Free Cafe Management Agreement Template

Cafe Management Agreement

I. The Parties

This Cafe Management Agreement ("Agreement") is made and entered into on [Month Day, Year] ("Effective Date") by and between [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") residing at [Manager's Address] collectively referred to as the ("Parties").

WHEREAS, the Owner owns and operates a cafe and needs a manager to manage the business.

WHEREAS, the Manager has experience and expertise in managing cafes and related operations.

WHEREAS, the Owner desires to engage the Manager to manage and operate the Cafe under the terms and conditions set forth in this Agreement.

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

II. Responsibilities of the Manager

A. Daily Operations

  1. The Manager shall oversee all daily operations of the Cafe, including but not limited to opening and closing procedures.

  2. The Manager shall ensure the Cafe maintains high standards of cleanliness and hygiene at all times.

  3. The Manager is responsible for managing inventory, including ordering supplies and maintaining stock levels.

  4. The Manager shall ensure all food and beverages are prepared and served according to established recipes and quality standards.

  5. The Manager is responsible for addressing and resolving any customer complaints or issues promptly and professionally.

B. Staff Management

  1. The Manager shall recruit, hire, and train all Cafe staff, ensuring they meet the necessary qualifications and standards.

  2. The Manager shall create and manage employee schedules to ensure adequate staffing levels at all times.

  3. The Manager is responsible for conducting regular performance evaluations and providing feedback to staff.

  4. The Manager shall handle any disciplinary actions or terminations in accordance with the Cafe’s policies and applicable laws.

C. Financial Management

  1. The Manager shall be responsible for maintaining accurate financial records, including sales, expenses, and payroll.

  2. The Manager shall prepare and submit monthly financial reports to the Owner, detailing the Cafe's financial performance.

  3. The Manager shall implement cost-control measures to maximize profitability without compromising quality or customer service.

  4. The Manager is responsible for maintaining and reconciling all cash and credit card transactions.

  5. The Manager shall assist the Owner in preparing the annual budget and setting financial goals for the Cafe.

III. Responsibilities of the Owner

A. Financial Support

  1. The Owner shall provide the necessary financial resources to cover startup and operational expenses of the Cafe.

  2. The Owner shall ensure timely payment of all Cafe-related expenses, including rent, utilities, and supplies.

  3. The Owner shall review and approve the annual budget prepared by the Manager.

  4. The Owner agrees to reinvest a portion of the profits back into the Cafe for ongoing improvements and enhancements.

  5. The Owner is responsible for maintaining adequate insurance coverage for the Cafe’s assets and operations.

B. Support and Guidance

  1. The Owner shall provide ongoing support and guidance to the Manager, including regular meetings to discuss Cafe performance and strategies.

  2. The Owner shall work collaboratively with the Manager to develop and implement marketing and promotional activities.

  3. The Owner is responsible for providing any necessary training or resources required for the Manager to perform their duties effectively.

  4. The Owner shall assist the Manager in resolving any significant operational or financial issues that may arise.

IV. Compensation and Payment Terms

A. Management Fee

  1. The Owner agrees to pay the Manager a monthly management fee of [$6,300] as compensation for their services.

  2. The management fee shall be paid on the [1st] day of each month, starting from the Effective Date of this Agreement.

  3. The management fee shall be subject to annual review and adjustment based on the Cafe's financial performance and growth.

  4. In addition to the management fee, the Manager is entitled to performance-based bonuses, subject to mutual agreement.

  5. Any additional compensation or incentives shall be documented in writing and signed by both Parties.

B. Expenses and Reimbursement

  1. The Manager is entitled to reimbursement for any reasonable and necessary expenses incurred in the performance of their duties.

  2. All reimbursement requests must be submitted with original receipts and a detailed explanation of the expenses.

  3. The Owner agrees to reimburse the Manager within [15] business days of receiving the reimbursement request.

  4. Expenses incurred without prior approval from the Owner are not eligible for reimbursement.

V. Term and Termination

A. Term

  1. This Agreement shall commence on the Effective Date and shall continue for a term of [1] year, unless terminated earlier as provided herein.

  2. Upon expiration of the initial term, this Agreement shall automatically renew for successive [one]-year terms, unless either Party provides written notice of non-renewal at least [30] days prior to the end of the current term.

B. Termination

  1. Either Party may terminate this Agreement for cause by providing written notice of a material breach to the other Party.

  2. Either Party may terminate this Agreement without cause by providing at least [60] days' written notice to the other Party.

  3. Upon termination, the Manager shall return all Cafe property and records to the Owner.

  4. Termination of this Agreement shall not affect any rights or obligations that have accrued prior to the effective date of termination.

C. Effect of Termination

  1. Upon termination of this Agreement, the Owner shall pay the Manager any outstanding fees or reimbursements due within [30] days.

  2. The Manager shall cease all management and operational activities at the Cafe immediately upon termination.

  3. Any confidential information obtained by the Manager during the term of this Agreement shall remain confidential even after termination.

