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This excerpt taken from the BKC 10-K filed Aug 28, 2008. Franchise
Operations
As of June 30, 2008, 2,759 or 90% of our restaurants in
EMEA/APAC were franchised. Some of our international markets,
including Hungary, Portugal, South Korea and the Philippines,
are operated by a single franchisee. Other markets, such as the
U.K., Germany and Spain, have multiple franchisees. In general,
we enter into a franchise agreement for each restaurant.
International franchise agreements generally contemplate a
one-time franchise fee of $50,000, with monthly royalties and
advertising contributions each of up to 5% of gross sales.
We have granted master franchises in Australia and Turkey, where
the franchisees are allowed to sub-franchise restaurants within
their particular territory. Additionally, in New Zealand and
certain Middle East and Persian Gulf countries, we have entered
into arrangements with franchisees under which they have agreed
to nominate third parties to develop and operate restaurants
within their respective territories under franchise agreements
with us. As part of these arrangements, the franchisees have
agreed to provide certain support services to third party
franchisees on our behalf, and we have agreed to share the
franchise fees and royalties paid by such third party
franchisees. Our largest franchisee in the Middle East and
Persian Gulf is also allowed to grant development rights with
respect to each country within its territory. We have also
entered into exclusive development agreements with franchisees
in a number of countries throughout EMEA/APAC, including, most
recently, Japan and Egypt. These exclusive development
agreements generally grant the franchisee exclusive rights to
develop restaurants in a particular geographic area and contain
growth clauses requiring franchisees to open a minimum number of
restaurants within a specified period.
The following is a list of the five largest franchisees in terms
of restaurant count in EMEA/APAC as of June 30, 2008:
This excerpt taken from the BKC 10-K filed Sep 7, 2007. Franchise
Operations
As of June 30, 2007, 2,563 or 89% of our restaurants in
EMEA/APAC were franchised. Some of our international markets,
including Hungary, Portugal, South Korea and the Philippines,
are operated by a single franchisee. Other markets, such as the
U.K., Germany, Spain and Australia, have multiple franchisees.
In general, we enter into a franchise agreement for each
restaurant. International franchise agreements generally
contemplate a one-time franchise fee of $50,000, with monthly
royalties and advertising contributions each of up to 5% of
gross sales.
We have granted master franchises in Australia and Turkey, where
the franchisees are allowed to sub-franchise restaurants within
their particular territory. Additionally, in New Zealand and
certain Middle East and Persian Gulf countries, we have entered
into arrangements with franchisees under which they have agreed
to nominate third parties to develop and operate restaurants
within their respective territories under franchise agreements
with us. As part of these arrangements, the franchisees have
agreed to provide certain support services to third party
franchisees on our behalf, and we have agreed to share the
franchise fees and royalties paid by such third party
franchisees. Our largest franchisee in the Middle East and
Persian Gulf is also allowed to grant development rights with
respect to each country within its territory. We have also
entered into exclusive development agreements with franchisees
in a number of countries throughout EMEA/APAC, including, most
recently, Japan and Egypt. These exclusive development
agreements generally grant the franchisee exclusive rights to
develop restaurants in a particular geographic area and contain
growth clauses requiring franchisees to open a minimum number of
restaurants within a specified period.
Table of Contents
The following is a list of the five largest franchisees in terms
of restaurant count in EMEA/APAC as of June 30, 2007:
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