EXHIBIT 10.12 Area Development Agreement

                                                                   EXHIBIT 10.12



                              Buffalo Wild Wings(R)


                           Area Development Agreement


                                     Between


                     Buffalo Wild Wings International, Inc.
                          1600 Utica Avenue, Suite 700
                              Minneapolis, MN 55416


                                       And



                                 Effective Date:



                             -----------------------
                             (To be completed by Us)


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                                TABLE OF CONTENTS
                                -----------------

SECTION                                                                  PAGE
-------                                                                  ----

RECITALS 2

1.   DEFINITIONS..........................................................2

2.   GRANT OF DEVELOPMENT RIGHTS..........................................2

3.   DEVELOPMENT FEE......................................................2

4.   DEVELOPMENT SCHEDULE.................................................2

5.   TERM2

6.   YOUR DUTIES..........................................................2

7.   DEFAULT AND TERMINATION..............................................2

8.   RIGHTS AND DUTIES OF PARTIES UPON TERMINATION OR EXPIRATION..........2

9.   TRANSFER.............................................................2

10.  MISCELLANEOUS........................................................2


APPENDICES
----------

A.       DEVELOPMENT TERRITORY
B.       DEVELOPMENT SCHEDULE


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                              BUFFALO WILD WINGS(R)
                           AREA DEVELOPMENT AGREEMENT

     This Area  Development  Agreement  is made this ____ day of , 2005  between
BUFFALO WILD WINGS  INTERNATIONAL,  INC., an Ohio corporation with its principal
business located at 1600 Utica Avenue South, Suite 700,  Minneapolis,  Minnesota
55426 ("we" or "us") and , a(n) .........  whose principal  business  address is
("developer"  or "you").  If the  developer  is a  corporation,  partnership  or
limited  liability  company,  certain  provisions of the Agreement also apply to
your owners and will be noted.

                                    RECITALS

     A.   Our parent  company has developed a unique system for operating  video
entertainment  oriented,  fast casual  restaurants  that feature  chicken wings,
sandwiches, unique food service and other products, beverages and services using
certain standards and specifications;

     B.   Many of the food and  beverage  products  are  prepared  according  to
specified recipes and procedures,  some of which include  proprietary sauces and
mixes;

     C.   Our parent company owns the BUFFALO WILD WINGS(R)  Trademark and other
trademarks  used in  connection  with the  Operation  of a  BUFFALO  WILD  WINGS
restaurant;

     D.   Our parent company has granted to us the right to sublicense the right
to develop and operate BUFFALO WILD WINGS restaurants;

     E.   You  desire  to  develop  and  operate   several  BUFFALO  WILD  WINGS
restaurants  and we, in reliance on your  representations,  have  approved  your
franchise application to do so in accordance with this Agreement.

     In   consideration   of  the  foregoing   and  the  mutual   covenants  and
consideration below, you and we agree as follows:

                                   DEFINITIONS

     1.   For  purposes of this  Agreement,  the terms below have the  following
definitions:

          A.   "Menu  Items"  means  the  chicken  wings,  sandwiches  and other
     products and  beverages  prepared  according to our  specified  recipes and
     procedures, as we may modify and change them from time to time.

          B.   "Principal  Owner"  means any person who  directly or  indirectly
     owns a 10% or greater  interest in the  developer  when the  developer is a
     corporation, limited liability company, a partnership, or a similar entity.
     However,  if we are entering into this Agreement totally or partially based
     on  the  financial   qualifications,   experience,   skills  or  managerial
     qualifications of any person or entity who directly or indirectly owns less
     than a 10% interest in the  developer,  we have the right to designate that
     person  or  entity  as a  Principal  Owner  for  all  purposes  under  this
     Agreement,  including,  but not limited to, the  execution  of the personal
     guaranty referenced in Section 10.J below. In addition, if the developer is
     a  partnership  entity,  then each  general  partner is a Principal  Owner,
     regardless of the percentage ownership interest. If the developer is one or


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     more  individuals,  each  individual is a Principal Owner of the developer.
     You must have at least one Principal Owner.

