Store Franchise Agreement: - , Philippine Citizen of Legal Age (In Behalf of A

 

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STORE FRANCHISE AGREEMENT Known all persons by these presents: This Franchise Agreement Agreement is made and entered by and between – FARINAS BEST I!"!S E#$ANA%A IN"&' a "orporation organi(ed and e)isting *nder $hilippine law' with principal place o+ b*siness at ,- A #alingap Street "orner  #apag.aw #apa g.awangg anggawa awa Stree Street' t' Teach eachers ers /ill /illage' age' %ilima %iliman' n' 0*e(on 0*e(on "ity "ity'' repre represente sented d herein by #s& 1a(el Farinas' hereina+ter re+erred to as the 2FRAN"1IS!R3 2 FRAN"1IS!R3 4and4  __________________________   _______________________ ___ ' $hilippine citi(en o+ legal age 5in behal+ o+ a still to be established "orporation6 7 a "orporation e)isting *nder $hilippine law' with principal place o+ b*siness at 888888888888888888888888888' represented herein by 88888888888 8888888888888888' 88888' hereina+ter rre+erred e+erred to as the 2F 2FRAN"1ISEE3& RAN"1ISEE3&

9ITNESSET1: 91ER 91 EREA EAS' S' Fran Franch chis isor or o oer er a pe peri riod od o+ ti time me an and d as th the e re res* s*lt lt o+ th the e e)pend e)p endit* it*re re o+ tim time' e' s.i s.ill' ll' e+ e++or +ortt and mon money ey'' has deel deelope oped d and own owns s a *n *ni;* i;*e e system 52Sys system 52System36' tem36' ident identi+ied i+ied by the trade trademar. mar. s r>s hig high h and *n *ni+o i+orm rm sta standa ndards rds o+ men men*s' *s' +oo +ood d pre prepar parati ation' on' ;* ;*alit ality y' operations' and serice and the necessity o+ operating the Franchised Facility in strict con+ormity with Franchisor>s standards and speci+ications= 91EREAS' Franchisor e)pressly disclaims the ma.ing o+ and Franchisee ac.nowledges that it has not receied nor relied *pon' any warranty or g*aranty'

 

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e)press or implied' as to the reen*es' pro+its or s*ccess o+ the b*siness ent*re contemplated by this Agreement& Franchisee ac.nowledges that it has read this  Agreement and that it has signed the same *sing his own b*siness ?*dgment and not in consideration o+ any representation by Franchisor' or its o++icers' directors' shareholders' employees or agents or other terms apart +rom those embodied in this  Agreement= N!9' T1EREF!RE' the parties' in consideration o+ the *nderta.ings and commitments o+ each party to the other set +orth in this Agreement hereby agree as +ollows: I&

A$$!INT#ENT AN% F FR RAN"1ISE F FE EE  A&

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Franchisor hereby grants to Franchisee' *pon the terms and conditions herein contained' the right and priilege to *se the #ar. 2FARINAS I!"!S E#$ANA%A3' and Franchisee *nderta.es the obligation' to operate a 2FARINAS I!"!S E#$ANA%A3 Facility' all as designated or approed +rom time to time by Franchisor' and to *se solely in conne con necti ction on the therew rewith ith Fra Franch nchiso isor>s r>s Sys System tem'' as it may be ch chang anged' ed' improed and +*rther deeloped +rom time to time' at one 5@6 location only' s*ch location shall be at all times at  88888888888888888888888888888888888  88888888888888888888888 88888888888888& 88& Fra ranc nchi his see re rec ceie eies s a %e %es signa ignate ted d Ar Area ea an and d th the e %es esig ign nat ated ed A Are reas as receied by +ranchisees a ary ry in si(e a and nd dimensions& Franchisor shall not grant to itsel+ or another person an FARINAS I!"!S E#$ E#$ANA%A ANA%A +ranchise within s*ch e)cl*sie territory& Franchisee may relocate its +acility within the same general icinity icinity'' while remaining iin n the a+oresaid territory'' only with the prior written approal o+ Franchisor territory Franchisor&& Fran Franch chis isee ee re rec ceie eies s her herew ewit ith h the ge geog ogra raph phic ical al ar area ea o+ Fi Fie e 1* 1*nd ndre red d 56 meters radi*s aro*nd the Facility as stip*lated in Section @&A as %esi %e sign gnat ated ed Ar Area ea to op oper erat ate e th the e Fr Fran anch chis ised ed Fa Faci cili lity ty o+ FAR ARIN INAS AS I!"!S E#$ANA%A i+ said Franchised Facility is not located within a Shopping #all& Franchisor will not' so long l ong as this Agreement is in +orce and e++ect and Franchisee is not in material de+a*lt *nder any o+ the terms her terms hereo+ eo+'' en+ en+ran ranchi chise se or op opera erate te any oth other er FARI ARINAS NAS I! I!"!S "!S E#$ E# $AN ANA% A%A A Fa Faci cili lity ty wi with thin in th the e %e %esi sign gnat ated ed Ar Area ea&& F* F*rth rther ermo more re'' Franchisor has the right' in its sole discretion' to grant s*ch other  +ranchises o*tside o+ the %esignated A Area rea as Franchisor' in its sole and e)cl*sie discretion' deems appropriate& 1oweer' when ?*sti+ied by the demand within the %esignated Area' at the option o+ Franchisor' Franchisee may be re;*ired either to e)pand the Franchised Facility or  to set *p another Franchised Facility within the %esignated Area at a location approed by Franchisor& I+ Franchisor re;*ires Franchisee to set *p another Franchised Facility' Franchisee shall' within +i+teen 5@6 days +rom receipt o+ notice +rom Franchisor' indicate its willingness or  capability to do so& I+ Franchisee is either *nwilling or incapable o+  settin set ting g *p the ne new w +ac +acilit ility y' Fra Franch nchiso isorr may eit either her app appoin ointt ano anothe ther  r  Franchisee to constr*ct and operate the new +acility or red*ce the %esignated Area into *p to +i+ty percent 5C6 o+ its original coerage&

 

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Sho*ld the Fra Sho*ld Franch nchise ised d Fac Facilit ility y be loc locate ated d in a sho shoppi pping ng mal mall' l' no %esignated Area is awarded to Franchisee other than the Shopping #all where Franchise Facility is located& %&

Th The e ra radi di*s *s o o++ op oper erat atio ion n ma may yb be ee e)p )pan ande ded d +o +orr de deli lier ery ys ser eri ice ces so onl nly y to a radi*s as designated by Franchisor& Franchisee agrees to p*rchase and maintain s*++icient motorcycles +or delieries within the designated area&

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In c con onsi side dera rati tion on o o++ th the e +r +ran anch chis ise e gr gran ante ted d he here rein in'' Fr Fran anch chis isee ee s sha hall ll p pay ay to Franchisor a +ranchisee +ee priced e)cl*ding goernment +ees and to be paid *pon e)ec*tion o+ this agreement in the amo*nt o+ $esos Fie 1*ndred 1*nd red Tho* Tho*sand sand 5$ 5$' '&6 &6 e)cl e)cl*ding *ding Doe Doernmen rnmentt Fees and wi with thho hold ldin ing g ta ta)& )& Sa Said id +e +ee e sh shal alll be de deem emed ed +* +*lly lly ea earn rned ed an and d no non4 n4 re+*ndable&

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Franchisee agrees to proide ide Franchisor with a cash bond *pon signing o+ this Agreement b*t not later than two 5,6 wee.s be+ore start o+ op oper erat atio ion n o+ Fr Fran anch chis ised ed Fa Faci cilit lity y in th the e am amo* o*nt nt o+ $e $eso sos s Th Thir irty ty Tho*sand 5$'&6 only to ens*re +*l+illment on obligations o+ +ood s*pplies +rom Franchisor>s commissary& Said bond shall be in e++ect as long as this Agreement is alid and has be renewed or restored by Franchisee *pon *se by Franchisor to coer +or *npaid obligations by Franchisee to Franchisor on s*pplies +rom Franchisor>s commissary only& The bond amo*nt shall bear no interest to Franchisee and shall be re+* re+*nd ndab able le to Fr Fran anch chis isee ee at th the e en end d o+ th this is ag agre reem emen entt a+ a+te ter  r  ded*ction o+ any amo*nt d*e to Franchisor&

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In tthe he e ee ent nt a Fr Fran anch chis ised ed F Fac acil ilit ity y is lloc ocat ated ed iin naS Sho hopp ppin ing g #all #all w whe here rein in Franchisor has to sign as g*arantor +or Franchisee in rent obligation' Fr Fran anch chis isee ee ag agre rees es to pro proid ide e Fr Fran anch chis isor or wi with th a ca cash sh bo bond nd *p *pon on signing o+ this Agreement b*t not later than *pon signing o+ lease agreement +or the Franchised Facility with #all #anagement' in the amo*nt e;*ialent to two months rentals& Said bond shall be in e++ect as long as this agreement is alid and has be renewed or restored by Franchisee *pon *se by Franchisor to coer +or *npaid obligations by Franchise to #all #anagement& Franchisee agrees +*rther to *pgrade the bond amo*nt wheneer the Shopping #all #anagement increases the rental rate +or the location& The bond amo*nt shall bear no interest to Franchisee and shall be re+*ndable to Franchisee at the end o+ this agreement a+ter ded*ction o+ any amo*nt d*e to Franchisor or the Shopping mall&

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TER# AN% RENE9A  A&

This Agreement shall be e++ectie and binding +or an initial term e;*al to si) 56 years +rom the date o+ its e)ec*tion&

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Fr Fran anch chis isee ee s sha hall ll h ha ae e th the e ri righ ghtt to rren enew ew tthi his s +r +ran anch chis ise e at tthe he e e)p )pir irat atio ion n o+ the initial term o+ the +ranchise +or additional +ranchise terms o+ si) 56 yea years' rs' pro proid ided ed tha thatt all o+ the +ol +ollow lowing ing con condit dition ions s ha hae e bee been n +*l+illed prior to each renewal term: @&

Franchisee has' d*ring the entire term o+ this Agreement' s*bstantially complied with all its proisions=

 

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Fran Franch chis isee ee m mai aint ntai ains ns p pos osse sess ssio ion n o+ th the e Fra Franc nchi hise sed d Fa Faci cili lity ty an and d by the the e) e)pi pira ratio tion n da date te o+ th this is Ag Agre reem emen entt ha has s br bro* o*gh ghtt th the e Franchised Facility into +*ll compliance with the speci+ications and standards then applicable +or new or renewing +ranchised +acilities and presents written eidence satis+actory to Franchisor  that it has the right to remain in possession o+ the Franchised Facility premises +or the d*ration o+ any renewal term= or' in the een e entt Fr Fran anch chis isee ee is *n *nab able le to ma main inta tain in po poss sses essi sion on o+ th the e premises' or i+ in the sole ?*dgment o+ Franchisor the Franchised Facilit Fac ility y sho sho*ld *ld be rel reloca ocated ted'' Fra Franch nchise isee e sec sec*re *res s s* s*bst bstit* it*te te premises approed by Franchisor and has +*rnished' stoc.ed and e;*ipped s*ch premises to bring the Franchised Facility at its s* s*bst bstit* it*te te pre premis mises es int into o +*l +*lll compli complianc ance e wit within hin the the then4 n4 c*rrent speci+ications and standards by the e)piration date o+  this Agreement=

