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1. Parties: Identification of all parties to the agreement including full legal names and addresses
2. Background: Context of the agreement, including brief description of the restaurant business and purpose of profit sharing arrangement
3. Definitions: Detailed definitions of key terms including 'Profit', 'Revenue', 'Operating Expenses', 'Accounting Period', etc.
4. Term and Commencement: Duration of the agreement and when it becomes effective
5. Profit Calculation: Detailed methodology for calculating distributable profits, including allowable expenses and adjustments
6. Profit Distribution: Formula and timing for profit distribution among parties
7. Management and Control: Decision-making authority and operational control of the restaurant
8. Financial Records and Reporting: Requirements for maintaining financial records, preparation of statements, and reporting obligations
9. Audit Rights: Parties' rights to audit financial records and procedures for conducting audits
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Dispute Resolution: Process for resolving disputes between parties
12. Termination: Circumstances under which the agreement can be terminated and the process for termination
13. General Provisions: Standard legal provisions including notices, amendments, governing law, etc.
1. Multiple Location Provisions: Used when profit sharing applies to multiple restaurant locations, specifying how profits are calculated and shared across locations
2. Intellectual Property: Required when the agreement needs to address ownership and usage of restaurant brands, recipes, or other IP
3. Employee Profit Sharing Scheme: Included when profit sharing extends to employees beyond the main parties
4. Non-Competition: Added when parties need to be restricted from competing activities
5. Insurance Requirements: Detailed insurance obligations when specific coverage is crucial to the arrangement
6. Future Expansion: Provisions for handling addition of new locations or business expansion
7. Exit Strategy: Detailed provisions for voluntary exit of any party, including valuation methods
8. Force Majeure: Specific provisions for handling unforeseen circumstances affecting restaurant operations
1. Schedule 1: Profit Calculation Formula: Detailed mathematical formula and examples for calculating distributable profit
2. Schedule 2: Excluded Expenses: List of expenses that are explicitly excluded from profit calculations
3. Schedule 3: Reporting Template: Standard format for regular financial reports and profit statements
4. Schedule 4: Restaurant Assets: Inventory of restaurant assets included in the profit-sharing arrangement
5. Schedule 5: Key Performance Indicators: Metrics used to evaluate restaurant performance
6. Appendix A: Accounting Principles: Specific accounting principles and practices to be followed
7. Appendix B: Management Structure: Organizational chart and management responsibilities
8. Appendix C: Distribution Timeline: Calendar of profit distribution dates and reporting deadlines
Hospitality
Food & Beverage
Restaurant Industry
Food Service
Business Services
Investment Management
Franchise Operations
Legal
Finance
Operations
Management
Accounting
Business Development
Investment
Compliance
Executive Leadership
Administrative
Restaurant Owner
Restaurant Manager
Chief Financial Officer
Operations Director
General Manager
Finance Manager
Business Development Manager
Restaurant Partner
Investment Manager
Franchise Manager
Legal Counsel
Accountant
Financial Controller
Managing Director
Chief Executive Officer
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