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Exhibit 10.8    
    

FRANCHISE ADDENDUM AGREEMENT  

        This Franchise Addendum Agreement (the "Addendum") is made in Dublin, Ohio, as of the date set forth below, by and between Wendy's International, Inc., an
Ohio corporation (hereinafter "Wendy's"), DavCo Restaurants, Inc., a Delaware corporation (hereinafter "Davco"), and Davco Acquisition Holding Inc., a Delaware corporation ("Davco
Holding"). 

        WHEREAS,
Davco and Davco Holding (together referred to as the "Franchisee") and Wendy's are parties to the Unit Franchise Agreement for the franchise and Licensed Rights to the Wendy's
Old Fashioned Hamburgers Restaurant located at 1433 Tappanhannock Blvd., Tappahannock, VA (the "Restaurant Franchise Agreement"); and 

        WHEREAS,
Wendy's and Franchisee are parties to a Development Agreement dated August 13, 2003 (the "Development Agreement") for the developmental rights within the franchised area
of the City of Baltimore, MD; Anne Arundel, Baltimore, Calvert, Caroline, Carroll, Cecil, Charles, Dorcester, Frederick, Harford, Howard, Kent, Montgomery, Prince Georges, Queen Annes, St. Marys,
Talbot, Washington, Wicomico, and Worcester Counties, MD; the District of Columbia; and Arlington, Fairfax, Loudoun, Prince William, and Stafford Counties, VA (the "Franchised Area"); and 

        WHEREAS,
in accordance with the terms of the Development Agreement, Unit Franchise Agreements have been executed for the 153 Wendy's Old Fashioned Hamburgers Restaurants opened under the
Development Agreement as listed on Exhibit A attached hereto and incorporated herein by reference; and 

        WHEREAS,
the aforementioned Unit Franchise Agreements executed pursuant to the Development Agreement, the Development Agreement, and any and all amendments and modifications to any of
said agreements are hereinafter collectively referred to as the "Franchise Agreements"; and 

        WHEREAS,
all of the Wendy's Old Fashioned Hamburgers Restaurants referenced above (including all such restaurants hereafter opened by Franchisee within the Franchised Area) are
hereinafter collectively referred to as the "Restaurants"; and 

        WHEREAS,
contemporaneous with the execution of this Addendum, Wendy's and Franchisee desire to enter into an Agreement and Consent to Assignment (the "Consent") which provides in part
for the execution of a development letter (the "Development Letter") which shall replace the Development Agreement and provide for the development of additional Restaurants in the Franchised Area, and
new unit franchise agreements (the "NUFA(s)") applicable to the 154 existing Restaurants and applicable to any Restaurant hereafter built pursuant to the performance schedule contained in the
Development Letter; and 

        WHEREAS,
Franchisee and Wendy's desire to amend the NUFAs for all existing Restaurants and all Restaurants to be built pursuant to the Development Letter in the manner provided in this
Addendum. 

        NOW,
THEREFORE, in consideration of the terms and conditions hereinafter set forth, the parties, intending to be legally bound, mutually agree as follows: 

 

	1.
	Section 1.3
of the NUFA is hereby modified to read as follows: 

"It
is understood and agreed that Franchisee shall have the exclusive right to operate a Wendy's Old Fashioned Hamburgers Restaurant and to use the Wendy's System and the Licensed Rights at the
Restaurant and within an area determined by drawing a circle around the Restaurant, which circle shall have the Restaurant at its center and shall include either a population of twenty thousand
(20,000) persons or a radius of three (3) miles, whichever is smaller (the "Exclusive Franchised Area"). For the purposes of this Paragraph 1.3, the twenty thousand person population
shall be computed by using the larger of (i) the number of individuals residing or employed in the area between the hours of 8:00 a.m. and 5:00 p.m. on Monday through Friday,
inclusive, or (ii) the residential population of the area." 

    "Except
as provided above and as set forth in the Development Letter, Franchisee expressly acknowledges that this franchise is nonexclusive. Franchisee shall only be permitted to operate
from the Approved Location, to sell approved food and beverage products to retail customers for consumption on the premises or for personal carry-out consumption. Except as otherwise
provided herein, Franchisor shall retain the right, among others, to use, and to license others to use, the System and the Proprietary Marks for the operation of restaurants at any location outside
the Exclusive Franchised Area; and except as otherwise provided herein, to use and license to others the use of these and other proprietary marks in connection with the operation at any location of
restaurants or any other business which are the same as, similar to, or different from the Restaurant, on any terms and conditions as Franchisor deems advisable, and without granting Franchisee any
rights therein." 

	2.
	Sections 2.1
and 2.2 of the NUFA are hereby modified to read as follows (with all subparagraphs remaining as set forth except as otherwise specifically provided herein):

	2.1
	"Unless
sooner terminated as hereinafter provided, this Agreement shall expire twenty (20) years from December 31, 2005."

	2.2
	"Franchisee
may, at its option, renew the franchise to own and operate the Restaurant and the right to use the Wendy's System and the Licensed Rights at the Restaurant for an
additional term equal to the term in Wendy's standard form of Unit Franchise Agreement being executed by other franchisees renewing their franchises on the renewal date, provided that prior to the
expiration of the initial term, the Franchisee has met the following conditions:" 

2

 

	3.
	Section 2.2B
of the NUFA is hereby modified to read as follows: 

"Franchisee
shall make or provide for, in a manner satisfactory to Franchisor, such renovation and modernization of the Restaurant as Franchisor may require, including, without limitation, renovation
of the exterior facade, signs, interior furnishings, fixtures, and decor, to reflect the then-current standards and image of the System; provided however if the Restaurant has in the last
5 years been renovated or modernized pursuant to and to the extent provided in Paragraph 6.10 hereof, only repair and maintenance and such renovation and modernization as is necessary to
bring the Restaurant up to Wendy's minimum standards shall be required in connection with renewal." 

	4.
	Sections 4.1
and 4.2 of the NUFA are hereby modified to read as follows:

	4.1
	"Franchisee
has paid to Franchisor a Technical Assistance Fee ("Technical Assistance Fee") of Seven Thousand Five Hundred Dollars ($7,500). The Technical Assistance Fee shall be fully
earned and shall be nonrefundable in consideration of administrative and other expenses incurred by Franchisor in granting the rights in this Agreement and for Franchisor's lost or deferred
opportunity to grant these rights to other parties."

