Mandate Management: Operation And Contract

The administration command contract is a technique for working a business or distinctive asset, as indicated by which a specialist supervisor is liable for dealing with an organization in the interest of a head. Order of the executives is basically utilized in the area of lodgings, bistros, and eateries (HCR).

Table of Contents

What Is A Management Mandate Contract?

Mandate management is the contract by which the owner of a business, called the principal, entrusts a third person, called the agent manager, with the management, on his behalf, of a company or a fund. Artisanal.

Mandate Management On The Principal’s Side

The principal entrusts a mission to a person with a view to operating his business within a precise framework that he sets. He remains the owner of his business and continues to bear the risks linked to its operation. Within this framework, it leaves the agent manager complete freedom to determine working conditions, hire staff and substitute replacements in his activity at his own expense and under his entire responsibility. It may provide for methods of monitoring the work carried out by the authorized manager (but be careful of the risk of reclassification as an employment contract).

Mandate Management On The Side Of The Agent Manager

The agent manager must carry out his mission while respecting any management and operating standards imposed by the principal. For his mission, he receives a commission calculated on turnover. A minimum commission, the amount of which takes into account the importance of the establishment and the methods of its operation, is obligatory. Failing this, the minimum amount of the commission is set by the minister responsible for SMEs.

In the event of termination of the contract by the principal, the agent manager may claim compensation the amount of which is equal to the total commissions received over the 6 months preceding termination (or the total of previous commissions if the collaboration lasted less than 6 months), except under more favorable conditions. Its registration in the trade and company register and, where applicable, in the trade directory is mandatory.

The Management-Mandate Contract

The management contract must necessarily be established in writing and must, in particular, contain the following information:

the identity of the parties (the principal and the agent manager),
the characteristics of the business or craft fund concerned,
the duration of the management-mandate contract,
the features of the mission that the principal grants to the agent manager,
where applicable, the management and operating standards of the fund are to be respected,
where appropriate, the terms of the control carried out by the principal,
the duration of calculation of the agent manager’s commission and the payment conditions,
the amount of the guaranteed minimum commission,
the time of termination,
end-of-contract compensation.

At least ten days before signing the contract, the principal must communicate a pre-contractual information document to the agent manager.