          C.   "Restaurants"  means  the  BUFFALO  WILD  WINGS  Restaurants  you
     develop and operate pursuant to this Agreement.

          D.   "System"  means the BUFFALO WILD WINGS System,  which consists of
     distinctive food and beverage  products  prepared  according to special and
     confidential recipes and formulas with unique storage, preparation, service
     and delivery procedures and techniques, offered in a setting of distinctive
     exterior and interior layout, design and color scheme, signage, furnishings
     and materials and using certain distinctive types of facilities, equipment,
     supplies, ingredients, business techniques, methods and procedures together
     with sales promotion  programs,  all of which we may modify and change from
     time to time.

          E.   "Trademarks"  means the BUFFALO WILD WINGS  Trademark and Service
     Mark that have been  registered  in the United States and elsewhere and the
     trademarks,  service  marks  and trade  names  set forth in each  Franchise
     Agreement,  as we may modify and  change  from time to time,  and the trade
     dress and other  commercial  symbols used in the  Restaurants.  Trade dress
     includes the designs,  color  schemes and image we authorize  you to use in
     the operation of the Restaurants from time to time.

                           GRANT OF DEVELOPMENT RIGHTS
                           ---------------------------

     2.   The following  provisions  control with respect to the rights  granted
hereunder:

          A.   We  grant  to  you,  under  the  terms  and  conditions  of  this
     Agreement,  the right to develop and operate  _________  (___) BUFFALO WILD
     WINGS  Restaurants (the  "Restaurants")  within the territory  described on
     Appendix A ("Development Territory").

          B.   You  are  bound  by  the   development   schedule   ("Development
     Schedule")  set  forth  in  Appendix  B.  Time  is of the  essence  for the
     development of each Restaurant in accordance with the Development Schedule.
     Each  Restaurant  must be  developed  and  operated  pursuant to a separate
     Franchise  Agreement  that you enter into with us  pursuant  to Section 4.B
     below.

          C.   If you are in compliance with the Development  Schedule set forth
     on  Appendix  B, we will not  develop  or operate  or grant  anyone  else a
     franchise to develop and operate a BUFFALO WILD WINGS  Restaurant  business
     (except for the Special  Sites and Limited  Seating  Facilities  defined in
     Section 2.D or as otherwise set forth in this Agreement) in the Development
     Territory prior to the earlier of (i) the expiration or termination of this
     Agreement;  (ii) the date on which you must execute the Franchise Agreement
     for your last restaurant pursuant to the terms of the Development  Schedule
     or (iii) the date on which the  Designated  Area for your final  Restaurant
     under  this  Agreement  is  determined.  However,  in the  event  that  the
     Development  Territory  covers  more  than one city,  county or  designated
     market area, the protection for each particular city,  county or designated
     market  area shall  expire upon the  earliest  of (1) any of the  foregoing
     events or (2) the date when the Designated  Area for your final  Restaurant
     to be developed in such city,  county or designated  market area under this
     Agreement is determined.  Notwithstanding anything in this Agreement,  upon
     the earliest  occurrence of any of the foregoing events (i) the Development
     Territory shall expire and (ii) we will be entitled to develop and operate,
     or  to  franchise  others  to  develop  and  operate,  BUFFALO  WILD  WINGS
     restaurants  in the  Development  Territory,  except  as  may be  otherwise
     provided under any Franchise  Agreement  that has been executed  between us
     and you and that  has not been  terminated.  At the time you  execute  your


                                       2

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     final Franchise Agreement under the Development Schedule,  you must have an
     Authorized Location for your final Restaurant.

          D.   The rights  granted under this Agreement are limited to the right
     to develop and operate  Restaurants  located in the Development  Territory,
     and do not include (i) any right to sell products and Menu Items identified
     by the  Trademarks at any location or through any other channels or methods
     of  distribution,  including the internet (or any other  existing or future
     form  of  electronic  commerce),  other  than  at  Restaurants  within  the
     Development  Territory,  (ii) any  right to sell  products  and Menu  Items
     identified by the  Trademarks to any person or entity for resale or further
     distribution,  or (iii) any right to exclude,  control or impose conditions
     on our  development or operation of franchised,  company or affiliate owned
     restaurants  at any  time or at any  location  outside  of the  Development
     Territory.  You may not use any the words BUFFALO,  WILD or WINGS or any of
     the other Trademarks as part of the name of your corporation,  partnership,
     limited liability company or other similar entity.

