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Operating Management Agreement Template for England and Wales

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Key Requirements PROMPT example:

Operating Management Agreement

"I need an Operating Management Agreement for my hotel chain in London, where we're appointing ABC Management Ltd to handle day-to-day operations of three properties starting from March 2025, with specific KPIs for occupancy rates and customer satisfaction."

Document background
Operating Management Agreements are essential documents used when businesses seek to delegate operational management to specialized third parties while retaining ownership of the assets or business. These agreements, governed by English and Welsh law, establish comprehensive frameworks for service delivery, risk allocation, and performance standards. An Operating Management Agreement typically includes detailed provisions for operational control, revenue sharing, reporting requirements, and termination rights, making it particularly valuable in sectors requiring specialized operational expertise or where owners wish to benefit from professional management services while maintaining asset ownership.
Suggested Sections

1. Parties: Identification and details of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

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

5. Duration and Term: Period of agreement and renewal provisions

6. Management Services: Detailed description of services to be provided

7. Fees and Payment Terms: Compensation structure and payment mechanics

8. Obligations and Responsibilities: Duties of both parties

9. Termination: Circumstances and procedures for ending the agreement

Optional Sections

1. Performance Standards: Specific KPIs and service levels, used when specific performance metrics are required

2. Staff and Employment: Terms relating to personnel management, used when the agreement involves staff transfers or management

3. Intellectual Property: IP rights and usage, used when IP is created or used in operations

4. Insurance: Required insurance coverage, used when specific insurance requirements exist

Suggested Schedules

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

2. Schedule 2: Fee Structure: Detailed fee calculations and payment terms

3. Schedule 3: Performance Metrics: KPIs and measurement criteria

4. Schedule 4: Property Details: Details of managed properties

5. Schedule 5: Staff Transfer Provisions: Details of any TUPE transfers or staff arrangements

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations, including directors' duties, corporate governance requirements, and company administration procedures

Employment Rights Act 1996: Legislation covering employment relationships, staff transfers, and TUPE (Transfer of Undertakings Protection of Employment) regulations

Common Law of Contract: Fundamental principles of contract law including formation, consideration, and enforcement of contractual obligations

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts, particularly concerning limitation of liability

Consumer Rights Act 2015: Law protecting consumer rights and regulating business-to-consumer contracts, if applicable to the operation

UK GDPR and Data Protection Act 2018: Legislation governing the processing and protection of personal data, privacy rights, and data security requirements

Financial Services and Markets Act 2000: Regulatory framework for financial services and markets operations, if financial services are involved

Health and Safety at Work Act 1974: Legal framework ensuring workplace safety and health requirements are met in operational management

Environmental Protection Act 1990: Legislation concerning environmental protection and waste management in business operations

Competition Act 1998: Legislation preventing anti-competitive practices and ensuring fair market competition

Enterprise Act 2002: Law governing business competition, enterprise regulation, and insolvency provisions

Copyright, Designs and Patents Act 1988: Protection of intellectual property rights including copyrights, designs, and patents

Trade Marks Act 1994: Legislation governing the registration and protection of trademarks in business operations

Landlord and Tenant Act 1954: Law governing the relationship between landlords and tenants in business premises, if property management is involved

Law of Property Act 1925: Fundamental property law legislation relevant if the operating management involves real estate aspects

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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