Restaurant Management Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Restaurant Management Agreement

"I need a Restaurant Management Agreement for a high-end Saudi Arabian restaurant chain appointing an international management company to operate our five locations in Riyadh, with special attention to maintaining our traditional cuisine standards while implementing international best practices."

Document background
The Restaurant Management Agreement is essential for restaurant owners in Saudi Arabia who wish to delegate the operation of their establishment to professional management companies. This agreement is particularly relevant in the context of Saudi Arabia's expanding hospitality sector and Vision 2030 initiatives, which have created increased demand for professional restaurant management services. The document comprehensively covers operational requirements, regulatory compliance (including SFDA regulations and Saudization requirements), financial arrangements, and performance standards. It is specifically structured to comply with Saudi Arabian law and Sharia principles, making it suitable for both local and international management companies operating in the Kingdom. The agreement is commonly used in various scenarios, from standalone restaurants to food court operations in malls, and can be adapted for different scales of operation while maintaining compliance with local regulations.
Suggested Sections

1. Parties: Identification of the Restaurant Owner and the Management Company, including full legal names and registration details

2. Background: Context of the agreement, including property details and purpose of the management arrangement

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Appointment and Term: Scope of management company's appointment and duration of the agreement

5. Management Company's Rights and Obligations: Detailed responsibilities including operational management, staff hiring, marketing, and maintenance

6. Owner's Rights and Obligations: Owner's responsibilities, including providing access, maintaining licenses, and funding obligations

7. Staff and Employment: Employment terms, Saudization requirements, and staff management responsibilities

8. Financial Management: Budget management, accounting procedures, revenue handling, and financial reporting

9. Operating Standards: Quality standards, brand requirements, and compliance with SFDA regulations

10. Fees and Payment Terms: Management fees, structure, calculation method, and payment terms

11. Insurance and Liability: Required insurance coverage and allocation of liability between parties

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

13. Handover Provisions: Procedures for transition upon termination

14. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

15. General Provisions: Standard clauses including notices, amendments, and force majeure

Optional Sections

1. Intellectual Property Rights: Required when the management company brings branded concepts or proprietary systems

2. Non-Competition: Include when restricting parties from competing businesses in the vicinity

3. Emergency Services: Include for high-risk locations or when 24/7 emergency response is required

4. Environmental Compliance: Include when specific environmental certifications or standards must be maintained

5. Digital Services and Technology: Include when management includes significant technology systems or online platforms

6. International Brand Standards: Required when the restaurant is part of an international franchise or chain

7. Training Programs: Include when specific training programs are crucial to the operation

Suggested Schedules

1. Property Details: Detailed description of the restaurant premises and facilities

2. Operating Budget: Initial operating budget and financial projections

3. Key Performance Indicators: Specific performance metrics and targets

4. Staff Organization Chart: Management structure and staffing requirements including Saudization targets

5. Operating Manuals: Standard operating procedures and quality control guidelines

6. Equipment Inventory: List of equipment, furniture, and fixtures provided by owner

7. Required Licenses: List of mandatory permits and licenses for operation

8. Fee Structure: Detailed breakdown of management fees and calculation methods

9. Insurance Requirements: Specific insurance types and coverage limits required

10. Brand Standards Manual: If applicable, detailed brand and quality standards to be maintained

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

Relevant legal definitions
Clauses
Relevant Industries

Food & Beverage

Hospitality

Restaurant Operations

Property Management

Retail

Tourism

Franchise Operations

Leisure & Entertainment

Commercial Real Estate

Relevant Teams

Legal

Operations

Finance

Compliance

Commercial

Property Management

Business Development

Food & Beverage

Human Resources

Risk Management

Relevant Roles

Restaurant Owner

Operations Director

General Manager

Legal Counsel

Compliance Officer

Finance Director

Property Manager

Business Development Manager

Commercial Director

Restaurant Manager

Area Manager

Chief Executive Officer

Chief Operating Officer

Franchise Manager

Contract 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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