          You acknowledge and agree that we and our affiliates have the right to
     operate and franchise others the right to operate  restaurants or any other
     business  within and outside the  Development  Territory  under  trademarks
     other than the BUFFALO WILD WINGS Trademarks,  without  compensation to any
     franchisee,  except that our operation of, or  association  or  affiliation
     with,  restaurants  (through  franchising or otherwise) in the  Development
     Territory  that compete with  BUFFALO WILD WINGS  restaurants  in the video
     entertainment  oriented,  fast casual  restaurant  segment  will only occur
     through  some form of merger or  acquisition  with an  existing  restaurant
     chain. Outside of the Development Territory, we and our affiliates have the
     right to grant other franchises or develop and operate company or affiliate
     owned BUFFALO WILD WINGS  restaurants  and offer,  sell or  distribute  any
     products  or  services  associated  with the System  (now or in the future)
     under the Trademarks or any other trademarks,  service marks or trade names
     or through any distribution  channel or method, all without compensation to
     any franchisee.

          We and our  affiliates  have the right to offer,  sell or  distribute,
     within and  outside the  Development  Territory,  any frozen,  pre-packaged
     items or other products or services  associated  with the System (now or in
     the  future) or  identified  by the  Trademarks,  or any other  trademarks,
     service  marks or trade  names,  except for  Prohibited  Items (as  defined
     below), through any distribution channels or methods,  without compensation
     to any franchisee.  The distribution  channels or methods include,  without
     limitation,  grocery stores, club stores,  convenience  stores,  wholesale,
     hospitals, clinics, health care facilities,  business or industry locations
     (e.g.   manufacturing  site,  office  building),   military  installations,
     military commissaries or the internet (or any other existing or future form
     of electronic commerce).  The Prohibited Items are the following items that
     we will not sell in the Development  Territory  through other  distribution
     channels or methods:  any retail food service Menu Items that are cooked or
     prepared to be served to the end user or customer  for  consumption  at the
     retail location (unless sold at the limited seating  facilities  referenced
     in subparagraph  (i) of the paragraph  above).  For example,  chicken wings
     cooked and served to  customers  at a grocery  store or  convenience  store
     would be a Prohibited Item, but the sale of frozen or pre-packaged  chicken
     wings at a grocery store or convenience  store would be a permitted form of
     distribution in the Development Territory.

          You   acknowledge  and  agree  that  certain   locations   within  the
     Development  Territory are by their nature unique and separate in character
     from sites  generally  developed  as BUFFALO WILD WINGS  restaurants.  As a
     result,  you agree  that the  following  locations  ("Special  Sites")  are
     excluded from the Development  Territory and we have the right,  subject to
     our then-current  Special Sites Impact Policy, to develop or franchise such
     locations:  (1) military bases; (2) public transportation  facilities;  (3)
     sports  facilities,  including  race  tracks;  (4) student  unions or other


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     similar  buildings on college or  university  campuses;  (5)  amusement and
     theme parks; and (6) community and special events.

          In addition,  you acknowledge and agree that, subject to your right of
     first refusal as set forth below,  we and our affiliates  have the right to
     operate  or  franchise  within  the  Development   Territory  one  or  more
     facilities selling, for dine in or take out, all or some of the Menu Items,
     using the Trademarks or any other trademarks, service marks or trade names,
     without  compensation  to any  franchisee,  provided,  however,  that  such
     facilities  shall not have an interior  area larger than 2,400  square feet
     and  shall not have  seating  capacity  for more  than 48 people  ("Limited
     Seating Facilities").  If we develop a model for a Limited Seating Facility
     and determine that your Development  Territory is an appropriate market for
     such  a  facility,  we  will  provide  to  you a  written  offer  ("Offer")
     specifying  the terms and  conditions  for your  development of the Limited
     Seating Facility. You will have 90 days following your receipt of the Offer
     to accept the Offer by delivering  written notice to us of your acceptance,
     provided  that you are not in  default  under this  Agreement  or any other
     Agreement with us or our  affiliates.  If you do not provide written notice
     to us within the time period or if you are in default under this  Agreement
     or any other agreement with us or our  affiliates,  you will lose the right
     to develop the Limited  Seating  Facility  and we may develop or  franchise
     others to develop  the Limited  Seating  Facility  within your  Development
     Territory.  You  acknowledge and agree that if you accept the Offer, we may
     require you to submit a full application, pay an initial fee and sign a new
     form of franchise agreement.

