Management Agreements

							 Licensee Information Supplement #3                                           March/1998
                               Management Agreements
From time to time licensees, who are unable       • If there is a financial arrangement in
to be in full time control of their licensed        place between the manager and the
establishments, enter into management               licensee then the licence will pay the
argreements with someone to manage these            manager and not the manager pay the
facilities.                                         licensee.

These arguments must, in fact, be an              • The income derived from the
agreement to manage on behalf of the                operation of the licence is income of
licensee and not lease agreement where the          the licensee and not income of the
beneficial ownership of the licence moves           Manager.
from the licensee to the manager.
                                                  • The Manager is to be paid by way of
While there are many points that would              a payment from the licensee to the
normally be included in a management                manager.
agreement, the licensee and the manager
make the final decision with respect to the       • Alcoholic beverages sold under any
content of any management agreement. Not            licence must be purchased from YLC
withstanding the above from the perspective         through the use of a T15 and not
of the Yukon Liquor Act and Regulations             purchased directly from the retail
there are certain items which have to be            liquor store(s) without the use of T15
included in any management agreement,               form.
these are.
                                               Alcoholic product purchased from YLC
   • the agreement has to be between the       under a particular licence must be paid for
     licence holder (name on the actual        by that licencee, the payment may be
     licence) and an individual person as      delivered by the manager/agent but must
     the manager and not between a             originate from the licencee. If the licencee
     licensee and a corporation.               is eligible to pay by cheque then that cheque
                                               should be drawn on a bank account which is
   • The manager has to be acting as an        under the control of the licensee and in the
     agent of the licensee in all matters      same name as the name of the licensee on
     relating to the operation of the          the liquor licence.
     business (liquor licences) and not just
     an agent in matters relating to the       The licensee and manager should also take
     Yukon Liquor Act.                         care to ensure that the management
                                               agreement does not contain conditions that
   • The staff hired to work in that           would encourage the over service of
     licensed establishment are employees      alcoholic products.
     of the licensee and not employees of
     the manager.