Extra-Territorial Restaurant Caps Clause Samples

Extra-Territorial Restaurant Caps. During the Term the Extra-Territorial Restaurant Cap is 10 New Developer Restaurants. Any Extra-Territorial Restaurants developed and opened by Area Developer during the Term, up to the Extra-Territorial Restaurant Cap shall count towards the Cumulative Opening Target and fulfillment of Area Developer’s obligations under the Development Schedule and shall be treated as a New Developer Restaurant under the terms of this Agreement including, but not limited to, the amount of Franchise Fees, Royalty and Advertising Contribution set forth in this Agreement. Any Extra-Territorial Restaurants developed and opened by Area Developer during the Term in excess of the applicable Extra- Territorial Restaurant Cap shall not count towards the fulfillment of Area Developer’s obligations under the Development Schedule and the amount of Franchise Fees, Royalty and Advertising Contribution set forth in the New Developer Restaurant Franchise Agreements for such Restaurants shall be the Base Fee amounts for the entire term of such New Developer Restaurant Franchise Agreements.