Restaurant Development Contract
This Restaurant Development Contract (the “Contract”) is made and entered into on [Effective Date] (the “Effective Date”) by and between [Your Company Name], a company organized and existing under the laws of [State/Country] with its principal office located at [Your Company Address] (hereinafter referred to as "Company") and [Other Party’s Name], a [type of entity] existing under the laws of [State/Country] with its principal office located at [Other Party’s Address] (hereinafter referred to as "Developer") (each a “Party” and collectively the “Parties”).
Recitals
WHEREAS, the Company desires to develop a new restaurant establishment (the "Project") at [Your Company Address].
WHEREAS, the Developer is in the business of restaurant development and has the expertise, experience, and resources to complete the Project.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows:
1. Scope of Work
1.1 Project Overview
The Developer shall be responsible for the design, construction, and completion of the Project in accordance with the plans and specifications set forth in [Reference to Plans/Documents]. The Developer's responsibilities shall include, but not be limited to:
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Obtaining necessary permits.
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Coordinating subcontractors.
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Ensuring compliance with all applicable laws and regulations.
1.2 Detailed Responsibilities
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Design Phase: Work with architects and interior designers to develop detailed blueprints.
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Construction Phase: Manage all aspects of construction, including site preparation, foundation work, structural building, plumbing, and electrical installations.
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Finalization Phase: Oversee the installation of fixtures, fittings, and equipment, and ensure the site is ready for operational testing and opening.
2. Term
2.1 Contract Duration
This Contract shall commence on the Effective Date and shall continue until the completion of the Project, estimated to be [Estimated Completion Date], unless terminated earlier in accordance with the provisions of this Contract.
3. Payment Terms
3.1 Contract Price
The Company shall pay the Developer a total amount of [Total Contract Price] (the “Contract Price”), payable in installments as follows:
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Initial Payment: [Initial Payment Amount] upon execution of this Contract.
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Progress Payments: [Progress Payment Amount] due on [Progress Payment Due Dates].
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Final Payment: [Final Payment Amount] upon completion of the Project and acceptance by the Company.
3.2 Payment Schedule
Payments shall be made according to the following schedule:
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Initial Payment: 20% of the Contract Price.
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Progress Payments: 50% of the Contract Price, divided into equal monthly installments over the course of the Project.
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Final Payment: 30% of the Contract Price upon final approval and acceptance of the Project by the Company.
4. Performance Standards
4.1 Quality of Work
The Developer agrees to perform the work in a professional manner and in accordance with the highest standards of the industry. The Developer shall comply with all applicable local, state, and federal regulations during the performance of the work.
4.2 Compliance and Safety
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Ensure all materials and workmanship meet or exceed industry standards.
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Adhere to all safety regulations to prevent accidents and injuries on-site.
5. Changes to the Scope of Work
5.1 Amendment Procedure
Any changes to the scope of work shall be made in writing and signed by both Parties. Any such changes may require an adjustment to the Contract Price and/or the schedule for completion.
5.2 Change Order Documentation
All changes will be documented through change orders, which will detail the modification, its impact on the schedule and budget, and the rationale for the change.
6. Warranties and Representations
6.1 Developer's Warranties
The Developer warrants that all work performed shall be done in a competent manner and in compliance with the Contract's specifications, industry standards, and all applicable laws and regulations. The Developer shall correct any defective work at its own expense.
6.2 Duration of Warranties
The warranties provided by the Developer shall remain in effect for a period of [Warranty Period] from the date of completion and acceptance of the Project by the Company.
7. Termination
7.1 Termination for Cause
Either Party may terminate this Contract for cause if the other Party fails to fulfill a material obligation under the Contract, provided that the terminating Party gives the other Party written notice specifying the breach. If the breach is not cured within [Cure Period], the terminating Party may terminate the Contract by giving written notice to the other Party.
7.2 Termination for Convenience
The Company may terminate this Contract at any time for convenience by providing the Developer with [Notice Period] days' written notice. In such event, the Company shall pay the Developer for all work completed up to the date of termination, as well as any reasonable demobilization costs.
8. Indemnification
8.1 Developer's Indemnity
The Developer shall indemnify and hold harmless the Company, its officers, agents, and employees from and against any claims, damages, losses, and expenses arising out of or resulting from the performance of the work, provided that such claims, damages, losses, or expenses are attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property.
9. Dispute Resolution
9.1 Negotiation
In the event of any dispute or controversy arising out of or in connection with this Contract, the Parties agree to negotiate in good faith to resolve the dispute.
9.2 Mediation/Arbitration
If the dispute is not resolved within [Negotiation Period] days, either Party may submit the dispute to mediation or binding arbitration in accordance with the rules of [Arbitration Association]. The decision of the arbitrator shall be final and binding on both Parties.
10. Confidentiality
10.1 Non-Disclosure
Both Parties agree that they will not disclose any confidential information obtained during the course of the Project to any third party without the prior written consent of the other Party. Confidential information includes, but is not limited to, trade secrets, business plans, financial information, and proprietary data.
11. Governing Law
11.1 Applicable Law
This Contract shall be governed by and construed in accordance with the laws of [State/Country], without regard to its conflicts of law principles.
12. Entire Agreement
12.1 Integration Clause
This Contract constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, relating to such subject matter.
IN WITNESS WHEREOF, the Parties hereto have executed this Contract as of the Effective Date.
[Your Restaurant Company Name]
By:
Name: [Your Company Signatory Name]
Title: [Your Company Signatory Title]
Contact: [Your Company Number]
[Other Party’s Name]
By:
Name: [Developer Signatory Name]
Title: [Developer Signatory Title]
Contact: [Developer Contact Information]
