The Restaurant Profit Sharing Agreement is essential for establishing clear financial and operational parameters between multiple parties investing in or operating a restaurant business in Indonesia. This document becomes necessary when two or more parties wish to collaborate in a restaurant venture while sharing both profits and risks. It must comply with Indonesian Civil Code requirements, particularly Articles 1618-1652 concerning partnerships, as well as relevant food service regulations and local business laws. The agreement typically covers initial investments, profit distribution formulas, management responsibilities, operational standards, and exit mechanisms. It's particularly important in Indonesia's growing restaurant sector where complex ownership structures and investor relationships require clear documentation and alignment with local business practices and regulatory requirements.
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1. Parties: Identification of all parties entering into the profit-sharing agreement, including complete legal names and addresses
2. Background: Context of the agreement, including brief description of the restaurant business and purpose of the profit-sharing arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including financial terms, operational terms, and specific industry terminology
4. Term and Renewal: Duration of the agreement and conditions for renewal or extension
5. Capital Contributions: Details of initial and ongoing capital contributions from each party
6. Profit and Loss Sharing: Formula and methodology for calculating and distributing profits and losses among parties
7. Management and Control: Decision-making authority, voting rights, and operational control structure
8. Operational Responsibilities: Specific duties and responsibilities of each party in running the restaurant
9. Financial Management: Procedures for handling revenue, expenses, banking, and financial reporting
10. Accounting and Records: Requirements for maintaining financial records, conducting audits, and sharing financial information
11. Intellectual Property: Ownership and usage rights of restaurant name, recipes, branding, and other IP
12. Confidentiality: Protection of trade secrets, customer data, and other confidential information
13. Termination: Grounds and procedures for terminating the agreement
14. Dispute Resolution: Process for resolving disagreements, including mediation and arbitration procedures
15. Governing Law: Specification of Indonesian law as governing law and relevant jurisdiction
1. Franchise Obligations: Include when the restaurant is part of a franchise system, detailing compliance with franchise requirements
2. Multiple Location Provisions: Include when the profit-sharing arrangement covers multiple restaurant locations
3. Religious Compliance: Include specific provisions for Halal certification and compliance when applicable
4. Third-Party Delivery Services: Include when the restaurant operates with delivery platforms, detailing revenue sharing from these services
5. Alcohol License Provisions: Include when the restaurant serves alcoholic beverages, detailing specific compliance requirements
6. International Operations: Include for restaurants with international connections or foreign ownership considerations
7. Special Events and Catering: Include when the restaurant offers catering services or hosts special events
8. Property Management: Include when one party owns the property and leases it to the restaurant operation
1. Schedule A - Profit Sharing Formula: Detailed calculation methods, including specific percentages and thresholds
2. Schedule B - Initial Capital Contributions: Itemized list of each party's initial capital contributions, including valuations
3. Schedule C - Operating Budget: Projected annual operating budget and cost allocation structure
4. Schedule D - Management Structure: Organizational chart and detailed management responsibilities
5. Schedule E - Equipment Inventory: List of restaurant equipment, ownership details, and maintenance responsibilities
6. Schedule F - Key Performance Indicators: Metrics and targets for measuring restaurant performance
7. Appendix 1 - Required Licenses and Permits: List of all necessary operational licenses and permits
8. Appendix 2 - Insurance Requirements: Required insurance coverage and minimum policy amounts
9. Appendix 3 - Standard Operating Procedures: Core operational procedures and quality standards
10. Appendix 4 - Reporting Templates: Standard forms for financial and operational reporting
Relevant legal definitions
Clauses
Relevant Industries
Food & Beverage
Hospitality
Restaurant
Food Service
Real Estate
Franchise
Retail
Catering
Tourism
Business Services
Relevant Teams
Legal
Finance
Operations
Business Development
Compliance
Corporate Development
Investment
Food & Beverage
Real Estate
Risk Management
Relevant Roles
Restaurant Owner
Chief Financial Officer
Operations Director
General Manager
Legal Counsel
Business Development Manager
Investment Manager
Restaurant Manager
Corporate Lawyer
Finance Director
Franchise Development Manager
Chief Executive Officer
Chief Operating Officer
Restaurant Consultant
Compliance Officer
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