Restaurant Management Agreement
OUTLINE

The complete text comes as a computer text file for operators who wish to pursue this avenue of operations. It has been through legal review for use in the State of Colorado and I am sure you will want your legal counsel's opinion of it for use in your area.

However, the review will cost significantly less than it would cost you to have counsel write it from scratch ... if he/she was even capable of doing it for a fee you could afford! (My attorney told me there was no way he could have written it.)

In any case, it is one more possibility to be aware of as you consider options for the future.

Immediate download in Microsoft Word format - $297
Immediate download in WordPerfect format - $297

RESTAURANT MANAGEMENT AGREEMENT

THIS MANAGEMENT AGREEMENT entered into this ___ day of _____________, 20___ by and between _____________________, a Washington Corporation ("Owner") having an office at _________________, ________________, Washington and PROTOTYPE MANAGEMENT, INC., a Delaware Corporation ("Operator"), having an office at 1111 - 115th Street Court NW (PO Box 280), Gig Harbor, Washington.

WITNESSETH

WHEREAS, Owner owns a restaurant known as "____________________" ("Restaurant") located at ______________________ in _____________, Washington; and

WHEREAS, Owner desires to assure the profitability of the Restaurant operation; and

WHEREAS, Operator is experienced in the management and operation of restaurants; and

WHEREAS, Owner wishes to obtain the benefits of the Operator's expertise to operate, direct, manage and supervise the Restaurant, subject to the rights and obligations of the Owner as hereinafter set forth, and

WHEREAS, Operator, for a fee, wishes to assume said control and discretion;

NOW, THEREFORE, Owner and Operator covenant and agree as follows:

ARTICLE 1 - TERM OF AGREEMENT
1.1 Operating Term

ARTICLE 2 - MANAGEMENT SERVICES
2.1 Exclusive Management
2.2 Operator's Responsibilities

ARTICLE 3 - OPERATOR TO ACT SOLELY AS AGENT OF OWNER
3.1 Duties
3.2 Debts and Liabilities
3.3 Employees
3.4 Indemnification

ARTICLE 4 - OWNER TO BEAR ALL OPERATING EXPENSES
4.1 Operating Capital
4.2 Advancement of Funds

ARTICLE 5 - WORKING CAPITAL AND BANK ACCOUNTS
5.1 Working Capital
5.2 Agency Account
5.3 Deposit Account
5.4 Reserve Account
5.5 Tax Account
5.6 Imprest Account
5.7 Maintenance of Accounts
5.8 Surety Bonds
5.9 Disposition of Funds

ARTICLE 6 - BOOKS, RECORDS AND STATEMENTS
6.1 Books of Account
6.2 Accounting Periods
6.3 Period Statements
6.4 Certified Annual Statements

ARTICLE 7 - OPERATOR'S MANAGEMENT FEE
7.1 Fee Structure
7.2 Basic Management Fee
7.3 Incentive Management Fee
7.4 Minimum Management Fee
7.5 Items Excluded
7.6 Reduction of Incentive Management Fee
7.7 Allowance for Startup Phase

ARTICLE 8 - PAYMENTS TO OPERATOR AND OWNER
8.1 Payment to Operator
8.2 Payment to Owner

ARTICLE 9 - GROSS SALES AND OPERATING INCOME
9.1 Definition of Gross Sales
9.2 Definition of Operating Income
9.3 Items Excluded

ARTICLE 10 - RESERVE FOR REPLACEMENT
10.1 Reserve Account
10.2 Use of Reserve Fund

ARTICLE 11 - INSURANCE
11.1 Insurance on Building and Contents
11.2 Other Insurance
11.3 Also Insured

ARTICLE 12 - MODIFICATION AND EXTENSION OF AGREEMENT
12.1 Modification
12.2 Extension
12.3 Expiration

ARTICLE 13 - TERMINATION
13.1 Termination
13.2 Termination Fee
13.3 Default

ARTICLE 14 - RIGHTS OF OPERATOR
14.1 Right to Other Ventures
14.2 Use of Systems and Concepts

ARTICLE 15 - RIGHTS AND CONDUCT OF OWNER
15.1 Right to Access
15.2 Conduct Prohibited

ARTICLE 16 - OTHER PROVISIONS
16.1 Income Taxes
16.2 Legal Fees
16.3 Arbitration
16.4 Jurisdiction
16.5 Notices
16.6 Attorney's Fees
16.7 Longevity of Agreement
16.8 Binding
16.9 Entire Agreement

IN WITNESS WHEREOF, Owner and Operator have duly executed this Agreement the day and year first above written.

SCHEDULE A
Operating Income

SCHEDULE B
Occupation Costs

Immediate download in Microsoft Word format - $297
Immediate download in WordPerfect format - $297