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Franchisee has gien notice o+ renewal to Franchisor as proided below=

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Franchisee has satis+ied all monetary obli lig gations owed by Franchisee to Franchisor and its s*bsidiaries and a++iliates and has timely met these obligations thro*gho*t the term o+ this

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 Agreement= Franchisee has e)ec*ted *pon renewal Franchisor> r>s s then4 c*rr c* rren entt +o +orm rm o+ Fran Franch chis ise e Ag Agre reem emen entt 5w 5wit ith h ap appr prop opri riat ate e modi+ications to re+lect the +act that the agreement relates to the grant o+ a renewal +ranchise6' which agreement shall s*persede in all respects this Agreement' and the terms o+ which may di++er  +rom the terms o+ this Agreement' incl*ding' witho*t limitation' a Royalty Fee and adertising contrib*tion or a di++erent territory territory&&

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Franchisee has complied with Franchisor> r>s s ;*ali+ication and training re;*irements= and

then4c*rrent

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Fr Fran anch chis isee ee pa pays ys a rren enew ewal al +e +ee ee e;* ;*i ial alen entt tto o ++i+t i+ty y 5 566 p per er cent cent o+  th the e th then en ch char arge ged d +ra +ranc nchi hise se +e +ee e +o +orr ne new w +ra +ranc nchi hise sees es *p *pon on e)piration o+ this Franchise Agreement&

I+ Fr Fran anc chise hisee e de desi sire res s to re rene new w thi this s +r +ran anch chis ise e at th the e e) e)pi pira rati tion on o o++ thi this s  Agreement' Franchisee shall gie Franchisor written notice o+ its desire to renew at least ninety 5H6 days prior to the e)piration o+ the initial term o+ this Agreement& 9ithin thirty 56 days a+ter its receipt o+ s*ch timely notice' Franchisor shall +*rnish Franchisee with written notice o+: @&

reas reason ons s wh whic ich h co co*l *ld d ca ca*s *se e Fr Fran anch chis isor or n not ot tto o gr gran antt a re rene newa wall to Franchisee incl*ding any de+iciencies which re;*ire correction and a sched*le +or correction thereo+ by Franchisee= and

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Fra ranc nchi his sor> r>s s th then en4c 4c* *rr rren entt re re;* ;*ir irem eme ent nts s re rellat atin ing g to th the e im ima age' appe ap pear aran ance ce'' de deco cora rati tion on'' +* +*rn rnis ishi hing ngs s an and d e; e;*i *ipp ppin ing g o+ a FARI ARINAS NAS I! I!"!S "!S E#$ E#$AN ANA%A A%A Fac Facilit ility y' an and d a sch sched* ed*le le +or  e++ecting s*ch *pgrading or modi+ications in order to bring the Franchised Facility in compliance therewith' as a condition o+  renewal& Renewal o+ the +ranchise shall be conditioned *pon

 

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Franchisee>s compliance with s*ch re;*irements and contin*ed compliance with all the terms and conditions o+ this Agreement *p to the date o+ termination o+ the initial term& III&

FA"IIT !"ATI!N  A&

Franchisee may operate the Franchised Facility only at the location spec sp eci+ i+ie ied d in $a $ara ragr grap aph h I he here reo+ o+&& I+ th the e le leas ase e +o +orr th the e site site o+ th the e Franchised Facility e)pires or terminates witho*t +a*lt o+ Franchisee' or  i+ the site is destroyed' condemned or otherwise rendered *n*sable' or  as othe otherw rwis ise e ma may y be ag agre reed ed *p *pon on in wr writi iting ng by Fr Fran anch chis isor or an and d Franch Fra nchise isee' e' Fra Franch nchiso isorr wil willl gra grant nt per permis missio sion n +or rel reloca ocatio tion n o+ the Franchised Facility within Franchisee>s %esignated Area at a location and site site acc accept eptabl able e to Fra Franch nchiso isorr& Any s* s*ch ch rel reloca ocatio tion n shall shall be at Franch Fra nchise isee> e>s s sol sole e e)p e)pens ense e and Fra Franch nchiso isorr sh shall all ha hae e the rig right ht to char ch arge ge Fr Fran anch chis isee ee +or +or an any y co cost sts s in inc* c*rr rred ed by Fr Fran anch chis isor or'' an and d a reasonable +ee +or its serices' in connection with any s*ch relocation o+ the Franchised Facility&

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"o "onc nc*r *rre rent ntly ly wi with th th the e e)e e)ec* c*ti tion on o+ th this is A Agr gree eeme ment nt'' Fra Franc nchi hise see e may enter into a lease or s*blease +or the premises o+ the Franchised Facility& Any real estate and improement costs associated with the deelopment o+ the location o+ the Franchised Facility shall be the sole responsibility o+ Franchisee& Any isit o+ Franchisor +or site inspection is at the cost o+ Franchisee&

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9hile Franchiso isor shall *tili(e i(e its e)perience and e)pertise in a designation o+ location' nothing contained herein shall be interpreted as a g* g*a arant rantee ee o+ s*c *cce cess ss +o +orr sa said id lo loc cat atio ion' n' nor sha hall ll any sit ite e re reco comm mmen enda datio tion n +o +orr ap appr pro oal al ma made de by Fr Fran anch chis isor or be de deem emed ed a re repr pres esen enta tati tion on th that at an any y pa part rtic ic*l *lar ar site site is a aai aila labl ble e +o +orr *s *se e as an FARINA RINAS S I I! !"! "!S S E# E#$ $ANA NA%A %A Fa Faci cili lity ty&& It sha halll be th the e so solle responsibility o+ Franchisee to *nderta.e site selection actiities and otherwise sec*re premises +or the location +or Franchisee>s Franchised Facility&

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Fran Franch chis isee ee a agr gree ees s th that at p pro romp mptl tly y a+t a+ter er p pos osse sess ssio ion n o+ th the e si site te +o +orr the Franchised Facility it shall: @&

ca* a*se se tto o be p pre rep pared ared a and nd s s*b *bm mit ++or or app appro roa all by F Fra ranc nch hisor isor a site site s* s*r rey ey an and d an any y mo modi di+i +ica cati tion ons s to Fran Franch chis isor or>s >s ba basi sic c speci+ spe ci+ica icatio tions ns +or a FARI ARINAS NAS I! I!"!S "!S E#$ E#$ANA ANA%A %A Fac Facilit ility y 5inc 5i ncl* l*di ding ng re re;* ;*ir irem emen ents ts +o +orr di dime mens nsio ions ns'' e) e)te teri rior or de desi sign gn'' mate ma teri rial als' s' inte interi rior or de desi sign gn an and d la layo yo*t *t'' e; e;*i *ipm pmen ent' t' +i) +i)t* t*re res' s' +*rnit*re' signs and decorating6 re;*ired +or the deelopment o+  a FARINAS I!"!S E#$ANA%A Facility at the site leased or  p*rchased there+ore and Franchisors a*thori(ed Architect and "ontra "on tracto ctorr sha shallll be eng engage aged d by Fra Franch nchise isee e to con constr str*ct *ct the Franchised +acility +or Franchisee=

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obt btai ain n all re; re;*i *ire red d b* b*il ild ding ing' (on onin ing' g' sid sidew ewa al. en enc clo los s*r *re' e' *s *se e' *tility'' health' b*siness' sanitation' and sign permits and licenses *tility and any other re;*ired permits and licenses=

 

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p*r *rch cha ase e; e;* *ipm ipmen ent' t' +i +i)t )t*r *res es'' +* +*rn rnit it* *re an and d sig igns ns as pr pro oid ide ed herein=

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co comp mple lete te th the ec con onst str* r*ct ctio ion na and nd7o 7orr rem remod odel elin ing' g' e; e;*i *ipm pmen ent' t' +i) +i)t* t*re re'' +*rnit*re and sign installation and decorating o+ the Franchised Facility in +*ll and strict compliance with speci+ications there+ore approed by Franchisor and all applicable ordinances' b*ilding codes and permit re;*irements& Franchisee may be re;*ired to

hire architect*ral and contractor "ompanies o+ Franchisor& In the eent Franchise isee is al als so the property owner o+ the +acili litty' Franchisee agrees herewith not to mortgage the site o+ the Franchised Facility witho*t the written consent o+ Franchisor Franchisor&& Th The e Fra Franc nchi hise sed d Fac Facil ilit ity y at th the e loc locat atio ion n ind indic icat ated ed he here rein in sh shal alll be op open en +or b*siness to the p*blic as re;*ired by law' landlord or Franchisor Franchisor&&

E0J 0JI$ I$#E #ENT NT'' FI FIT TJR JRE ES A AN N% FJ FJNI NIT TJR JRE E Franchisor shall proide Franchisee with speci+ications +or brands and types o+ any e;*ipment' +i)t*res and +*rnit*re re;*ired +or the Franchised Facility& Franchisee may p*rchase and replacement e;*ipment' +i)t*res and +*rnit*re meeting s*ch speci+ications only& I+ Franchisee proposes to p*rchase any item o+ e;*ipment or any +i)t*re or +*rnit*re not thereto+ore approed by Franchisor  as me meeti eting ng its sp speci eci+ic +icati ations ons'' Fra Franch nchise isee e sh shall all +ir +irst st not noti+y i+y Fra Franch nchiso isorr and Franchisor may re;*ire s*bmission o+ s*++icient speci+ications' photographs' drawings and7or other in+ormation and samples to determine whether s*ch item o+ e;*ipment or s*ch +i)t*re meets its speci+ications& Franchisor shall adise Franchisee within a reasonable time whether s*ch item o+ e;*ipment or s*ch +i)t*re or +*rnit*re meets its speci+ications&

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TRAININD AN% ASSISTAN"E  A&

Franchisor shall ma.e initial training aailable to Franchisee and to empl em ploy oyee ees s o+ Fr Fran anch chis isee ee&& Fr Fran anch chis isee ee'' S* S*pe per ris isor or an and d se ser ric ice e employees shall be re;*ired to attend and s*ccess+*lly complete to Franchisor>s satis+action a training and +amiliari(ation co*rse prior to opening at the Franchisor>s o*tlets& Franchisor reseres the right to designate other locations +or training and to alter the sched*les and length o+ training&

