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Management Operating Agreement Template for Philippines

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Key Requirements PROMPT example:

Management Operating Agreement

"I need a Management Operating Agreement for my boutique hotel in Manila, where an international hotel chain will take over operations from March 2025, with specific provisions for staff retention and local cultural preservation."

Document background
The Management Operating Agreement is a crucial document used in the Philippine business context when an owner wishes to delegate operational control of their business or facility to a professional management company while retaining ownership. This arrangement is particularly common in industries such as hospitality, healthcare, and real estate, where specialized operational expertise is valuable. The agreement must comply with Philippine regulations, including the Corporation Code, Labor Code, and Foreign Investments Act. It typically includes detailed provisions on management authority, operational standards, financial arrangements, employee relations, and regulatory compliance. The document becomes especially complex when foreign management companies are involved, requiring careful consideration of the Anti-Dummy Law and foreign ownership restrictions. A properly structured Management Operating Agreement helps ensure clear delegation of authority while protecting both parties' interests under Philippine law.
Suggested Sections

1. Parties: Identification of the parties entering into the agreement - the Owner/Company and the Management Operator

2. Background: Context of the agreement, including brief description of the business and purpose of the management arrangement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Scope: Formal appointment of the operator and detailed scope of management services

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Operator's Rights and Responsibilities: Detailed description of operator's authority, duties, and limitations

7. Owner's Rights and Obligations: Owner's retained rights and continuing obligations

8. Personnel and Employment: Management of employees, staffing responsibilities, and compliance with labor laws

9. Financial Terms: Management fees, payment terms, and financial arrangements

10. Operating Standards: Performance standards and quality requirements

11. Reporting and Compliance: Regular reporting requirements and compliance obligations

12. Insurance and Liability: Insurance requirements and allocation of risks

13. Termination: Grounds for termination and consequences

14. Post-Termination Obligations: Obligations of parties after termination

15. Confidentiality: Protection of confidential information and trade secrets

16. Governing Law and Dispute Resolution: Application of Philippine law and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

Optional Sections

1. Intellectual Property Rights: Required when the operation involves significant IP assets or brand usage

2. Environmental Compliance: Necessary for industries with environmental impact considerations

3. Force Majeure: Detailed force majeure provisions for high-risk operations or locations

4. Anti-Corruption Compliance: Enhanced compliance provisions for government-related or regulated industries

5. Data Protection: Detailed data handling provisions when significant personal or sensitive data is involved

6. Foreign Investment Compliance: Required when foreign operators are involved, addressing Anti-Dummy Law compliance

7. Competition Law Compliance: Necessary when the arrangement might raise competition law concerns

8. Crisis Management: Required for businesses in sensitive industries or public-facing operations

Suggested Schedules

1. Schedule 1 - Property Details: Description of the managed property or business assets

2. Schedule 2 - Services Specification: Detailed description of management services to be provided

3. Schedule 3 - Key Performance Indicators: Specific performance metrics and targets

4. Schedule 4 - Fee Structure: Detailed breakdown of management fees and calculation methods

5. Schedule 5 - Required Insurance: Specific insurance requirements and coverage levels

6. Schedule 6 - Initial Business Plan: First-year operational and financial plans

7. Schedule 7 - Employee Handbook: Key employment policies and procedures

8. Schedule 8 - Operating Procedures: Standard operating procedures and guidelines

9. Appendix A - Required Permits and Licenses: List of required regulatory approvals and permits

10. Appendix B - Form of Reports: Templates for required operational and financial reports

Authors

Alex Denne

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

Relevant legal definitions























































Clauses
















































Relevant Industries

Hospitality

Real Estate

Healthcare

Manufacturing

Retail

Food and Beverage

Education

Infrastructure

Telecommunications

Transportation

Energy

Mining

Agriculture

Entertainment

Relevant Teams

Legal

Operations

Finance

Human Resources

Compliance

Risk Management

Corporate Secretariat

Business Development

Facilities Management

Project Management

Executive Leadership

Administrative

Relevant Roles

Chief Executive Officer

Chief Operating Officer

General Manager

Operations Director

Legal Counsel

Corporate Secretary

Compliance Officer

Finance Director

Human Resources Director

Property Manager

Facility Manager

Business Development Manager

Risk Manager

Contract Administrator

Project Manager

Industries








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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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