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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.