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Said aid tra train inin ing g pr prog ogra ram m sh shal alll co coer er a all ll as aspe pect cts s o+ th the e op oper erat atiion o+ a FARINAS I!"!S E#$ANA%A Franchise' incl*ding +ood preparation and an d se ser rin ing= g= +i +ina nanc ncia iall co cont ntro rols ls== pr prom omot otio ion n an and d sal ales es me meth thod ods= s= techni;*es and proced*res= deployment o+ labor= and maintenance o+  ;*al ;* ality ity st stan anda dard rds& s& All All e) e)pe pens nses es in inc* c*rr rred ed by Fr Fran anch chis isee ee an and d it its s design des ignate ates s in att attend ending ing s* s*ch ch pro progra gram' m' inc incl*d l*ding ing'' b*t not lim limite ited d to trael costs' room and board e)penses' and employees> salaries' shall be the sole responsibility o+ Franchisee&

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Fo Forr the the +i +irs rstt mo mont nth h o+ op oper erat atio ion n o+ Fr Fran anch chis isee ee>>s Fran Franch chis ised ed Fa Faci cili lity ty'' Franchisor will +*rnish to Franchisee' at Franchisee>s premises one 5@6 o+ Fr Fran anch chis isor> or>s s repr repres esen enta tati ties es +o +orr th the e p* p*rp rpos ose e o+ +a +aci cilit litat atin ing g th the e opening o+ Franchisee>s Franchised Facility& ando+transportation o+ the Franchisor>s representatie is at theodging e)pense Franchisee&

 

7

%*ring this period' s*ch representatie will also assist Franchisee in establishing and standardi(ing proced*res and techni;*es essential to the operation o+ a FARINAS I!"!S E#$ANA%A Franchised Facility and sha shallll ass assist ist in tra traini ining ng per person sonnel nel&& Sho*l Sho*ld d Franch Franchise isee e re; re;*es *estt additional assistance +rom Franchisor in order to +acilitate the opening o+ the Franchised Facility' and sho*ld Franchisor deem it necessary and an d ap appr prop opri riat ate' e' Fr Fran anch chis isee ee sh shal alll re reim imb* b*rs rse e Fr Fran anch chis isor or +o +orr th the e e)pense o+ Franchisor proiding s*ch additional assistance& %&

I+ Fr Fran anch chis isee ee de desi sign gnat ates es ne new w or ad addi diti tion onal al em empl ploy oyee ee a+ a+te terr the in init itia iall training program' Franchisor may proide training to s*ch managers and emp employ loyee= ee= ho howe weer er'' Fra Franch nchiso isorr res reser eres es the rig right ht to cha charge rge Fr Fran anch chis isee ee +or +or th the e co cost sts s o+ ad addi diti tion onal al tr trai aini ning ng pl pl*s *s a re reas ason onab able le pr prem emi* i*m& m& F* F*rt rthe herm rmor ore' e' Fr Fran anch chis isee ee sh shal alll be re resp spon onsi sibl ble e +o +orr al alll e)pe e) pens nses es inc* inc*rr rred ed by Fr Fran anch chis isee ee>s >s em empl ploy oyee ees s in at atte tend ndin ing g an any y training& F*rthermore' the cond*ct o+ additional training programs is solely discretionary *pon Franchisor and this proision does not con+er  *pon the Franchisee the right to demand training +or new managers a+ter the initial training program&

E&

Fra ranc nchi his see ma may y be re re; ;*ire *ired d to at atte tend nd re re+r +re esh sher er or *p *pd dat ate e tr tra ain inin ing g sessions and attend the +ranchise meetings with Franchisor at s*ch d* d*ra rati tion on an and d +re +re;* ;*en ency cy as be Fr Fran anch chis isor or in it its s so sole disc scre reti tion on ma may y determine& Franchisee shall +*lly responsible +orleitsdi trael' lodging and other e)penses&

/I&

$R!$RIETAR #ARKS  A&

Franchisee ac.nowledges that Franchisor is the owner o+ the Trademar.s& Franchisee +*rther ac.nowledges that Franchisee>s right to *se the #ar.s is deried solely +rom this Agreement and is limited to the cond*ct o+ b*siness by Franchisee p*rs*ant to and in compliance with this Agreement and all applicable standards' speci+ications' and operating proced*res prescribed by Franchisor +rom time to time d*ring th the e term term o+ th the e +r +ran anch chis ise& e& Any *n *na* a*th thor ori( i(ed ed *s *se e o+ th the e #a #ar. r.s s by Franchisee is a breach o+ this Agreement and an in+ringement o+ the rights right s o+ Franchis Franchisor or to the #ar.s& Franc Franchisee hisee ac. ac.nowle nowledges dges that all *sage o+ the #ar.s by Franchisee and any good will established by Franchisee>s *se o+ the #ar.s shall in*re to the e)cl*sie bene+it o+  Franchisor and its a++iliate and that this Agreement does not con+er any goodwill or other interests in the #ar.s *pon Franchisee&

B&

Fran Franch chis isee ee s sha hall ll n not ot'' at an any y ti time me d d*r *rin ing g th the e te term rm o o++ th this is Ag Agre reem emen entt or  a+ter its termination' contest the alidity or ownership o+ any o+ the #ar.s or assist any other person in contesting the alidity or ownership o+ any o+ the #ar.s& All proisions o+ this Agreement applicable to the #ar.s apply to any additional trademar.s and commercial symbols a*thori(ed +or *se by and licensed to Franchisee by Franchisor a+ter  the date o+ this Agreement&

"&

Fra ranc nchi his see s sha halll no nott *s *se e an any y o+ th the e #a #ar. r.s s or po port rtio ion n o+ an any y o+ th the e #ar.s as part o+ any corporate or trade name' or with any pre+i)' s*++i)' or othe otherr mo modi di+y +yin ing g wo word rds' s' term terms' s' de desi sign gns' s' or symb symbol ols' s' or in an any y

 

8

modi+ied +orm& Fran modi+ied Franchise chisee e shall not *se any #ar. in connec connection tion with the sale o+ any *na*thori(ed prod*ct or serice or in any other manner  not e)pressly a*thori(ed in writing wr iting by Franchisor& %&

I+ it be beco come mes s ad adi isa sable ble at a any ny ttim ime' e' iin n Fran Franch chis isor> or>s s so sole le d dis iscr cret etio ion' n' ++or  or  Franchisor and7or Franchisee to modi+y or discontin*e *se o+ any o+ the #ar.s' and7or *se one or more additional or s*bstit*te trademar.s or  other commercial symbols' Franchisee shall comply with Franchisor>s di dire rect ctio ions ns with within in th thir irty ty 56 56 da days ys a+ a+te terr no noti tice ce to Fran Franch chis isee ee by Fr Fran anch chis isor or'' an and d Fr Fran anch chis isor or sh shal alll ha hae e no li liab abili ility ty or ob obli liga gati tion on whatsoeer with respect to Franchisee> Franchisee>s s modi+ication or discontin*ance o+ any o+ the #ar.s&

E&

In order to presere the alidity and integrity o+ the #ar.s and copyrighted materials licensed herein and to ass*re that Franchisee is properly employing the same in the operation o+ its Franchised Facility' Franchisor Franc hisor or its agents shall hae the right o+ entry and inspect inspection ion o+  Franchisee>s Franchisee> s premises' witho*t prior notice' at all reasonable times and addi ad ditio tiona nally lly'' sh shal alll ha hae e the the rig right ht to ob obse ser re e th the e ma mann nner er in whic which h Franchisee is rendering its actiities and operations and to inspect e;*ipm e;* ipment ent'' pro prod*c d*cts' ts' s*p s*ppli plies' es' rep report orts' s' +or +orms' ms' and doc doc*me *ments nts and related data +or test o+ content and eal*ation p*rposes to ma.e certain that thecontrol Franchised Facility is per+ormance being operated in accordance with the ;*ality proisions and standards established by Franchisor and the !perational #an*al&

F&

/II& /II&

The sign +ace o+ any signage' the letterin ing g and logo a++i)ed to th the e interiors and e)terior signage at the +acility' the sign +ace on the men* boar bo ard d an and d an any y othe otherr si sign gn be bear arin ing g th the e na name me 2FAR 2FARIN INAS AS I I!" !"!S !S E#$ANA%A3 E#$ ANA%A3 shall be e)actly identical to that o+ Franchisor Franchisor&& Franchisor  hereby grants to Franchisee the right to *se these signs d*ring the te term rm o+ this this Fr Fran anch chis ise e Ag Agre reem emen entt an and d Fr Fran anch chis isee ee'' at th thei eirr ow own n e)pense' prod*ce and maintain the here aboe mentioned sign +aces in good condition and repair +or as long as the Franchise Agreement is in e++e e++ect ct an and d be beco come me Fr Fran anch chis isor ors s pr prop oper erty ty wi with tho* o*tt an any y co cost st to Franchisor at termination or e)piration o+ the Franchise Agreement&

"! "!NF NFI% I%EN ENTI TIA A !$ !$ER ERA ATI TI!N !NS S #A #ANJ NJA A  A& Franchisor will loan to Franchisee d*ring the term o+ the +ranchise one 5@6 copy o+ a "on+idential !perations #an*al containing reasonable' mand ma ndat ator ory y an and d s* s*gg gges este ted d sp spec eci+i i+ica catio tions ns'' stan standa dard rds' s' op oper erat atin ing g proced*res and r*les prescribed +rom time to time by Franchisor +or  Franchised Franc hised +acilitie +acilities s and in+ormatio in+ormation n relatie relatie to othe otherr oblig obligation ations s o+  Franch Fra nchise isee e her here* e*nde nderr and the ope operat ration ion o+ its Fra Franch nchise ised d Fac Facili ility ty&& Franchisor shall hae the right to add to and otherwise modi+y the "on+idential !perations #an*al +rom time to time to re+lect changes in th the e sp spec eci+ i+ic icat atio ions ns'' st stan anda dard rds' s' op oper erat atin ing g pr proc oced ed*r *res es an and d r* r*le les s prescribed by Franchisor +or +acilities' proided that no s*ch addition or  modi+icatio modi+ ication n shal shalll alter Fran Franchise chisee>s e>s +*nda +*ndamenta mentall stat* stat*s s and right rights s *nder this Agreement&

 

9

B&

Th The e "o "on+ n+id iden enti tial al ! !pe pera rati tion ons s #a #an* n*al al s sha hall ll at a all ll ti time mes s re rema main in th the e so sole le pr prop oper erty ty o+ Fr Fran anch chis isor or an and d sh shal alll pr prom ompt ptly ly be re ret* t*rn rned ed *p *pon on th the e e)piration or termination o+ this Agreement& Franchisee agrees and coenants that it shall not disclose' d*plicate or otherwise *se in an *na* *n a*th thor ori( i(ed ed ma mann nner er an any y po porti rtion on o+ th the e "o "on+ n+id iden enti tial al !per !perat atio ions ns #an*al&

