RB 75/2008 Conditions of Franchise Agreements with Burger King regarding Czech Republic

With reference to the Regulatory Announcement 74/2008 dated 18 October 2008 (Development Agreement), the Management Board of AmRest Holdings SE (“AmRest”) informs about the framework conditions of Franchise Agreements with Burger King Europe GmbH which will be signed for each particular Burger King restaurant separately once it opens within territory of Czech Republic.

 

Parties

 

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

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

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

 

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 within territory of Czech Republic.

 

Guaranty

 

The Principal guarantees to Franchisor fulfillment of all obligations on the part of the Franchisee under the Franchise Agreement.  

 

Term

 

The license is granted for 20 years period commencing from the date the franchised restaurant opens for business.

 

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 royalty 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) The initial franchise fee payable by Franchisee shall be $50,000 for each Burger King restaurant with a franchise agreement providing for a term of 20 years.

 

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

 

f) 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.

 

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

 

 

 

 

Legal Act:

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