Operating Principal Sample Clauses
The Operating Principal clause defines the individual or entity responsible for managing the day-to-day operations of a business or investment venture. Typically, this clause outlines the authority, duties, and decision-making powers granted to the Operating Principal, such as overseeing budgets, hiring staff, or executing business strategies. By clearly designating operational leadership, the clause ensures accountability and streamlines management, reducing ambiguity about who is empowered to act on behalf of the organization.
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Operating Principal. If Franchisee is owned by more than one individual, Franchisee shall designate and retain an individual to serve as the Operating Principal. The Operating Principal as of the date of this Agreement is identified in Appendix D. The Operating Principal shall meet all of the following qualifications:
(1) The Operating Principal shall have at least a 10% equity ownership interest in Franchisee or, if Franchisee is a limited partnership, in Franchisee’s general partner, unless this requirement is modified by CKE in its sole discretion. This Section 13.G.(1) shall not apply if Franchisee was a publicly-held entity or a wholly-owned subsidiary of a publicly-held entity as of the date of the first franchise-related agreement between Franchisee and CKE.
(2) The Operating Principal, at all times, shall be a member of the Continuity Group and, at a minimum, have full control over the day-to-day activities of the Franchised Restaurant and those other restaurants (that are franchised by CKE or its affiliates) operated by Franchisee in the same geographic area as the Franchised Restaurant, including control over the standards of operation and financial performance.
(3) The Operating Principal shall devote full-time and best efforts to supervising the operation of the Franchised Restaurant and those other restaurants (that are franchised by CKE or its affiliates) operated by Franchisee in the same geographic area as the Franchised Restaurant and shall not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility.
(4) Unless waived in writing by CKE, the Operating Principal shall maintain his primary residence within a reasonable driving distance of the Franchised Restaurant.
(5) The Operating Principal shall successfully complete the FMTP (either the full FMTP or a modified version of the FMTP to meet the specific needs of the candidate, as deemed appropriate by CKE in its sole discretion) and any additional training required by CKE.
(6) CKE shall have approved the Operating Principal, and not have later withdrawn that approval. If the Operating Principal no longer meets these qualifications, Franchisee must provide CKE written notice designating a qualified person to act as Operating Principal within 30 days after the date the prior Operating Principal ceases to be qualified. CKE shall advise Franchisee whether it has approved the new Operating Principal within a reasonable time after receipt of Franchisee’s no...
Operating Principal. The Franchised Business must be (a) personally supervised by Franchisee or by a principal of Franchisee selected by Franchisee who has been approved by Franchisor and who has satisfactorily completed Franchisor’s Training Program (“Operating Principal”) or (b) directly supervised “on-site” by a manager who has been approved by Franchisor and who has satisfactorily completed Franchisor’s Training Program (“General Manager”), unless Franchisor has waived that requirement. The term “Operating Principal” means an individual with primary day-to-day responsibility for the Franchise’s operations, and may or may not be you (if you are an individual) or a Principal, officer, director, or employee of yours (if you are other than an individual). We may or may not require that the General Manager have an equity interest in the Franchise.
Operating Principal. The Franchised Business must be directly supervised “on-site” by a General Manager who has been approved by Franchisor and who has satisfactorily completed Franchisor’s Training Program, in Franchisor’s reasonable discretion unless Franchisor has waived that requirement.