"&

Th The e "o "on+ n+id iden enti tial al !p !per erat atio ions ns #a #an* n*al al co cont ntai ains ns p pro ropr prie ieta tary ry in in+o +orm rmat atio ion n o+  Franchisor and shall be .ept con+idential by Franchisee both d*ring the term o+ the +ranchise and s*bse;*ent to the e)piration or termination o+  the +ranchise& +ranchise& Franc Franchise hisee e shall at all times ins ins*re *re that its cop copy y o+ the "on+idential !perations #an*al be aailable in a c*rrent and *p4to4 date manner&

/III /III&&

%&

Franchisee shall not ma.e photocopies or d*plicates o+ the "on+id "on +ident ential ial !pe !perat ration ions s #an #an*al *al'' in any me medi* di*m' m' with witho*t o*t the pri prior  or  written consent o+ the Franchisor Franchisor&&

E&

In th the e ee eent nt Fr Fran anch chis isee ee lo lose ses s the "o "on+ n+id iden enti tial al !p !per erat atio iona nall #an #an*a *al' l' Franch Fra nchise isee e has to pay to Fra Franc nchis hisor or the amo amo*n *ntt o+ Ten Tho Tho*sa *sand nd $esos 5$ @'&6&

"! "!NF NFI% I%EN ENTI TIA A IN INF! F!R# R#A ATI TI!N !N Franchise Franch isee e ac. ac.now nowled ledges ges tha thatt its ent entire ire .no .nowle wledge dge o+ the ope operat ration ion o+ a FARINAS I!"!S E#$ANA%A +acility incl*ding the .nowledge or .now4how regarding the speci+ications' standards and operating proced*res o+ FARINAS I!"!S E#$ANA%A E#$ANA%A +ood preparation' serices and actiities' is deried +rom in+ormation disclosed to Franchisee by Franchisor and that s*ch in+ormation is proprietary propr ietary'' con+ con+identi idential al and a trade secret o+ Franc Franchisor hisor&& Franc Franchisee hisee shall maintain the absol*te con+identiality o+ all s*ch proprietary in+ormation d*ring and a+ter the term o+ the +ranchise and shall not *se any s*ch in+ormation in any other b*siness or in any manner not speci+ically a*thori(ed or approed in writing by Franchisor Franchisor&&

I&

#!%IFI"ATI! I!N N! !F FT T1 1E S S STE# Franchisee ac.nowledges that +rom time to time herea+ter Franchisor may chang cha nge e or mod modi+y i+y the Sys System tem ide identi nti+ie +ied d by the #ar #ar.s' .s' inc incl*d l*ding ing'' wit witho* ho*tt limitation' the adoption and *se o+ new or modi+ied trademar.s or copyrighted materia mat erials= ls= ne new w men men*s= *s= new pro prod*c d*cts' ts' anc ancill illary ary mer mercha chandi ndise se and rel relate ated d serices and actiities= new employees training or ed*cation programs and serices= new e;*ipment= or new techni;*es and that Franchisee will accept' *se and display +or the p*rpose o+ this Agreement any s*ch changes in the System' as i+ they were part o+ this Agreement at the time o+ e)ec*tion hereo+& Franchisee will ma.e s*ch e)pendit*res +or s*ch changes or modi+ications in the system within ten 5@6 days a+ter Franchisors notice o+ s*ch modi+ications or to p* p*rc rcha hase se ne new w e; e;*i *ipm pmen ent& t& Fr Fran anch chis isee ee +* +*rt rthe herr ac ac.n .now owle ledg dges es th that at Franchisor may alter the re;*irements o+ the System to s*it the partic*lar  demands o+ any partic*lar mar.et' and may there+ore re;*ire Franchisee or  any an y ot othe herr +r +ran anch chis isee ee to ad adop optt s* s*ch ch mo modi di+i +ica catio tions ns as ma may y be de deem emed ed necessary by Franchisor&

 

10

&

A%/ERTISIND Recogni( i(in ing g the al*e o+ adert rtiising and the im imp portance o+ the standardi(ation o+ adertising and promotion to the +*rtherance o+ the goodwill and the p*blic image o+ FARINAS I!"!S E#$ANA%A +acilities' Franchisee agrees as +ollows:  A&

Franchisee will s*bmit to Franchisor or its designated agency agency'' +or its prior approal' all promotional materials and adertising to be *sed by Fr Fran anch chis isee ee'' incl incl*d *din ing' g' b* b*tt no nott lim limit ited ed to to'' ne news wspa pape pers rs'' ra radi dio o an and d teleision adertising and signs& In the eent written disapproal o+ said adertising and promotional materials is not gien by Franchisor to Franchisee within +ie 56 b*siness days +rom the date s*ch material is recei rec eied ed by Fra Franch nchiso isorr' sai said d mat materi erials als sha shallll be de deeme emed d app appro roed& ed& Fail Fa il*r *re e by Fran Franch chis isee ee to co con+ n+or orm m to th the e pr pro ois isio ions ns he here rein in an and d s*bse;*ent non4action by Franchisor to re;*ire Franchisee to c*re or  remedy this +ail*re and de+a*lt shall not be deemed a waier o+ +*t*re or ad addi ditio tiona nall +a +ail* il*re res s an and d de de+a +a*l *lts ts o+ an any y ot othe herr pr pro ois isio ion n o+ th this is  Agreement& Franchisor reseres the right to *se +or its own p*rposes or to disseminate to other System +acilities any and all adertising mate ma teria rials ls'' proc proced ed*r *res es an and d co conc ncep epts ts s* s*bm bmit itte ted d to Fr Fran anch chis isor or by Franchisee& Franchisee shall assign to Franchisor all its rights' title and interest in Franchisee>s local adertising and promotional material' i+  any' witho*t any cost to Franchisor&

B&

Fran Franch chis isee ee s sha hall ll b be e re re;* ;*ir ired ed e eac ach h ca cale lend ndar ar m mon onth th tto o spen spend d on lo loca call adertising and promotion an amo*nt e;*al to one percent 5@C6 o+  Dross Sales deried +rom the Franchised Facility d*ring the preceding calendar month ?*st ended& S*ch e)pendit*res shall be made directly by Fra Franch nchise isee' e' s*b s*b?ec ?ectt to app appro roal al an and d dir direct ection ion by Fra Franch nchiso isorr or  Franchisor>s designated adertising agency& At the same time and in th the e sa same me ma mann nner er th that at Fr Fran anch chis isee ee s* s*bm bmit its s an and d re repo ports rts it its s F* F*nd nd cont co ntri rib* b*ti tion on'' Fr Fran anch chis isee ee sh shal alll +* +*rn rnis ish h to Fr Fran anch chis isor or an ac acc* c*ra rate te acco*nting o+ the preio*s month>s e)pendit*res on local adertising and promotion&

"&

Fran Franch chis isee ee s sha hall ll e) e)pe pend nd tthe he s s*m *m o o++ at le leas astt $es $esos os F Fi+ i+te teen en T Tho ho*s *san and d 5$@'&6 on adertising or promotion to generate initial cons*mer  awaren awa reness ess d*r d*ring ing the ini initia tiall mon month th o+ operat operation ion o+ the Fra Franch nchise ised d Facility& S*ch adertising and promotional items are to be designated as Drand !pening adertising and promotion&

%&

From time to time Franchisor may designate a local' re reg gional or  national adertising coerage area in which Franchisee>s b*siness is locate loc ated d +or p*r p*rpos poses es o+ de deelo elopin ping g a co coope operat ratie ie loc local al or reg region ional al adertising or promotional program& Franchisee agrees to participate in and an d co cont ntri rib* b*te te it its s sh shar are e to s* s*ch ch co coop oper erat ati ie e ad ade ert rtis isin ing g an and d promotional programs in Franchisee>s adertising coerage areas in addition to s*ch contrib*tions and e)pendit*res as re;*ired p*rs*ant to $aragraph & B& And &%& the cost o+ the program shall be allocated amon am ong g loca locati tion ons s in s* s*ch ch area area&& Sa Said id co cont ntrib rib*t *tio ions ns to co coop oper erat ati ie e adertisi adert ising ng pro promot motion ional al pro progra grams ms wil willl be cre credit dited ed tow toward ard the loc local al adertising and promotional e)pendit*re re;*ired by $aragraph &"&

 

11

aboe& abo e& 2Ad 2Ader erti tisi sing ng co coe era rage ge area area33 sh shal alll be de de+in +ined ed as th the e ar area ea coe co ere red d by th the e pa part rtic ic*l *lar ar ad ade ert rtis isin ing g me medi di*m *m 5t 5tel ele eis isio ion' n' ra radi dio' o' newspaper or other medi*m6 as recogni(ed in the ind*stry ind*stry&& E&

I&

Fr Fran anch chis isee ee s sha hall ll n not ot * *se se iin n ad ade erti rtisi sing ng o orr an any yo oth ther er ++or orm m o+ pr prom omot otio ion' n' th the e tra trade dema mar. r.s s or co comm mmer erci cial al symb symbol ols s o+ Fr Fran anch chis isor or wit witho ho*t *t th the e appropriate registration mar. or the designations T# where applicable&

R!AT FEE  A&

B&

The Franchisee shall pay the Franchisor a monthly Royalty Fee e;*al to +o*r percent 5GC6 o+ the Dross Sales deried +rom the Franchised Facility'' e)cl*sie o+ Doernment +ees and ta)es& Facility Sa Said id ++ee ees s sh shal alll be p pai aid d in tthe he m man anne nerr sp spec eci+ i+ie ied d be belo low w or a as s ot othe herw rwis ise e prescribed in the "on+idential !perations #an*al: @&

Fra ranc nchi his see sh sha all pa pay y to Fr Fran anc chi hiso sorr th the e Ro Roy yal alty ty F Fee ee p pay aym men entt base ba sed d on th the e Dr Dros oss s Sa Sale les s re repo port rted ed in th the e stat statem emen entt so s*bmitted as indicated in the !perational #an*al within +ie 56 calendar days +or the preio*s month&

,&

Fr Fran anch chis isee ee en en?o ?oys ys a g gra race ce pe peri riod od +ro +rom m pay payin ing ga any ny ro roya yalt lty y ++or or th the e +irst month o+ operation&

&

Fra ranc nchi his see will ill ma ma.e .e a aai aila lab ble to Fr Fran anc chisor isor +o +orr in insp spec ecti tio on at reasonable times by Franchisor' all original boo.s and records that Franchisor may deem necessary to ascertain Franchisee>s sales&

