A deposit policy for custom furniture (template)

“Deposits are non-refundable” leaves a great deal unsaid. In a New York small-claims decision, a store had to return a $465 sofa deposit after trying to deduct cancellation, restocking, and administration fees. Its delivery-date box was empty, and calling the standard sofa custom did not remove the customer's rights.

A useful deposit policy explains the sale before the customer pays. State the amount, the event that creates a manufacturing commitment, the balance's due date, and the way changes and cancellations are handled. Preserve the customer's agreement to that wording with the specification.

General information, not legal advice.

Choose deposit amounts from the store's commitments

There is no authoritative “normal percentage” established by the sources for this guide. Each store must choose an amount around its vendor obligations, cash needs, customer agreement, and the law governing the sale.

As an illustrative policy exercise, a store might consider 50% for custom upholstery, 30% for special-order case goods, and a different amount for customer's-own-material work. Those figures are examples, not industry benchmarks. The important work is explaining why each category needs its proposed amount.

For a worked example, a $4,000 agreed sale with a 50% deposit collects $2,000 initially and leaves $2,000. Say whether the percentage applies to the complete order total or another clearly defined base. Include delivery and tax in the customer's actual currency amounts so a percentage doesn't hide a different checkout total.

Keep the payment schedule separate from refundability. Taking half the price does not establish a right to keep half the price in every cancellation. The deposit-retention guide covers that decision.

Tie cancellation consequences to an event staff can verify

Choose a real commitment point, such as vendor acceptance or the start of production, and define how the store records it. “Once processed” can mean a saved quote to one associate and fabric cut at the factory to another.

Before that event, state the agreed refund approach. Afterward, explain how a request is reviewed and what lawful, disclosed charge may apply. The maker's charge is evidence about the store's position; it is not automatically a charge the customer owes.

Model UCC §2-718 permits liquidated damages subject to reasonableness and rejects an unreasonably large penalty. Calling a deduction a cancellation fee rather than retained deposit does not settle that analysis. The restocking-fee guide explores the distinction.

Check with your attorney before using the final policy, including the chosen trigger, the proposed charge, and the states or province where the store sells. The template below leaves those commercial decisions visible instead of pretending a universal percentage will work.

Preserve rights that store policy cannot remove

Delivery problems need a separate route through the policy. New York §396-u requires a written estimate for covered furniture and gives the customer specified choices when delivery is late. New Jersey's rule requires advance written notice with cancellation or later-delivery options, including for partial delivery.

Maryland §14-1803 provides remedies for missing estimates or specified late delivery, with exceptions that must be read with the facts. Ontario's future-performance guidance describes a cancellation right where delivery is not made within 30 days of the agreed date, subject to the customer's later acceptance.

For covered phone and online sales, the FTC rule requires the appropriate shipping-delay notice, customer options, and prompt refund. A generic “dates are estimates” sentence does not replace those duties. Required refunds also cannot simply become store credit.

The policy should expressly preserve those rights. Keep any jurisdiction-specific notice and required format alongside the general terms; the template is a starting document, not a substitute for required notices.

Explain changes before the vendor has to guess

A change request needs a written answer covering the new specification, any price or timing difference, and any permitted vendor change charge. The customer should approve that revision before it becomes the order sent to production.

Customer's-own-material work deserves precise language about material approval, quantity, and when cutting can begin. Do not let a general deposit clause stand in for the fabric instructions. A beautiful piece of linen is still capable of arriving with the wrong face marked outward.

For trade accounts, identify who contracts with the store and who can authorize changes. A designer's discount does not decide which legal rights apply or whether the client's approval is required. Separate approved trade credit terms from the retail deposit schedule.

Put the policy where the customer can read it before payment

Include the policy in the quote and signing document, make it available in the showroom, and place it clearly in the online purchase or quote journey. Give staff a consistent explanation and a copy they can send.

Posting can also be a legal requirement. New York's refund-policy disclosure statute specifies conspicuous in-store display options and disclosure of conditions and fees. California Civil Code §1723 addresses display of certain restrictive refund policies and has listed exceptions.

