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Management Agreement for the United States

Management Agreement Template for United States

A Management Agreement is a legally binding contract under U.S. law that establishes the terms and conditions under which one party (the Manager) provides management services to another party (the Owner). The agreement defines the scope of services, compensation structure, performance expectations, and operational responsibilities. It includes provisions for reporting requirements, liability allocation, and termination conditions, while ensuring compliance with federal and state-specific regulations applicable to the relevant industry sector.

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What is a Management Agreement?

A Management Agreement is essential when one entity wishes to delegate operational control or management responsibilities to another professional entity or individual. This contract type is commonly used across various industries including real estate, hospitality, and healthcare, where specialized management expertise is required. Under U.S. jurisdiction, the Management Agreement must comply with federal regulations and state-specific laws, particularly regarding employment, compensation, and fiduciary responsibilities. The agreement typically covers crucial elements such as scope of authority, performance standards, fee structures, reporting requirements, and termination provisions, while clearly delineating the rights and obligations of both parties.

What sections should be included in a Management Agreement?

1. Parties: Identifies and defines all parties to the agreement, including their legal status and contact details

2. Background/Recitals: Sets out the 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. Authority and Responsibilities: Defines management powers and limitations

What sections are optional to include in a Management Agreement?

1. Non-Compete: Restricts manager's ability to compete - used when protecting business interests is crucial

2. Performance Metrics: Specific KPIs and performance standards - used when quantifiable metrics are important

3. Insurance Requirements: Specific insurance coverage requirements - used when managing high-risk activities

What schedules should be included in a Management Agreement?

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

2. Schedule B - Fee Schedule: Detailed breakdown of fees and payment terms

3. Schedule C - Performance Metrics: Specific KPIs and measurement criteria

4. Schedule D - Reporting Requirements: Required reports and their frequency

5. Schedule E - Key Personnel: List of key management team members

Authors

Alex Denne

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

Jurisdiction

United States

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Clauses





























Industries

Fair Labor Standards Act (FLSA): Federal law governing compensation, overtime pay, and wage standards that must be addressed in the management agreement when dealing with employee management responsibilities

Employee Retirement Income Security Act (ERISA): Federal law regulating employee benefits plans and their management, relevant when the agreement includes employee benefits administration

Internal Revenue Code: Federal tax regulations that impact management compensation structure and tax implications of the management arrangement

Americans with Disabilities Act (ADA): Federal law requiring workplace accommodations for disabled individuals, must be considered in facility and personnel management provisions

Civil Rights Act: Federal anti-discrimination law that must be reflected in management policies and procedures within the agreement

National Labor Relations Act: Federal law governing labor-management relations and union matters, relevant for workforce management provisions

State Labor Laws: Specific state regulations governing employment relationships and working conditions that vary by jurisdiction

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

State Business Regulations: State-specific rules governing business operations and management activities

State Tax Regulations: State-specific tax implications and requirements for management operations

State Employment Laws: State-specific employment requirements, including hiring, firing, and workplace conditions

State Non-Compete Regulations: State-specific rules governing non-compete agreements and restrictions

Securities Laws: Federal and state regulations governing investment-related activities if applicable to the management services

Healthcare Regulations: Specific requirements for healthcare facility management if applicable to the agreement scope

Real Estate Laws: Property management regulations if the agreement involves real estate management services

Fiduciary Duties: Legal obligations regarding duty of care and loyalty in management relationships

Corporate Governance Requirements: Rules and regulations governing corporate management structure and decision-making processes

Data Privacy Laws: Federal and state regulations regarding the protection and handling of sensitive information

Intellectual Property Protection: Laws governing the protection and use of intellectual property in management relationships

Insurance Requirements: Legal obligations regarding insurance coverage and risk management in management agreements

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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