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Restaurant Management Agreement
"I need a Restaurant Management Agreement for my high-end Amsterdam steakhouse, where an international restaurant management company will take over operations from March 2025, with specific provisions for maintaining our Michelin-star standards and existing staff retention."
1. Parties: Identification of the restaurant owner and the management company, including full legal names and registered addresses
2. Background: Context of the agreement, including brief description of the restaurant property and the purpose of the management arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement
4. Appointment and Term: Formal appointment of the management company and duration of the agreement, including renewal terms
5. Manager's Rights and Responsibilities: Comprehensive outline of the management company's authority and duties in operating the restaurant
6. Owner's Rights and Obligations: Details of the owner's continuing rights and responsibilities, including funding obligations and approval rights
7. Financial Arrangements: Management fees, payment terms, expense allocations, and financial reporting requirements
8. Operating Standards: Required quality standards, brand standards, and operational benchmarks
9. Staff and Employment: Management of employees, hiring policies, and allocation of employment responsibilities
10. Intellectual Property: Usage rights for trademarks, recipes, and other intellectual property
11. Insurance and Liability: Required insurance coverage and allocation of risks between parties
12. Termination: Grounds for termination, notice requirements, and consequences of termination
13. Post-Termination: Obligations and transitions after agreement termination
14. Governing Law and Disputes: Choice of law, jurisdiction, and dispute resolution procedures
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment rights
1. Non-Compete: Restrictions on the manager's ability to operate competing restaurants; include when the restaurant has unique concepts or is in a competitive market
2. Property Maintenance: Specific provisions for property upkeep and improvements; include when the property is owned by the restaurant owner
3. Marketing and Promotion: Detailed marketing responsibilities and budget; include when marketing is a significant component of the management services
4. Force Majeure: Provisions for unforeseen circumstances; particularly relevant post-COVID or in areas prone to specific risks
5. Environmental Compliance: Specific environmental obligations; include when there are significant environmental considerations or requirements
6. Technology and Systems: Requirements for specific technology systems; include when proprietary or specific systems must be used
7. Training Requirements: Detailed training programs and standards; include when specific training programs are crucial to operations
1. Schedule 1 - Property Description: Detailed description of the restaurant premises, including floor plans and equipment inventory
2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, including base fees, incentive fees, and calculation methods
3. Schedule 3 - Performance Standards: Specific KPIs, quality metrics, and minimum performance requirements
4. Schedule 4 - Operating Budget: Initial operating budget and budget approval process
5. Schedule 5 - Required Insurance: Detailed insurance requirements including types of coverage and minimum amounts
6. Schedule 6 - Brand Standards: Specific brand and operating standards to be maintained
7. Schedule 7 - Initial Business Plan: Detailed business plan for the first year of operation
8. Appendix A - Required Reports: List and formats of required financial and operational reports
9. Appendix B - Key Personnel: Identification of key management positions and initial appointees
Authors
Hospitality
Food & Beverage
Restaurant
Catering
Hotel & Resort
Food Service Management
Property Management
Franchise Operations
Legal
Operations
Food & Beverage
Commercial
Finance
Human Resources
Compliance
Property Management
Business Development
Restaurant Owner
Operations Director
General Manager
Food & Beverage Manager
Legal Counsel
Commercial Director
Chief Operating Officer
Business Development Manager
Property Manager
Restaurant Manager
Compliance Officer
Chief Financial Officer
HR Director
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