Operating Management Agreement Template for Switzerland

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Key Requirements PROMPT example:

Operating Management Agreement

"I need an Operating Management Agreement under Swiss law for a luxury hotel property in Geneva, where an international hotel chain will take over management from March 1, 2025, including staff transfer provisions and specific performance metrics for luxury hospitality operations."

Document background
The Operating Management Agreement is essential for businesses seeking professional management services while retaining ownership of their assets. This document is commonly used in Switzerland when an owner wishes to delegate operational control to a specialized management company while maintaining ultimate ownership and oversight rights. The agreement must comply with Swiss law, particularly the Swiss Code of Obligations, and typically includes detailed provisions for operational control, performance standards, financial arrangements, reporting requirements, and risk allocation. It's particularly relevant for properties, facilities, or businesses requiring specialized operational expertise, and can be adapted for various sectors from hospitality to healthcare. The agreement should carefully balance the operator's need for operational freedom with the owner's right to protect their assets and interests, while ensuring compliance with Swiss regulatory requirements.
Suggested Sections

1. Parties: Identification of the contracting parties - the owner/company and the operator/manager

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the operator and detailed scope of management services

5. Term and Renewal: Duration of the agreement and renewal provisions

6. Operator's Rights and Obligations: Detailed responsibilities and authority of the operator in managing the business

7. Owner's Rights and Obligations: Owner's ongoing responsibilities and retained rights

8. Financial Arrangements: Management fees, payment terms, expenses, and financial reporting requirements

9. Operating Standards: Required performance standards and quality metrics

10. Reporting and Oversight: Regular reporting requirements and owner's oversight rights

11. Personnel: Staffing responsibilities and requirements

12. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions

13. Termination: Termination rights, grounds for termination, and consequences

14. Post-Termination Obligations: Transition responsibilities and handover requirements

15. Confidentiality: Protection of confidential information and trade secrets

16. Force Majeure: Rights and obligations during extraordinary events

17. Governing Law and Dispute Resolution: Swiss law application and dispute resolution procedures

18. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Intellectual Property Rights: Required when specific IP is being created or licensed during operations

2. Data Protection: Detailed data handling requirements when significant personal data processing is involved

3. Regulatory Compliance: Industry-specific compliance requirements for regulated sectors

4. Environmental Compliance: Environmental obligations for operations with environmental impact

5. Employee Transfer Provisions: Required when existing employees are being transferred between parties

6. Multi-Location Provisions: Specific provisions for managing multiple facilities or locations

7. Emergency Services: Special procedures for emergency situations in high-risk operations

8. Competition Restrictions: Non-compete and non-solicitation provisions where required

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Fee Structure: Detailed breakdown of management fees, incentives, and payment calculations

3. Schedule 3 - Performance Metrics: Specific KPIs and performance standards

4. Schedule 4 - Operating Procedures: Detailed operational procedures and standards

5. Schedule 5 - Required Insurance: Specific insurance requirements and minimum coverage levels

6. Schedule 6 - Initial Business Plan: First-year operational and financial plans

7. Schedule 7 - Property Inventory: List of assets under management

8. Schedule 8 - Key Personnel: Identification of key management positions and initial appointees

9. Appendix A - Required Reports: Templates and requirements for regular reporting

10. Appendix B - Emergency Procedures: Emergency response and notification procedures

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

Hospitality

Real Estate

Healthcare

Manufacturing

Retail

Education

Infrastructure

Transportation

Energy

Facilities Management

Commercial Property

Industrial Operations

Leisure and Entertainment

Senior Living

Logistics

Relevant Teams

Legal

Operations

Compliance

Finance

Risk Management

Facilities Management

Asset Management

Business Development

Property Management

Contract Administration

Senior Management

Corporate Services

Relevant Roles

CEO

COO

General Counsel

Operations Director

Facility Manager

Property Manager

Asset Manager

Business Development Director

Contract Manager

Legal Counsel

Risk Manager

Compliance Officer

Financial Controller

Operations Manager

Managing Director

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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