Transfer of school management agreement

Question

Hello, 
A proprietor of a school contacted me to take over a school with total population of 17 students. 
The proprietor live inside the compound behind the school. She complain of reduction in population & she really do not have the capacity to meet up with the prevailing competition. She want to get annual payment from me but the building needs renovation and completion. Please how do I go about the agreement? More needs to be spent on the building in order to attract students

Eagle Law House · Accepted Answer

Firstly, you need to clarify the nature of the arrangement. Do not rush into payment or renovation until the relationship is legally defined. There are three possible structures: (a) Management Take-Over Agreement (Recommended). Proprietor retains ownership of land and buildings; you take over management, branding, admissions, staff, and operations. You pay an agreed annual management fee or rent. Best where population is low and you will invest capital. (b) Lease Agreement. You lease the school premises for a fixed term (e.g., 5–10 years). You operate it as your own school. Risky if not long-term, because you're renovating. (c) Outright Purchase. Not advisable here, since the proprietor still lives in the compound and capacity issues exist. Option (a) is safest given your situation.

Transfer of school management agreement

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