Below is a sample of our management contract:
PROPERTY & RESTAURANT MANAGEMENT AGREEMENT
This agreement is made and entered into this _________ day of __________, 2011
Between Denver Lube Partners, LLC, doing business as Quaker Steak and Lube (Business) operating at _____________, Colorado and Bolan Management Group, LLC, aka BMG (Management Company). Denver Lube Partners, LLC employs the services of BMG to manage, operate, and control the above mentioned property.
MANAGEMENT RESPONSIBILITIES
Responsibilities of BMG include but not limited to the following:
1. Protect and maintain all company assets. Research and recommend capital expenditures to keep the restaurants up to date to Denver Lube Partners, LLC.
2. Hire, evaluate, and terminate (if necessary) management personnel in accordance with industry practices. General Managers shall be approved by the Denver Lube Partners, LLC Directors.
3. Assure corporate and Denver Lube Partners, LLC approved programs; marketing, operations, and maintenance are executed to the satisfaction of corporate and Denver Lube Partners, LLC.
4. Communicate monthly with Board of Directors of Denver Lube Partners, LLC concerning all facets of operations, people, P & L analysis, and marketing effectiveness. Prepare and propose goals for the restaurant for Denver Lube Partners, LLC approval.
5. Notify board about any litigation, notices from any local or federal departments. Meet or exceed OSHA, local safety, and health code requirements.
6. Assure all personnel represent Quaker Steak and Lube (QSL) and Denver Lube Partners, LLC in a positive manner.
7. Implement Quarterly business projections with Denver Lube Partners, LLC and BMG working together.
BMG will adhere to all Quaker Steak and Lube marketing programs, operational procedures, menu recipes, and menu prices unless other wise notified by the Board of Directors of Denver Lube Partners, LLC.
PERFORMANCE
Performance objectives shall be established annually by BMG and approved by Denver Lube Partners, LLC Directors for each location. The initial targets shall be established for 2009. Objectives are outlined in Appendix A and become part of this agreement. These can be modified with the agreement of both BMG and a majority of Denver Lube Partners, LLC Directors.
MANAGEMENT SYSTEMS
All management systems shall be consistent at each restaurant location. Develop best practice standards for all group restaurants.
BMG WILL PROVIDE THE FOLLOWING GUIDELINES, FORMS, AND SYSTEMS
TO MAXIMIZE BEST RESULTS AND IMPLEMENT AT EACH RESTAURANT SITE:
1. CASH CONROL PROCEDURES:
A. Daily audit forms, day shift and night shift
B. Balance sheet for deposits, safe balance, credit card audit sheet
C. Gift certificate audit
2. FOOD COST CONTROLS
A. Inventory control
1. Product rotated daily
2. Product day coded by color and day
3. Product on line temped and recorded 3 times a day
4. Product stored 6 inches off the floor
5. All refrigerated equipment regularly maintained.
B. Costs and portion monitoring
1. Top 25 items cost out 1 times a week
2. All products weighed out and proportioned
3. Rubber spatulas used to scrape out all cans, plastic jugs, and hotel pans
4. Employees not allowed consuming any food on the line
C. Loss Control
Systems to prevent theft or shortages on deliveries. Control of inter-store transfers.
D. In store audits performed periodically by BMG Controller.
3. Liquor cost
1. Free pour testing and recipe adherence each shift.
2. Bartenders not allowed giving drinks away
3. All empty liquor bottles kept until inspected by bar manager
4. All bartenders must pass recipe test before being allowed behind the bar
5. Systems to prevent theft or shortages on deliveries. Control of inter-store transfers.
4. Labor cost controls
1. Productivity, the objective is 2.00, for every 2 customers we use 1 employee labor hour.
2. Employee retention programs set forth by management to foster a friendly
and fun place to work.
3. Training meetings to continuously up-grade staff.
4. Establish employee reviews and raise procedures and times.
5. Profit and Loss statements
1. Review and match to projections.
2. Establish where weaknesses are and who will be responsible to fix.
3. Establish projections and goals for up-coming month and propose annual performance goals/objectives with Denver Lube Partners, LLC Director approval.