          E.   This Agreement is not a Franchise Agreement and you have no right
     to use in any manner the Trademarks by virtue of this  Agreement.  You have
     no right under this  Agreement  to  sublicense  or  subfranchise  others to
     operate a business or restaurant or use the System or the Trademarks.

                                 DEVELOPMENT FEE
                                 ---------------

     3.   You must pay a Development Fee as described below:

          A.   As  consideration  for the rights granted in this Agreement,  you
     must pay us a "Development Fee" of $_________, representing one-half of the
     Initial  Franchise  Fee for each  Restaurant  to be  developed  under  this
     Agreement.   The  Initial   Franchise  Fee  for  the  first  Restaurant  is
     $___________.  The  Initial  Franchise  Fee for the  second  Restaurant  is
     $__________.  The Initial  Franchise Fee for each subsequent  Restaurant is
     $__________.

          The  Development  Fee is  consideration  for  this  Agreement  and not
     consideration  for any  Franchise  Agreement,  is fully  earned  by us upon
     execution of this Agreement and is non-refundable.  The part of the Initial
     Franchise Fee that is included in the Development  Fee is credited  against
     the  Initial  Franchise  Fee payable  upon the  signing of each  individual
     Franchise Agreement. The balance of the Initial Franchise Fee for the first
     Restaurant  must be  paid  at the  time  of  execution  of this  Agreement,
     together with the execution by you of the Franchise Agreement for the first
     Restaurant.  The total amount to be paid by you at the time of execution of
     this Agreement pursuant to this Section, including both the Development Fee
     and the balance of the Initial  Franchise Fee for your first  Restaurant is
     $_______.  The balance of the  Initial  Franchise  Fee for each  subsequent
     Restaurant is due as specified in Section 3.B.

          B.   You must submit a separate  application for each Restaurant to be
     established by you within the Development Territory as further described in
     Section  4. Upon our  consent  to the site of your  Restaurant,  a separate
     Franchise  Agreement  must be executed for each such  Restaurant,  at which


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     time the balance of the Initial  Franchise  Fee for that  Restaurant is due
     and owing. Such payment  represents the balance of the appropriate  Initial
     Franchise  Fee, as described  above in Section 3.A.  Upon the  execution of
     each  Franchise  Agreement,  the  terms  and  conditions  of the  Franchise
     Agreement control the establishment and operation of such Restaurant.

                              DEVELOPMENT SCHEDULE
                              --------------------

     4.   The  following  provisions  control with  respect to your  development
rights and obligations:

          A.   You  are  bound  by and  strictly  must  follow  the  Development
     Schedule. By the dates set forth under the Development  Schedule,  you must
     enter into Franchise  Agreements with us pursuant to this Agreement for the
     number of Restaurants  described under the Development  Schedule.  You also
     must comply with the Development  Schedule  requirements  regarding (i) the
     restaurant  type to be developed  and the opening date for each  Restaurant
     and (ii) the cumulative  number of Restaurants to be open and  continuously
     operating for business in the Development Territory.  If you fail to either
     execute a Franchise  Agreement  or to open a  Restaurant  according  to the
     dates  set  forth in the  Franchise  Agreement,  we have  the  right to (i)
     require  that you  hire a  franchise  development  expert  with  recognized
     experience in  developing  franchises in a similar line of business to ours
     or (ii)  immediately  terminate this Agreement  pursuant to Section 7.B. If
     you are developing 3 or more  restaurants  under this  Agreement,  you will
     have a "late opening  extension  right" of two weeks for each restaurant in
     which  we will  not  have  the  right  under  (i) or  (ii) in the  previous
     sentence. To take advantage of this late opening extension, you must make a
     request for the  extension  45 days prior to the opening  date set forth in
     the Franchise Agreement and have been in continuous  compliance  throughout
     the term of this Agreement.

