May 29, 1992
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Family Steak Houses of Florida, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇.
▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Dear ▇▇▇▇▇:
This letter is to serve as an amendment to the franchise
agreement between Ryan's Family Steak Houses, Inc.
("Ryan's") and Family Steak Houses of Florida, Inc.
("Family"). Please review and sign on the last page if
everything is in order. If you wish to discuss any
specifics, please contact either Charlie Way or myself. As
always, we look forward to working with you to make Family
and Ryan's the best organizations possible.
With regard to the adjustment of the monthly royalty fee,
both parties agree to the following:
1. At the beginning of the fiscal month of May (May 7,
1992) and the acceptance of the terms of this letter, Family
is authorized to begin the reduction described below in its
monthly royalty fee payments to Ryan's for sales after May
7, 1992. All payments for sales prior to that date will
still be effective at the five percent rate.
2. In order for any and all reductions to remain in place
during the terms of the franchise agreements, Family must
exclusively purchase those food products approved by Ryan's.
Any deviation from the approved list must have prior written
authorization by Ryan's Vice President of Purchasing. A
failure to follow this procedure will result in an immediate
return to the five percent royalty fee.
3. Based upon the above terms, the applicable royalty fee
for the fiscal 52 or 53 week period commencing with May 7,
1992 shall be four and three-quarters percent (4 _%).
4. As long as the products used by Family continue to be
approved by Ryan's, there will be a further one-quarter
percent reduction each succeeding 52 or 53 week period until
a four percent royalty fee is reached. From that point, a
four percent royalty fee will be applicable during the term
of the franchise agreement.
5. The five percent royalty fee will be immediately
reinstated if the product usage and/or approval process is
not strictly followed by Family as noted in item number 2
above.
With regard to the number of restaurants that are required
to be opened by fiscal year's end, Ryan's agrees to revise
the current franchise agreement as follows:
Cumulative Number of
Restaurants Required
End of Fiscal Year to be in Operation
1991 28
1992 28
1993 28
1994 30
1995 32
1996 34
1997 37
1998 40
1999 43
2000 46
2001 and subsequent years 50
This revision in the opening schedule is agreed to in order
to allow Family to meet its current and future financial
requirements. Also, this revision should also allow Family
to remodel its existing restaurants, as well as allow Family
to concentrate its efforts on operations.
Except as herein modified, the franchise agreement currently
in effect between Ryan's and Family shall continue in full
force and effect in accordance with its term and conditions.
After reviewing the above terms, please sign and return. We
look forward to continuing the excellent relationships that
we have had in the past and assisting you in all means
possible.
Sincerely,
▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Chairman
Accepted and Agreed:
Family Steak Houses of Florida, Inc.
By: _______________________________
▇▇▇▇▇ ▇▇▇▇▇, Chairman
By: _______________________________
▇▇▇ ▇▇▇▇▇▇, President