	4.2
	"Franchisee
agrees to pay to Wendy's a monthly royalty equal to four percent (4%) of the gross sales of the Restaurant during the month or Two Hundred Fifty Dollars ($250.00),
whichever is greater. The royalty shall be payable from the date the Restaurant is opened. Such royalty shall be based upon the gross sales of the Restaurant during each month or fraction thereof."

	5.
	The
second sentence of section 4.4 of the NUFA is hereby modified to read as follows: 

"Franchisor
reserves the right to require payment of any and all fees by means of electronic, computer, wire, or automated transfer or bank clearing services, and Franchisee agrees to undertake all
action necessary to accomplish such transfers, provided, however, this payment method shall be required by Franchisor only if the Franchisee has in the past been delinquent (a notice of default having
been issued) for one or more payments due under the Agreement." 

3

 

	6.
	Sections 5.1.A,
5.1.B and 5.1.D of the NUFA are hereby deleted in their entirety.

	7.
	Section 5.2.B
of the NUFA is hereby modified so as to delete the last two (2) sentences of that subparagraph.

	8.
	The
first sentence of Section 5.2.D of the NUFA is hereby modified to read as follows: 

"Franchisee
shall employ a qualified and licensed general contractor to construct the Restaurant and to complete all improvements." 

	9.
	Section 6.5
of the NUFA is hereby deleted in its entirety.

	10.
	Section 6.6
of the NUFA is hereby amended so as to include the following provision: 

"Provided,
however, Franchisee shall not be required by Franchisor to operate the Franchised Business during hours that are otherwise prohibited by local ordinance or prohibited by the landlord under
the terms of an arms length lease entered into with an unrelated third party if the Franchisee has made good faith efforts to comply with this provision." 

	11.
	Section 6.8
of the NUFA is hereby amended to include the following: 

"It
is understood and agreed that the failure of Franchisee to provide notice pursuant to this subparagraph, while a default under the Agreement, shall not in and of itself constitute a default under
Subparagraph 14.2.C. A default under Subparagraph 14.2.C shall be based upon Franchisor's determination of the condition of the Restaurant." 

	12.
	Sections 6.9,
6.10 and 6.17 of the NUFA are hereby amended so as to include the following: 

"With
respect to color scheme, it is understood and agreed that Franchisor's requirements hereunder may be subject to local ordinances and certain lease requirements, and Franchisee shall not be held
to be in violation of this Agreement as a result of complying with such local ordinances and/or lease requirements concerning color scheme, provided the lease is an
arms length lease entered into with an unrelated third party, and Franchisee has made good faith efforts to comply with this provision." 

	13.
	Section 6.10
of the NUFA is hereby modified to read as follows: 

"At
Franchisor's request, which shall not be more often than once every five (5) years, Franchisee shall refurbish the Restaurant at its expense to conform to the building design, trade dress,
color schemes, and presentation of the Proprietary Marks in a manner consistent with the image then in effect for new restaurants under the System, including, without limitation, remodeling,
redecoration, and modifications to existing improvements and equipment." 

4

 

	14.
	The
last sentence of Section 6.17 of the NUFA shall be modified to read as follows: 

"Franchisee
shall promptly undertake such action and make such expenditures as are necessary to implement such changes, including, without limitation, acquiring and installing new equipment at the
Restaurant, and hiring and training additional personnel, provided that such changes are required by Franchisor on a system-wide basis." 

	15.
	Section 11.7
of the NUFA is hereby modified to read as follows: 

"For
all advertising and promotional plans which require Franchisor's approval prior to use, as set forth in Sections 11.3. and 11.4 hereof, Franchisee or the Cooperative,. where
applicable, shall submit samples of such plans and materials to Franchisor (by means described in Section 21 hereof), for Franchisor's prior written approval." 

	16.
	Section 12.4
of the NUFA is hereby modified to read as follows: 

"In
connection with all significant construction, reconstruction, or remodeling of the Restaurant during the term hereof, Franchisee will cause the general contractor, its subcontractors, and any
other contractor, to effect and maintain at general contractor's and all other contractor's own expense, such insurance policies and with such endorsements as are set forth in the Manual or otherwise
in writing, and which are written by insurance companies satisfactory to Franchisor." 

	17.
	Section 12.6
of the NUFA is hereby deleted in its entirety.

	18.
	Subparagraph 13.2
shall be modified to add the following sentence: 

"Notwithstanding
the foregoing, a unitholder of Davco Restaurants Income Fund, a holder of Davco Restaurants Canada, Inc. common shares received on a redemption of units of the Davco
Restaurants Income Fund, or a holder of notes of Davco Restaurants ULC received on a redemption of units of the Davco Restaurants Income Fund shall not be considered an "Owner" for the purposes of
this Agreement (unless such party is a Control Block Principal as defined in the Consent)." 

	19.
	Section 13.2.A
of the NUFA is hereby modified to read as follows: 

"Neither
Franchisee nor any Owner shall transfer, pledge, or otherwise encumber this Agreement, any of the rights or obligations of Franchisee under this Agreement, any direct or indirect interest in
Franchisee, or any material asset used in the Franchised Business, except as otherwise expressly permitted under the Consent.," 

5

 

	20.
	Section 13.2.B
of the NUFA is hereby modified to read as follows: 

"Franchisee
shall not issue any securities, except as otherwise expressly permitted under the Consent; and" 

	21.
	Section 13.3.A
of the NUFA is hereby amended so as to include the following clause at the end of that subparagraph: 

"provided
such other written policies are enforced by Wendy's with respect to transfers within the Wendy's System." 

	22.
	The
last sentence of Section 13.3.B of the NUFA is hereby modified to read as follows: 

"Without
limiting the terms and conditions of the Consent, Franchisor reserves the right to disapprove any proposed transfer the result of which would be, in the opinion of Franchisor, a
disproportionately large ownership of Wendy's restaurants by the Proposed Franchisee compared with the number of restaurants operated by all franchisees in the System; it is understood that if buyer
has an active development agreement with Wendy's requiring additional restaurants to be built within a specific time period and buyer is in compliance with that development agreement, then buyer shall
not be rejected by Wendy's based upon the penetration level of Wendy's restaurants in buyer's existing markets as referenced in item (iii) above." 

