Bar Management Agreement Template for England and Wales

When you own a bar but want to hand over daily operations to professionals, a Bar Management Agreement provides the legal structure to protect your interests while ensuring smooth business operations. This contract establishes clear boundaries between what you retain as owner and what responsibilities you delegate to the management company.

When do you need this document?

You need a Bar Management Agreement when you own bar premises but lack the time, expertise, or desire to manage daily operations yourself. This situation commonly arises when you inherit a bar, invest in hospitality property as a passive investment, or want to focus on other business ventures while maintaining ownership. The agreement is also essential when expanding your bar portfolio and need experienced operators to manage additional locations, or when your existing management arrangements lack proper legal documentation.

Key legal considerations

The management company's obligations must clearly define their responsibilities for staff recruitment, training, and compliance with employment law. Financial arrangements require careful structuring, including management fees, revenue sharing, accounting procedures, and liability for losses. You must specify who holds various licenses - while the premises licence typically stays with you as owner, the management company often provides the Designated Premises Supervisor. Insurance responsibilities need clear allocation, covering public liability, employer liability, and property damage. The agreement should address termination procedures, including notice periods, handover requirements, and resolution of financial matters. Performance standards and monitoring mechanisms help ensure the management company maintains your bar's reputation and profitability.

Legal requirements in England and Wales

Under the Licensing Act 2003, you must ensure the premises licence remains valid and that any changes in management arrangements are properly notified to the licensing authority. The management company must comply with all licence conditions, including permitted hours, age verification procedures, and prevention of crime and disorder. Food Safety Act 1990 compliance requires the management company to maintain proper food handling procedures and staff training records. Health and Safety at Work Act 1974 obligations must be clearly allocated, typically falling on the management company as the day-to-day operator. Employment Rights Act 1996 compliance is crucial, as the management company usually becomes the employer of bar staff. Data Protection Act 2018 requirements apply to customer information, CCTV systems, and staff records, with clear responsibilities needed for data controller and processor roles. The agreement must comply with Companies Act 2006 provisions if either party is a limited company, ensuring proper corporate governance and director duties are maintained.