The Management Board of AmRest Holdings SE (“AmRest”) informs that AmRest Coffee SK s.r.o. and Starbucks EMEA LTD and Starbucks Manufacturing EMEA B.V. (collectively: “Starbucks”) signed on January 22nd, 2016 the Area Development and Operation Agreement and Supply Agreement regarding the rights and license to develop, own and operate Starbucks stores in the Slovak Republic (collectively: the “Agreements”). AmRest Coffee SK s.r.o. is the company created by AmRest s.r.o. and AmRest Sp. z o.o., 100% subsidiaries of AmRest. Agreements came into force upon their signing.
The Agreements were concluded for a period of 15 years from the date of their entry into force, with an option to extend the term for an additional 5 years upon the fulfillment of certain conditions. AmRest Coffee SK s.r.o. will be the only entity with the right to develop and operate Starbucks stores in the Slovak Republic during the term of the Agreements with non-exclusive rights to certain institutional locations and sale channels.
The key fees and costs to be borne by the AmRest Coffee SK s.r.o. will be:
- the services fee for initial operation support in an amount equal to the costs incurred by Starbucks in this regard,
- the initial franchise fee of USD 25 thousand for each Starbucks store,
- the continuing licensing and service fee equal to 6% of sales revenues of each Starbucks store,
- the fee creative services equal to 1% of sales revenues of each Starbucks store.
- a local marketing spend obligation is to be mutually agreed annually.
AmRest Coffee SK s.r.o. agrees to open and operate Starbucks stores in strict accordance with the development schedule which includes the minimum numbers of openings in each year within the Agreements’ period. If AmRest Coffee SK s.r.o. fails to meet the development obligations, Starbucks will have the right to charge a development default fee or to terminate the Agreements. The Agreements include the provision concerning the purchase of coffee and other basic supplies either from Starbucks or other approved or designated suppliers.