"&

All Royalt lty y Fee payments' adertis isiing contri rib b*tio ion ns to the F*nd' amo*nts d*e +or p*rchases by Franchisee +rom Franchisor and its a++iliates' and other amo*nts which Franchisee owes to Franchisor or  its a++iliates shall bear interest a+ter d*e date at the rate o+ C per  mont mo nth& h& Fr Fran anch chis isee ee ac ac.n .now owled ledge ges s th that at th this is $a $ara ragr grap aph h sh shal alll not not constit*te an agreement by Franchisor or its a++iliates to accept s*ch payments a+ter same are d*e or a commitment by Franchisor to e)tend credit to' or otherwise +inance Franchisee>s operation o+ the Franchised Facility Facil ity&& F*rth F*rther er'' Franchis Franchisee ee ac.now ac.nowledg ledges es that its +ail* +ail*re re to pay all amo*nt amo *nts s whe when n d*e sha shallll con consti stit*t t*te e gro gro*nd *nds s +or ter termin minati ation on o+ this this  Agreement' notwithstanding notwithstanding the proisions o+ this $aragraph& $aragraph&

%&

Fr Fran anch chis isor or s sha hall ll h ha ae e th the e ri righ ghtt to e est stab ablis lish h reas reason onab able le p pro roce ced* d*re res s +o +or  r  eri+ying +ig*res and collecting Royalty Fee' incl*ding direct access to Franchisee>s Franchisee> s databases and acco*nting boo.s at all times&

E&

No Notw twit iths hsta tand ndin ing g an any y de desi sign gnat atio ion n by F Fra ranc nchi hise see' e' F Fra ranc nchi hiso sorr sh shal alll ha hae e the sole discretion to apply any payments by Franchisee to any past d*e indebtedness o+ Franchisee +or Royalty Fee payments' adertising contrib*tions to the F*nd' p*rchases +rom Franchisor and its a++iliates' interest or any other indebtedness&

F&

All p pay aym men ents ts tto o Fr Fran anch chis iso or sh shal alll be in th the e +o +orm rm o+ d dep epos osit itin ing g at th the e acco*nt o+ Franchisor or as speci+ied in the !perational #an*al&

 

12

II&

A""!JNTIND A AN N% R RE E"!R%S  A&

Franchisee is re;*ired by Franchisor to p*rchase and maintain a $!S Syst Sy stem em an and d co comp mp*t *ter eri( i(ed ed bo boo. o..e .eep epin ing' g' ac acco co*n *ntin ting g an and d re reco cord rd .eep .e epin ing g syst system em co con+ n+or ormi ming ng to th the e re re;* ;*ire ireme ment nts s pr pres escr crib ibed ed by Fr Fran anch chis isor or'' incl incl*d *din ing g wi with tho* o*tt lim limit itat atio ion n th the e *s *se e an and d re rete tent ntio ion n o+  inoices' payroll records' sales ta) records and ret*rns' cash receipts and disb*rsements' ?o*rnals and general ledgers& l edgers&

B&

Fra ranc nchi his see sh shal alll s*b *bm mit to Fr Fran anc chi hiso sorr pe perrio iod dic re rep por orts ts'' +o +orm rms s an and d records as speci+ied' and in the manner and at the time as speci+ied in the "on+idential !perations #an*al or otherwise in writing&

"&

Franchisor or its designated agents shall hae the right at all reason rea sonab able le tim times es to e)a e)amin mine e and co copy py'' at its e) e)pen pense' se' the boo boo.s' .s' records' and ta) ret*rns o+ Franchisee and shall at all times hae the right to access Franchisee>s Franchisee>s d database& atabase& Franchisor shall als also o hae the right' at any time' to hae an independent a*dit made o+ the boo.s o+  Franchisee at Franchisor>s e)pense&

%&

Fran Franch chis isee ee ac. ac.no nowl wled edge ges s th that at no noth thin ing g co cont ntai aine ned d he here rein in con onst stit it*t *tes es Franchisor>s agreement to accept any payments a+ter same are d*e or  a commitment by Franchisor to e)tend credit to or otherwise +inance Franchisee>s Franchisee> sesoperation the Franchised hised Facility& & nts F*rther F*rther' ' Franchisee ac ac.n .now owle ledg dges th that at its o+ +ail +ail*r *re eFranc to pa pay y al alllFacility am amo* o*nt s wh when en d* d*e e sh shal alll cons co nsti tit* t*te te a ma mate teria riall de de+a +a*l *ltt an and d gr gro* o*nd nds s +o +orr te term rmin inat atio ion n o+ th this is  Agreement&

I III II&&

ST STAN AN%A %AR% R%S S !F 0J 0JA AIT IT A AN% N% $E $ERF RF!R !R#A #AN" N"E E  A&

Franchisee shall comply with all re;*irements set +orth in this  Agreement' the "on+idential !perations #an*al and other written polic licies s*pplied ied to Fran ranchisee by Fran ranchisor& #andatory speci+ications' standards' operating proced*res and r*les prescribed +rom time to time by Franchisor in the "on+idential !perations #an*al or otherwise comm*nicated to Franchisee in writing' shall constit*te proisions o+ this Agreement as i+ +*lly set +orth herein and shall be reason rea sonab ably ly and *ni *ni+or +ormly mly ap appli plied ed to all +ra +ranc nchis hisees ees&& All re+ re+ere erence nces s herein to this Agreement shall incl* l*d de all s*ch mandatory speci+ spec i+ic icat atio ions ns'' st stan anda dard rds s an and d op open enin ing g pr proc oced ed*r *res es an and d r* r*le les& s& Franch Fra nchise isee e sha shallll co compl mply y wit with h the ent entire ire Sys System tem inc incl*d l*ding ing'' b*t not limited to' the proisions o+ this $aragraph III&

B&

Fran Franch chis isee ee sh shal alll com comme menc nce e ope opera rati tion on o+ th the e Fra Franc nchi his sed Fa Faci cili lity ty no nott later than one h*ndred 5@6 days a+ter e)ec*tion o+ this Agreement& $rior to the opening o+ the Franchised Facility' Franchisee shall hae complied wit ith h all Franchiso isor> r>s s pre4o re4op pening standards and spec sp eci+i i+ica catio tions ns&& I+ Fr Fran anch chis isee ee +o +orr an any y re reas ason on +a +ail ils s to co comm mmen ence ce operation as herein proided' s*ch +ail*re shall be considered a de+a*lt and Franchisor may terminate this Agreemen Agreementt as herein proided&

"&

Franchisee shall maint intain the condition and appeara ran nce o+ the pr prem emis ises es o+ th the e Fr Fran anch chis ised ed Fa Faci cili lity ty co cons nsis iste tent nt wi with th Fr Fran anch chis isor> or>s s standards& Franchisee shall maintain the premises o+ the Franchised Facility as it is +rom time to time re;*ired to maintain or improe the

 

13

appearance and e++icient operation o+ the Franchised Facility' Facility' incl*ding' b*t not limited to' replacement o+ worn o*t or obsolete +i)t*res and signs' and repair o+ the e)terior and interior o+ the premises o+ the Franchised Facility& %&

I+ a any ny ttim ime e in Fr Fran anch chis isor> or>s s ?* ?*dg dgme ment nt th the e gene genera rall sta state te o+ rrep epai airr or the the appearance o+ the premises o+ the Franchised Facility or its e;*ipment' +i)t +i)t*r *res es'' si sign gns s or de deco corr do does es no nott me meet et Fr Fran anch chis isor> or>s s stan standa dard rds' s' Franchisor shall so noti+y Franchisee' speci+ying the action to be ta.en by Franchisee to correct s*ch de+iciency& I+ Franchisee +ails or re+*ses to initi initiat ate e wi with thin in th thirt irty y 56 56 da days ys a+ a+te terr re rece ceip iptt o+ s* s*ch ch no notic tice' e' an and d therea+ter +ails to implement a bona +ide program to complete any re;*ired maintenance' Franchisor shall hae the right' in addition to all other remedies' to enter *pon the premises o+ the Franchised Facility and e+ e++ec +ectt s*c s*ch h rep repair airs' s' pai painti nting' ng' mai mainte ntenan nance ce or rep replac laceme ements nts o+  e;*ipment' +i)t*res or signs on behal+ o+ Franchisee and Franchisee shall pay the entire costs thereo+ on demand&

E&

Fran Franch chis isee ee s sha hall ll ma ma.e .e n no o ma mate teri rial al a alt lter erat atio ions ns to to th the e pr prem emis ises es o o++ the Franchised Facility nor shall Franchisee ma.e material replacements o+  or alte altera rati tion ons s to th the e e; e;*i *ipm pmen ent' t' +i +i)t )t*r *res es'' +* +*rn rnit* it*re re or sign signs s o+ th the e Franchised Facility witho*t the prior written approal by Franchisor Franchisor&&

F&

Th The e lo loca cati tion on o+ tthe he Fr Fran anch chis ised ed Fa Faci cili lity ty a app ppro roe ed d by Fr Fran anch chis isor or s sha hall ll b be e *se sed d sole olely +o +orr p*rp rpos oses es o+ con ond d*ctin cting g a FARIN ARINA AS I I!" !"! !S E#$ANA%A +acility +acili ty&&

D&

Fran Franch chis isee ee s sha hall ll o+ o++e +err +or s sal ale e al alll ite items ms a as s sp spec eci+ i+ie ied d in th the e me men* n* a and nd *se at FARI ARINAS NAS I! I!"!S "!S E#$ E#$ANA ANA%A %A Facil Facility ity all typ types es o+ men men*s' *s' prod*cts and serices that Franchisor +rom time to time a*thori(es and shal sh alll no nott o+ o++e +err +or +or sa sale le or rent rental' al' or pr pro oid ide e at FAR ARIN INAS AS I I!" !"!S !S E#$ANA E#$ ANA%A %A Facil Facility ity or the pre premis mises es whi which ch it oc occ*p c*pies ies any oth other  er  category categ ory o+ acti actiities' ities' materials' s*pp s*pplies' lies' merc merchand handise' ise' prod prod*cts *cts or  access acc essori ories es or *se s*c s*ch h pre premis mises es +or any p*r p*rpos pose e oth other er tha than n the operation o+ a FARINAS I!"!S E#$ANA E#$ANA%A %A +acility in +*ll compliance with this Franchise Agreeme Agreement& nt&

1&

Franchisor shas*ppliers ll proidand e distrib*tors to Francha*thori(ed isee a li+or st the o+ Franchised approed man*+act*rers' Facility Facil ity'' so4ca so4called lled $roc* $roc*remen rementt $rogr $rogram am 52Appr 52Approed oed S*pp S*ppliers liers ist3 ist366 and an d a list list o+ ap appr pro oed ed ine inent ntor ory y' pr prod od*c *cts ts'' +i +i)t )t*r *res es'' +* +*rn rnit it*r *re' e' e;*ipm e;* ipment ent'' sig signs' ns' sta statio tioner nery y' s*p s*ppli plies' es' and oth other er ite items ms or ser seric ices es necess nec essary ary to ope operat rate e the Fra Franch nchise ised d Fac Facilit ility y 52A 52Appr ppro oed ed S*p S*ppli plies es ist36& S*ch list shall speci+y the man*+act*rer' s*pplier and distrib*tor  and the in inent entory ory pro prod*c d*cts' ts' +i)t*r +i)t*res' es' +*r +*rnit nit*re *re'' e; e;*ip *ipmen ment' t' sig signs' ns' stationery'' s*pplies' +ood s*pplies and ingredients' and other items and stationery serices which Franchisor has approed to be carried or *sed in the Syst Sy stem em&& Fr Fran anch chis isor or ma may y rei reise se th the e Ap Appr pro oed ed S* S*pp ppli lier ers s i ist st an and d  Approed S*pplies ist +rom time to time in its sole discretion& S*ch approed lists shall be s*bmitted to Franchisee as Franchisor deems adisable&