6. Management personnel
1. Hire and retain quality management teams that produce results
2. Train and Develop results oriented managers
7. Safety
1. Establish training and prevention programs for all employees.
2. Work with state Worker Compensation Government agencies.
3. Establish incident reports, safety metrics and maintain all safety equipment/guarding.
4. Work with local government agencies as required.
8. Restaurant Cleanliness Standards
1. Work with local health agencies to promote a clean and desirable place to dine.
2. Strive for an excellent health code rating.
3. Establish clear cleanliness standards and exceed them.
9. Advertising and Marketing
1. Maximize value of advertising campaigns and measure effectiveness with quarterly reports. Adhere to Denver Lube Partners, LLC budget guidelines.
2. Maintain good community relationship and participate in appropriate charitable events yielding positive benefits.
10. Miscellaneous
1. Maintain the highest ethical standards of behavior to represent Denver Lube Partners, LLC and Quaker Steak and Lube well. Follow and maintain Code of Conduct Standards
2. Conduct all business in the best interests of QSL and Denver Lube Partners,
LLC. Follow the Denver Lube Partners, LLC charter requirements.
3. Comply with all governmental agency laws and lawful requirements.
4. All books close within 22 calendar days of the end of the month.
5. Financial records subject to audit and inspection by authority of Denver Lube Partners, LLC
Directors at any time.
6. Pay bills promptly to maintain Denver Lube Partners, LLC’s good credit standing.
7. BMG shall assist the selected firm in preparing taxes. Tax preparation shall be performed by a separate, qualified firm approved by BMG and Denver Lube Partners, LLC and paid by Denver Lube Partners, LLC.
8. Financial accounting firm must be approved and paid for by Denver Lube
Partners, LLC and must be bonded for an amount agreed by Denver Lube Partners, LLC Directors.
LIABILITY LIMITATION OF BMG
QSL Denver Lube Partners, LLC agrees to maintain sufficient and prudent all risks property and liability Insurance and that BMG shall be additionally named insured.
COMPENSATION
Denver Lube Partners, LLC agrees to compensate BMG 3% of net sales paid on the Monday after the week prior. Net sales are defined as Gross Sales minus sales tax, minus complimentary food and alcohol, minus discounted or promotional sales. QSL Denver, LLC Partners also agrees to pay all pre-opening expenses incurred by Bolan Management Group, LLC in the planning, executing and opening of the restaurant including all travel expenses prior to opening.
TERMS OF AGREEMENT
This agreement shall be effective as of the ________ day of ___________2011, unless a significant delay occurs (then a Director vote to change the date may amend this contract), and shall expire on the__________ day of ____________, 2013. At 120 days before the end of the Management term Denver Lube Partners, LLC agree to vote to renew or not renew this two year contract with amendments pertaining to the BMG Management of Quaker Steak & Lube at said location, _______________________, Colorado.
With just cause, Denver Lube Partners, LLC, or BMG has the right to notify the other party of intent to terminate this contract in writing. After 120 days, if a resolution of the concern is not possible, then the contract shall formally terminate. “Just cause” is related to the performance measures not being met for three consecutive months and as defined in this agreement.
_________________________________ Dated Signed_____________
President— Denver Lube Partners, LLC
_________________________________ Dated Signed_____________
Robert Bolan
President-Bolan Management Group, LLC
APPENDIX A
The following are targeted objectives that will be used as benchmarks for BMG to achieve:
FOOD COSTS Including giveaway meals. Food cost goals will be adjusted if wing counts average less than 7 per pound on a consistent basis.
LIQUOR COSTS
LABOR COSTS
CONTROLLABLES
MARKETING
SALES PROJECTIONS
CASH CONTROLS +/-.1% (.001) of sales monthly
Denver Lube Partners, LLC to provide BMG a detailed list of items they want reported monthly and quarterly.