A receipt issued after payment should confirm the policy already disclosed, not reveal it for the first time. Initials can draw attention to an important clause, but the complete accepted agreement and the disclosure process still matter.

Put the policy to work in OrderPilot

Add the approved wording as additional terms on the custom categories or product templates that need it. OrderPilot carries those terms onto the customer-facing quote and signing page and freezes the accepted version when signed.

Require signatures for the categories where your process calls for them. Native minimum-deposit requirements need Shopify Plus. On any Shopify plan, Admin deposit orders can collect deposits before placement when enabled; that separate route does not automatically meet the native minimum-deposit rule.

Match the request amount to the accepted policy and keep the payment in the order's history. The plan-by-plan payment guide helps choose the route, and extra terms frozen at signing explains the document record.

Adapt this deposit policy

Replace the bracketed fields, remove unused alternatives, and complete the legal review before presenting this as the store's policy.

Deposit policy for [store name]

Order and specification. This policy forms part of order [order reference]. The agreed furniture, options, quantities, charges, and delivery arrangements are described in the attached specification. Please review those details before signing.

Deposit. The deposit for this order is [amount and currency], calculated as [percentage and clearly defined base, or fixed amount]. The agreed total is [amount and currency]. After the deposit, the remaining balance is [amount and currency]. The balance is due [specific date or agreed event].

Before the manufacturing commitment. The store will release the order to the vendor after [required customer approval, signature, and payment]. The commitment event for this order is [precise event, such as written vendor acceptance or authorized production start]. Before that event, a cancellation request is handled as follows: [approved refund terms].

After the manufacturing commitment. After the commitment event, the store will review a cancellation request against the order's actual production status and this agreement. Any amount retained or cancellation charge will be limited to [approved lawful basis and calculation]. The store will explain the decision and any refund in writing. The existence of a vendor charge alone does not establish the customer's liability.

Delivery. The estimated delivery date or range is [date or range]. The store will communicate a known delay and provide the notices, options, and refunds required by the law governing the sale. Nothing in this policy removes those rights. Any required jurisdiction-specific delivery notice is included with this agreement.

Changes. Request a change through [contact method]. A request is not accepted until the store confirms it in writing. The confirmation will identify the revised specification, price, delivery expectation, and any lawful agreed change charge. The customer will approve the revised agreement before the change is released.

Cancellation requests. Send a cancellation request to [contact details], identifying the order. The store will acknowledge the request and review the vendor status promptly. Any refund required by law will be handled within the governing deadline, independently of the timing of a vendor refund to the store.

Refund method. Refunds will be made through [supported refund method] as required by the original payment and governing law. Store credit will be offered only where lawful and accepted by the customer; it will not replace a required money refund without a lawful basis.

Approval. Customer name: [name]. Signature or approved electronic acceptance: [acceptance]. Date: [date]. Store representative: [name]. The customer receives a complete copy of the accepted agreement.

Test the policy with real showroom situations

Run the wording through a sample cancellation before the PO, a fabric change after vendor acceptance, and a delayed shipment. Staff should be able to explain each outcome without adding an unwritten rule.

Then compare the policy to the actual payment screens and documents. If the policy promises an initial amount the plan cannot collect through the proposed route, change the process before asking the customer to use it.

Once the policy is approved, practice asking for the deposit with a complete sample quote in front of the team.

Sources

1. Griffin v. Corner Furniture Clearance Outlet — Civil Court of the City of New York, June 30, 2020.
2. UCC §2-718 — Uniform Commercial Code model text, Cornell Legal Information Institute.
3. New York General Business Law §396-u and §218-a, 2024 text — New York Legislature; archived §218-a reproduced by Justia.
4. N.J.A.C. 13:45A-5.1 — New Jersey regulation, Cornell Legal Information Institute.
5. Maryland Commercial Law §14-1803 — Maryland General Assembly.
6. California Civil Code §1723 — California Legislature, reproduced by Public.Law.
7. 16 CFR §435.2 — Federal Trade Commission regulation, Cornell Legal Information Institute.
8. Safe in-store transactions — Government of Ontario.