Business Management Agreement Template for United States

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Key Requirements PROMPT example:

Business Management Agreement

"I need a Business Management Agreement for my tech startup to engage a professional management company to handle our Asia-Pacific operations starting March 2025, with specific focus on performance metrics and revenue sharing arrangements."

Document background
The Business Management Agreement serves as a foundational document for outsourced management arrangements in the United States. It is typically used when a company seeks to delegate operational management to professional managers or a management company. The agreement addresses crucial aspects such as strategic planning, operational oversight, financial management, and performance expectations. It must comply with both federal and state-specific regulations, including corporate governance requirements, employment laws, and industry-specific standards. This document is particularly important for establishing clear lines of authority, accountability, and risk allocation between parties.
Suggested Sections

1. Parties: Identifies the parties entering into the agreement, including legal names and addresses

2. Background/Recitals: Provides context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the management services to be provided

5. Term and Termination: Duration of agreement and conditions for termination

6. Compensation: Fee structure, payment terms, and expenses

7. Obligations and Responsibilities: Duties of both manager and client

8. Governing Law: Specifies jurisdiction and applicable laws

Optional Sections

1. Non-Compete: Restricts competitive activities - include when protecting business interests from competition

2. Force Majeure: Addresses unforeseeable circumstances preventing performance of obligations - include when significant external risks exist

3. Insurance: Insurance requirements and coverage - include when specific risks need to be covered

4. Intellectual Property: IP ownership and usage rights - include when IP is created or used in management services

Suggested Schedules

1. Schedule A - Services Description: Detailed breakdown of management services

2. Schedule B - Fee Schedule: Detailed fee structure and payment terms

3. Schedule C - Key Personnel: List of key management team members

4. Schedule D - Performance Metrics: KPIs and performance measurement criteria

5. Schedule E - Reporting Requirements: Format and frequency of management 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

Clauses
Industries

Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, recordkeeping, and youth employment standards

Internal Revenue Code: Federal tax laws governing business operations, compensation, and financial reporting requirements

Securities Exchange Act: Federal law regulating securities trading and requiring specific disclosures for public companies

Sarbanes-Oxley Act: Federal law setting requirements for public company boards, management, and accounting firms

EEOC Regulations: Federal employment discrimination laws and workplace equality requirements

Antitrust Laws: Federal laws preventing monopolistic practices and promoting fair competition

State Corporate Laws: State-specific regulations governing corporate formation, operation, and governance

State Contract Laws: State-specific requirements for contract formation, enforcement, and interpretation

State Employment Laws: State-specific workplace regulations, including minimum wage and employment rights

State Licensing Requirements: State-specific professional and business licensing obligations

Data Protection Laws: Federal and state regulations governing data privacy and security requirements

Agency Law: Legal principles governing relationships between principals and agents in business management

Fiduciary Duties: Legal obligations of loyalty, care, and good faith in business management relationships

Non-Compete Provisions: State-specific restrictions on competition and trade secret protection

Dispute Resolution: Legal framework for handling conflicts through litigation, arbitration, or mediation

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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