What if the client books inside the 7-day window?

Then the full amount is due at booking. A party booked Tuesday for Saturday doesn't need a payment schedule, it needs a payment.

Should big events like schools have a different due date?

Yes, usually further out: 14 to 30 days, matched to how their accounts payable actually runs. Ask when you book. A school that needs three weeks to cut a check isn't slow-paying you, it's telling you the real due date to write down.

Is it rude to hold setup for an unpaid balance?

It's rude to surprise someone with it. Stated in the agreement and repeated in the confirmation, it's just the deal, and in practice the client pays on their phone in thirty seconds. The rule exists so you almost never use it.

Should I take tips, and does the due date affect them?

Take tips, always day-of or after, and keep them separate from the balance. A tip is the one payment that's better after the party, because it's earned there.

When should the final payment be due?

Before the truck leaves. The two setups that work are 7 days before the event, or day-of before setup begins, and the first is better. Never after the event, because after the party your leverage went home with the guests.

The three options, honestly compared

7 days before (recommended). The balance clears while there's still time to follow up, and an unpaid booking a week out is a visible problem instead of a day-of surprise. The client pays from their couch with a link, not at the door with a crowd arriving. If something's wrong with the card, everyone has days to fix it, not minutes.

Day-of, before setup. Workable, and common for operators who grew up on cash. The costs are real though: your crew becomes the collections department, the awkward conversation happens at the event, and a payment problem now delays the party in front of the guests. If you run day-of, the confirmation must say "balance clears before setup begins" so the rule enforces itself.

After the event. The default of every operator who hasn't been burned yet. The party's over, the invoice is an afterthought on someone's fridge, and you're texting a stranger about money for three weeks. This is where unpaid balances come from. Don't build it in on purpose.

Why a week is the number

Seven days is long enough to act on a problem and short enough that the event is real to the client. Ten or fourteen days works fine for larger events. Three days is cutting it close: a failed card on Wednesday for a Saturday party leaves one business day to sort it out.

The week also cleans up your Saturday morning. Every booking on the day's schedule is already paid, so the only statuses that matter at 7am are crew and gear.

Making the due date self-enforcing

State it in the agreement and repeat it in the confirmation: "The remaining balance is due 7 days before your event."
Send the payment link with the reminder, so paying takes one tap.
Tie it to the booking's status: unpaid at 7 days means the booking isn't confirmed for the final schedule until it clears.
Follow the reminder with a personal text at 5 days for the few that slip.

The line to remember

The due date is a leverage decision. Pick the last moment where the client still needs something from you, and that moment is before setup, not after cake.