Small Business Management Agreement for Australia

Small Business Management Agreement Template for Australia

This document is an Australian-compliant Small Business Management Agreement that establishes the terms and conditions under which a management service provider will operate and manage a small business on behalf of the business owner. It covers essential aspects including management responsibilities, operational control, financial arrangements, reporting requirements, and performance metrics, all while ensuring compliance with Australian federal and state legislation, particularly the Competition and Consumer Act 2010 and relevant small business provisions.

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What is a Small Business Management Agreement?

The Small Business Management Agreement is designed for use in the Australian business context where a business owner wishes to delegate day-to-day management responsibilities to a professional manager or management company while retaining ownership. This document is particularly useful for business owners who need professional management expertise, are planning succession, or require interim management solutions. The agreement incorporates Australian legal requirements, including provisions from the Competition and Consumer Act 2010, Fair Work Act 2009, and relevant state legislation. It details management scope, operational control, performance expectations, financial arrangements, and reporting obligations, while protecting both parties' interests through clear delineation of responsibilities and risk allocation.

What sections should be included in a Small Business Management Agreement?

1. Parties: Identification of the business owner and the management company/manager, including full legal names, ABNs, and registered addresses

2. Background: Context of the agreement, including brief description of the business and the purpose of engaging management services

3. Definitions: Defined terms used throughout the agreement, including technical and business-specific terminology

4. Appointment and Term: Formal appointment of the manager, commencement date, duration, and renewal terms

5. Management Services: Detailed description of core management services to be provided

6. Manager's Obligations: Key responsibilities, performance standards, and compliance requirements

7. Business Owner's Obligations: Responsibilities of the business owner, including provision of information and resources

8. Fees and Payment Terms: Management fees, payment schedule, expenses, and invoicing procedures

9. Reporting and Communication: Required reports, meetings, and communication protocols

10. Intellectual Property: Ownership and usage rights of business IP and materials

11. Confidentiality: Protection of confidential information and trade secrets

12. Termination: Grounds for termination, notice requirements, and consequences

13. General Provisions: Standard legal clauses including governing law, notices, and dispute resolution

What sections are optional to include in a Small Business Management Agreement?

1. Staff Management: Include when the manager will have responsibility for hiring, managing, or terminating staff

2. Financial Management: Include when the manager will handle financial operations, banking, or accounting

3. Marketing and Promotion: Include when the manager will be responsible for marketing activities

4. Insurance and Risk Management: Include when specific insurance requirements or risk management procedures need to be detailed

5. Performance Metrics: Include when specific KPIs or performance targets will be used to evaluate the manager

6. Non-Compete: Include when restricting the manager from competing or managing similar businesses

7. Assignment and Succession: Include when transfer of management rights or business ownership needs to be addressed

8. Force Majeure: Include when specific provisions for unforeseen circumstances are required

What schedules should be included in a Small Business Management Agreement?

1. Schedule 1 - Detailed Services Description: Comprehensive list and description of all management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, performance bonuses, and reimbursable expenses

3. Schedule 3 - Key Performance Indicators: Specific metrics and targets for measuring management performance

4. Schedule 4 - Operational Procedures: Day-to-day operational guidelines and procedures

5. Schedule 5 - Required Reports: Templates and specifications for required management reports

6. Schedule 6 - Contact Details: Key contacts and communication protocols for both parties

7. Appendix A - Business Assets: Inventory of business assets under management

8. Appendix B - Existing Contracts: List of current contracts and agreements affecting management services

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Retail

Hospitality

Professional Services

Healthcare

Manufacturing

Construction

Technology

Food and Beverage

Real Estate

Automotive

Education and Training

Personal Services

Relevant Teams

Legal

Operations

Executive

Commercial

Business Development

Finance

Human Resources

Compliance

Risk Management

Strategy

Relevant Roles

Business Owner

Managing Director

General Manager

Operations Manager

Business Manager

Franchise Manager

Small Business Consultant

Business Development Manager

CEO

COO

Commercial Manager

Store Manager

Retail Manager

Practice Manager

Facility Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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