How To Use
This Management Agreement provides for the Manager to provide all of the equipment for use on the premises; this can be altered, as seen fit between the parties. The benefit for this turnkey kind of operation is that the owner is just the owner and the Manager, often a management company, retains firm control over all of the assets.
- Make sure multiple copies are signed. Keep a copy in your safe and with your corporate minute book.
- Management agreements can be very good or very bad. Most do not fall in the middle. Be careful about your selection process. Afterwards don’t keep pulling up the flowers to check on the roots. Review the Manager’s performance carefully on a regular basis. Often everyone puts in a good effort at the beginning, only to slack off over time. As the owner, you need to keep a close look at the operations and financial results. All seemingly obvious points, but ones too often overlooked.
The consistent thread was a series of leaders of a careful and meticulous nature who while not “wanting to be bothered” at first would seek more and more frequent consultation if they were given the freedom to act they desired. A win/win situation, if properly done. These contracts permit you to concentrate on the core of your business. You often seemingly pay “more” on a per item basis; but, on an overall basis, you conserve and focus your resources. When I have pulled these activities back, to run them ourselves, I have regretted the move more than 75% of the time. Ouch! This can be a big opportunity for you.
This Management Agreement (“Agreement”) is made on ______________ (Date), by and between _______________________________ (“Manager”) and _______________________________, the owner or corporation (“Owner”).
Whereas the Manager carries on business as a manager of businesses and the Owner wishes to retain the management services of the Manager in connection with the carrying on of the Owner’s business of a _________________ business (the “Business”), as more particularly described in Exhibit 1.
Therefore in consideration of the mutual covenants contained in this Agreement and other good and valuable consideration, the receipt of which is acknowledged by each party, the parties agree with each other as follows:
1. Management Services.
The Manager shall provide to the Owner as required by the Owner the following management services (“Management Services”);
If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.
In Witness whereof, the parties have executed this Agreement as of the date first written above.
Exhibit 1: Description of the Business and/or Property to be Managed.