Franchise Agreement

Date19 March 2024
PartiesBW-3 FRANCHISE SYSTEMS, INC. ("Franchisor", "we" or "us"), Franchisee ("you")
StateTHE STATE IN WHICH THE FRANCHISED RESTAURANT IS LOCATED; THE UNITED STATES TRADEMARK ACT OF 1946
Renewal Term2 successive 5 years
SectionCommercial Contracts
BW-3 FRANCHISE SYSTEMS, INC.
FRANCHISE AGREEMENT
TABLE OF CONTENTS
ARTICLE PAGE
- ------- ----
I. APPOINTMENT AND FRANCHISE FEE. . . . . . . . . . . . . . . . . . . . .1
II. TERM AND RENEWAL . . . . . . . . . . . . . . . . . . . . . . . . . . .3
III. RESTAURANT AND LOCATION. . . . . . . . . . . . . . . . . . . . . . . .4
IV. TRAINING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
V. PROPRIETARY MARKS. . . . . . . . . . . . . . . . . . . . . . . . . . .6
VI. CONFIDENTIAL MANUALS . . . . . . . . . . . . . . . . . . . . . . . . .7
VII. CONFIDENTIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . .7
VIII. MODIFICATION OF THE SYSTEM . . . . . . . . . . . . . . . . . . . . . .8
IX. ADVERTISING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
X. CONTINUING FEE . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
XI. ACCOUNTING AND RECORDS . . . . . . . . . . . . . . . . . . . . . . . 12
XII. STANDARDS OF QUALITY AND PERFORMANCE . . . . . . . . . . . . . . . . 13
XIII. OPERATIONS ASSISTANCE. . . . . . . . . . . . . . . . . . . . . . . . 17
XIV. INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
XV. COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
XVI. DEFAULT AND TERMINATION. . . . . . . . . . . . . . . . . . . . . . . 20
XVII. RIGHTS AND DUTIES OF PARTIES UPON EXPIRATION OR
TERMINATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
XVIII. TRANSFERABILITY OF INTEREST. . . . . . . . . . . . . . . . . . . . . 24
XIX. YOUR DEATH OR INCAPACITY . . . . . . . . . . . . . . . . . . . . . . 26
XX. RIGHT OF FIRST REFUSAL . . . . . . . . . . . . . . . . . . . . . . . 26
XXI. OPERATION IN THE EVENT OF ABSENCE, DISABILITY OR DEATH . . . . . . . 26
XXII. INDEPENDENT CONTRACTOR AND INDEMNIFICATION . . . . . . . . . . . . . 27
XXIII. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
XXIV. APPLICABLE LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
XXV. DISPUTE RESOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . 29
XXVI. OWNER AGREEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . 31
XXVII. ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . 31
EXHIBITS:
A. OWNER AGREEMENT
B. DESCRIPTION OF DESIGNATED AREA
C. LEASE ADDENDUM
i
bw-3 FRANCHISE SYSTEMS, INC.
FRANCHISE AGREEMENT
This Franchise Agreement ("Agreement") made this _____ day of ________,
19____, by and between bw-3 FRANCHISE SYSTEMS, INC. an Ohio corporation which
has its principal place of business at 1919 Interchange Tower, 600 South Highway
169, Minneapolis, Minnesota 55426 ("we" or "us"), and __________________________
________________________________________________________________________________
________________________________________________________________________________
_______________ ("you"). If you are a corporation, partnership or limited
liability company, certain provisions of the Agreement also apply to your owners
and will be noted.
BACKGROUND:
A. Our parent company has developed a unique system ("System") for
establishing and operating restaurants which use the service mark "BUFFALO WILD
WINGS" and which feature chicken wings, sandwiches, and other products and
beverages, which are all prepared according to specified recipes and procedures
("Menu Items"), some of which use proprietary mixes ("Trade Secret Food
Products"), and has granted to us the right to sublicense the System to others.
B. The distinguishing characteristics of the System include, without
limitation, distinctive exterior and interior layout, design and color scheme,
signage, decorations, furnishings and materials, special recipes, formulae,
menus and food and beverage designations, Confidential Manuals, food and
beverage storage, preparation service and delivery procedures and techniques,
operating procedures for sanitation and maintenance, and methods and techniques
for inventory and cost controls, record keeping and reporting, purchasing, sales
promotion and advertising, Trade Secret Food Products, all of which may be
changed, improved and further developed from time to time.