          B.   You may not develop a Restaurant unless (i) at least 45 days, but
     no more  than 60  days,  prior to the  date  set  forth in the  Development
     Schedule  for the  execution  of each  Franchise  Agreement,  you send us a
     notice  (a)  requiring  that  we  send  you  our  then  current  disclosure
     documents,   (b)  confirming  your  intention  to  develop  the  particular
     Restaurant  and (c) sending us all  information  necessary  to complete the
     Franchise  Agreement  for the  particular  Restaurant  and  (ii) all of the
     following  conditions  have  been  met  (these  conditions  apply  to  each
     Restaurant to be developed in the Development Territory):

               1.   Your  Submission of Proposed  Site. You must find a proposed
          site for the Restaurant which you reasonably believe to conform to our
          site  selection  criteria,  as modified  by us from time to time,  and
          submit to us a complete  site  report  (containing  such  demographic,
          commercial, and other information and photographs as we may reasonably
          require) for such site.

               2.   Our Consent to Proposed  Site.  You must receive our written
          consent to your proposed site. We agree not to  unreasonably  withhold
          consent to a proposed  site.  Prior to granting our consent to a site,
          you must have the site  evaluated by the  proprietary  site  evaluator
          software that has been developed by GeoVue,  Inc. You will pay GeoVue,
          Inc. an evaluation fee of $400 per site evaluated,  provided, that you
          must  purchase the rights to have at least 3 sites  evaluated,  unless
          you receive our prior approval to purchase less than 3 sites, based on
          the trade area.  In approving or  disapproving  any proposed  site, we
          will consider such matters as we deem material,  including demographic
          characteristics of the proposed site,  traffic patterns,  competition,
          the proximity to other  businesses,  the nature of other businesses in
          proximity to the site, and other commercial characteristics (including
          the purchase or lease  obligations for the proposed site) and the size


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          of  premises,  appearance  and  other  physical  characteristics.  Our
          consent to a proposed site, however,  does not in any way constitute a
          guaranty by us as to the success of the Restaurant.

               3.   Your Submission of  Information.  You must furnish to us, at
          least 30 days prior to the  earliest  of (i) the date set forth in the
          Development  Schedule by which you must execute a Franchise  Agreement
          or (ii) the  actual  date in which the  Franchise  Agreement  would be
          executed,  a  franchise   application  for  the  proposed  Restaurant,
          financial   statements  and  other  information   regarding  you,  the
          operation  of any of your other  Restaurants  within  the  Development
          Territory and the development and operation of the proposed Restaurant
          (including, without limitation, investment and financing plans for the
          proposed Restaurant) as we may reasonably require.

               4.   Your   Compliance  with  Our   Then-Current   Standards  for
          Franchisees.  You must receive written  confirmation  from us that you
          meet our then-current  standards for franchisees,  including financial
          capability  criteria  for the  development  of a new  Restaurant.  You
          acknowledge and agree that this requirement is necessary to ensure the
          proper development and operation of your Restaurants, and preserve and
          enhance  the  reputation  and  goodwill  of  all  BUFFALO  WILD  WINGS
          restaurants and the goodwill of the Trademarks.  Our confirmation that
          you meet  our  then-current  standards  for the  development  of a new
          Restaurant,  however,  does not in any way constitute a guaranty by us
          as to your success.

               5.   Good Standing. You must not be in default of this Agreement,
          any Franchise Agreement entered into pursuant to this Agreement or any
          other agreement between you or any of your affiliates and us or any of
          our  affiliates.  You also must have  satisfied  on a timely basis all
          monetary and material  obligations under the Franchise  Agreements for
          all existing Restaurants.

