Glossary · People and paperwork
Management Agreements
In short
These are contracts outlining the terms under which an entity or individual provides management services to another business. They define responsibilities, compensation, and duration.
What it means in a deal
In a business acquisition, review any existing management agreements carefully. They can impact the business's ongoing expenses, control, and potential for conflicts of interest. Ensure any such agreements are terminated or restructured appropriately post-acquisition, especially if they involve the seller or their related entities.
Related terms
Common questions about Management Agreements
- What specific conditions trigger affiliation due to contractual relationships or franchise agreements?
- What are the key distinctions between cross-purchase and entity-purchase buy-sell agreements?
- How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?
- How does the SBA determine if a franchisor has "control" over a franchisee for affiliation purposes, beyond standard agreements?
- How does the SBA verify my business management experience?
- Is previous business ownership or management experience required to qualify?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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