	23.
	Section 13.3.D
of the NUFA is hereby modified to read as follows: 

"If
Franchisor requests, the Franchisee or Proposed Franchisee, at their own expense, shall modify the Restaurant to conform to the then-current standards and specifications of System
restaurants, and shall complete the modifications prior to the transfer or within the time subsequent to the transfer specified by Franchisor;" 

	24.
	The
second sentence of Section 13.4 of the NUFA is hereby modified to read as follows: 

"Except
as otherwise provided in the Consent, Franchisor shall have the right and option, exercisable within forty-five (45) days after receipt by Franchisor of such written
notification, all information and documentation which the seller has provided to the buyer and which the seller has received from the buyer, audited financial statements for the seller, audited
financial statements for the buyer to the extent they exist (otherwise financial statements from the buyer certified by the President or Chief Financial Officer of the buyer), and all other
information required by Wendy's then-existing transaction form and as may be specifically required in Wendy's then current transaction policy, to send written notice to the seller that
Franchisor intends to purchase the seller's interest on the same terms and conditions as those offered by the prospective purchaser." 

6

 

	25.
	The
first sentence of Section 13.5 of the NUFA is hereby modified to read as follows: 

"Franchisee
shall neither grant nor permit the existence of any security interest in this Agreement, or in the securities of any corporation, partnership or other business entity which is a Franchisee
(or which directly or indirectly controls a Franchisee) or, except as otherwise expressly permitted in the Consent, in any tangible asset material to the operation of the Franchised Business, without
an acknowledgment by the security holder of the Franchisor's right of first refusal and Wendy's prior written consent." 

	26.
	Section 14.2.B
of the NUFA is hereby modified to read as follows: 

"If
Franchisee is convicted of a crime involving moral turpitude, or any other crime or offense that Franchisor believes is likely to have a material adverse effect on the System, the Proprietary
Marks, the goodwill associated therewith or Franchisor's interest therein; and fails to take appropriate action against the responsible individuals or mitigate the adverse effect." 

	27.
	Section 14.2.H
of the NUFA is hereby modified to read as follows: 

"If
Franchisee repeatedly is in default under Section 14.3 hereof for failure to substantially comply with any of the material requirements imposed by this Agreement, whether or not cured after
notice, or Franchisee commits the same material default on three (3) occasions within any twelve-month period, whether or not cured after notice; or" 

	28.
	Under
Section 16.1 of the NUFA the term "Franchisee" for purposes of this Paragraph shall not be construed so as to require DavCo Holding to devote its full time to the
management and operation of the Franchised Business and the reference to approved Operator shall include the Executive Vice President of Operations and Senior Executive Vice President of Development
as well as the current approved operator.

	29.
	Section 16.2.B
of the NUFA is hereby modified to read as follows: 

"Own,
maintain, invest in, operate, engage in, be employed by, have any interest in, participate in any capacity (by franchising or otherwise) in any business which is, or is intended to be, either of
the following:" 

7

 

	30.
	Section 16.2.B.2
of the NUFA is hereby modified to read as follows: 

"Any
quick-service restaurant selling chicken sandwiches or hamburgers or products similar to Franchisor (except another Wendy's Old Fashioned Hamburgers restaurant operating pursuant to a franchise
agreement executed by Wendy's, as Franchisor) which quick-service restaurant is located within a three-mile radius of the Restaurant or within a three-mile radius of any other
Wendy's Old Fashioned Hamburgers restaurant operating under the System," 

	31.
	Sections 17.1.C
and 17.2.C of the NUFA are hereby deleted in their entirety.

	32.
	Section 17.1.E
of the NUFA is hereby amended to read as follows: 

"The
requirements of Section 17.1.D shall not apply to a publicly-held corporation or to the Original Restaurants Income Fund (the "Fund"). To the extent Franchisee remains
indirectly controlled by the Fund (or if Franchisee is a corporation with securities registered under the Securities and Exchange Commission Act of 1934), Franchisee shall furnish to Franchisor copies
of all communications sent by the Fund to the investors or note holders of the Fund (or sent by Franchisee to the Owners of the Franchisee)." 

	33.
	Section 20.5
of the NUFA is hereby amended to include the following sentence: 

"Both
parties agree to act in good faith with respect to the spirit of this provision." 

	34.
	Section 25.2
of the NUFA is hereby deleted in its entirety.

	35.
	The
terms of this Addendum are unique and shall not be assignable by Franchisee in the event of a direct or indirect transfer of the Agreement or a change in the control of
Franchisee.

	36.
	In
the event of a conflict between the NUFA and this Addendum, this Addendum will control, provided every effort is made to read the Addendum as supplementing the NUFA, except as
specifically stated to the contrary. In the event of a conflict between the Consent and the NUFA (including this Addendum), the Consent will control, provided every effort is made to read the NUFA and
this Addendum as supplementing the Consent, except as specifically stated to the contrary.

	37.
	This
Addendum shall modify all NUFAs executed or to be executed pursuant to the performance schedule of the Development Letter, but shall not be applicable to any franchise agreements
to be executed pursuant to the right of first refusal contained in the Development Letter. 

8

 

	38.
	In
the event that Franchisee fails to submit on a timely basis any monthly royalty and gross sales report required under Section 10.3, Franchisor shall have the right to
make an estimate of royalty fees and advertising contributions (the "Estimated Amounts") due from Franchisee based upon the average of Franchisee's gross sales for the most recent three
(3) months for which such reports were submitted, and to demand payment of the Estimated Amounts. Within five (5) days after delivery of such estimate to Franchisee, Franchisee shall
either (a) pay the Estimated Amounts to Franchisor; or (b) deliver to Franchisor an accurate royalty and gross sales report together with payment of the royalty fees and advertising
contributions indicated by such report (the "Calculated Amounts"). If Franchisee fails either to pay the Estimated Amounts or to deliver the report and pay the Calculated Amounts within such five
(5) day period, each of Franchisor and WNAP shall have the right to draw under the Davco Letter of Credit referred to in the Agreement and Consent to Assignment dated of even date herewith for
either the Estimated Amounts or the Calculated Amounts, as the case may be, due to it, plus any late fee and interest due on such amount. Any such drawing shall not be deemed to cure Franchisee's
failure to submit the monthly royalty and gross sales report. 

