Amendment No. 3 to Sub-Franchisor Agreement between Royal Bakery Holdings, Inc. and Egg Tart Café United Holdings, LLC (April 11, 2014)
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Summary
This amendment updates the sub-franchisor agreement between Royal Bakery Holdings, Inc. and Egg Tart Café United Holdings, LLC. It increases the monthly royalty payment from 1% to 30% of all royalty proceeds received by the sub-franchisor from its unit franchises. It also changes the sub-franchise fee structure from monthly payments to a one-time initial fee for each new unit franchise. The amendment is effective as of April 11, 2014, and is signed by representatives of both companies.
EX-10.7 3 fs2014a1ex10vii_royalbakery.htm AMENDMENT TO SUB-FRANCHISOR AGREEMENT WITH EGG TART CAF? UNITED LLC, DATED APRIL 11, 2014 Unassociated Document
Exhibit 10.7
Royal Bakery Holdings, Inc.
Amendment No.3 to
Sub Franchisor Agreement
On the Page 5 of the Sub-Franchisor Agreement (“Agreement”) signed between Royal Bakery Holdings, Inc. (“Royal Bakery”) and Egg Tart Café United Holdings, LLC (“Egg Tart Café”) dated on October 3, 2012, where to Item 3.02(a), regarding Royalty. The Agreement states that:
“A monthly royalty equal to one percent 1%) of all royalty proceeds Sub-franchisor receives from its unit franchises, deposited directly or by electronic funds transfer to Franchisor's bank account, as specified by Franchisor, on or before the fifth day of each calendar month for the preceding month's royalty proceeds.”
The paragraph shall be changed to:
“A monthly royalty equal to thirty percent (30%) of all royalty proceeds Sub-franchisor receives from its unit franchises, deposited directly or by electronic funds transfer to Franchisor's bank account, as specified by Franchisor, on or before the fifth day of each calendar month for the preceding month's royalty proceeds.”
On Item 3.02(b), regarding Sub-franchise Fees, The Agreement states that:
“Monthly sub-franchise fees received from unit franchises of Sub-franchisor, deposited directly or by electronic fund transfer to Franchisor's bank account, as specified by Franchisor, on or before the fifth day of each calendar month for the preceding month's sub-franchise fee proceeds, calculated as follows:
| Type of Sub-franchise Sold | Amount of Sub-franchise Fee Due | |||
| OVO Restaurant | $ | 14,500 | ||
| OVO Café | $ | 11,500 | ||
| OVO Kiosk | $ | 10,000 | ||
| OVO Food Truck | $ | 5,000 | ” | |
The paragraph shall be changed to:
“A one-time initial sub-franchise fee received from unit franchise of Sub-franchisor, shall deposit directly or by electronic fund transfer to Franchisor's bank account, as specified by Franchisor.
| Type of Sub-franchise Sold | Amount of Sub-franchise Fee Due | |||
| OVO Restaurant | $ | 14,500 | ||
| OVO Café | $ | 11,500 | ||
| OVO Kiosk | $ | 10,000 | ||
| OVO Food Truck | $ | 5,000 | ” | |
In Witness Whereof, the parties hereto have executed this Agreement as of this 11 day of April, 2014.
| Royal Bakery Holdings, Inc. | Egg Tart Café United Holdings, LLC. | ||||
| a Delaware corporation | a Delaware corporation | ||||
| (“Franchisor”) | (“Sub-franchisor”) | ||||
| By: | /s/ Tommy Cheung | By: | /s/ Stephen Wan | ||
| Print Name: | TOMMY CHEUNG | Print Name: | STEPHEN WAN | ||
| Title: | CHAIRMAN | Title: | Member Manager | ||
