Management Services Agreement

Bahman Eslamboly

Form reviewed by Bahman Eslamboly, Attorney at FindLegalForms

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This Management Services Agreement is between a corporation and a subsidiary in which the parent corporation agrees to provide management services to the subsidiary for a service fee. This agreement sets out the details of this arrangement including the specific services to be provided (financial, planning, public affairs) and the formula on which the service fee is based. This type of business transaction should not be left to oral interpretation. A written Management Services Agreement will be valuable in the event there are disagreements or misunderstandings regarding the arrangement.

This Management Services Agreement includes the following provisions:
  • Parties: The names and addresses of the parent corporation and the subsidiary entering into the agreement;
  • Services: Detailed list of services to be provided by parent corporation are set out in Schedule A to this agreement;
  • Compensation: Sets out how the service fee is based (i.e., percentage of gross revenues) and the date compensation is paid to parent corporation;
  • Terms and Termination: Sets out the effective date of the agreement and how agreement may be terminated by either party;
  • Amendments: Sets out that the parties will periodically meet and amend this agreement if deemed necessary;
  • Signatures: Both parties must sign the agreement.

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This attorney-prepared packet contains:
  1. General Instructions
  2. Management Services Agreement
State Law Compliance: This form complies with the laws of all states

Management Services Agreement

Product Details

Product Management Services Agreement
Country United States
Pages 8
Dimensions Designed for Letter Size (8.5" x 11")
Printer compatibility Designed to print on all ink-jet and laser printers
Editable Yes (.doc, .wpd and .rtf)
Format Microsoft Word
Adobe PDF
WordPerfect
Rich Text Format
Platform Windows Compatible
Mac Compatible
Linux Compatible
Availability In Stock. Instant Download
Usage Unlimited number of prints
Category Management & Manufacturing Agreements
Product number #28978
Download time Less than 1 minute (approx.)
Document Access Via secret online address
Email with download links
Email with attachment upon request
Refund Policy 60 days, no-questions asked, 100% money back guarantee

Frequently Asked Questions

A Management Services Agreement is a legal document that outlines the terms under which a parent corporation provides specific management services to its subsidiary. It details the services offered, compensation, and other essential terms.

Having a written agreement is crucial as it provides clarity and legal protection for both parties. It helps prevent misunderstandings and serves as a reference in case of disputes.

The agreement can include a variety of services such as financial management, strategic planning, public affairs, and other operational support tailored to the subsidiary's needs.

Compensation is typically based on a predetermined formula, which may include a percentage of gross revenues or a flat fee, as specified in the agreement.

Yes, the agreement includes provisions for amendments, allowing both parties to periodically review and update the terms as necessary to reflect changing circumstances.

The agreement outlines the conditions under which either party can terminate the contract, ensuring that both parties are aware of their rights and obligations regarding termination.

Yes, this Management Services Agreement is designed to comply with the laws of all states, making it a versatile option for businesses operating across different jurisdictions.

Is This Form Right For You?

Use This Form If:

  • Businesses looking to formalize the relationship between a parent corporation and its subsidiary can benefit from this agreement. It provides a clear framework for the services to be rendered, ensuring both parties understand their obligations and the compensation structure.
  • In situations where a subsidiary requires specific management services, such as financial planning or public affairs, this agreement serves as a vital tool. It outlines the exact services to be provided, which helps prevent misunderstandings and ensures accountability.
  • Companies that want to establish a transparent and legally binding arrangement for service fees will find this agreement essential. By detailing how compensation is calculated, it protects the interests of both the parent corporation and the subsidiary.
  • For organizations facing potential disputes regarding service provisions, having a written Management Services Agreement is crucial. It acts as a reference point for resolving disagreements, thereby minimizing the risk of litigation.
  • Entrepreneurs and business owners who are expanding their operations through subsidiaries should consider this agreement. It not only clarifies the roles and responsibilities but also ensures compliance with state laws governing such arrangements.

Do Not Use If:

  • – This form is not appropriate for informal agreements or verbal understandings between a parent corporation and its subsidiary. Such arrangements lack the legal enforceability that a written agreement provides.
  • – If the parties involved are not ready to define the specific services and compensation structure, using this agreement may lead to confusion rather than clarity. It is essential to have a clear understanding before formalizing the relationship.
  • – In cases where the services provided do not require a formal agreement, such as minor or one-time services, this document may be unnecessarily complex and burdensome.
  • – If the parent corporation and subsidiary are in a highly regulated industry with specific compliance requirements, a specialized agreement tailored to those regulations may be more appropriate than a standard Management Services Agreement.
  • – For businesses that operate solely on a handshake or informal basis without the intention of creating a binding contract, this form would not be suitable.

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