KRISPY KREME DOUGHNUT CORPORATION
FRANCHISE AGREEMENT
BASIC TERMS
A. Effective Date
(Insert date Franchisee
executes the agreement):
B. Franchisor:
Krispy Kreme Doughnut Corporation, a North Carolina corporation
C. Store Number:
D. Store Address:
E. Store Type & Initial
_____________
Factory Store
$50,000
Franchise Fee:
_____________ Hot Shop
$30,000
_____________ Fresh Shop/Kiosk
$20,000
F. Franchisee:
Franchisee's
Address:
Telephone:
Fax No.:
E-mail Address:
G. Principal
Owners:
H. Managing Director:
I. General Manager:
J. Term: The time
period commencing on the Effective Date and expiring 15 years after the
Effective Date.
Franchisor:
(initials)
Franchisee:
(initials)
TABLE OF CONTENTS
Page 1. BACKGROUND
1 2. DEFINITIONS
1 3. ACKNOWLEDGMENTS,
REPRESENTATIONS, AND WARRANTIES
5 4. GRANT OF FRANCHISE
7 5. FRANCHISOR'S
RESERVATION OF RIGHTS
7 6. SITE SELECTION
8 7. LEASE OR PURCHASE OF SITE
9 8.
STORE DEVELOPMENT
9 9. BUILDING, EQUIPMENT, FIXTURES, FURNISHINGS, SIGNS AND
SUPPLIES
10 10. COMPUTER SYSTEM
11 11. STORE OPENING
12 12. CAPITAL
IMPROVEMENTS
12 13. INITIAL FRANCHISE FEE AND ROYALTIES
13 14. TRAINING AND
GUIDANCE
14 15. SYSTEM STANDARDS
14 16. MARKS
15 17. CONFIDENTIAL
INFORMATION
16 18. PATENTS AND INVENTIONS
17 19. WORKS OF AUTHORSHIP AND
COPYRIGHTS
18 20. EXCLUSIVE RELATIONSHIP
19 21. COMPLIANCE WITH LAW
19 22.
MARKETING AND ADVERTISING
20 23. ACCOUNTING, REPORTS AND FINANCIAL STATEMENTS
22 24. TRANSFER
22 25. SUCCESSOR FRANCHISE
25 26. TERMINATION OF FRANCHISE
26
27. EFFECT OF TERMINATION OR EXPIRATION
27 28. RELATIONSHIP OF
PARTIES/INDEMNIFICATION
30 29. MISCELLANEOUS
32 30. ACKNOWLEDGMENTS
35
EXHIBIT A
FRANCHISEE INFORMATION
EXHIBIT B
PRINCIPAL OWNERS' PERSONAL
GUARANTY
EXHIBIT C
INVESTOR PERSONAL COVENANTS
EXHIBIT D
AUTHORIZATION FOR
ACH DEBITS OR CREDITS
EXHIBIT E
AUTHORIZED OFF-PREMISES SALES
i
KRISPY KREME DOUGHNUT CORPORATION
FRANCHISE AGREEMENT
THIS FRANCHISE AGREEMENT (this "Agreement") is made and entered into as of
the Effective Date by and between Franchisor and Franchisee.
1. BACKGROUND
1.1
Franchisor has developed, as a result of considerable
time, skill, effort, and money, a distinctive system for operating stores called
"Krispy Kreme Stores" that offer and serve a variety of doughnuts, beverages,
and other authorized products and services under the Marks.
1.2 Franchisor's
Affiliate, HDN Development Corporation, owns the Marks and has granted
Franchisor the right to sublicense the Marks to its franchisees for their use in
operating Krispy Kreme Stores and Commissary Facilities.
1.3 Franchisor grants
Franchises to own and operate Krispy Kreme Stores and Commissary Facilites to
Persons who meet its qualifications and are willing to undertake the investment
and effort to properly develop and operate them.
1.4 Franchisee has submitted
a Franchise Application to own and operate a Krispy Kreme Store at the Site, and
Franchisor has accepted the application in reliance on all information
Franchisee has provided in connection therewith.
2. DEFINITIONS
2.1
Capitalized terms used in this Agreement have the meanings given to them in this
Section and in the Basic Terms.
Account - Franchisee's bank account as to
which Franchisee has provided Franchisor with all appropriate account
information and from which Franchisee has authorized Franchisor to withdraw
funds by electronic funds transfers.