Free Restaurant Management and Operations Agreement Template

Restaurant Management and Operations Agreement

I. The Parties

This Restaurant Management and Operations Agreement ("Agreement") is made and entered into on [Month Day, Year] ("Effective Date") by and between [Owner's Name] of [Your Company Name] hereinafter referred to as the ("Owner") with a primary place of business at [Your Company Address] and [Manager's Name] hereinafter referred to as the ("Manager") with a place of business at [Manager's Address] collectively referred to as the ("Parties").

WHEREAS, the Owner is engaged in the business of owning and operating restaurants and is desirous of hiring a Manager to oversee the daily management and operations of the restaurant located at [Your Company Address] hereinafter referred to as the ("Restaurant");

WHEREAS, the Manager represents that it has extensive expertise and experience in the management and operation of restaurants and is willing to assume the responsibilities for managing and operating the Restaurant in accordance with the terms and conditions of this Agreement;

WHEREAS, the Parties herein have agreed to enter into this Agreement to set forth their respective responsibilities and obligations in connection with the management and operation of the Restaurant;

NOW THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:

II. Appointment of Manager

The Owner, with this agreement, officially appoints the Manager as the exclusive authority to manage and operate the Restaurant on behalf of the Owner. The Manager willingly accepts this appointment and agrees to abide by the terms and conditions laid out in this Agreement.

A. Manager’s Expertise

  1. Expertise Utilization: The Manager is expected to utilize their expertise, know-how, and experience to effectively and efficiently manage all aspects of the Restaurant’s operations. This includes, but is not limited to, the areas of customer service, food preparation, and business management.

  2. Commitment to Excellence: The Manager is expected to strive for excellence in all areas of operation, ensuring that the Restaurant maintains a high standard of quality and service.

  3. Continuous Improvement: The Manager is encouraged to continuously seek ways to improve the Restaurant’s operations, leveraging their expertise and experience to drive innovation and efficiency.

B. Exclusivity of Appointment

  1. Sole Management: The Manager is the sole authority appointed to manage and operate the Restaurant. No other party shall have the right to interfere with the Manager’s operations unless specified in this Agreement.

  2. Scope of Authority: The Manager’s authority extends to all aspects of the Restaurant’s operations, including but not limited to, the hiring and training of staff, menu planning, and financial management.

  3. Adherence to Agreement: Both the Owner and the Manager agree to adhere to the terms and conditions of this Agreement. Any breach of these terms may result in termination of the Manager’s appointment.

III. Responsibilities of the Manager

The Manager is entrusted with the responsibility of managing the day-to-day operations of the Restaurant. This includes a wide range of duties necessary for the smooth operation of the Restaurant.

A. Staff Management

  1. Hiring: The Manager is responsible for hiring competent and qualified staff to ensure efficient operation of the Restaurant.

  2. Training: The Manager is expected to provide adequate training to the staff, equipping them with the skills necessary to perform their duties effectively.

  3. Supervision: The Manager is tasked with supervising the staff, ensuring that they adhere to the Restaurant’s policies and maintain a high standard of service.

B. Service Efficiency

  1. Service Standards: The Manager is expected to ensure efficient and effective service, striving to exceed customer expectations at all times.

  2. Customer Satisfaction: The Manager should prioritize customer satisfaction, addressing any issues or complaints promptly and professionally.

  3. Quality Control: The Manager is responsible for maintaining high standards of food and service quality, ensuring that the Restaurant consistently delivers a superior dining experience.

C. Procurement and Compliance

  1. Sourcing Supplies: The Manager is responsible for sourcing and procurement of supplies, ensuring that the Restaurant is always well-stocked with fresh and high-quality ingredients.

  2. Health and Safety: The Manager is expected to ensure strict adherence to health and safety regulations, maintaining a safe and hygienic environment for both staff and customers.

  3. Financial Management: The Manager is tasked with managing finances, including budgeting and control of expenses, to ensure the Restaurant’s profitability.

D. Additional Duties

  1. Operational Efficiency: The Manager is expected to continuously seek ways to improve operational efficiency, reducing costs without compromising on quality.

  2. Marketing and Promotion: The Manager may be required to undertake marketing and promotional activities to increase the Restaurant’s visibility and attract more customers.

  3. Reporting: The Manager is expected to provide regular reports to the Owner, detailing the Restaurant’s performance and any issues or challenges encountered.

IV. Compensation

A. Management Fee

  1. Fee Structure: The Owner agrees to pay the Manager a management fee of [10]% of the Restaurant’s monthly gross revenue.

