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September 28, 2021
BUSINESS BUSINESS COMPANIES ECONOMY

Bucharest City Hall extends association with McDonald’s by a period of 15 years

The General Council of the Bucharest City Hall (CGMB), meeting on Monday, adopted a draft decision regarding the extension of the association with McDonald’s by a period of 15 years.

“We conclude today the additional contract with McDonald’s. As you know, the contract with McDonald’s for six locations in Bucharest started 26 years ago. Following this contact, we would receive until these months somewhere around a million RON per year. After the signing of the contract, we will receive somewhere around 5 million RON per year, updating thus with the market value of this real estate that we hold,” said the General Mayor, Nicusor Dan, in the sitting of the CGMB, Agerpres informs.

The decision provides for the approval of an additional act to the association contract of 1995 with McDonald’s Romania, currently Premier Restaurants Romania SRL, negotiated and agreed upon the basis of the report done by an expert accredited by the National Association of Authorized Appraisers of Romania (ANEVAR).

The General Mayor is empowered to sign, as legal representative of the city, the addition that pertains to the following places: Mihai Bravu Road no. 307, Oltenitei Road no. 21, Colentina Road no. 79, Basarabia Boulevard no. 99, Buzesti Street no 47-51, and Buzesti Str. 47A, as well as Calea Rahovei no. 237.

The associate will pay to the owner a percentage of the monthly net sales of each restaurant that functions on the property of the associate, but no less than the minimum guaranteed sum, both calculated on certain formulas.

The minimum guaranteed sum will be indexed automatically on January 1, 2023, and for the following period on each January 1, for the entire duration of the association.

According to it, if at a certain point, the owner’s right on the entire surface of land that is the object of a placement in the sense of the association is transferred in full to third parties, the association for that placement will cease, with the parties to conclude an additional act in this respect.

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