               6.   Execution of Franchise Agreement. You and we must enter into
          our  then-current  form  of  Franchise   Agreement  for  the  proposed
          Restaurant. You understand that we may modify the then-current form of
          Franchise  Agreement  from  time to time and that it may be  different
          than the current form of Franchise Agreement, including different fees
          and  obligations.  You understand and agree that any and all Franchise
          Agreements  will  be  construed  and  exist   independently   of  this
          Agreement. The continued existence of each Franchise Agreement will be
          determined by the terms and  conditions of such  Franchise  Agreement.
          Except as specifically set forth in this Agreement,  the establishment
          and operation of each  Restaurant must be in accordance with the terms
          of the applicable Franchise Agreement.

          C.   You  must  begin   substantial   construction   of  each  of  the
     Restaurants  at least  150 days  before  the  deadline  to open each of the
     Restaurants  if the  Restaurant  will be in a free standing  location or at
     least 120 days before the deadline to open the Restaurant if the Restaurant
     will be in a non-free  standing  location.  In  addition,  on or before the
     deadlines to start  construction  you must submit to us executed  copies of
     any loan  documents  and/or any other  document  that  proves that you have
     secured  adequate  financing to complete the construction of the Restaurant
     by the  date  you  are  obligated  to  have  that  Restaurant  open  and in
     operation.  In the  event  that  you  fail  to  comply  with  any of  these
     obligations,  we will have the right to terminate  this  Agreement  without
     opportunity to cure pursuant to subparagraph 7.B.

          D.   You   acknowledge   that  you  have   conducted  an   independent
     investigation of the prospects for the establishment of Restaurants  within
     the  Development  Territory,   and  recognize  that  the  business  venture
     contemplated  by this  Agreement  involves  business and economic risks and


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     that your financial and business  success will be primarily  dependent upon
     the personal efforts of you and your management and employees. We expressly
     disclaim the making of, and you acknowledge that you have not received, any
     estimates,  projections,  warranties  or  guaranties,  express or  implied,
     regarding potential gross sales, profits, earnings or the financial success
     of the Restaurants you develop within the Development Territory.

          E.   You recognize and acknowledge that this Agreement requires you to
     open  Restaurants in the future pursuant to the Development  Schedule.  You
     further acknowledge that the estimated expenses and investment requirements
     set forth in Items 6 and 7 of our Uniform  Franchise  Offering Circular are
     subject to  increase  over time,  and that future  Restaurants  likely will
     involve greater initial investment and operating capital  requirements than
     those stated in the Uniform  Franchise  Offering  Circular  provided to you
     prior to the execution of this Agreement.  You are obligated to execute all
     the  Franchise  Agreements  and open all the  Restaurants  on the dates set
     forth on the Development  Schedule,  regardless of (i) the requirement of a
     greater  investment,  (ii) the financial  condition or  performance of your
     prior  Restaurants,   or  (iii)  any  other  circumstances,   financial  or
     otherwise.   The  foregoing  shall  not  be  interpreted  as  imposing  any
     obligation upon us to execute the Franchise Agreements under this Agreement
     if you have not complied with each and every condition necessary to develop
     the Restaurants.

                                      TERM
                                      ----

     5.   Unless  sooner  terminated  in  accordance  with  Section  7  of  this
Agreement  and subject to the terms  detailed in Section  2.C,  the term of this
Agreement  and all rights  granted to you will expire on the date that your last
BUFFALO WILD WINGS  Restaurant  is scheduled to be opened under the  Development
Schedule.

                                   YOUR DUTIES
                                   -----------

     6.   You must perform the following obligations:

          A.   You must  comply  with all of the  terms and  conditions  of each
     Franchise Agreement, including the operating requirements specified in each
     Franchise Agreement.

