Restaurant Management Agreement
Restaurant Management Agreement
This Restaurant Management Agreement ("Agreement") is made and entered into as of [Month Day, Year] ("Effective Date"), by and between [Your Company Name] ("Restaurant"), located at [Your Company Address], and [Management Company] ("Management Company"), located at [Management Company Address]. The Restaurant and Management Company may be referred to individually as a "Party" or collectively as the "Parties".
WHEREAS, the Restaurant desires to engage the services of the Management Company to operate and manage its restaurant business; and
WHEREAS, the Management Company is in the business of providing professional restaurant management services and is willing to render such services to the Restaurant on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the Parties agree as follows:
1. Purpose
The purpose of this Agreement is to formally establish the terms under which the Management Company will operate and manage the Restaurant business on behalf of the Restaurant. This Agreement aims to enhance the Restaurant's profitability and efficiency by leveraging the expertise of the Management Company.
2. Responsibilities of the Management Company
The Management Company shall be responsible for the day-to-day operations of the Restaurant. This includes, but is not limited to, managing staff, overseeing financial accounting, ensuring compliance with health and safety regulations, and implementing marketing and promotional strategies.
The Management Company shall hire, train, supervise, and, if necessary, terminate employees in accordance with applicable laws and the policies of the Restaurant. Employee compensation and benefits shall also be managed by the Management Company.
The Management Company shall maintain accurate and complete financial records and shall provide monthly financial statements to the Restaurant. These records shall include income and expense reports, balance sheets, and cash flow statements.
The Management Company shall ensure that the Restaurant complies with all applicable local, state, and federal regulations, including health and safety standards.
The Management Company shall develop and implement strategies to improve the operational efficiency and profitability of the Restaurant. These strategies shall be designed in consultation with the Restaurant’s management team.
3. Responsibilities of the Restaurant
The Restaurant shall provide the Management Company with the necessary authority and support to manage the Restaurant effectively. This includes granting access to financial records, operational systems, and other relevant resources.
The Restaurant shall pay the Management Company a monthly management fee of [Management Fee Amount]. This fee shall be payable on the first day of each month during the term of this Agreement.
The Restaurant shall reimburse the Management Company for all reasonable and necessary expenses incurred in the performance of its duties, provided that such expenses are documented and pre-approved by the Restaurant.
The Restaurant shall comply with all recommendations and strategies proposed by the Management Company, provided that such recommendations are reasonable and in the best interest of the Restaurant.
The Restaurant shall maintain adequate insurance coverage for the Restaurant’s operations, including general liability, property, and workers' compensation insurance.
4. Term and Termination
This Agreement shall commence on the Effective Date and shall continue for a term of [Initial Term Duration] years, unless terminated earlier in accordance with the provisions herein.
Either Party may terminate this Agreement upon [Notice Period] days' written notice to the other Party. In the event of termination, the Management Company shall be entitled to payment for services rendered and expenses incurred up to the date of termination.
This Agreement may be terminated immediately by either Party in the event of a material breach by the other Party, provided that the breaching Party fails to cure the breach within [Cure Period] days of receiving written notice of the breach.
Upon termination of this Agreement, the Management Company shall promptly return all property, documents, and records belonging to the Restaurant. The Parties shall cooperate to ensure a smooth transition of management duties to the Restaurant or a new management firm.
The termination of this Agreement shall not relieve either Party of any obligation or liability incurred prior to the effective date of termination.
5. Performance Benchmarks and Financial Targets
The Parties shall mutually agree on performance benchmarks and financial targets that the Management Company must meet. These benchmarks and targets shall be reviewed and adjusted on a quarterly basis, as necessary.
Performance benchmarks may include specific metrics related to sales, customer satisfaction, staff performance, and operational efficiency. The Management Company shall provide regular reports to the Restaurant on its progress in meeting these benchmarks.
Financial targets may include specific revenue and profit goals for the Restaurant. The Management Company shall implement strategies to achieve these targets and shall report on its progress on a monthly basis.
In the event that the Management Company fails to meet the agreed-upon benchmarks or financial targets, the Parties shall meet to discuss the reasons for the underperformance and to develop corrective action plans.
The Restaurant reserves the right to terminate this Agreement if the Management Company consistently fails to meet the agreed-upon benchmarks or financial targets, subject to the notice and cure provisions set forth herein.
6. Dispute Resolution
In the event of any dispute arising out of or relating to this Agreement, the Parties shall attempt to resolve the dispute through good faith negotiations. If the dispute cannot be resolved through negotiation, the Parties agree to participate in mediation, with a mutually agreed-upon mediator, before commencing any legal action.
If the Parties are unable to resolve the dispute through mediation, either Party may initiate legal proceedings in the appropriate courts of [State]. The Parties agree that the jurisdiction and venue for any legal action shall be in the state and federal courts located in [County, State].
The prevailing Party in any legal action arising out of or relating to this Agreement shall be entitled to recover its reasonable attorneys' fees and costs from the non-prevailing Party.
Notwithstanding any other provision of this Agreement, either Party may seek injunctive or other equitable relief in any court of competent jurisdiction to prevent or enjoin any actual or threatened breach of this Agreement.
The Parties agree to use their best efforts to resolve any disputes in a fair and amicable manner, consistent with the purpose of this Agreement and the interests of the Restaurant.
7. Miscellaneous
This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations, and understandings of the Parties, whether written or oral.
This Agreement may only be amended or modified by a written agreement signed by both Parties. No waiver of any provision of this Agreement shall be effective unless contained in a written document signed by the Party waiving the provision.
If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The invalid or unenforceable provision shall be deemed modified to the extent necessary to render it valid and enforceable.
Neither Party may assign its rights or obligations under this Agreement without the prior written consent of the other Party, except that the Management Company may assign its rights and obligations to an affiliate or successor entity.
This Agreement shall be governed by and construed in accordance with the laws of [State], without regard to its conflicts of law principles. The Parties hereby consent to the jurisdiction of the state and federal courts located in [County, State].
IN WITNESS WHEREOF, the Parties hereto have executed this Restaurant Management Agreement as of the Effective Date.
[Your Name]
[Your Company Name]
Date: [Month Day, Year]
[Company Representative Name]
[Management Company Name]
Date: [Month Day, Year]
