Operating Management Agreement Template for India

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Key Requirements PROMPT example:

Operating Management Agreement

"I need an Operating Management Agreement for a luxury hotel property in Mumbai, where an international hotel chain will manage the property for an initial term of 15 years starting March 2025, with specific provisions for performance standards and brand compliance."

Document background
The Operating Management Agreement is a crucial document used when a business owner seeks to engage professional management expertise while retaining ownership of the assets or business. This arrangement is common in various sectors across India, particularly in hospitality, healthcare, and real estate. The agreement comprehensively addresses all aspects of the management relationship, including operational control, service standards, financial arrangements, and risk allocation. It must comply with Indian legal requirements, including the Indian Contract Act, 1872, Companies Act, 2013, and relevant industry-specific regulations. The document is particularly important in scenarios where specialized operational expertise is required, or when owners want to separate ownership from management functions. The Operating Management Agreement typically includes detailed provisions for performance metrics, reporting requirements, fee structures, and termination conditions, making it a fundamental tool for establishing clear governance and operational frameworks.
Suggested Sections

1. Parties: Identification of the Owner/Company and the Operator/Manager with complete legal details

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

3. Definitions and Interpretation: Detailed definitions of terms used throughout the agreement and rules of interpretation

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

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Operator's Rights and Obligations: Comprehensive list of rights granted to and obligations imposed on the operator

7. Owner's Rights and Obligations: Rights retained by and obligations of the owner

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

9. Operating Standards: Performance standards, KPIs, and quality requirements

10. Staff and Employment: Terms regarding employment, staffing responsibilities, and workforce management

11. Intellectual Property: Rights and restrictions regarding use of IP, branding, and proprietary information

12. Confidentiality: Protection and handling of confidential information

13. Indemnification and Liability: Mutual indemnities and limitation of liability provisions

14. Insurance: Required insurance coverage and related obligations

15. Termination: Grounds for termination, termination process, and consequences

16. Post-Termination Obligations: Obligations of parties after termination including handover process

17. Dispute Resolution: Process for resolving disputes including jurisdiction and governing law

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

Optional Sections

1. Non-Compete: Restrictions on operator's competing activities - include when operator has access to sensitive business information

2. Environmental Compliance: Environmental obligations and standards - essential for industries with environmental impact

3. Crisis Management: Procedures for handling emergencies - important for high-risk operations or public-facing businesses

4. Technology Systems: Terms regarding use and maintenance of technology systems - relevant when IT systems are crucial to operations

5. Marketing and Promotion: Marketing responsibilities and guidelines - include for consumer-facing businesses

6. Asset Management: Specific provisions for managing physical assets - important for asset-heavy operations

7. Compliance with Specific Regulations: Industry-specific regulatory compliance requirements - add based on relevant sector

8. Third Party Contracts: Management of existing or future third party relationships - include when significant vendor relationships exist

Suggested Schedules

1. Schedule 1 - Services Description: Detailed scope of management services and responsibilities

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

3. Schedule 3 - Performance Standards: Specific KPIs, performance metrics, and measurement criteria

4. Schedule 4 - Property/Asset Details: List and description of properties/assets under management

5. Schedule 5 - Employee Information: Details of key personnel, organizational structure, and staffing requirements

6. Schedule 6 - Operating Procedures: Standard operating procedures and management protocols

7. Schedule 7 - Required Insurance: Specific insurance requirements and coverage details

8. Schedule 8 - Initial Business Plan: Initial operational and financial plans

9. Appendix A - Power of Attorney: If required, detailed powers granted to the operator

10. Appendix B - Form of Reports: Templates for required operational and financial reports

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

Facilities Management

Entertainment

Transportation

Logistics

Senior Living

Relevant Teams

Legal

Operations

Finance

Compliance

Risk Management

Facilities Management

Business Development

Asset Management

Human Resources

Project Management

Property Management

Relevant Roles

Chief Executive Officer

Chief Operating Officer

General Manager

Operations Director

Legal Counsel

Contract Manager

Facility Manager

Property Manager

Business Development Manager

Finance Director

Risk Manager

Compliance Officer

Asset Manager

Regional Manager

Project 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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