When it comes to managing a business, it is essential to have a clear and concise management contract agreement in place. This agreement outlines the terms and conditions between the business owner and the management team, as well as the roles and responsibilities of each party. In this article, we will provide you with a sample management contract agreement that can be used as a guide when entering into this type of business arrangement.
Introduction
This Management Contract Agreement (the “Agreement”) is made and entered into on [insert date] by and between [insert business owner name] (the “Owner”) and [insert management team name] (the “Manager”). The purpose of this agreement is to outline the terms and conditions of the management services provided by the Manager to the Owner.
Services
The Manager agrees to provide management services to the Owner for the period of [insert period] beginning on [insert start date] and ending on [insert end date]. The services provided by the Manager shall include but are not limited to:
1. Financial management and control of the business.
2. Sales and marketing of the business.
3. Human resources management of the business.
4. Business planning and strategy development.
5. Other services as agreed upon by the Owner and Manager.
Compensation
The Manager shall be compensated for the services provided under this agreement as follows:
1. A base fee of [insert amount] per month.
2. Additional bonuses or incentives based on performance and achievement of agreed-upon goals.
Intellectual Property
Any intellectual property developed or created by the Manager in the course of providing the services under this agreement shall be the property of the Owner. The Manager agrees to assign all rights, title, and interest in any such intellectual property to the Owner.
Confidentiality
The Manager acknowledges that, in the course of providing management services to the Owner, it may have access to confidential and proprietary information. The Manager agrees to maintain the confidentiality of such information and shall not disclose any such information to third parties without the express written consent of the Owner.
Termination
Either party may terminate this agreement for any reason upon [insert notice period] days` written notice to the other party. Upon termination, the Manager agrees to return all property and materials belonging to the Owner and to provide a final accounting of all services provided.
Governing Law
This agreement shall be governed by and construed in accordance with the laws of [insert state] without giving effect to its conflict of laws provisions.
Conclusion
A solid management contract agreement is crucial for any business owner looking to entrust the day-to-day management of their business to a management team. This sample agreement provides a starting point for outlining the terms and conditions of the agreement, but it is important to seek the advice of legal counsel before finalizing any contract. With the right agreement in place, both parties can enjoy a productive and successful business relationship.