Commercial Management Agreement Template for United States

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Key Requirements PROMPT example:

Commercial Management Agreement

"I need a Commercial Management Agreement for my retail business where we're hiring an external company to manage our three stores in California, with a focus on inventory management and staff supervision, starting March 2025."

Document background
The Commercial Management Agreement serves as a foundational document for businesses seeking professional management services in the United States. It outlines the relationship between the management company and the client, detailing service scope, performance expectations, fee structures, and operational parameters. This agreement is particularly crucial when outsourcing management functions or establishing long-term management relationships. It must comply with federal and state regulations while protecting both parties' interests through clear delineation of rights, obligations, and risk allocation.
Suggested Sections

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

2. Background/Recitals: Context and purpose of the agreement, including any relevant business relationship history

3. Definitions: Key terms used throughout the agreement and their specific meanings

4. Scope of Services: Detailed description of management services to be provided

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

6. Compensation: Fee structure, payment terms, and reimbursement provisions

7. Obligations and Responsibilities: Specific duties of each party under the agreement

Optional Sections

1. Non-Compete: Restrictions on competitive activities - used when protecting business interests from competition is crucial

2. Force Majeure: Provisions for unforeseeable circumstances - used when operations might be affected by external events

3. Insurance Requirements: Specific insurance coverage requirements - used when management involves significant operational risks

4. Intellectual Property Rights: Protection of IP and ownership provisions - used when management involves creation or use of intellectual property

Suggested Schedules

1. Schedule of Services: Detailed breakdown of management services to be provided

2. Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

3. Performance Metrics: KPIs and performance measurement criteria

4. Operational Procedures: Specific procedures and protocols for management activities

5. Insurance Requirements Schedule: Detailed insurance coverage requirements and limits

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

Federal Contract Law: Basic principles of contract law at federal level, including formation, consideration, and enforcement of contracts

Federal Arbitration Act: Federal law governing arbitration procedures and enforcement of arbitration agreements in commercial disputes

Antitrust Laws: Sherman Antitrust Act and Clayton Act governing competition and preventing monopolistic practices

Fair Labor Standards Act: Federal law establishing standards for wages, overtime pay, and employment conditions when management involves employee oversight

Americans with Disabilities Act: Federal law requiring accessibility accommodations in facilities and business operations

State Contract Laws: State-specific contract regulations and requirements that may vary by jurisdiction

State Business Corporation Acts: State laws governing the formation and operation of business entities

State Commercial Codes: State-specific regulations for commercial transactions and business operations

State Employment Laws: State-specific regulations governing employment relationships and worker protections

State Property Laws: State-specific regulations regarding property management and real estate operations if applicable

SEC Regulations: Securities and Exchange Commission rules governing financial transactions and reporting requirements

OSHA Regulations: Occupational Safety and Health Administration standards for workplace safety and health

Internal Revenue Code: Federal tax laws and regulations affecting business operations and financial reporting

State Tax Laws: State-specific tax regulations and reporting requirements

Industry-Specific Regulations: Specialized rules and requirements particular to the relevant business sector

Data Privacy Laws: State and federal regulations governing the collection, storage, and protection of personal and business data

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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