Fulham Shore plc has entered into a franchise agreement with Bukowski Limited, the owner of Bukowski Grill restaurants. Bukowski currently has two restaurants in London at Brixton Market and BoxPark, Shoreditch. Under the Franchise Agreement, the Company intends to open a new Bukowski restaurant on D'Arblay Street in Soho, London.

The Company already holds a 15 year lease on the site through its wholly owned subsidiary, 10 DAS Limited. Fit-out of the site is expected to commence shortly, with the Franchise Restaurant expected to open in early 2016. Total fit out costs are expected to be in the region of GBP 500,000.

Under the Franchise Agreement, Fulham Shore will pay to Bukowski Ltd. an upfront franchise fee of GBP 8,500 and an ongoing franchise royalty calculated at the rate of 5% of the Franchise Restaurant's revenue. The Franchise Agreement is for an initial period of three years, at the expiry of which the Company will be free to renew or cancel the Franchise Agreement at no additional cost. Under the terms of the Franchise Agreement, the Company will source and purchase relevant ingredients and prepared products for the Franchise Restaurant at an agreed price from the Bukowski Ltd.'s central kitchen.

In addition, through Fulham Shore's existing supply arrangements with an independent third party, Bukowski Ltd.'s central kitchen will now prepare and supply certain ingredients to the Company's Franco Manca restaurants at an agreed price through the independent third party.