          B.   You and your owners, officers, directors, shareholders, partners,
     members and managers (if any) acknowledge that your entire knowledge of the
     operation of a BUFFALO WILD WINGS Restaurant and the System,  including the
     knowledge or know-how regarding the specifications, standards and operating
     procedures of the services and activities,  is derived from  information we
     disclose to you and that certain  information is proprietary,  confidential
     and constitutes  our trade secrets.  The term "trade secrets" refers to the
     whole or any  portion  of  know-how,  knowledge,  methods,  specifications,
     processes,  procedures and/or  improvements  regarding the business that is
     valuable  and  secret in the sense  that it is not  generally  known to our
     competitors  and any  proprietary  information  contained in the manuals or
     otherwise communicated to you in writing,  verbally or through the internet
     or other  online or computer  communications,  and any other  knowledge  or
     know-how  concerning the methods of operation of the  Restaurants.  You and
     your  owners,  officers,  directors,  shareholders,  partners,  members and
     managers (if any),  jointly and  severally,  agree that at all times during
     and  after  the term of this  Agreement,  you will  maintain  the  absolute
     confidentiality of all such proprietary  information and will not disclose,
     copy, reproduce,  sell or use any such information in any other business or
     in any manner not specifically authorized or approved in advance in writing
     by us. We may require  that you obtain  nondisclosure  and  confidentiality
     agreements in a form satisfactory to us from the individuals  identified in
     the first sentence of this paragraph and other key employees.


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          C.   You must comply with all requirements of federal, state and local
     laws, rules and regulations.

          D.   If you at some time in the future  desire to make either a public
     or a private offering of your securities,  prior to such offering and sale,
     and  prior  to  the  public  release  of any  statements,  data,  or  other
     information  of  any  kind  relating  to  the  proposed  offering  of  your
     securities,  you must secure our written approval,  which approval will not
     be unreasonably  withheld. You must secure our prior written consent to any
     and all press releases, news releases and any and all other publicity,  the
     primary  purpose of which is to generate  interest in your  offering.  Only
     after we have given our written approval may you proceed to file,  publish,
     issue, and release and make public any said data,  material and information
     regarding the securities offering.  It is specifically  understood that any
     review by us is solely for our own  information,  and our approval does not
     constitute any kind of authorization,  acceptance,  agreement, endorsement,
     approval, or ratification of the same, either expressly or implied. You may
     make no  oral or  written  notice  of any  kind  whatsoever  indicating  or
     implying  that  we  and/or  our   affiliates   have  any  interest  in  the
     relationship  whatsoever  to the  proposed  offering  other than  acting as
     Franchisor. You agree to indemnify,  defend, and hold us and our affiliates
     harmless, and our affiliates' directors,  officers,  successors and assigns
     harmless  from all claims,  demands,  costs,  fees,  charges,  liability or
     expense  (including  attorneys'  fees) of any kind whatsoever  arising from
     your offering of information  published or communicated in actions taken in
     that regard.

          E.   If neither you,  your  Principal  Owner,  nor any other person in
     your  organization  possesses,  in our judgment,  adequate  experience  and
     skills to allow you to locate,  obtain and develop  prime  locations in the
     Development  Territory  to allow you to meet your  development  obligations
     under this Agreement,  we can require that you hire or engage a person with
     those necessary skills.

                             DEFAULT AND TERMINATION
                             -----------------------

     7.   The   following   provisions   apply  with   respect  to  default  and
termination:

          A.   The  rights  and  territorial  protection  granted to you in this
     Agreement  have  been  granted  in  reliance  on your  representations  and
     warranties, and strictly on the conditions set forth in Sections 2, 4 and 6
     of this  Agreement,  including the condition that you comply  strictly with
     the Development Schedule.

          B.   You will be deemed in default under this  Agreement if you breach
     any of the  terms of this  Agreement,  including  the  failure  to meet the
     Development  Schedule, or the terms of any Franchise Agreement or any other
     agreements  between you or your  affiliates and us or our  affiliates.  All
     rights granted in this Agreement  immediately terminate upon written notice
     without  opportunity  to cure if:  (i) you  become  insolvent,  commit  any
     affirmative  action  of  insolvency  or file  any  action  or  petition  of
     insolvency,  (ii) a receiver  (permanent  or temporary) of your property is
     appointed  by a court of  competent  authority,  (iii)  you make a  general
     assignment or other similar  arrangement for the benefit of your creditors,
     (iv) a final judgment  remains  unsatisfied of record for 30 days or longer
     (unless  supersedeas  bond is filed),  (v) execution is levied against your
     business or property,  (vi) suit to foreclose any lien or mortgage  against
     theÂ