        IN
WITNESS WHEREOF, this Franchise Addendum Agreement shall be effective as of the date it is executed by Wendy's International, Inc. 

	 	 	WENDY'S INTERNATIONAL, INC.
	
 	
 	

By:	
 	

/s/ JONATHAN CATHERWOOD

	 	 	Title	 	E.V.P. of Mergers & Acquisitions

	 	 	Date	 	August 13, 2003

	
 	
 	
DAVCO RESTAURANTS, INC.
	
 	
 	

By:	
 	

/s/ DAVID J. NORMAN

	 	 	Title	 	CFO & Secretary

	 	 	Date	 	August 13, 2003

	
 	
 	
DAVCO ACQUISITION HOLDING INC.
	
 	
 	

By:	
 	

/s/ DAVID J. NORMAN

	 	 	Title	 	CFO & Secretary

	 	 	Date	 	August 13, 2003

9

 
Exhibit A
  Unit Franchise Agreements 

	UFA
	 	Date
	 	Restaurant Location

	 #00084-00001	 	6/19/78	 	2040 Crain Highway, Waldorf, MD
	 #00084-00002	 	6/19/78	 	6329 Richmond Highway, Alexandria, VA
	 #00084-00003	 	6/19/78	 	6122 Oxon Hill Road, Oxon Hill, MD
	 #00084-00004	 	6/19/78	 	3440 Donnell Drive, Forestville, MD
	 #00084-00005	 	6/19/78	 	8907 Woodyard Road, Clinton, MD
	 #00084-00006	 	6/19/78	 	10634 Baltimore Boulevard, Beltsville, MD
	 #00084-00007	 	6/19/78	 	14117 Jefferson Davis Hwy., Woodbridge, VA
	 #00084-00008	 	6/19/78	 	1201 W. Patrick Street, Frederick, MD
	 #00084-00010	 	6/19/78	 	8211 Landover Road, Landover, MD
	 #00084-00011	 	6/19/78	 	Routes 301 & 225, La Plata, MD
	 #00084-00012	 	1/23/79	 	5425 Silver Hill Road, Suitland, MD
	 #00084-00013	 	8/24/79	 	350 Dual Hwy., Hagerstown, MD
	 #00084-00016	 	5/15/80	 	5050 Chesterfield Road, Arlington, VA
	 #00084-00017	 	6/19/78	 	8203 Md. Rt. 3 — Veterans Highway, Millersville, MD
	 #00084-00018	 	6/19/78	 	9817 York Road, Cockeysville, MD
	 #00084-00021	 	6/19/78	 	1950 Pulaski Highway, Edgewood, MD
	 #00084-00023	 	6/19/78	 	3001 East Joppa Road, Baltimore, MD
	 #00084-00024	 	6/19/78	 	6910 Ritchie Highway, Glen Burnie, MD
	 #00084-00025	 	6/19/78	 	10109 Reiserstown, Owings Mills, MD
	 #00084-00027	 	6/19/78	 	8610 Liberty Road, Randallstown, MD
	 #00084-00028	 	10/5/78	 	119 Beacon Road, Baltimore, MD
	 #00084-00029	 	11/27/78	 	4410 West Northern Pky. Baltimore, MD
	 #00084-00030	 	12/13/78	 	4000 North Point Blvd., Baltimore, MD
	 #00084-00031	 	1/23/79	 	7399 B&A Blvd., Glen Burnie, MD
	 #00084-00032	 	5/25/79	 	605 E. Patapsco Avenue, Baltimore, MD
	 #00084-00033	 	5/25/79	 	1949 West Street, Annapolis, MD
	 #00084-00034	 	10/2/79	 	8457 Ft. Smallwood Road, Pasadena, MD
	 #00084-00035	 	6/27/80	 	1454 Whitehall Road, Annapolis, MD
	 #00084-00036	 	6/27/80	 	1320 Merritt Blvd., Baltimore, MD
	 #00084-00037	 	1/6/81	 	7513 Greenbelt Road, Greenbelt MD
	 #00084-00039	 	3/20/81	 	6823 New Hampshire Avenue, Takoma Park, MD
	 #00084-00040	 	6/3/81	 	7391 Lee Highway, Falls Church, VA
	 #00084-00041	 	7/2/81	 	229 South Van Dorn Street, Alexandria, VA
	 #00084-00042	 	8/24/81	 	2339 Frederick Avenue, Baltimore, MD
	 #00084-00043	 	8/24/81	 	8989 Centreville Road, Manassas, VA
	 #00084-00044	 	7/17/81	 	15807 Frederick Road, Rockville, MD
	 #00084-00045	 	8/24/81	 	8301 Leesburg Pike, Vienna, VA
	 #00084-00047	 	11/2/81	 	8010 Sudley Road, Manassas, VA

10

 

	UFA
	 	Date
	 	Restaurant Location

	 #00084-00048	 	11/2/81	 	8700 Richmond Hwy., Alexandria, VA
	 #00084-00049	 	1/20/82	 	21589 Great Mills Road, Lexington Park, MD
	 #00084-00050	 	5/24/82	 	336 Baltimore Pike, Bel Air, MD
	 #00084-00052	 	11/12/82	 	6355 Dobbin Road, Columbia, MD
	 #00084-00054	 	1/27/83	 	18601 Jefferson Davis Hwy., Triangle, VA
	 #00084-00055	 	1/27/83	 	13804 Outlet Drive, Silver Spring, MD
	 #00084-00058	 	5/22/84	 	4000 Jermantown Road, Fairfax, VA
	 #00084-00059	 	12/19/83	 	3900 Georgia Avenue N.W., Washington, DC
	 #00084-00060	 	12/9/83	 	6056 Burke Commons Road, Burke, VA
	 #00084-00061	 	1/5184	 	3431 Columbia Pike, Arlington, VA
	 #00084-00062	 	4/6/84	 	6242 Greenbelt Road, Greenbelt, MD
	 #00084-00064	 	2/3/84	 	7042 Little River Turnpike, Annandale, VA
	 #00084-00066	 	4/6/84	 	1701 Bracknell Drive, Reston, VA
	 #00084-00067	 	5/22/84	 	714 Nursery Road, Linthicum Heights, MD
	 #00084-00068	 	5/22/84	 	100 New York Avenue, Washington, DC
	 #00084-00069	 	7/5/84	 	9150 Rt. 108, Columbia, MD
	 #00084-00070	 	11/19/84	 	1064 N. Route 3, Gambrills, MD
	 #00084-00071	 	9/7/84	 	5719 Buckeystown Pike, Frederick, MD
	 #00084-00072	 	10/19/84	 	18850 Contour Road, Gaithersburg, MD
	 #00084-00073	 	5/9/85	 	5066 Lee Highway, Arlington, VA
	 #00084-00075	 	6/18/85	 	3300 Duke Street, Alexandria, VA
	 #00084-00076	 	6/18/85	 	4250 Nannie Helen Burroughs Avenue, Washington, DC
	 #00084-00077	 	519/85	 	11815 Livingston Road, Ft. Washington, MD
	 #00084-00078	 	4/10/86	 	3 Pidgeon Hill Drive, Sterling, VA
	 #00084-00079	 	6/18/85	 	14050 Baltimore Blvd., Laurel, MD
	 #00084-00080	 	6/18/85	 	6210 Kenilworth Avenue, Riverdale, MD
	 #00084-00081	 	8/6/85	 	825 N. Washington Street, Alexandria, VA
	 #00084-00082	 	10/21/85	 	8700 Belair Road, Baltimore, MD
	 #00084-00083	 	12/16/85	 	1470 Old Bridge Road, Woodbridge, VA
	 #00084-00084	 	2/3/86	 	2038 Wilson Blvd., Arlington, VA
	 #00084-00085	 	4/10/86	 	2045 Harford Road, Baltimore, MD
	 #00084-00087	 	4/10/86	 	8 Watkins Park Drive, Kettering, MD
	 #00084-00088	 	8/11/86	 	13902 Lee Jackson Memorial Hwy., Chantilly, VA
	 #00084-00089	 	8/11/86	 	6425 A Sargent Road, Hyattsville, MD
	 #00084-00090	 	12/5/86	 	5615-21 York Road, Baltimore, MD
	 #00084-00091	 	10/24/86	 	145 Garrisonville Road, Stafford, VA
	 #00084-00092	 	10/24/86	 	12988 Middlebrook Road, Germantown, MD
	 #00084-00093	 	12/5/86	 	987 Beards Hill Road, Aberdeen, MD
	 #00084-00094	 	1/13/87	 	23 I Street S. E., Washington, DC
	 #00084-00095	 	6/8/87	 	19775 Old Frederick Road, Germantown, MD
	 #00084-00096	 	1/13/87	 	1600 Whitehead Court, Baltimore, MD
	 #00084-00097	 	1/20/88	 	12114 Darnestown Road, Gaithersburg, MD

11

 

	UFA
	 	Date
	 	Restaurant Location

	 #00084-00098	 	9/30/87	 	404 E. Market Street, Leesburg, VA
	 #00084-00099	 	1/20/88	 	46900 Community Plaza, Sterling, VA
	 #00084-00100	 	4/25/88	 	8699 Philadelphia Road, Baltimore, MD.
	 #00084-00101	 	11/9/88	 	1608 E. Joppa Road, Towson, MD
	 #00084-00102	 	4/4/91	 	395 North Center Street, Westminster, MD
	 #00084-00103	 	7/16/91	 	14012 Connecticut Avenue, Silver Spring, MD
	 #00084-00104	 	11/12/91	 	808 Rockville Pike, Rockville, MD
	 #00084-00105	 	4/1/92	 	1570 Wesel Blvd., Hagerstown, MD
	 #00084-00106	 	4/14/92	 	7450 Gainesville Village Square, Gainesville, VA
	 #00084-00107	 	6/17/92	 	170 Solomon's Island Road, Prince Frederick, MD
	 #00084-00108	 	8/24/92	 	9401 Annapolis Road, Lanham, MD
	 #00084-00109	 	3/18/93	 	14445 Brookfield Tower Drive, Chantilly, VA
	 #00084-00110	 	2/9/93	 	14493 Gideon Drive, Woodbridge, VA
	 #00084-00111	 	3/18/93	 	2160 Centreville Road, Fairfax, VA
	 #00084-00112	 	2/9/93	 	6500 Baltimore National Pike, Baltimore, MD
	 #00084-00113	 	12/17/93	 	45460 Miramar Way, California, MD
	 #00084-00014	 	12/17/93	 	303 Tippin Drive, Thurmont, MD
	 #00084-00115	 	12/17/93	 	13030 Fair Lakes Pkwy., Fairfax, VA
	 #00084-00116	 	1/13/94	 	6400 Ridge Road, Eldersburg, MD
	 #00084-00117	 	4/21/94	 	3005 Crain Hwy., Waldorf, MD
	 #00084-00118	 	5/18/94	 	10502 Sharpsburg Pike, Hagerstown, MD
	 #00084-00120	 	7/5/94	 	11741 Beltsville Drive, Calverton, MD
	 #00084-00121	 	8/26/94	 	588 Warrenton Road, Falmouth, VA
	 #00084-00122	 	10/10/94	 	18425 Woodfield Road, Gaithersburg, MD
	 #00084-00123	 	10/10/94	 	3563 Russett Green East, Laurel, MD
	 #00084-00124	 	11/1/94	 	8241 Perry Hall BIvd., Baltimore, MD
	 #00084-00125	 	11/1/94	 	1060 Joppa Farm Road, Joppatowne, MD
	 #00084-00126	 	5/16/95	 	100 E. Central Avenue, Edgewater, MD
	 #00084-00127	 	8/4/95	 	4224 North Woods Trail, Hampstead, MD
	 #00084-00128	 	9/13/95	 	101 Pulaski Hwy., Elkton, MD
	 #00084-00129	 	10/13/95	 	1725 K Street, N.W., Washington, DC
	 #00084-00130	 	10/13/95	 	901 McCulloh Street, Baltimore,. MD
	 #00084-00131	 	6/19/78	 	11320 York Road, Hunt Valley, MD
	 #00084-00132	 	12/5/95	 	411 East Maple Avenue, Vienna, VA
	 #00084-00133	 	2/12/96	 	2410 Prince William Parkway, Woodbridge, VA
	 #00084-00134	 	2/16/96	 	6349 Seven Corners, Falls Church, VA
	 #00084-00135	 	2/16/96	 	3636 Branch Avenue, Temple Hills, MD
	 #00084-00136	 	7/30/96	 	46350 Potomac Run Plaza, Sterling, VA
	 #00084-00137	 	6/19/78	 	6335 Allentown Road, Camp Springs, MD
	 #00084-00138	 	6/19/78	 	16400 Harbour Way, Bowie, MD
	 #00084-00139	 	6/19/78	 	3040 Gatehouse Plaza, Merrifield, VA
	 #00084-00140	 	6/19/78	 	9688 Main Street, Fairfax, VA

12

 

	UFA
	 	Date
	 	Restaurant Location

	 #00084-00141	 	3/26/85	 	12303 Coastal Highway, Ocean City, MD
	 #00084-00142	 	9/12/83	 	1101 Salisbury Boulevard, Salisbury, MD
	 #00084-00143	 	5/22/84	 	8275 Ocean Gateway, Easton, MD
	 #00084-00145	 	6/16/86	 	211 Sunburst Highway, Cambridge, MD
	 #00084-00146	 	7/21/87	 	12641 Ocean Gateway, #580, Ocean City, MD
	 #00084-00147	 	7/9/93	 	2710 N. Salisbury Blvd., Salisbury, MD
	 #00084-00148	 	6/19/78	 	7311 Washington Blvd., Elkridge, MD
	 #00084-00149	 	11/14/97	 	1140 Winterson Road, Linthicum Heights, MD
	 #00084-00150	 	6/19/78	 	3620 Washington Blvd., Baltimore, MD
	 #00084-00151	 	6/19/78	 	6308 Annapolis Road, New Carrollton, MD
	 #00084-00152	 	12/22/97	 	8098 Edwin Raynor Blvd., Pasadena, MD
	 #00084-00153	 	6/19/78	 	120 Chester Station Road, Chester, MD
	 #00084-00154	 	6/19/78	 	8850 Gorman Road, Laurel, MD
	 #00084-00155	 	5/22/98	 	2522 West Pulaski Highway, North East, MD
	 #00084-00156	 	10/9/98	 	30273 Triangle Drive, Charlotte Hall, MD
	 #00084-00157	 	10/19/98	 	15400 Chrysler Drive, Upper Marlboro, MD
	 #00084-00158	 	11/30/98	 	11818 Reistertown Road, Reisterstown, MD
	 #00084-00160	 	2/5/99	 	498 Ritchie Highway, Severna Park, MD
	 #00084-00161	 	4/28/99	 	8715 Central Avenue, Capital Heights, MD
	 #00084-00162	 	2/26/99	 	403 Punkin Court, Salisbury, MD
	 #00084-00163	 	4/28/99	 	1344 Eastern Boulevard, Baltimore, MD
	 #00084-00164	 	11/4/99	 	5801 Clarksville Square Drive, Clarksville, MD
	 #00084-00165	 	12/6/99	 	6411 Eastern Avenue, Baltimore, MD
	 #00084-00166	 	3/6/00	 	10700 Bulloch Drive, Manassas, VA
	 #00084-00167	 	6/29/00	 	17786 Garland Groth Boulevard, Hagerstown MD
	 #00084-07804	 	12/11/98	 	7530 Little River Turnpike, Annandale, VA
	 #00084-08517	 	9/7/00	 	2351 Rolling Road, Baltimore, MD
	 #00084-08518	 	9/7/00	 	40804 Merchant Lane Leonardtown, MD
	 #00084-08531	 	8/23/01	 	7057 Arundel Mills Blvd., Hanover, MD
	 #00084-08762	 	8/23/01	 	5001 Nicholson Road, Rockville, MD
	 #00084-08931	 	1/21/02	 	4461 Cheshire Station Way, Dale City, VA

13

QuickLinks

Exhibit 10.8Exhibit 10.9

 

AGREEMENT 

DAVCO RESTAURANTS, INC.

 

December 18, 1997

 

This Agreement
(the “Agreement”) between DavCo Restaurants, Inc. (“DRI”) and Coca-Cola USA
Fountain (“CCF”), an operating unit of The Coca-Cola Company, sets forth the
terms and conditions of certain programs related to the availability and
marketing of CCF’s Fountain Beverages in restaurants and other outlets owned or
operated by DRI or its subsidiaries.

 

SCOPE OF AGREEMENT

 

This Agreement
will apply to all outlets where Fountain Beverages are served that are owned or
operated by:

 

•                                          DRI,

 

•                                          its
current subsidiaries (namely, Midwest DavCo Food, Inc. (“MDF”), Southern
Hospitality Corporation (“SHC”), and FriendCo Restaurants, Inc. (“FriendCo”)),
and

 

•                                          subsidiaries
formed or acquired by DRI after this Agreement is signed,

 

including any
such outlets that are opened or acquired by DRI or any of its current or future
subsidiaries (collectively, the “Subsidiaries”) after this Agreement is signed.
All outlets to which this Agreement applies are referred to as “Covered
Outlets.” This Agreement will not apply to any outlets outside the fifty United
States and may not be assigned to a third party without CCF’s approval.

 

Unless
specifically stated otherwise in the program descriptions, the programs described
in this Agreement are in addition to those made available (i) to DRI, MDF and
SHC pursuant to their respective Wendy’s Franchisee Marketing Agreements with
CCF, (the “Wendy’s Franchisee Agreement”) and (ii) to FriendCo pursuant to its
Marketing Agreement with CCF, all of which have the same date as this
Agreement.

 

TERM

 

The term of
this Agreement began January 1, 1997 and will continue through December 31,
2004 or until DRI and the Subsidiaries have purchased the Volume Commitment of
CCF’s Fountain Syrups, whichever occurs last. When used in this Agreement, the
term “Year” means each calendar year during the Term.

 

DEFINITIONS

 

“Beverages”
means all soft drinks and other non-alcoholic flavored waters, punches and
ades, whether carbonated or non-carbonated, but does not include tea, brewed
coffee, juices, juice

 

 

containing
drinks, sports drinks, frozen beverages, unflavored carbonated and
non-carbonated water and dairy beverages (the “Excluded Beverages”).

 

“Fountain
Beverages” are those Beverages that are dispensed from post-mix or pre-mix
Beverage dispensers, bubblers, or similar equipment.

 

“Competitive
Beverages” and “Competitive Fountain Beverages” mean, respectively, any
Beverage or Fountain Beverage that is not marketed under a brand name or
trademark owned by or licensed for use to The Coca-Cola Company.

 

“Fountain
Syrup” means the post-mix syrup used to prepare Fountain Beverages, but does
not include other forms of concentrate or syrup for frozen Beverages that is
purchased from a full service supplier of frozen Beverages to which CCF
provides marketing funds.

 

BEVERAGE AVAILABILITY

 

DRI will serve
in its Covered Outlets and will cause the Subsidiaries to serve in their
Covered Outlets a core brand set of Fountain Beverages that consists of
Coca-Cola® classic, diet Coke® and Sprite®, and the remaining products will be
jointly selected by DRI and CCF.  CCF’s
Fountain Beverages will be the only Fountain Beverages served in the Covered
Outlets.

 

DRI agrees
that if it should, during the Term, consider the possibility of selling
Beverages packaged in bottles or cans or any Excluded Beverage in Fountain or
frozen form or in bottles or cans, it will allow The Coca-Cola Company the
opportunity to present to it a program regarding the sale and marketing of such
beverages prior to any similar presentation by any other potential supplier.
Further, DRI agrees that, during the Term, it will not enter into a contract
regarding the sale and/or marketing of such beverages with a third party upon
terms and conditions more favorable to such third party than those offered to
The Coca-Cola Company.

 

DRI currently
anticipates the acquisition of Exxon convenience/petroleum outlets and/or “dual
concept” Exxon/Wendy’s outlets located in the mid-Atlantic region of the U.S.
DRI agrees that any such outlets will be considered Covered Outlets for
purposes of this Agreement and agrees further that CCF’s Fountain Beverages
will be the only Fountain Beverages served in such outlets.

 

VOLUME COMMITMENT

 

DRI agrees
that the Covered Outlets will purchase [ * ] gallons of CCF’s Fountain Syrup
during the Term (the “Volume Commitment”). This Term Volume Commitment will be
increased by CCF if DRI or any Subsidiary acquires, after the execution of this
Agreement, additional Covered Outlets to which this Agreement will apply.

 

MARKETING PROGRAM

 

The following
marketing programs will be provided to assist DRI and the Subsidiaries in
promoting the sale of CCF’s Fountain Beverages in the Covered Outlets:

 

2

 

Research and Testing
Fund.

 

Research and Testing Funds in the maximum amount of $ [ * ] will be
provided to support mutually agreed upon research and testing programs that
relate to the sale of Fountain Beverages in the Covered Outlets. Funding will
be paid to DRI as approved expenses are incurred. CCF currently anticipates
that funds will be used according to the following schedule:

 

	
  Year

  	
   

  	
  Amount

  	
   

  
	
  1997

  	
   

  	
  [ * ]

  	
   

  
	
  1998

  	
   

  	
   

  	
   

  
	
  1999

  	
   

  	
   

  	
   

  
	
  2000

  	
   

  	
   

  	
   

  
	
  2001

  	
   

  	
   

  	
   

  
	
  2002

  	
   

  	
   

  	
   

  
	
  2003

  	
   

  	
   

  	
   

  
	
  2004

  	
   

  	
   

  	
   

  

 

Mr. PiBB® Incentive
Program.

 

Beginning in Year Two, the Covered Outlets. will be eligible to
participate in CCF’s Mr. PiBB® “Buy 10, Get One Free” Incentive Program.
For every ten (10) Bag-in-Box containers of Mr. PiBB® Fountain Syrup purchased,
CCF will reimburse DRI or the applicable Subsidiary for its cost of purchasing
the eleventh Bag-in-Box container of Mr. PiBB®. Such payments will be made
semiannually and will be based on CCF’s then-current published chain account
price list, which is subject to change from time to time, less a discount of
two percent (2%) and less the amount of Marketing Allowances (as defined in the
Wendy’s Franchisee Agreements and FriendCo’s Marketing Agreement) paid by CCF
in connection with DRI’s or a Subsidiary’s purchase of such eleventh Bag-in-Box
container.

 

Mr. PiBB® Brand
Development Fund.

 

In Year Two only, CCF will provide funding of up to $ [ * ] for each
Covered Outlet operated under the Wendy’s or Friendly’s tradestyles which, as
of April 1, 1998, serves Mr. PiBB®. This fund is provided to offset the cost of
developing and implementing promotional programs featuring Mr. PiBB®.  To qualify for funding, DRI and the
applicable Subsidiaries must perform certain mutually agreed upon brand
development activities which may include, without limitation, crew incentive
programs and the development and continuous utilization of customized
merchandising for Mr. PiBB®. Funding will be paid to DRI or its designee as
expenses for agreed upon activities are incurred.

 

Lemonade Brand Development
Fund.

 

In Year Two only, CCF will provide to DRI funds in the maximum amount
of $ [ * ] to support the introduction of Original Style Lemonade from the
Makers of Minute Maid® (“MMOSL”) throughout the Covered Outlets. To qualify for
funding, DRI and the Subsidiaries must introduce MMOSL in all Covered Outlets
and perform certain

 

3

 

mutually agreed upon brand development activities which may include,
without limitation, crew incentive programs and other promotional activities
designed to increase consumer awareness of MMOSL and the development and
continuous utilization of customized merchandising for MMOSL. Funding will be
paid to DRI or its designee as expenses for agreed upon activities are incurred.

 

Supplemental Funding.

 

[ * ]

 

Merchandising Fund.

 

CCF will provide $ [ * ] to support DRI’s and SHC’s development and
purchase of mutually agreed upon merchandising materials featuring CCF’s
trademarks and logos during 1997 and 1998. These materials may include, without
limitation, illuminated pick-up window banner stands and illuminated Fountain
Beverage merchandisers. Funding will be used by CCF to pay suppliers for goods
and services utilized in connection with the development and purchase of approved
materials.

 

EQUIPMENT

 

Equipment Purchase
Options.