 

14

I&

I+ F Fra ranc nchi his see p pro ropo pose ses s to o o+++e +err +o +orr sa sale le a att th the e Fr Fran anch chis ised ed F Fac acil ilit ity y any any brand o+ prod*ct' or to *se in the operation o+ Franchised Facility any brand o+ prod*ct' material or s*pply which is not then approed by Franchisor as meeting its minim*m speci+ications and ;*ality standards or to p*rchase any prod*ct +rom a s*pplier that is not then designated by Franchisor as an approed s*pplier' Franchisee shall +irst noti+y Franchisor Franc hisor and shall *pon re;* re;*est est by Franc Franchisor hisor s*bmit samples and s*ch other in+ormation as Franchisor re;*ires +or e)amination and7or  testing or to otherwise determine whether s*ch prod*ct' material or  s*pply' or s*ch proposed s*pplier meets its speci+ications and ;*ality standards& Franchisor reser reseres es the right' at its option' to re4inspe re4inspect ct the +acilities and prod*cts o+ any s*pplier o+ an approed item and to eo.e its its ap appr pro oal al o+ an any y it item em wh whic ich h +a +ail ils s to co cont ntin in*e *e to me meet et an any y o+  Franchisor>s criteria&

L&

The Franchised Facili ility shall at all times be *nder the dir ire ect' on4 pr prem emis ises es s* s*pe per ris isio ion n o+ Fr Fran anch chis isee ee 5o 5orr a tr trai aine ned d an and d co comp mpet eten entt employee acting as #anager or S*perisor6 and Franchisee or trained S*periso S*pe risorr shall be in the o*tlet at all opera operation tion ho*rs ho*rs&& Fran Franchise chisee e shal sh alll .e .eep ep Fr Fran anch chis isor or in+o in+orm rmed ed at al alll ti time mes s o+ th the e id iden entit tity y o+ an any y empl em ploy oyee ee5s 5s66 ac actin ting g as #a #ana nage gerr or S* S*pe per ris isor or o+ th the e Fr Fran anch chis ised ed Facility& Franchisee shall at all times +aith+*lly' honestly and diligently per+orm its obligations here*nder and shall not engage in any b*siness or other actiities that will con+lict with its obligations here*nder&

K&

Fran Franch chis isee ee sh shal alll sec sec*r *re e and m mai aint ntai ain n in +or +orce ce al alll re; re;*i *ire red d lic licen ense ses' s' permits and certi+icates relating to the operation o+ the Franchised Facility and shall operate the Franchised Facility in +*ll compliance with all app applic licab able le law laws' s' ord ordina inanc nces es an and d reg reg*la *latio tions' ns' inc incl*d l*ding ing'' wit witho* ho*tt limita lim itatio tion' n' all go goern ernmen mentt reg reg*la *latio tions' ns' co cons* ns*mer mer pro protec tectio tion' n' tra trade de reg*lation' withholding and payment o+ national and local ta)es' sales and property ta)es&

&

All All a ad der erti tisi sing ng an and dp pro romo moti tion onal al ac acti tiit itie ies sb by yF Fra ranc nchi hise see e in an any ym med edi* i*m m shall be cond*cted in a digni+ied manner and shall acc*rately promote' describe and otherwise represent the type' ;*ality and other +eat*res o+  th the e se ser ric ices es an and d re rela late ted d herein' s* s*pp ppor ort t ac acti tii iti ties es& & No Notw twit iths hsta tand ndin ing g an any y approal made *nder &A& Franchisor may re;*ire Franchisee to desist +rom contin*ing adertising and promotional actiities which' in Franchisor>s sole ?*dgment and on the basis o+ s*perening eents' or prior eents discoered by Franchisor only a+ter approal o+ s*ch adertising and promotional actiities&

#&

I/&& I/

Th The e emp emplo loym ymen entt o+ co co*r *rte teo* o*s' s' e+ e++i +ici cien entt an and d we well ll4g 4gro room omed ed pe pers rson ons s is nece ne cess ssar ary y to the the ma main inte tena nanc nce e o+ Fr Fran anch chis isor> or>s s p* p*bl blic ic im imag age e an and d goodwill' all persons employed by Franchisee shall be re;*ired to meet standards o+ dress' grooming and hygiene as prescribed by Franchisor  and that the act*al *ni+orms to be worn by said employees&

FRA FRAN"1 N"1IS! IS!R>S R>S !$E !$ERA RATIN TIND D ASS ASSIST ISTAN" AN"E E  A&

In +orm*lating a pricing policy policy'' Franchisor may o++er g*idance to Franchisee relatie to prices +or men*s o++ered by FARINAS I!"!S

 

15

E#$AN E#$ ANA% A%A A +a +aci cili lity ty'' wh whic ich h co cons nsti tit* t*te te go good od b* b*si sine ness ss pr prac actic tice e in FranchisorMs ?*dgment& The pricing policy re;*ired by Franchisor to be adopted and any g*idance relatie to a modi+ied pricing policy will be based on the e)perience o+ Franchisor in operating FARINAS I!"!S E#$ANA%A +acilities& Franchisor' howeer' by setting pricing policy or  o++ering g*idance relatie thereto' does not ass*me in whole or in part any b*siness ris. arising +rom the operation o+ the Franchised Facility Facility&& B&

/&& /

Fran Franch chis isor or or Fran Franch chis isor> or>s s repr repres esen enta tati tie e sh shal alll i isi sitt th the e Fran Franch chis ised ed Facili Faci lity ty at leas leastt e eer ery y mo mont nth h +o +orr th the e p* p*rp rpos oses es o+ co cons ns*l *lta tati tion on'' assistance' and g*idance o+ Franchisee in all aspects o+ the operation and an d ma mana nage geme ment nt o+ the the Fran Franch chis ised ed Fa Faci cili lity ty&& Fran Franch chis isor or an and d Franchisor>s representaties who attend to the Franchised Facility will prepar pre pare' e' +or the ben bene+i e+itt o+ bot both h Fra Franch nchiso isorr and Fra Franch nchise isee' e' wri writte tten n reports with respect to s*ch isits o*tlining any s*ggested changes or  improements in the operations o+ the Franchised Facility and detailing any de+a*lts in s*ch operations which become eident as a res*lt o+  any isit' and a copy o+ each written report shall be proided to both Franchisor Franc hisor and Franc Franchisee hisee&& Transp Transportati ortation on and lodgi lodging ng e)pe e)pense nse o+  Franchisor representatie is at the acco*nt o+ Franchisee&

INSJ INSJRA RAN" N"E E Franchisee shall proc*re' at its sole e)pense and maintain in +*ll +orce and e++ec e+ +ectt d*r d*ring ing the ter term m o+ thi this s Agr Agreem eement ent'' an ins ins*ra *ranc nce e pol policy icy or pol polici icies es protecting Franchisee and Franchisor' and their o++icers' directors' partners and employees against any loss' liability' personal in?*ry' death' or property damage or e)pense whatsoeer arising or occ*rring *pon or in connection with the Franchised Facility&

/I& / I&

"! "!/E /ENA NANT NTS S  A&

Jnless otherwise speci+ied' the term 2Franchisee3 as *sed in this $aragraph /I shall incl*de' collectiely and indiid*ally' all o++icers' directors' and holders o+ a bene+icial interest' and o+ any corporation di dire rect ctly ly or indi indire rect ctly ly co cont ntro roll llin ing g Fran Franch chis isee ee'' i+ Fran Franch chis isee ee is a corporation= and the general partners and any limited partner 5incl*ding any corporation and the o++icers' directors' and holders o+ a bene+icial interest' o+ a corporation which controls' directly any general or limited partner6' i+ Franchisee is a partnership&

B&

Franchisee shall select one perso rson only who who shall be the contact person in dealing with the Franchisor Franchisor&&

"&

Fran Franch chis isee ee co coe ena nant nts s tha thatt d*r d*rin ing g the te term rm o+ th this is A Agr gree eeme ment nt'' e) e)ce cept pt as otherwise approed in writing by Franchisor' Franchisee shall not' either directly or indirectly' +or itsel+' or thro*gh' on behal+ o+' or in con?*nction with any person' persons' partnership' or corporation: @&

%ie iert o orr at atte temp mptt to di di ert a an ny b* b*si sin nes ess s or c* c*st sto omer ers s +r +rom om tthe he Fr Fran anch chis ised ed Fa Faci cilit lity y to an any y co comp mpet etit itor or'' by di dire rect ct or in indi dire rect ct ind*cement or otherwise' or do or per+orm' directly or indirectly' any other act in?*rio*s or pre?*dicial to the good will associated with Franchisor>s #ar.s and the System&

 

16

,&

Employ or see. to em emp ploy an any y person' who is at th tha at time emp mplo loye yed d by Fra ranc nch hisor isor or by an any y oth ther er +r +ran anc chi hise see e o+  Franchisor' or otherwise directly or indirectly ind*ce or see. to ind*ce s*ch person to leae his or her employment&

&

!w !wn' n' m mai aint ntai ain' n' e eng ngag age e in in'' co cons ns*l *ltt wi with th'' or h ha ae e an any y in inte tere rest st iin n any competitie b*siness 5incl*ding any b*siness operated by Franchisee prior to entry into this Agreement6 speciali(ing' in whole or in part' in the b*siness same as or similar to those o++ered or proided in FARINAS I!"!S E#$ANA%A System&

%&

Fr Fran anch chis isee ee sp spec eci+ i+ic ical ally ly ac ac.n .now owle ledg dges es ttha hat' t' p* p*rs rs*a *ant nt to th this is Ag Agre reem emen ent' t' Franchisee will receie al*able training and con+idential in+ormation' incl*ding' witho*t limitation' in+ormation regarding the +ood prod*ction' promotional' operational' sales and mar.eting methods and techni;*es o+ Franchisor and the System& Accordingly' Franchisee coenants that' e)cept e)ce pt as other otherwise wise appr approed oed in writin writing g by Fran Franchiso chisorr' Franc Franchise hisee e shall not' +or a period o+ two 5,6 years a+ter the termination o+ this  Agreement' regardless o+ the ca*se o+ termination' either directly or  indirectly' +or himsel+' or thro*gh' on behal+ o+' or in con?*nction with any per person son'' per person sons' s' par partne tnersh rship' ip' or cor corpo porat ration ion'' own own'' mai mainta ntain' in' engage in' cons*lt with or hae any interest in any b*siness o++ering' in whole or in part' prod*cts or serices the same as or similar to those o++ered or proided in FARINAS I!"!S E#$ANA%A System within the $hilippines&

