Break-Even Guarantee Clause Samples
Break-Even Guarantee. The SFA and the FSMC shall work together to ensure a financially sound and well-run operation. The FSMC shall guarantee that the food service program will achieve financial break-even, defined as “generated program revenues will be sufficient to cover all actual and direct operating costs incurred.” Actual and direct operating costs are as described in paragraphs 6.1 A - E above.
Break-Even Guarantee. Both parties shall work together to ensure a financially sound and well-run operation. The FSMC shall guarantee that the food service program will achieve, at a minimum, financial break-even, defined, as “generated program revenues (including student cash sales, state reimbursement funds, federal reimbursements from lunch, breakfast, snack, and supper meals, adult sales, special functions, summer meal program revenues and the value of commodities received) will be sufficient to cover all actual and direct operating costs incurred by the LEA (including the Fixed Price Per Meal for all meals served and LEA labor and other expenses as outlined in FSMC’s financial proposal).” If the LEA makes a net profit in the food service account after deducting its operating and indirect expenditures from all food service receipts and all federal and state meal reimbursements, the LEA must deposit the net income back into the food service account.
Break-Even Guarantee. Both parties shall work together to ensure a financially sound and well-run operation. The FSMC shall guarantee that the food service program will achieve, at a minimum, financial break-even, defined as “generated program revenues will be sufficient to cover all actual and direct operating costs and indirect costs incurred by both the LEA and the FSMC.” If the LEA makes a net profit in the food service account after deducting operating and indirect expenditures from all food service receipts and all federal and state meal reimbursements, the LEA must deposit the net income back into the food service account.
Break-Even Guarantee. This is optional depending on what was in the RFP. The LEA and the FSMC shall work together to ensure a financially sound and well-run operation. The FSMC shall guarantee that the food service program will achieve, at a minimum, financial break-even, defined, as “generated program revenues will be sufficient to cover the fixed price per meal for all meals served plus LEA direct and indirect costs as set forth in this Section.”
Break-Even Guarantee. Both parties shall work together to ensure a financially sound and well-run operation. The FSMC shall guarantee that the food service program will achieve, at a minimum, financial break-even, defined, as “generated program revenues will be sufficient to cover all actual and direct operating costs and unrestricted indirect costs incurred by both the SPONSOR and the FSMC.” If the SPONSOR makes a net profit in the food service account after deducting operating and indirect expenditures from all food service receipts and all federal and state meal reimbursements, the SPONSOR must deposit the net income back into the food service account. For the avoidance of doubt, the financial guarantee shall be calculated as follows: all program revenues including student cash sales, federal and state reimbursements from lunch, breakfast and snack meals, adult sales, special functions, and summer meal program revenues and the values of commodities received less (i) the Fixed Price for all meals served, and (ii) LEA labor and other program expenses, totaling Six Hundred Sixty Five Thousand Dollars ($665,000.00), as outlined in FSMC's Financial Proforma, attached as Appendix C. If the program experiences operating losses, the FSMC shall be required to reimburse the LEA in an amount commensurate with the variance of those costs that are within the control of the FSMC.
Break-Even Guarantee. Both parties shall work together to ensure a financially sound and well-run operation. The FSMC shall guarantee that the food service program will achieve, at a minimum, financial break-even, defined, as “generated program revenues will be sufficient to cover all actual and direct operating costs and unrestricted indirect costs incurred by both the SPONSOR and the FSMC.” If the food service program does not meet or exceed the financial break-even guarantee, FSMC shall reimburse SPONSOR the difference, up to a maximum of One Hundred Fifty Thousand Dollars ($150,000.00) for the 2023-2024 school year. FSMC’s proforma and aforementioned guarantee is dependent upon five (5) additional sites moving to universal feeding at the beginning of the 2023-2024 school year. If the SPONSOR makes a net profit in the food service account after deducting operating and indirect expenditures from all food service receipts and all federal and state meal reimbursements, the SPONSOR must deposit the net income back into the food service account. For the avoidance of doubt, the financial guarantee herein shall be calculated as follows: all program revenues including student cash sales, federal and state reimbursements from lunch, breakfast, snack meals, adult sales, special functions, and summer meal program revenues and the value of commodities received less (i) the Fixed Price for all meals served, and (ii) SPONSOR labor and other program expenses as outlined in FSMC’s Financial Proforma attached at Exhibit D.