So, you like all things cannabis, and you’re here for that deep-dive kind of reading. Great! We’ll assume you have a strong stomach and a penchant for detail. But we won’t judge you if you’re just sippin’ on that chai latte reading our basic take on legal documents. There’s a little something for everyone here, but read on if you can’t get enough of the nitty-gritty on legal agreements and cannabis.
What’s the Deal with a management services agreement? Pretty much what the name implies – this legal document provides raw guidance and guidance on how to create a great management services agreement. It’s a template that helps you understand what provisions and language you’d need to include in the management services agreement itself.
Legal documents might not be your jam (or even close to them), but if you’re in the cannabis industry, you need to know the deal. This industry is undergoing a tremendous amount of change, and at every corner, there’s a lurking need to comply with state rules and regulations. That compliance doesn’t happen spontaneously.
Since it doesn’t hurt to practice what you preach, our team’s cannabis attorneys will work hard to make certain that our clients have the legal assistance and advice they need to begin practicing and meritorious birth and corporation, manage their contracts, and organize their business affairs.
Why Do You Need One of These Bad Boys, You Ask? The management services agreement will guide how services are provided to one or more of your companies in the cannabis industry. In short, a sample management services agreement will show you what provisions would need to be in place to keep all parties safe. And show you why these types of agreements are essential.
Yes. These agreements are definitely relevant to your business. In fact, in many situations, these agreements are key to the continued success of your cannabis operation. Without these controllalicious agreements, your business would not function properly, and its assets would be at risk. The assets here range from the tangible to the intangible, so pretty much all of your business’s value is tied up in the contents of this nifty little document.
The sample management services agreement will help you to see what provisions you need to put in place to keep everybody in their respective lanes. What’s the management company responsible for providing? Is that clearly defined? What’s the degree of control the management company has on the affairs of the business and its owners? What capacity is the management company operating under? Those are just a few questions this type of agreement can answer.
In short, think of a sample management services agreement as a guide to what these types of agreements should contain. You can use the information in the sample management services agreement as you fashion your actual management services agreement.
Below, we’ll explain some of the most common scenarios in which you would use a management services agreement. But, before we do that, it’s important to note that you should have legal counsel draft the type of agreement described in the linked article. Our legal staff will have experience in drafting these types of agreements, and will be able to provide assistance that will better protect your business.
Here are some key examples of the types of scenarios that would call for using a management services agreement in the cannabis industry:
As you can see, management services agreements can be used for all types of not-so-good and all types of legal reasons. What’s more, you can see why having a sample management services agreement (and the guidance of a legal professional) can only improve your business’s chances of staying on the right side of the law in the highly regulated cannabis industry.
It’s common, for example, to have various business owners with significant authority over the operation of a particular company. As in, how do you enforce that authority? Well, with a management services agreement, you retain discretion over who has that authority and what form that authority takes.
It’s always better to have legal counsel by your side. We can negotiate the terms of these types of agreements and help you understand your rights and obligations under them. That way, if a dispute comes out of the blue, you won’t be taken by surprise. Even better, having legal counsel by your side can help you avoid disputes in the first place.
How do you go about negotiating a management services agreement? Or any contract, for that matter? Make sure to stay up-to-date on industry developments by consistently checking reputable publications such as our site, and others. Also, make sure to get familiar with past cases and how courts have ruled on particular issues to help you anticipate any problems that could develop.
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