/II&

E&

Fr Fran anch chis isor or s sha hall ll h ha ae e th the e ri righ ghtt to rre; e;*i *ire re all all o o++ Fr Fran anch chis isee ee>s >s pe pers rson onne nell to e)ec*te coenants in a +orm satis+actory to Franchisor&

F&

Fr Fran anch chis isee ee is n not ot a all llow owed ed to rreg egis iste terr th the e "o "orp rpor orat ate e Na Name me o orr T Tra rade dema mar. r. as JR with any Internet Registrar Registrar&&

%EFAJ %EFAJT T AN% TER#INATI!N  A&

This Agreement shall' at the option o+ Franchisor Franchisor'' terminate a*tomatically *pon deliery o+ notice o+ termination to Franchisee' i+  Franchisee or its owner5s6' o++icer5s6' or manager5s6: @&

Fails to decorate and e;*ip the premises as proided in $ara $a ragr grap aph h I/ he here reo+ o+'' or +a +ail ils s to sa sati tis+ s+ac acto tori rily ly co comp mple lete te th the e training program as proided in $aragraph / o+ this Agreement or +ails to open the +ranchised !*tlet within two h*ndred days +rom signing o+ this agreement=

,&

1as made any material misrep representation or omissio ion n in its application +or the +ranchise=

&

#a. a.e es an any y *n *na a*t *tho hori ri(e (ed d *s *se e' discl isclos os* *re or d* d*pl plic icat atio ion n o+ any portion o+ the "on+idential !perations #an*al or d*plicates or  discloses or ma.es any *na*thori(ed *se o+ any trade secret or  con+idential in+ormation proided to Franchisee by Franchisor=

G&

Ab Aban ando dons ns o orr +a +ail ils s or rre+ e+*s *ses es tto o ac acti tie ely ly o ope pera rate te tthe he F Fra ranc nchi hise sed d Facilit Fac ility y +or ,G 5tw 5twen enty ty +o* +o*r6 r6 ho ho*rs *rs in any twel twele e 5@, 5@,66 mon month th period' *nless the Franchised Facility has been closed +or a p*rpose approed by Franchisor' or +ails to relocate to approed

 

17

premises within an approed period o+ time +ollowing e)piration or termination o+ the lease +or the premises o+ the Franchised Facility= &

S*r *rre ren nde ders rs or tr tra ans ns+e +ers rs c con ontr trol ol o+ th the e op oper erat atio ion n o+ F FAR ARIN INA AS I!"!S E#$ANA%A Franchised Facility' ma.es or attempts to ma.e ma .e an *n *na* a*th thor ori( i(ed ed di dire rect ct or in indi dire rect ct as assi sign gnme ment nt o+ th the e +ranch +ra nchise ise or an own owners ership hip int intere erest st in Fra Franch nchise isee e or +ai +ails ls or  re+*ses to assign the +ranchise or the interest in Franchisee o+ a deceased or incapacitated controlling owner thereo+ as herein re;*ired=

 

B&

&

I+ Fr Fran anch chis isee ee s sha hall ll be a ad? d?*d *dic icat ated ed ba ban. n.r* r*pt pt'' bec becom omes es in inso sol len ent' t' commits any a++irmatie act o+ insolency or +iles any action or  petition o+ insolency=

-&

#a #ate teri rial ally ly mi mis* s*se ses so orr ma ma.e .es sa an n* *na na*t *tho hori ri(e (ed d *s *se eo o++ a any ny o+ th the e #ar. #a r.s s or co comm mmit its s an any y ot othe herr ac actt wh whic ich h ca can n re reas ason onab ably ly be e)pected to materially impair the goodwill associated with any o+  the #ar.s=

&

I+ Franchise isee +ails ils to pay lease payments to andlord o+ the +acility or the location is +oreclosed d*e to a mortgage&

H&

I+ tthe he o ope pera rati tio on o+ Fr Fra anc nch hise isee is s* s*s spe pend nded ed o orr cl clo ose sed d d* d*e e to a iolation o+ any law o+ the Rep*blic o+ the $hilippines&

@ @&&

Fa Fail ils s or re+* re+*se ses s to ma ma.e .e pa paym ymen ents ts o+ an any y am amo* o*nt nts s d* d*e e Franch Fra nchiso isorr or its a+ a++ili +iliate ates s +or Roy Royalt alty y pay paymen ments' ts' ad adert ertisi ising ng contrib*tions' p*rchases +rom Franchisor or its a++iliates or any other amo*nts d*e to Franchisor or its a++iliates&

@@&

Fails or re+*ses to comply with any other proision o+ this  Agreement' or any mandatory speci+ication' standard or  operating proced*re prescribed in the "on+idential !perations #an*al or otherwise in writing' and does not correct s*ch +ail*re within ten 5@6 days or proide proo+ acceptable to Franchisor  that Franchisee has made all reasonable e++orts to correct s*ch +ail*re and will contin*e to ma.e all reasonable e++orts to c*re *ntil a c*re is e++ected= i+ s*ch +ail*re cannot reasonably be corrected within ten 5@6 days a+ter written notice o+ s*ch +ail*re to comply is deliered to Franchisee&

@,&& @,

Js Jses es an any y *n *na* a*th thor ori( i(ed ed +oo +ood d s* s*pp ppli lies es or s* s*bs bsti tit* t*te tes s th ther ereo eo++ in iolation iola tion o+ the !peration !perational al #an* #an*al al or iola iolates tes standard standards s in the Food prod*ction' portioning' sering or deliery deliery&&

@&& @

%isp %isp*t *tes es a amo mong ng th the e sh shar areh ehol olde ders rs o+ F Fra ranc nchi hise see e to th the e e+ e++e +ect ct o+  a++ecting the operation o+ the Franchised Facility Facility&&

In a add dditi ition on tto o Fr Fran anch chis isor> or>s s ri righ ghtt to tter ermi mina nate te tthi his s Ag Agre reem emen ent' t' a and nd n not ot iin n lie* o+ s*ch right or any other rights against Franchisee' Franchisor' in the eent that Franchisee shall not hae c*red a de+a*lt *nder this  Agreement within ten 5@6 days a+ter receipt o+ a written 2Notice to "*re3 +rom Franchisor' may' at its option' enter *pon the premises o+  FARI ARINAS NAS I! I!"!S "!S E#$ E#$ANA ANA%A %A Fra Franch nchise ised d Fac Facili ility ty and e)e e)erci rcise se

 

18

complete a*thority with respect to the operation o+ said b*siness complete b*siness *ntil s*ch time as Franchisor determines that the de+a*lt o+ Franchisee has been c*red and that there is compliance with the re;*irements o+ this  Agreement& Franchisee speci+ically agrees that a designated representatie o+ Franchisor may ta.e oer' control' and operate said b*siness' and that Franchisee shall pay Franchisor a serice +ee e;*al to Two Tho*sand $esos 5$ ,'&6 per day' pl*s all trael e)penses' room roo m and bo board ard and oth other er e) e)pen penses ses rea reason sonabl ably y inc inc*rr *rred ed by s*c s*ch h representatie so long as it shall be re;*ired by the representatie to en+orce compliance herewith& It is *nderstood that this +ee may be ad?*sted at any time by Franchisor ta.ing into acco*nt price changes d*e to in+lation& "&

In a add dditi ition on tto o Fr Fran anch chis isor> or>s s ri righ ghtt to tter ermi mina nate te tthi his s Ag Agre reem emen ent' t' a and nd n not ot iin n lie* o+ s*ch right or any other rights against Franchisee' Franchisor  shall hae the option to charge Franchisee a +ine i+ any notice to c*re remain rem ains s *nc *nc*re *red d at an am amo*n o*ntt o+ $esos $esos !ne 1*n 1*ndre dred d Tho Tho*s *sand and 5$@'&6 or i+ Franchisee sells *na*thori(ed prod*cts' p*rchases +rom *na*thori(ed so*rces or sells e)pired prod*cts&

/III& RID1TS AN% %JTIES !F $AR $ARTIES TIES J$!N TER#INA TER#INATI!N TI!N Jpon te Jpon term rmin inat atio ion' n' th this is Ag Agre reem emen entt an and d al alll ri righ ghts ts gr gran ante ted d he here re*n *nde derr to Franchisee shall +orthwith terminate' and:  A&

Franchisee shall immediately cease to operate the Franchised Facility *nder this Agreement' and shall not therea+ter' directly or indirectly' re repr pres esen entt to th the e p* p*bl blic ic or ho hold ld it itse sel+ l+ o* o*tt as a pr pres esen entt or +o +orm rmer  er  +ranchise o+ Franchisor&

B&

Franchisee shall immediat iately and permanently cease to *se' by ade ad erti rtisi sing ng or in an any y othe otherr ma mann nner er wh what atso soe eer er'' an any y co con+ n+id iden enti tial al meth me thod ods' s' me men* n*s' s' +o +ood od prep prepar arat atio ion n pr proc oced ed*r *res es an and d te tech chni ni;* ;*es es associ ass ociate ated d wit with h the Sys System tem== the #a #ar.s r.s and any dis distin tincti ctie e +or +orms' ms' slogans' signs' symbol' logos or deices associated with the #ar.s or  System& In partic*lar' Franchisee shall cease to *se' witho*t limitation' all signs' adertising materials' stationery' +orms' and any other article'

"&

%&

which display the #ar.s associated with the System& Fran Franch chis isee ee s sha hall ll tta. a.e e s* s*ch ch a act ctio ion n as m may ay b be e ne nece cess ssar ary y to c can ance cell or  assign to Franchisor or Franchisor>s designee' at Franchisor>s option' any ass*med name or e;*ialent registration +iled with the %epartment o+ Trad rade' e' SE" or loc local al go goern ernmen mentt *ni *nitt whi which ch co conta ntains ins the nam name e FARINAS I!"!S E#$ANA%A or any o+ the #ar.s' and Franchisee shallll +*r sha +*rnis nish h Fra Franch nchiso isorr wit with h ei eiden dence ce sat satis+ is+act actory ory to Fra Franch nchiso isorr o+  compliance with its obligation within thirty 56 days a+ter termination or  e)piration o+ this Agreement& In tthe he e ee ent nt F Fra ranc nchi hise see e co cont ntin in*e *es s to o ope pera rate te o orr s* s*bs bse; e;*e *ent ntly ly b beg egin ins s to operate any other b*siness' Franchisee shall not *se any reprod*ction' co*nter+eit' copy or colorable imitation o+ the #ar.s either in connection with s*ch other b*siness or the promotion thereo+' which is li.ely to ca*se ca* se co con+* n+*sio sion' n' mis mista. ta.e e or dec decept eption ion'' or whi which ch is li.ely li.ely to dil dil*te *te Franchisor>s e)cl*sie rights in and to the #ar.s& Franchisee shall not

