be asked back to further Signatures shows if you don't abide by the clause. It's similar to what any organizer would do if you didn't abide by a professional code of conduct (like if you, say, smoked in your booth when the contract said you're not supposed to do that.) And it's simple enough to check, as most shows like to hype up their vendors on a list on their website. Signatures is trying to exercise the financial clout they have as a long time, established craft show organizer. The problem is, they're demanding craft businesses to put all their eggs in one basket ie either indie fairs, or the large "prestigious" professional fair. And like Tom said, the prestige that Signatures offers is somewhat questionable.

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Personally, I'd refuse to play the extortion game. Anytime I compromise myself out of fear of missing out on something--even when it is just wrong, wrong, wrong---I end up stressed, resentful,and feeling victimized. With hindsight I usually to come to the conclusion that in the long run I would have been better off scraping it off my shoe and moving on. I justified too many onerous choices in the name of "survival" (be it job, money, chance for elevation of reputation/credibility/expertise, to be a team player etc.) to ever go back into that world - just not worth it to anymore, spiritually/ethically.  I also find that 9 times out of 10, something much better opens up for me...no guarantees, but there seems to be an eventual gift of the good stuff, even though the bad stuff takes a more immediate toll. Navigating those waters is not easy, and must be what's best for any given individual...no easy single answer to such dilemmas!   

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