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Restaurant Profit Sharing Agreement for New Zealand

Restaurant Profit Sharing Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes the terms and conditions for sharing profits among various stakeholders in a restaurant business. The agreement defines the method of calculating profits, distribution mechanisms, reporting requirements, and stakeholder rights and obligations. It incorporates relevant provisions from New Zealand's Companies Act 1993, Partnership Act 1908, and other applicable legislation to ensure compliance with local business and tax regulations while providing a clear framework for profit sharing arrangements in the restaurant context.

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Restaurant Profit Sharing Agreement

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What is a Restaurant Profit Sharing Agreement?

The Restaurant Profit Sharing Agreement is designed for use in New Zealand's restaurant industry when two or more parties wish to formalize arrangements for sharing business profits. This document is particularly relevant when restaurant owners want to implement profit-sharing with investors, key employees, or business partners. It includes essential provisions for profit calculation, distribution mechanisms, financial reporting requirements, and stakeholder rights, all aligned with New Zealand's legal framework including the Companies Act 1993 and Partnership Act 1908. The agreement is crucial for restaurants implementing performance-based compensation structures, bringing in investors, or establishing partnership arrangements. It provides legal protection for all parties while ensuring transparency in profit distribution and business operations.

What sections should be included in a Restaurant Profit Sharing Agreement?

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.

What sections are optional to include in a Restaurant Profit Sharing Agreement?

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

What schedules should be included in a Restaurant Profit Sharing Agreement?

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

Authors

Alex Denne

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

Jurisdiction

New Zealand

Cost

Free to use
Relevant legal definitions











































Clauses












































Relevant Industries

Hospitality

Food & Beverage

Restaurant Industry

Food Service

Business Services

Investment Management

Franchise Operations

Relevant Teams

Legal

Finance

Operations

Management

Accounting

Business Development

Investment

Compliance

Executive Leadership

Administrative

Relevant Roles

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

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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