  4. Termination does not relieve either Party of their obligations under any surviving provisions of this Agreement.

VI. Confidentiality

A. Confidential Information

  1. Both Parties agree to maintain the confidentiality of any proprietary or confidential information disclosed during the term of this Agreement.

  2. Confidential information includes, but is not limited to, business plans, financial data, customer lists, and trade secrets.

  3. Neither Party shall disclose, use, or permit the use of any confidential information except as necessary to perform their obligations under this Agreement.

  4. Confidential information shall not include information that is publicly available, independently developed, or obtained from a third party without breach of confidentiality.

  5. Each Party agrees to take reasonable measures to protect the confidentiality of the information and prevent unauthorized disclosure.

B. Return of Materials

  1. Upon termination of this Agreement, each Party shall promptly return or destroy all confidential information and materials belonging to the other Party.

  2. Neither Party shall retain any copies of the confidential information, whether in electronic or physical form, after termination.

  3. Both Parties acknowledge that any unauthorized use or disclosure of confidential information may result in irreparable harm and entitle the injured Party to seek injunctive relief.

VII. Dispute Resolution

A. Negotiation

  1. In the event of any dispute arising out of or relating to this Agreement, the Parties shall first attempt to resolve the dispute through good faith negotiations.

  2. Either Party may initiate the negotiation process by providing written notice to the other Party, outlining the nature of the dispute.

  3. The Parties shall meet in person or through teleconference to discuss and attempt to resolve the dispute within [10] business days of receiving the notice.

  4. If the Parties are unable to resolve the dispute through negotiation, they may proceed to mediation or arbitration as outlined below.

B. Mediation

  1. If negotiations fail to resolve the dispute, the Parties agree to submit the dispute to mediation conducted by a mutually agreed-upon mediator.

  2. The mediation process shall be confidential and conducted in accordance with the rules and procedures of the selected mediator.

  3. Each Party shall bear its own costs and expenses related to the mediation, including attorney fees and mediator fees.

  4. The Parties agree to participate in the mediation process in good faith and make reasonable efforts to reach a mutually acceptable resolution.

C. Arbitration

  1. If mediation is unsuccessful, the Parties agree to submit the dispute to binding arbitration conducted by a single arbitrator.

  2. The arbitration proceedings shall be governed by the rules and procedures of the [American Arbitration Association (AAA)].

  3. The arbitrator's decision shall be final and binding on the Parties, and judgment may be entered upon it in any court of competent jurisdiction.

  4. Each Party shall bear its own costs and expenses related to the arbitration, including attorney fees and arbitrator fees.

VIII. Indemnification

A. Indemnification by Manager

  1. The Manager agrees to indemnify, defend, and hold harmless the Owner and its affiliates, officers, directors, employees, and agents from any and all claims, liabilities, damages, losses, and expenses arising out of or related to the Manager's performance of their duties under this Agreement.

  2. The indemnification obligation includes, but is not limited to, claims arising from negligence, willful misconduct, or breach of this Agreement by the Manager.

  3. The Manager's indemnification obligation shall survive the termination or expiration of this Agreement.

B. Indemnification by Owner

  1. The Owner agrees to indemnify, defend, and hold harmless the Manager and its employees, agents, and representatives from any and all claims, liabilities, damages, losses, and expenses arising out of or related to the Owner's performance of their obligations under this Agreement.

  2. The indemnification obligation includes, but is not limited to, claims arising from negligence, willful misconduct, or breach of this Agreement by the Owner.

  3. The Owner's indemnification obligation shall survive the termination or expiration of this Agreement.

IX. Miscellaneous

A. Governing Law

  1. This Agreement shall be governed by and construed in accordance with the laws of [State Name], without regard to its conflict of laws principles.

  2. The legal framework for this Agreement aligns with the specific jurisdiction where the cafe operates.

B. Entire Agreement

  1. This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, negotiations, representations, and understandings, whether written or oral. All previous discussions and arrangements are merged into this Contract.

  2. This Contract supersedes all prior agreements between the Parties. Any previous verbal or written understandings are replaced by the terms outlined in this Contract.

C. Amendments

  1. No amendment or modification of this Agreement shall be valid unless in writing and signed by both Parties.

  2. Amendments must be attached to this Contract as an addendum. Changes agreed to orally will not be enforceable.

D. Severability

  1. In the event that any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

  2. The invalid or unenforceable provision will be replaced by a valid and enforceable provision that comes closest to the original intent.

E. Assignment

  1. Neither Party may assign their rights or obligations under this Agreement without the prior written consent of the other Party.

  2. This ensures that any transfer of rights or responsibilities is mutually agreed upon and transparent.

X. Signatures

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date.

Owner

[Authorized Representative Name]

[Your Company Name]

Date: [Month Day, Year]

Manager

[Authorized Representative Name]

[Manager's Name]

Date: [Month Day, Year]

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