RB 6/2007 Conditions of Franchise Agreements with Burger King

With reference to the Regulatory Announcement 5/2007 dated 9th March 2007, the Management Board of AmRest Holdings N.V. informs about the framework conditions of Franchise Agreements with Burger King Europe GmbH which will be signed for each particular restaurant separately once it opens.

 

 

Parties

 

American Restaurants Sp. z o.o. (Franchisee), headquartered in Wrocław, Poland

Burger King Europe GmbH (Franchisor) headquartered in Zug, Switzerland.

 

Subject

 

Franchisor grants to Franchisee the license to use Burger King registered trade marks and the Burger King system in the operation of the Burger King restaurants.

 

Guaranty

 

AmRest Holdings N.V. (Guarantor) guarantees to Franchisor fulfillment of all obligations on the part of the Franchisee under the Franchise Agreement.  

 

Term

 

The license is granted for 10 years period commencing from the date the franchised restaurant opens for business. The Franchisee has the right to renew the term of the agreement for immediate subsequent second term of 10 years upon the fulfillment of certain pre-conditions.  

 

Significant conditions

 

Franchise Agreement provides, among other things, that:

 

a) Franchisee must comply strictly with all Burger King requirements concerning building and premises, signs, equipment, menu, service, hygiene, uniforms, advertising and promotional materials, sources of supply etc.

 

b) Franchisee must pay monthly continuing fees to the Franchisor equal to 5% of the Gross Sales of the Burger King restaurant operated by Franchisee.

 

c) Franchisee must pay monthly continuing advertising and sales promotion fees equal to 5% of the Gross Sales of the Burger King restaurant operated by Franchisee.

 

d) Employees of Franchisee must participate in initial and ongoing training programs as specified by the Franchisor.

 

e) Franchisee, during the term of the agreement, shall not directly or indirectly engage in the operation of any restaurant, except as licensed by Franchisor, which utilizes or duplicates the Burger King business.

 

f) Franchisee must comply with all of the other requirements and restrictions set out in the Franchise Agreement.

 

 

 

 

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