A management service agreement is made between two parties where one party takes the responsibility of managing the business and certain operations of another company for a particular period and in return for a sum of money.
Sample Management Service Agreement
This management service agreement is made between PARTY 1 and PARTY 2 on the effective date of July 30, 2011 in Chicago.
PARTY 1 DETAIL:
Name: Smith and Sons Co
Address: 82 Richardson Lane, Chicago
Contact number: 384932892
PARTY 2 DETAILS:
Name: General Stores Inc
Address: 82 Harrison Road, Chicago
Contact number: 347923429
DURATION OF AGREEMENT: 2 years
TERMS AND CONDITIONS:
As per the agreement, PARTY 1 shall grant PARTY 2 the rights to manage the services of PARTY 1 all across Chicago.
The management services shall include but not be limited to insurance management, operations and management training, in-store marketing and support, human resources management and training.
In return for the management services, PARTY 1 shall pay PARTY 2 an amount of $1,500 per accounting period, which consists of 3 weeks each, for each store open and operating during a particular accounting period.
Beside paying the fee mentioned above, PARTY 1 shall also reimburse PARTY 2 for any additional or out of the ordinary expenses incurred by PARTY 2 while rendering the services referred to in this agreement like legal expenses, audit fees, travel expenses etc
The agreement can be terminated without any notice if PARTY 1 fails to make the payment on time.