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Restaurant Profit Sharing Agreement
"I need a Restaurant Profit Sharing Agreement for my Italian restaurant in Manchester, where I want to share 20% of the profits with my head chef and restaurant manager, with quarterly distributions starting from March 2025."
1. Parties: Identification of all parties to the agreement
2. Background: Context and purpose of the profit sharing arrangement
3. Definitions: Key terms used throughout the agreement
4. Profit Calculation: Method for calculating distributable profits, including revenue recognition and allowable deductions
5. Distribution Mechanism: How and when profits will be distributed between the parties
6. Financial Reporting: Requirements for financial statements, reporting periods, and audit rights
7. Term and Termination: Duration of agreement and circumstances under which it can be terminated
8. Governing Law: Confirmation that the agreement is governed by English and Welsh law
1. Employee Profit Share Scheme: Details of how employees participate in profit sharing, including eligibility and distribution formulas
2. Intellectual Property: Provisions regarding ownership and use of restaurant brand, recipes, and other IP assets
3. Non-compete: Restrictions on parties operating competing businesses within specified areas
4. Management Provisions: Framework for operational decision-making and management responsibilities
1. Schedule 1: Profit Calculation Formula: Detailed methodology and formulas for calculating distributable profits
2. Schedule 2: Distribution Timeline: Calendar of profit distribution dates and related deadlines
3. Schedule 3: Financial Reporting Template: Standardized format for regular financial reporting
4. Schedule 4: Restaurant Assets: Comprehensive list of assets included in profit calculations
5. Schedule 5: Excluded Costs: Detailed list of expenses specifically excluded from profit calculations
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