RB 02/2008 Agreements between AmRest Coffee, Kft (Hungary) and Starbucks

The Management Board of AmRest Holdings N.V. (“AmRest”), with reference to RB 23/2007 dated 25 May 2007, informs that AmRest Coffee, Kft and Starbucks Coffee EMEA BV and Starbucks Manufacturing EMEA B.V. (collectively, “Starbucks”) signed Area Development and Operation Agreement, Shared Services Agreement, Services Agreement and Supply Agreement regarding the rights and license to develop, own and operate Starbucks stores in Hungary (collectively, the “Agreements”). AmRest Coffee Kft is the joint venture company of American Restaurants Sp. z o.o. (“AmRest Poland”), the AmRest subsidiary, and Starbucks Coffee International, Inc. (82% AmRest Poland and 18% Starbucks Coffee International).

The Agreements have a term ending on May 31, 2022, with an option to extend the term of the Agreements for an additional 5 years upon the fulfillment of certain conditions. AmRest Coffee, Kft will be the only entity with the right to develop and operate Starbucks stores in the Hungary during the term of the Agreements with non-exclusive rights to certain institutional locations. 

The key fees and costs to be borne by the AmRest Coffee, Kft will be:

-          the services fee for initial operation support equal to an amount of USD 275 thousand  for the Hungary,

-          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,

-          a local marketing spend obligation is to be mutually agreed annually.

AmRest Coffee, Kft 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, Kft 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.

Legal Act:

Ustawa o ofercie z dnia 29 lipca 2005 art. 56. ust. 1 punkt 2.