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EX-10.6 7 c08247exv10w6.htm EXHIBIT 10.6 Exhibit 10.6
Exhibit 10.6
Buffalo Wild Wings®
Amendment to Area Development Agreement
THIS AMENDMENT is made and entered into by and among Buffalo Wild Wings International, Inc., an Ohio corporation (“we,” “us” or “Franchisor”), and AMC Wings, Inc., a Michigan corporation (“AMC”, “Developer” or “you). All capitalized terms not defined in this Amendment have the meanings set forth in the Area Development Agreement (defined below). To the extent that the terms of this Amendment are inconsistent with any of the terms of the Area Development Agreement, the terms of this Amendment will supersede and govern. This Amendment is effective on the date we sign below (the “Effective Date”).
RECITALS
WHEREAS, Franchisor and Developer are parties to an Area Development Agreement dated July 18, 2003, as amended December 27, 2003 and March 20, 2007 (the “ADA), pursuant to which Developer was granted the right to develop and operate eighteen (18) Buffalo Wild Wings restaurants;
WHEREAS, Developer requested the right to develop five (5) additional Buffalo Wild Wings restaurants under the ADA in the Development Territory as further specified in Section 4 below, for a total of twenty-three (23) Restaurants; and
WHEREAS, Franchisor has agreed to this request, subject to the terms and conditions hereof.
NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree that the ADA is amended as follows:
1. Section 2.A of the ADA is deleted and replaced with the following:
“We grant to you, under the terms and conditions of this Agreement, the right to develop and operate twenty-three (23) Buffalo Wild Wings Restaurants (the “Restaurants”) within the territory described on Appendix A (“Development Territory”).”
2. Section 3.A of the ADA is amended to include the following language:
Franchisor and Developer acknowledge and agree that Developer previously paid a Development Fee in the amount of $60,000 to Franchisor on or about July 18, 2003. Franchisor and Developer further acknowledge and agree that, Developer paid a Development Fee in the amount of $40,000 on or about March 20, 2007. Franchisor and Developer further acknowledge and agree that, on or before the Effective Date of the Amendment, and in consideration of the Franchisor’s grant of rights to develop an additional five (5) Buffalo Wild Wings Restaurants, Developer shall pay to Franchisor a Development Fee applicable to these five (5) Restaurants in the amount of $25,000. Thereafter, Developer shall pay the balance of the Initial Franchise Fee for each subsequent restaurant, as noted above in this Section 3.A.

 

 


 

3. Appendix A attached to the ADA which contains the “Description of Development Territory” to the ADA is deleted and replaced with the following:
Territory in the Tampa, Florida area: North Boundary: Pasco County line & Hernando County Line, then eastbound on a line along Pasco County line to Sumter County Line. East Boundary: Sumter County Line/Pasco County Line southbound to Hillsborough County Line continuing south along Hillsborough County Line to Mansatee County, then continuing south along Manatee County line to Route 72. South Boundary: Route 72 westbound to Gulf of Mexico. West Boundary: Route 72 & Gulf of Mexico, then north bound along shoreline of Gulf of Mexico to Tampa Bay, then follow eastern shoreline of Tampa Bay in a NE direction to City of Tampa; follow Tampa Bay shoreline around Tampa Bay peninsula, then in a NW direction to intersection with Tampa Bay shoreline and Hillsborough County line; then northbound along Hillsborough county line to Pasco County Line eastbound to Route 41 northbound to intersection with Pasco and Hernando County line.
Territory in Pinnellas Park, Florida: North Boundary: South side of Route 688. East Boundary: Western shore Tampa Bay. South Boundary: Route 92 & western shore Tampa Bay to Roosevelt Blvd. West Boundary: Roosevelt Blvd.
Territory in St. Petersburg, Florida: South of Route 688 in St. Petersburg, Florida with Tampa Bay as east boundary and Gulf of Mexico as west boundary.
Territory in Lee County, Florida: Lee County, Florida with southern boundary stopping at Exit 128 on I-75.
City Limits: The Designated Territory shall also include the city limits of Belleville, Chesterfield, Flint, Grand Blanc, Traverse City, Petoskey, and Port Huron in the State of Michigan and the city limits of Lakeland in the State of Florida.
4. The table in Appendix B to the ADA, which contains the Development Schedule, is deleted and replaced with the following:
                 
                Cumulative number of
        Date by Which   Date by Which the   Restaurants Required to
        Franchise   Restaurant Must be   be Open and
        Agreement Must   Opened and   Continuously Operating
        be Signed and Site   Continuously   for Business in the
        Approval Request   Operating for   Development Territory
Restaurant   Restaurant   Must be Submitted   Business in the   as of the Date in
Number   Type   to us   Territory   Preceding Column
1   Free Standing   Date of this Agreement   July 1, 2004   1
2   End Cap   August 1, 2004   July 1, 2005   2
3   End Cap   August 1, 2005   May 1, 2006   3
4   End Cap   March 1, 2006   May 1, 2007   4
5   End Cap   August 1, 2006   September 1, 2007   5
6   TBD   March 1, 2007   November 1, 2007   6
7   TBD   August 1, 2007   March 1, 2008   7
8   TBD   March 1, 2008   November 1, 2008   8
9   TBD   August 1, 2008   March 1, 2009   9
10   TBD   March 1, 2009   November 1, 2009   10
11   TBD   March 1, 2010   November 1, 2010   11
12   TBD   October 1, 2010   May 1, 2011   12
13   TBD   March 1, 2011   November 1, 2011   13
14   TBD   October 1, 2011   May 1, 2012   14
15   TBD   March 1, 2012   November 1, 2012   15
16   TBD   October 1, 2012   May 1, 2013   16
17   TBD   March 1, 2013   November 1, 2013   17
18   TBD   October 1, 2013   May 1, 2014   18
19   TBD   March 1, 2014   November 1, 2014   19
20   TBD   October 1, 2014   May 1, 2015   20
21   TBD   March 1, 2015   October 1, 2015   21
22   TBD   October 1, 2015   May 1, 2016   22
23   TBD   March 1, 2016   October 1, 2016   23

 

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5. Effect. Except as expressly modified herein, the terms of the ADA control.
6. Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.
                     
DEVELOPER:       US:    
 
                   
AMC WINGS, INC.       BUFFALO WILD WINGS INTERNATIONAL, INC.    
 
                   
Date: 11/01/2007       Date: 11/05/2007    
 
                   
/s/ T. Michael Ansley       /s/ Sally J. Smith  
By:
 
 
Diversified Restaurant Holdings, Inc.
      By:  
 
Sally J. Smith
   
 
 
 
As Sole Shareholder of AMC Wings, Inc.
         
 
Its: President & CEO
   
 
  Its: President & CEO, T. Michael Ansley                

 

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