Buffalo Wild Wings 2005 Annual Report Download - page 151

BUFFALO WILD WINGS(R)
AREA DEVELOPMENT AGREEMENT
This Area Development Agreement is made this ____ day of , 2005 between
BUFFALO WILD WINGS INTERNATIONAL, INC., an Ohio corporation with its principal
business located at 1600 Utica Avenue South, Suite 700, Minneapolis, Minnesota
55426 ("we" or "us") and , a(n) ......... whose principal business address is
("developer" or "you"). If the developer is a corporation, partnership or
limited liability company, certain provisions of the Agreement also apply to
your owners and will be noted.
RECITALS
A. Our parent company has developed a unique system for operating video
entertainment oriented, fast casual restaurants that feature chicken wings,
sandwiches, unique food service and other products, beverages and services using
certain standards and specifications;
B. Many of the food and beverage products are prepared according to
specified recipes and procedures, some of which include proprietary sauces and
mixes;
C. Our parent company owns the BUFFALO WILD WINGS(R) Trademark and other
trademarks used in connection with the Operation of a BUFFALO WILD WINGS
restaurant;
D. Our parent company has granted to us the right to sublicense the right
to develop and operate BUFFALO WILD WINGS restaurants;
E. You desire to develop and operate several BUFFALO WILD WINGS
restaurants and we, in reliance on your representations, have approved your
franchise application to do so in accordance with this Agreement.
In consideration of the foregoing and the mutual covenants and
consideration below, you and we agree as follows:
DEFINITIONS
1. For purposes of this Agreement, the terms below have the following
definitions:
A. "Menu Items" means the chicken wings, sandwiches and other
products and beverages prepared according to our specified recipes and
procedures, as we may modify and change them from time to time.
B. "Principal Owner" means any person who directly or indirectly
owns a 10% or greater interest in the developer when the developer is a
corporation, limited liability company, a partnership, or a similar entity.
However, if we are entering into this Agreement totally or partially based
on the financial qualifications, experience, skills or managerial
qualifications of any person or entity who directly or indirectly owns less
than a 10% interest in the developer, we have the right to designate that
person or entity as a Principal Owner for all purposes under this
Agreement, including, but not limited to, the execution of the personal
guaranty referenced in Section 10.J below. In addition, if the developer is
a partnership entity, then each general partner is a Principal Owner,
regardless of the percentage ownership interest. If the developer is one or
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