The Restaurant Management Agreement serves as a comprehensive framework for delegating restaurant operations to professional management companies in the United States. This document is essential when restaurant owners seek to leverage external expertise for day-to-day operations while maintaining ownership. The agreement covers crucial aspects including operational standards, financial arrangements, regulatory compliance, staff management, and quality control measures. It's particularly relevant for establishments seeking professional management without franchising or selling their business, and must comply with various federal and state-level food service, employment, and business regulations.
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1. Parties: Identifies the management company and restaurant owner/operator
2. Background: Context of the agreement and basic premises
3. Definitions: Key terms used throughout the agreement
4. Appointment and Term: Scope of manager's authority and duration of agreement
5. Manager's Duties and Responsibilities: Core operational responsibilities and service standards
6. Compensation and Fees: Management fees, performance bonuses, and payment terms
7. Operating Standards: Quality control and brand standards requirements
8. Compliance with Laws: Regulatory compliance obligations
9. Insurance Requirements: Mandatory insurance coverage specifications
10. Termination: Conditions for ending the agreement
1. Non-Compete: Restrictions on competing businesses within specified territory and timeframe
2. Intellectual Property Rights: IP ownership and usage rights for branded concepts or proprietary systems
3. Employee Training: Specific training requirements and programs for restaurant staff
4. Marketing Obligations: Marketing responsibilities, budgets and brand promotion requirements
1. Schedule A - Property Description: Details of restaurant premises and facilities
2. Schedule B - Operating Budget: Annual operating budget and financial targets
3. Schedule C - Performance Metrics: KPIs and performance measurement criteria
4. Schedule D - Required Insurance: Detailed insurance requirements and coverage limits
5. Schedule E - Brand Standards: Detailed quality and operational standards
6. Schedule F - Fee Structure: Detailed breakdown of management fees and calculations
7. Schedule G - Required Licenses: List of required permits and licenses
Relevant legal definitions
Clauses
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