  2. Payment Schedule: This fee is payable on or before the [15th] of each month, ensuring a regular and predictable income for the Manager.

  3. Revenue Definition: The monthly gross revenue includes all income generated by the Restaurant, excluding taxes and any discounts or refunds given to customers.

B. Reimbursement of Costs

  1. Cost Incurrence: Any additional costs incurred by the Manager on behalf of the Restaurant, which are pre-approved in writing by the Owner, shall be reimbursed by the Owner.

  2. Approval Process: The Manager must seek prior written approval from the Owner before incurring any additional costs on behalf of the Restaurant.

  3. Reimbursement Procedure: Upon receipt of valid receipts or invoices, the Owner will reimburse the Manager for the approved costs within a reasonable time frame.

V. Term and Termination

A. Agreement Term

  1. Commencement: This Agreement shall commence on the Effective Date.

  2. Duration: The Agreement shall continue for a term of [3] years, providing a stable and predictable management structure for the Restaurant.

  3. Extension: Upon mutual agreement, the Owner and the Manager may choose to extend the term of this Agreement beyond the initial [3] years.

B. Termination Provisions

  1. Termination Notice: Either party may terminate this Agreement with or without cause by providing [30] days’ written notice to the other party.

  2. Immediate Termination: In certain circumstances, such as a breach of this Agreement, the Owner may have the right to terminate this Agreement immediately.

  3. Post-Termination Obligations: Upon termination, the Manager shall promptly return all property, documents, and materials belonging to the Owner.

VI. Indemnification

A. Indemnification Agreement

  1. Indemnification Commitment: The Manager agrees to indemnify, defend, and hold harmless the Owner from and against any claims, liabilities, losses, damages, and expenses that may arise.

  2. Scope of Indemnification: This indemnification extends to any issues that may arise out of or in connection with the Manager’s performance of its obligations under this Agreement.

  3. Exclusions: The indemnification does not cover issues resulting from the Owner’s gross negligence or willful misconduct.

B. Defense Obligations

  1. Defense Commitment: In the event of a claim, the Manager agrees to defend the Owner, using legal counsel reasonably acceptable to the Owner.

  2. Cooperation: The Owner agrees to cooperate fully with the Manager in the defense of any claim, including providing any necessary information and assistance.

  3. Settlement Approval: Any settlement of a claim that might obligate the Owner to admit liability, pay money, or take (or refrain from taking) any action, requires the Owner’s prior written consent.

VII. Governing Law

A. Choice of Law

  1. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State Name].

  2. Interpretation: All terms and provisions of this Agreement shall be interpreted in accordance with the laws of the State of [State Name].

  3. Jurisdiction: The parties agree that the State of [State Name] has exclusive jurisdiction over any disputes arising from this Agreement.

B. Dispute Resolution

  1. Court Resolution: Any dispute arising under this Agreement shall be resolved in the courts located within [State Name].

  2. Legal Remedies: The parties have the right to seek all remedies available under the laws of the State of [State Name] for any breach of this Agreement.

  3. Enforcement: Judgments obtained in the courts of the State of [State Name] may be enforced in any court of competent jurisdiction.

VIII. Miscellaneous

A. Entire Understanding

  1. Agreement Completeness: This Agreement constitutes the entire understanding between the parties with respect to the subject matter herein.

  2. Superseding Effect: This Agreement supersedes all previous agreements, whether oral or written, between the parties regarding the management and operation of the Restaurant.

  3. Exclusion of Other Terms: No other terms, conditions, warranties, or representations, apart from those explicitly stated in this Agreement, will be considered part of the Agreement.

B. Amendments and Modifications

  1. Amendment Requirement: Any amendments or modifications to this Agreement must be in writing and signed by both parties.

  2. Mutual Consent: Changes to the Agreement can only be made with the mutual consent of both parties, ensuring that both the Owner and the Manager agree to the proposed changes.

  3. Formal Process: The process for amending the Agreement should be formal, involving the drafting, review, and signing of a written document.

C. Agreement Binding

  1. Binding Effect: This Agreement is binding on both parties, meaning both the Owner and the Manager are legally obligated to fulfill their respective duties and responsibilities as outlined in the Agreement.

  2. Successors and Assigns: This Agreement is also binding on the parties’ successors and assigns, ensuring that the terms of the Agreement continue to apply even if the Restaurant changes hands.

  3. Enforcement: Both parties have the right to enforce the terms of this Agreement, and failure to comply with the Agreement may result in legal consequences.

IX. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

Owner

[Owner's Name]

[Your Company Name]

Date: [Month Day, Year]

Manager

[Manager's Name]

Date: [Month Day, Year]

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