Principal Operator Clause Samples
The Principal Operator clause designates the main party responsible for managing and overseeing the operations specified in the agreement. Typically, this clause identifies the entity that will coordinate activities, make key operational decisions, and ensure compliance with contractual obligations. For example, in a joint venture or partnership, the Principal Operator may be tasked with supervising daily operations, reporting progress, and liaising with other stakeholders. The core function of this clause is to establish clear operational leadership and accountability, thereby reducing confusion and ensuring efficient management of the project or arrangement.
Principal Operator. You shall designate an individual to serve as your "Principal Operator." The Principal Operator shall meet the following qualifications:
(a) The Principal Operator shall own at least a 5% equity interest in you; provided that you shall not be in default of this requirement if the Principal Operator is entitled to a bonus of not less than 5% of the net profits of the Restaurant, payable after the end of each Period (as defined in the Franchise Agreement), and also has the right to acquire not less than 5% equity interest in you within 12 months of his or her hire date, which rights shall be evidenced by a written agreement between the Principal Operator and you. You shall provide us with a copy of any such agreement upon request. Once the Principal Operator has acquired an equity interest in you, he or she must continue to own that interest (or a greater interest) during the entire period he or she serves as the Principal Operator and must comply with Section 6 of this Agreement.
(b) The Principal Operator shall devote full time and best efforts to the supervision and conduct of the development and operation of the Restaurants contemplated under this Agreement and shall agree to be bound by the confidentiality and non-competition provisions of the Owner Agreement. At such time as the Principal Operator becomes an owner of an interest in you, he or she must agree to be bound by all provisions of the Owner Agreement.
(c) The Principal Operator shall be a person we reasonably approve who shall successfully complete our initial training requirements and who shall participate in and successfully complete all additional training as we may reasonably designate. If, at any time or for any reason, the Principal Operator no longer qualifies to act as such, you shall promptly designate another Principal Operator subject to the same qualifications listed above. You shall immediately notify us of the termination of the Principal Operator's employment with you, whether voluntary or involuntary.
Principal Operator. You must designate an individual to serve as the “Principal Operator” of the Restaurant, provided, if you are developing and operating multiple Restaurants pursuant to a Development Agreement, you need designate only one Principal Operator for your operation, not one for each Restaurant. The Principal Operator must meet the following qualifications:
(i) The Principal Operator must own at least a 5% equity interest in you; provided that you will not be in default of this requirement if the Principal Operator is entitled to a bonus of not less than 5% of the net profits of the Restaurant, payable after the end of each Period, and also has the right to acquire not less than a 5% equity interest in you within 12 months of his or her hire date, which rights must be evidenced by a written agreement between the Principal Operator and you. You must provide us with a copy of any such agreement upon request. Once the Principal Operator has acquired an equity interest in you, he or she must continue to own that interest (or a greater interest) during the entire period he or she serves as the Principal Operator.
(ii) The Principal Operator must devote full time and best efforts to the supervision and conduct of the development and operation of the Restaurant and, as required in this Agreement, must agree to be bound by the confidentiality and non-competition provisions of the Owner Agreement. At such time as the Principal Operator becomes an owner of an interest in you, he or she must agree to be bound by all the provisions of the Owner Agreement.
(iii) The Principal Operator must be a person approved by us who completes, to our satisfaction, our initial training requirements and participates in and successfully completes, to our satisfaction, all additional training as we may reasonably designate.
(iv) The Principal Operator must be proficient in writing and speaking English, to ensure compliance with our operational standards and to ensure efficient communications with customers and us. If, at any time for any reason, the Principal Operator no longer qualifies to act as such, you must promptly designate another Principal Operator subject to the same qualifications listed above. Any sale or transfer of any portion of the Principal Operator’s interest in you, if any, that would reduce the Principal Operator’s equity interest or voting rights in you to less than 5% of the total constitutes a transfer of an interest, subject to the terms and conditions of Section 14 her...
Principal Operator. You shall designate an individual to serve as your "Principal Operator." The Principal Operator shall meet the following qualifications:
(a) The Principal Operator shall devote full time and best efforts to the supervision and conduct of the development and operation of the Restaurants contemplated under this Agreement and shall agree to be bound by the confidentiality and non-competition provisions of the Owner Agreement.
(b) The Principal Operator shall be a person we reasonably approve who shall successfully complete our initial training requirements and who shall participate in and successfully complete all additional training as we may reasonably designate. If, at any time or for any reason, the Principal Operator no longer qualifies to act as such, you shall promptly designate another Principal Operator subject to the same qualifications listed
Principal Operator. The Customer must choose at least one member of staff to be the principal operator. IBS will train him/her to use the equipment. The Customer must make sure there is a principal operator available to use the equipment.
Principal Operator. You must choose at least one member of staff to be 'principal operator'. We will train them to use the equipment. You must make sure there is a principal operator available to use the equipment.