C. Our parent company is the owner of the trade names, service marks
and trademarks "BUFFALO WILD WINGS", "bw-3" and other logos and commercial
symbols, and such other trade names, service marks, and trademarks as are now
designated (and may later be designated by us in writing) as part of the System
("Marks").
D. We grant franchises to qualified candidates for the operation of
"Buffalo Wild Wings" Restaurants offering the Menu Items and utilizing the
System and Marks. You desire to operate a Buffalo Wild Wings Restaurant using
the System and Marks and have applied for a franchise, which application has
been approved by us in reliance upon all of the representations you have made.
E. You understand and acknowledge the importance of our high and
uniform standards of quality and service and the necessity of operating the
Buffalo Wild Wings business in conformity with our standards and specifications.
AGREEMENTS:
We and you agree as follows:
I. APPOINTMENT AND FRANCHISE FEE
A. Subject to the provisions stated below, we hereby grant you a
license to use the "Buffalo Wild Wings" Marks and System, and you undertake the
obligation to operate a Buffalo Wild Wings restaurant facility featuring the
Menu Items and providing sit-down, carry-out and other restaurant services
("Franchised
1
Restaurant"), and to use the Marks solely in connection with the System, as it
is currently established, and as it may be changed, improved and further
developed from time to time, at one (1) location only, such location to be:
1) ____________________________________________________________________________
___________________________________________________________________________, or
2) at a location to be designated, as provided in Paragraph III within the area
described on EXHIBIT B. When a location has been designated and approved by you
and us, it will become part of Paragraph I.A.1., as if originally incorporated
in that Paragraph. You shall not relocate your Franchised Restaurant without
our prior written approval.
B. You receive a Designated Area within which we and our affiliates
shall not operate or grant to anyone else a franchise to operate a Buffalo Wild
Wings or bw-3 Restaurant so long as this Agreement is in force and effect. The
Designated Area is described in writing and on a map attached to the Agreement
as EXHIBIT B and is made a part of the Agreement. You do not have any right to
sublicense or subfranchise others within or outside of the Designated Area and
do not have the right to operate more than one (1) Franchised Restaurant within
the Designated Area.
C. You acknowledge and agree that we have the right, in our sole
discretion, to grant other franchises outside of the Designated Area as we deem
appropriate. Although we will not operate a Buffalo Wild Wings or bw-3 business
within the Designated Area, we reserve the right, both within and outside of the
Designated Area, to offer and sell at special events (at our option, if you
elect not to participate in such events) or at wholesale, through channels of
distribution distinct from those of a Franchised Restaurant, products and
services which comprise, or may in the future comprise a part of the System,
which products may be resold at retail to the general public by such entities.
Further, you acknowledge that certain locations within the Designated Area are
by their nature unique and separate in character from sites generally developed
as Franchised Restaurants. As a result, you agree that the following locations
("Special Sites") are excluded from the Designated Area and we shall have the
right to develop (by direct ownership or franchising) such locations:
1) public transportation facilities, including airports, train stations and bus
stations; 2) military bases; 3) sports facilities, including race tracks; and 4)
amusement and/or theme parks.
D. We and our affiliated companies shall not engage in catering and
delivery services and activities in the Designated Area. You shall not engage
in catering and delivery services and activities outside of the Designated Area.
We shall have no obligation to enforce similar covenants against any other
System franchisee. Other System franchisees shall be deemed third party
beneficiaries of such. You shall not offer for sale any Menu Items or
Proprietary Products by means of Internet/World Wide Web programming or
advertising. We reserve the right to market and sell Menu Items and Trade
Secret Food Products on the Internet/World Wide Web.
E. You pay us a nonrefundable Initial Franchise Fee of ________________
_______________________ Dollars ($________) which is payable in full on the date
of this Agreement. The Initial Franchise Fee has been fully earned upon receipt
and is nonrefundable in consideration of the expenses incurred by us in granting
this franchise and for the lost or deferred opportunity to franchise others.
F. You acknowledge that because complete and detailed uniformity under
many varying conditions may not be possible or practical, we specifically
reserve the right, at our sole discretion, to vary standards for any System
franchisee based upon the peculiarities of the particular site or circumstance,
density of population, business potential, population of trade area, existing
business practices or any other condition which we deem to be of importance to
the successful operation of such franchisee's business. You shall not be
entitled to require us to grant to you a like or similar variation.

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT