11th Oct 2006 07:01
Domino's Pizza UK & IRL PLC11 October 2006 DOMINO'S PIZZA UK & IRL plc Renewal of the Development Term of the Master Franchise Agreement With Domino's Pizza International, Inc. Domino's Pizza Group Limited, a wholly-owned subsidiary of Domino's Pizza UK &IRL plc, ("Domino's Pizza" or the "Group"), the UK and Ireland leader in pizzadelivery, today announces that it has agreed new minimum store opening targetsas part of the Development Term of its Master Franchise Agreement with Domino'sPizza International, Inc., the US-based brand owner. The Development Term gives the Group the right to open new stores in theterritories of the United Kingdom and Ireland. It has been renewed until 31December 2016 on similar terms to the existing. Under the Master FranchiseAgreement, the Group has the option to renew the Development Term for subsequentperiods of ten years. The option to secure additional development rights in thefuture secures the Group's long-term rights to use the Domino's Pizza brand inthese territories. In respect of the royalty fee payable by the Group to Domino's PizzaInternational, Inc., it has been agreed that the existing discount structurewill continue on the same basis in the renewed term and all subsequentDevelopment Terms. In addition, it has been agreed that the royalty fee payableto Domino's Pizza LLC will never exceed 3.0%. Stephen Hemsley, Chief Executive of Domino's Pizza UK & IRL plc, said: "We are delighted to have concluded negotiations on the extension of theDevelopment Term and the future royalty rates. This further reinforces ourlong-term rights to use the Domino's Pizza brand in these markets, secures ourincome base and creates a secure platform from which to progress towards 1000stores" ENDS For further information, please contact: Domino's Pizza: Stephen Hemsley - Chief Executive 01908 580604Lee Ginsberg - Finance Director 01908 580611Bernadette Ahmed - Press Office 07909 928016 Hogarth Partnership Limited: Chris Matthews, Fiona Noblet, Anthony 020 7357 9477Arthur Notes to editors: Domino's Pizza UK & IRL plc holds the exclusive master franchise to own, operateand franchise Domino's Pizza stores in the UK and Ireland. The Group is theleading player in the UK and Ireland's fast-growing pizza delivery market. Thefirst UK store opened in 1985 and the first Irish store opened in 1991. There are 428 stores in the UK and Ireland. Of these, 345 stores are in England,31 are in Scotland, 14 are in Wales, 11 are in Northern Ireland and 27 are inthe Republic of Ireland. Founded in 1960, Domino's Pizza is the recognised world leader in pizzadelivery. Through its primarily franchised system, Domino's Pizza operates aglobal network of more than almost 8,000 stores in 55 countries. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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