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Business Management Agreement Template for Germany

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Key Requirements PROMPT example:

Business Management Agreement

"I need a Business Management Agreement for my tech startup in Berlin, where we're bringing in an external management company to handle our expansion into other EU markets starting March 2025, with particular focus on data protection compliance and cross-border operations."

Document background
The Business Management Agreement is essential for companies seeking professional management services in Germany, whether for ongoing operations, specific projects, or turnaround situations. It is commonly used when businesses require external management expertise or want to formalize internal management arrangements. The document must comply with German legal requirements, including the Civil Code (BGB), Commercial Code (HGB), and corporate law provisions. It typically includes comprehensive details about management responsibilities, decision-making authority, reporting requirements, compensation structures, and performance metrics. This agreement is particularly relevant for businesses undergoing transformation, expansion, or requiring specialized management expertise, while ensuring alignment with German business practices and regulatory requirements.
Suggested Sections

1. Parties: Identification of the contracting parties - the business owner/company and the management service provider

2. Background: Context of the agreement and brief description of the business and management arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope of Services: Detailed description of management services to be provided and the nature of appointment

5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination

6. Management Rights and Obligations: Specific rights, duties, and responsibilities of the management service provider

7. Client Obligations: Responsibilities and obligations of the business owner/company

8. Compensation and Payment Terms: Management fees, payment schedule, expenses, and any performance-based compensation

9. Reporting and Performance Metrics: Required reports, frequency of reporting, and performance evaluation criteria

10. Confidentiality: Protection of confidential information and trade secrets

11. Data Protection: GDPR compliance and data handling requirements

12. Intellectual Property: Ownership and usage rights of IP created during the management services

13. Liability and Indemnification: Limitation of liability and indemnification obligations

14. Force Majeure: Provisions for unforeseen circumstances affecting contract performance

15. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

16. Miscellaneous: Standard boilerplate provisions including severability, entire agreement, and amendments

Optional Sections

1. Non-Competition: Restrictions on competitive activities - include when management provider may have access to sensitive market information

2. Employee Relations: Guidelines for interaction with company employees - relevant when management provider has direct employee oversight

3. Insurance Requirements: Specific insurance coverage requirements - important for high-risk industries or substantial management responsibilities

4. Emergency Succession: Procedures for temporary or permanent replacement of key management personnel - crucial for critical business operations

5. Compliance Requirements: Industry-specific compliance obligations - necessary for regulated industries

6. International Operations: Provisions for managing international business aspects - include when business has cross-border operations

7. Strategic Planning: Requirements for long-term business planning - relevant for comprehensive management mandates

8. Asset Management: Provisions for handling company assets - important when management includes asset control responsibilities

Suggested Schedules

1. Schedule 1 - Service Specifications: Detailed outline of management services, responsibilities, and deliverables

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, bonus calculations, and expense policies

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and evaluation criteria

4. Schedule 4 - Reporting Templates: Standard formats for required management reports

5. Schedule 5 - Authorized Representatives: List of key contacts and their authority levels from both parties

6. Appendix A - Operating Procedures: Detailed operational guidelines and procedures

7. Appendix B - Compliance Checklist: Specific regulatory and compliance requirements

8. Appendix C - Emergency Protocols: Procedures for handling emergency situations and business continuity

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





































Clauses





































Relevant Industries

Manufacturing

Technology

Retail

Healthcare

Hospitality

Professional Services

Real Estate

Construction

Logistics

Financial Services

Energy

Telecommunications

Entertainment

Education

Automotive

Relevant Teams

Legal

Operations

Executive Leadership

Finance

Human Resources

Compliance

Corporate Development

Strategy

Business Development

Risk Management

Project Management Office

Commercial Operations

Relevant Roles

Chief Executive Officer

Managing Director

Operations Director

Business Development Manager

Project Manager

Management Consultant

Interim Manager

General Manager

Department Head

Regional Manager

Business Unit Director

Corporate Strategy Officer

Transformation Manager

Commercial Director

Finance Director

Legal Counsel

Compliance Officer

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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