RB 74/2008 Development Agreement with Burger King regarding Czech Republic

The Management Board of AmRest Holdings SE (“AmRest”) informs about the signing of the Development Agreement with Burger King Europe GmbH regarding Czech Republic.

 

Date of agreement:

 

17 October 2008

 

Parties

 

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

American Restaurants s.r.o. (“Developer”, “AmRest Czech”), headquartered in Prague, Czech Republic

AmRest Holdings SE (“Principal”, “AmRest”), headquartered in Amsterdam, The Netherlands

 

Subject

 

The Developer is granted the non-exclusive right to develop and to be franchised to operate Burger King restaurants within territory of Czech Republic (“Development Area”).

 

Guaranty

 

The Principal guarantees to BKE fulfillment of all obligations on the part of the Developer under the Development Agreement.  

 

Term

 

The Term of the Development Agreement shall be for a period of 5 years

 

Significant conditions

 

Development Agreement provides, among other things, that:

 

a) The Developer shall contribute a percentage of the calendar monthly Gross Sales of all Burger King restaurants operated by Developer as a royalty, advertising and sales promotion fees, which are defined in the Franchise Agreement.

 

b) The initial franchise fee, payable by Developer for opening each Burger King restaurant, is defined in Franchise Agreement.

 

c) The Developer agrees to open and operate Burger King restaurants in strict accordance with the development schedule which includes the minimal number of openings during the Term as defined in the Development Agreement.

 

d) The Developer oblige to comply with the development procedures and requirements as set forth in the Development Agreement. The development procedures includes, among other things, the franchise approval and the site approval.

 

e) The Developer and the Principals shall at all times maintain in strict confidence BKE's operational manuals, marketing information and methods, and all information and knowledge relating to the methods of operating and the functional know-how relating to Burger King restaurants revealed by BKE to the Developer.

 

f) Developer is responsible for all losses, damages and/or contractual liabilities to third parties arising out of or relating to any of the obligations, undertakings, promises and representations of Developer under this agreement, and for all claims or demands for damages to property or for injury, illness or death of persons directly or indirectly resulting therefrom. 

 

 

 

Legal act:

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