Restaurant or café operation contract template (US)

Restaurant Management Agreement

This Restaurant Management Agreement is made on Agreement Date between Owner Name, a Owner Entity Type and State, at Owner Address ("Owner"), and Operator Name, a Operator Entity Type and State, at Operator Address ("Operator").

1. The Restaurant

Owner engages Operator to manage the day-to-day operation of the restaurant or café known as Restaurant Name, at Restaurant Address (the "Restaurant"), which Owner owns or leases.

2. Operator's Services

Operator will:

• Hire, train, schedule and supervise staff, as employees of Owner or Operator

• Plan menus and buy food, beverages and supplies within the approved budget

• Keep the Restaurant clean and compliant with health codes, food safety rules and fire codes

• Handle customer service, marketing and point-of-sale systems

• Keep complete books and records

• Other Services

3. Licenses

Owner will hold the business license, food service permit and any liquor license in its name, unless the law requires otherwise. Operator will follow all license conditions, including rules on serving alcohol, and will not do anything that puts a license at risk.

4. Employees

The employer of the staff is Owner or Operator (the "Employer"). The Employer will pay all wages, overtime and tips as federal and state law require, follow tip pooling and tip credit rules, withhold payroll taxes, and carry workers' compensation insurance.

5. Money and Accounts

All sales revenue will be deposited into an account in Owner's name at Bank Name. Operator may pay approved operating expenses from it, within the annual budget approved by Owner. Spending over the budget by more than $Budget Variance Limit needs Owner's written approval. Operator will collect and remit sales taxes on Owner's behalf.

6. Reports

Operator will give Owner a weekly sales report and, by the Monthly Report Day of each month, a profit and loss statement for the previous month. Owner may audit the books on reasonable notice.

7. Operator's Fee

Owner will pay Operator a base fee of $Monthly Base Fee per month plus an incentive fee of Incentive Fee Percentage% of Incentive Fee Base, such as net operating profit, paid by the Fee Payment Day of the following month.

8. Standards

Operator will meet these performance standards: Performance Standards, such as health inspection grades, food cost targets and review scores. If the Restaurant fails a health inspection, Operator will correct the issues within the time the inspector sets.

9. Insurance and Indemnity

Owner will carry property, general liability and liquor liability insurance, naming Operator as an additional insured. Operator will carry its own general liability insurance and, if Operator is the Employer, employment practices insurance. Each party will indemnify the other for claims caused by its own negligence, willful misconduct or breach.

10. Term and Termination

This Agreement runs from Start Date for Initial Term. Either party may end it on Termination Notice Days days' written notice, or at once for fraud, a serious health or license violation, or an uncured material breach. On termination, Operator will hand over all records, keys, passwords and Owner's property within Handover Days days.

11. Recipes and Brand

Owner owns the Restaurant's name, logo, recipes developed for it, and customer data. Operator will not use them after this Agreement ends.

General Terms

Governing law. This Agreement is governed by the laws of the State of Governing State, without regard to its conflict of laws rules. Any lawsuit will be brought in the state or federal courts located in Venue County and State.

Entire agreement. This Agreement is the parties' complete agreement on its subject and replaces all earlier discussions. It may be changed only in a writing signed by both parties.

Severability. If a court finds any part of this Agreement unenforceable, that part will be enforced to the extent the law allows, and the rest stays in effect.

Assignment. Neither party may assign this Agreement without the other's written consent, except to a successor to its whole business.

Notices. Notices must be in writing and sent to the addresses above by personal delivery, certified mail or a nationally recognized courier.

Counterparts and e-signatures. This Agreement may be signed in counterparts and by electronic signature, which has the same effect as an original.

| Owner | Operator |

| --- | --- |

| Signature: Owner Signature | Signature: Operator Signature |

| Name: Owner Printed Name | Name: Operator Printed Name |

| Date: Owner Signing Date | Date: Operator Signing Date |