RB 56/2007 Agreements between AmRest Coffee Sp. z o.o. (Poland) 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 Sp. z o.o., 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 Poland (collectively, the “Agreements”). AmRest Coffee Sp. z o.o. 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 Sp. z o.o. will be the only entity with the right to develop and operate Starbucks stores in Poland 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 Sp. z o.o. will be:

-          the development fee equal to an amount of USD 100 thousand and the services fee for initial operation support equal to an amount of USD 300 thousand  for Poland,

-          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 Sp. z o.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 term of the Agreements. If AmRest Coffee Sp. z o.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.

Legal Act:

§ 5.1.3 of Regulation of the Minister of Finance on current and periodic information to be published by issuers of securities, dated October 19th 2005