Entering into a management contracts might lead to difficulties and problems for the business owners. By entering into such agreements businesses are risking their privacy. When a businessman handover his company’s management to a third party, he may enter into confidential disputes. These contracts makes the business expose to ethical breaches, fraud and public exposer. The information of the other contracts made by the business is also available to the management contract companies. Since there responsibilities ranges from price negotiation to stock control they have full information about the vendors. Management responsibilities includes record of all employees, their personal information and payments procedures. Management contract companies have the information of the business finance also. This puts the business in a vulnerable position.