Free Restaurant Profit Sharing Agreement Template
Restaurant Profit Sharing Agreement
This Restaurant Profit Sharing Agreement ("Agreement") is made and entered into effective as of [Month Day, Year], by and between [Your Company Name] ("Company") and All Employees ("Employees"). The purpose of this Agreement is to outline the terms and conditions under which Employees will receive a portion of the restaurant's profits, thereby ensuring their interests are aligned with the financial success of the business.
Whereas, the Company desires to enhance performance and efficiency within the restaurant by incentivizing Employees through a profit-sharing scheme;
Whereas, Employees seek to directly benefit from the financial success of the restaurant and are motivated to contribute to the restaurant's profitability;
Now, therefore, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:
1. Profit Sharing Scheme
The Company agrees to allocate a portion of the restaurant's net profits to be shared among its Employees. This scheme aims to foster a collaborative work environment and retain top talent within the restaurant.
The profit-sharing scheme will be based on the restaurant’s net profits, which are calculated after deducting all operational expenses, taxes, and other liabilities.
Eligible Employees will receive a percentage of the net profits as specified in this Agreement, incentivizing them to contribute towards improving the restaurant's financial performance.
Employees must meet specific performance metrics, as outlined by management, to qualify for profit-sharing.
This arrangement will be reviewed annually, ensuring that it remains fair and equitable to all parties involved.
2. Calculation of Profits
Net profits will be calculated on a quarterly basis, ensuring transparency and fairness in profit distribution.
All revenues generated by the restaurant will be aggregated, from which all operational expenses, including salaries, utilities, and taxes, will be deducted to arrive at the net profit.
The financial reports used for profit calculation will be audited internally to ensure accuracy and accountability.
Employees will have access to a summary report detailing the calculations for their respective profit shares, maintaining transparency.
In the event of any disputes regarding profit calculations, the Company agrees to review and resolve the concern through a structured grievance process.
3. Profit-Sharing Percentage
The Company will allocate 10% of the restaurant's quarterly net profits to be distributed among Employees.
The profit share for each Employee will be determined based on their role, tenure, and performance metrics, as per the Company’s discretion.
Management and supervisory roles may receive a higher percentage of the allocated profits to reflect their additional responsibilities.
Any changes to the profit-sharing percentage will be communicated to Employees at least thirty (30) days in advance of the next profit-sharing period.
Special bonuses or additional profit shares may be awarded to Employees who demonstrate exceptional performance, as determined by the Company.
4. Distribution Schedule
Profit shares will be distributed to Employees on a quarterly basis, following the calculation and approval of net profits.
Employees will receive their profit shares via direct deposit to their registered bank accounts or through payroll distribution methods in use by the Company.
Detailed statements outlining the profit distribution will be provided to each Employee within seven (7) days of the distribution date.
In case of any delays, the Company will promptly inform the Employees and provide an estimated new distribution date.
Employees who leave the Company or are terminated for cause before the distribution date will forfeit their share of the profits for that period.
5. Term and Termination
This Agreement will commence on [Month Day, Year] and shall remain in effect until terminated by either party in accordance with the terms herein.
Either party may terminate this Agreement by providing thirty (30) days written notice to the other party.
Termination of this Agreement will not affect any profit shares earned prior to the termination date.
Upon termination, the final profit-share payment will be calculated up to the date of termination and distributed accordingly.
In the event of closure or sale of the restaurant, this Agreement will automatically terminate, and appropriate profit shares will be distributed to eligible Employees.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [State].
7. Miscellaneous
Any amendments or modifications to this Agreement must be made in writing and signed by both parties.
In the event that any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions will remain in full force and effect.
This Agreement constitutes the entire understanding between the parties regarding the subject matter herein and supersedes all prior agreements, understandings, or representations.
No waiver of any breach of this Agreement shall be deemed a waiver of any subsequent breach.
Both parties agree to perform any further acts and execute any further documents reasonably necessary to carry out the provisions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Restaurant Profit Sharing Agreement as of the date first above written.
[Your Name]
[Your Company Name]
Date: [Month Day, Year]
[Employee Name]
[Your Company Name]
Date: [Month Day, Year]