 

In the event DRI, SHC and MDF elect to purchase the CCF-owned Fountain
Beverage dispensing equipment which will be loaned to them for their “Wendy’s
Outlets” (i.e., any Covered Outlet operated under the Wendy’s tradestyle,
including dual concept Exxon/Wendy’s outlets) pursuant to their respective
Wendy’s Franchisee Agreements, they may purchase such equipment directly from
CCF or finance the purchase of such equipment through Coca-Cola Financial Corporation
(“CCFC”). If equipment is purchased directly through CCF, CCF will, at DRI’s or
the applicable Subsidiaries’ direction, issue an invoice for payment or deduct
the purchase price of the equipment from the first two (2) payments of
Marketing Allowances due, pursuant to the Wendy’s Franchisee Agreements, to DRI
or the applicable Subsidiary subsequent to the equipment sale.

 

Any obligation to extend credit to DRI, SHC or MDF is subject to
approval of the applicable entity’s credit and such entity’s acceptance of
CCF’s or CCFC’s then-current terms and conditions of lending.

 

CCF agrees to pass along to DRI or the applicable Subsidiary any
warranties offered by the equipment manufacturer that may be transferred to a
subsequent purchaser. However, any used equipment sold by CCF pursuant to this
Agreement will be sold subject to the provisions of the Equipment Sales
Agreement attached as Exhibit “A” hereto, ON AN “AS IS,” “WHERE IS”
BASIS, AND CCF MAKES NO GUARANTEE OR WARRANTY WHATSOEVER, INCLUDING ANY WARRANTIES
OF QUANTITY, QUALITY, CONDITION, SALABILITY, MERCHANTABILITY, OR FITNESS FOR

 

4

 

A PARTICULAR PURPOSE. DRI acknowledges that CCF has patent or other
proprietary rights in certain dispensers, valves and/or components that may be
part of the equipment to be sold to DRI, SHC and/or MDF. Accordingly, DRI
agrees that all proprietary equipment shall be sold subject to the Proprietary
Equipment Repurchase provisions of the Equipment Sales Agreement.

 

FriendCo Equipment
Survey.

 

CCF agrees to survey all Covered Outlets owned by FriendCo and to
provide FriendCo with an evaluation of the dispensing equipment currently
installed in such outlets.

 

SERVICE PROGRAM

 

[ * ]

 

TERMINATION

 

Once this
Agreement is signed by both parties, it may be terminated before the scheduled
expiration date only in the following circumstances:

 

(i)                                     Either
party may terminate the Agreement if the other party fails to comply with a
material term or condition of this Agreement and does not remedy the failure
within ninety (90) days after receiving written notice (the “Cure Period”).
Termination will be effective thirty (30) days after the end of the Cure
Period.

 

(ii)                                  Either
party may terminate this Agreement without cause after giving twelve months’
prior written notice.

 

(iii)                               CCF
will terminate this Agreement if a controlling interest in the stock or assets
of DRI is acquired by a third party, or if there is any other transfer of a
substantial portion of the stock or assets of DRI that is not in the ordinary
course of business. This provision shall not be construed to give CCF the right
to terminate this Agreement solely because DRI becomes a privately-held
corporation or is a party to a merger in which DRI is the surviving entity.

 

If this Agreement
is terminated before its expiration date for any reason, DRI must return any
dispensing equipment owned by CCF. Additionally, unless the agreement is
terminated by CCF without cause, DRI will pay the following damages at the time
of termination:

 

(i)                                     All
prepaid but unearned funding; plus

 

(ii)                                  Interest
on such amount at the rate of one percent per month, accrued from the date the
unearned funds were paid or costs were incurred.

 

5

 

DISPUTE RESOLUTION

 

If a dispute
arises out of or relates to this Agreement or the breach hereof, and if said
dispute cannot be settled through direct discussions, the parties agree to
attempt to settle the dispute in an amicable manner by mediation administered
by the American Arbitration Association under its Commercial Mediation Rules.
Thereafter, any unresolved controversy or claim arising out of or relating to
this Agreement, or the breach thereof, shall be settled by arbitration
administered by the American Arbitration Association in accordance with its
Commercial Arbitration Rules, and judgment on the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof. Any
arbitration brought under the terms of this agreement shall be conducted in the
following manner: CCF shall appoint one person as an arbitrator and DRI shall
appoint one person as an arbitrator. The two arbitrators so chosen shall select
a third impartial arbitrator within ten (10) days of the date on which the
second arbitrator is selected. If the arbitrators selected by the parties are
unable or fail to agree upon the third arbitrator, such arbitrator shall be
selected by the American Arbitration Association. The three arbitrators shall
determine all questions presented to them by majority vote. The decision of a
majority of the arbitrators shall be final and conclusive on the parties
hereto.

 

AUTHORITY

 

DRI represents
and warrants that it has the unrestricted right and is authorized to enter into
this Agreement, to receive the funding described herein, and to cause the
Covered Outlets to perform the activities required to earn such funding.

 

ACQUISITION OF SUBSIDIARIES

 

In the event
DRI divests itself of any Subsidiary, the programs described herein will not be
assignable or transferable to the party acquiring the Subsidiary and may not be
disclosed to the acquiring parry.

 

WAIVER

 

The failure by
either party to seek redress for the breach of, or to insist upon the strict
performance of, any term, clause or provision of this Agreement, shall not
constitute a waiver of such breach or performance, unless such waiver shall be
in writing and signed by the party waiving performance. Any waiver so signed
shall not constitute a waiver of any other different or subsequent breach.

 

CONFIDENTIALITY

 

Neither party
shall disclose to any third party without the prior written consent of the
other party, any information concerning this Agreement or the transactions
contemplated hereby, except for disclosure to any employees, attorneys,
accountants and consultants involved in assisting with the negotiation and
closing of the contemplated transactions, or unless such disclosure is required
by law. A party that makes a permitted disclosure must obtain assurances from
the party to whom disclosure is made that such party will keep confidential the
information disclosed.

 

6

 

TRADEMARKS

 

Neither DRI
nor CCF shall make use of any of the other party’s trademarks or logos without
the prior written consent of that party, and all use of the other party’s
trademarks shall inure to the benefit of that party.

 

Agreed to this
18th day of December, 1997.

 

	
  COCA-COLA
  FOUNTAIN

  	
   

  	
  DAVCO
  RESTAURANTS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Thomas M. Ludwick

  	
   

  	
  By:

  	
  /s/
  Ronald D. Kirstien

  	
   

  
	
   

  	
  Thomas M.
  Ludwick

  Vice President

  Wendy’s International Account Team

  	
   

  	
   

  	
  Ronald D.
  Kirstien

  Chairman of the Board

  	
   

  

 

7

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