 

19

*tili(e any designation o+ origin or description or representation' which +alse +al sely ly s*g s*gge gests sts or rep repres resent ents s an ass assoc ociat iation ion or con connec nectio tion n with Franchisor Franc hisor so as to const constit*te it*te *n+a *n+air ir competi competition& tion& Fran Franchise chisee e shall ma.e ma .e s* s*ch ch mo modi di+i +ica cati tion ons s or al alte tera rati tion ons s to th the e pr prem emis ises es o+ th the e Franchised Facility immediately *pon termination or e)piration o+ this  Agreement as may be necessary to preent any association between Franch Fra nchiso isorr or the Sys System tem and an any y b*s b*sine iness ss the thereo reon n s*b s*bse; se;*en *ently tly oper op erat ated ed by Fr Fran anch chis isee ee or othe others rs'' an and d sh shal alll ma ma.e .e s* s*ch ch sp spec eci+ i+ic ic additional changes thereto as Franchisor may reasonably re;*est +or  thatt p*r tha p*rpos pose' e' inc incl*d l*ding ing'' wit witho* ho*tt lim limitat itation ion'' rem remoa oall o+ all dis distin tincti ctie e physical and str*ct*ral +eat*res identi+ying the System& In the eent Franchisee +ails or re+*ses to comply with the re;*irements o+ this $aragr $ar agraph aph /I /II' I' Fra Franch nchiso isorr sha shallll ha hae e the rig right ht to ent enter er *po *pon n the premis pre mises es whe where re Fra Franc nchis hisee> ee>s s Fra Franch nchise ised d Fac Facili ility ty wa was s con cond*c d*cted ted'' witho*t being g*ilty o+ trespassing or any other tort' +or the p*rpose o+  ma.ing or ca*sing to be made s*ch changes as may be re;*ired at the e)pen e)p ense se o+ Fra Franc nchis hisee' ee' whi which ch e)p e)pen ense se Fra Franch nchise isee e sh shall all pay *po *pon n demand& E&

Fran Franch chis isee ee sh shal alll p pro romp mptl tly y p pay ay al alll s* s*ms ms ow owin ing g tto o Fra Franc nchi hiso sorr& In th the e eent o+ termination +or any de+a*lt o+ Franchisee' s*ch s*ms shall incl incl*d *de e all all da dama mage ges' s' co cost sts' s' an and d e) e)pe pens nses es'' in incl cl*d *din ing g re reas ason onab able le attorneys> +ees' inc*rred by Franchisor as a res*lt o+ the de+a*lt&

F&

Fran Franch chis isee ee sh shal alll pay tto o Fra Franc nchi hiso sorr all dama damage ges' s' co cost sts s an and d e) e)pe pens nses es'' incl incl*d *din ing g reas reason onab able le at atto torn rney ey>s >s +e +ees es'' in inc* c*rr rred ed by Fran Franch chis isor  or  s*bse s*b se;*e ;*ent nt to the ter termin minati ation on or e) e)pira piratio tion n o+ the +ra +ranch nchise ise her herein ein granted in obtaining in?*nctie or other relie+ +or the en+orcement o+ any proisions o+ this $aragraph /III

D&

Fra ranc nchi his see sh shal alll im imme med diate iately ly t*r t*rn n o oer er to Fra ranc nchi hiso sorr all man an* *als' ls' incl incl*d *din ing g th the e "o "on+ n+id iden enti tial al !p !per erat atio ions ns #a #an* n*al al'' re reco cord rds' s' +i +ile les' s' instr* ins tr*cti ctions ons'' bro broch* ch*res res'' agr agree eemen ments' ts' +or +orms' ms' an and d any an and d all oth other  er  mate ma teri rial als s pro proid ided ed by Fran Franch chis isor or to Fran Franch chis isee ee re rela lati ting ng to th the e operation o+ the Franchised Facility' all o+ which are ac.nowledged to be Franchisor>s property property&&

1&

Fran Franch chis isor or sh shal alll ac ac;* ;*ir ire' e' wi with tho* o*tt com ompe pens nsat atio ion' n' all all ri righ ghts ts'' ti titl tle e and and intere int erest st in and any sign or sig sign n +ac +aces es bea bearin ring g Fra Franch nchiso isor>s r>s #a #ar.s r.s&& Franchisee hereby ac.nowledges Franchisor>s right to hae access to the premises o+ the Franchised Facility sho*ld Franchisor elect to ta.e possession o+ any said sign or sign +aces bearing Franchisor>s #ar.s&

I&

Fra ranc nchi his sor s sha hall ll h ha ae e th the e ri rig ght 55b* b*tt no nott th the e d*ty d*ty6' 6' tto o be e) e)er erci cis sed by notice o+ intent to do so within thirty 56 days a+ter termination or  e)piration o+ this Agreement' to p*rchase +or cash any or all assets o+  the Franchised Facility incl*ding' witho*t limitation' any e;*ipment and s*pplies' adertising materials' at Franchisee>s cost less depreciation& I+ Franchisor elects to e)ercise any option to p*rchase herein proided' it shall hae the right to set o++ all amo*nts d*e +rom Franchisee *nder  this Agreement' Agreement' against any payment there+ore&

 

20

L&

I&

All All o obl blig igat atio ions ns o+ F Fra ranc nchi hiso sorr a and nd Fr Fran anch chis isee ee w whi hich ch e) e)pr pres essl sly yo orr by th thei eir  r  nat*re s*rie the e)piration or termination o+ this Agreement shall contin*e in +*ll +orce and e++ect s*bse;*ent to and notwithstanding its e)piration or termination and *ntil they are satis+ied or by their nat*re e)pire&

TRANS TRANSFERA FERABIIT BIIT  !F INTE INTEREST REST  A&

This Agreement and all rights here*nder can be assigned and trans+erred by Franchisor and' i+ so' shall be binding *pon and in*re to the bene+it o+ Franchisor>s s*ccessors and assigns&

B&

This Agreement and all rights here*nder may be assigned and trans+erred by Franchisee and' i+ so' shall be binding *pon and in*re to the ben bene+i e+itt o+ Fra Franch nchise isee> e>s s s*c s*cces cesso sors rs and ass assign igns' s' s*b s*b?ec ?ectt to the +ollowing conditions and re;*irements' and Franchisor>s right o+ +irst re+*sal as set +orth herein: @&

No Franchisee' partner o+ Franchisee 5i+ Franchisee is a partnership6' or shareholder o+ Franchisee 5i+ Franchisee is a corpor cor porati ation6 on6'' with witho*t o*t Fra Franch nchiso isor>s r>s pri prior or wri writte tten n con consen sent' t' by operation o+ law or otherwise shall sell' assign' trans+er' coney' gie away' away' or enc*mber to any person' +irm' or corporation' all or  any part o+ its interest in this Agreement its proprietorship' interest in the +ranchise granted hereby or its interest inorany part pa rtne ners rshi hip p or co corp rpor orat atio ion n wh whic ich h ow owns ns an any y in inte tere rest st in th the e +r +ran anch chis ise' e' no norr o++e o++err' pe perm rmit it'' or s* s*+++e +err th the e sa same me to be so sold ld'' assigned' trans+erred' coneyed' gien away' or enc*mbered in any way to any any perso person' n' +irm' or corp corporatio oration& n& Fran Franchise chisee e may not' witho*t the prior written consent o+ Franchisor +ractionali(e any an y o+ th the e righ rights ts o+ Fran Franch chis isee ee gr gran ante ted d p* p*rs rs*a *ant nt to th this is  Agreement& Any p*rported assignment o+ any o+ Franchisee> Franchisee>s s rights herein not haing the a+oresaid consent shall be n*ll and oid and shall constit*te a material de+a*lt here*nder here*nder&&

,&

Fran Franch chis isee ee s sha hall ll ++ir irst st c com omm* m*ni nica cate te tto o Fran Franc chi hiso sorr in w wri riti ting ng tthe he +*ll terms o+ said o++er and the name o+ the o++erer& I+ Franchisor  shall e)ercise itsisor option tol p*rchase within alyperiod o+ld thirty 56 5 6 not da days ys' ' Fr Fran anch chis or sh shal all not not *n *nre reas ason onab ably wi with thho hold its consen con sentt to any tra trans+ ns+er er o+ thi this s Agr Agreem eement ent whe when n re; re;*es *ested ted== proided' howeer' that the conditions and re;*irements shall +irst be met to the +*ll satis+action o+ Franchisor&

&

Fr Fran anch chis isee ee sh shal alll h ha ae e ++*l *lly ly pa paid id an and ds sat atis is+ie +ied da all ll o+ o+ F Fra ranc nchi hise see> e>s s obligations to Franchisor' and the $*rchaser or Franchisee shall hae +*lly paid to Franchisor a trans+er +ee in the amo*nt o+  $esos +i+ty tho*sand 5$'&6 +or the training' s*perision' administra admi nistratie tie cos costs' ts' oer oerhead head'' co*ns co*nsel el +ees +ees'' acco acco*ntin *nting g and other Franchisor e)penses e)penses in c connection onnection with the tra trans+er ns+er&& The p*rchaser and Franchisee shall sign the Trans+er and Release  Agreement as proided proided by Franchisor Franchisor&&

G&

No sa sale le'' a ass ssig ignm nmen ent' t' ttra rans ns+e +err' c con one eya yanc nce' e' en enc* c*mb mbra ranc nce' e' or gi gi+t +t o+ any interest in this Agreement or in the +ranchise granted

 

21

th ther ereb eby y' sh shal alll re reli lie ee e Fr Fran anch chis isee ee an and d th the e sh shar areh ehol olde ders rs or  partners participating in any trans+er' o+ the obligations o+ the coenants contained e)cept where Franchisor shall e)pressly a*thori(e in writing& "&

Fran Franch chis isee ee m* m*st st pr prom ompt ptly ly 52p 52pro romp mptl tly3 y3 he here rein in de de+i +ine ned d as wi with thin in +i+ +i+te teen en 5@6 days o+ receipt o+ an o++er to b*y6 gie Franchisor written notice when wh ene eer er Fr Fran anch chis isee ee ha has s rece recei ied ed an o+ o++e +err to b*y b*y Fr Fran anch chis isee ee>s >s +r +ran anch chis ise& e& Fr Fran anch chis isee ee m* m*st st also also gi gie e Fr Fran anch chis isor or wr writt itten en no noti tice ce sim*ltaneo*sly with any o++er to sell the +ranchise made by' +or' or on behal+ o+ Franchisee&

%&

Fr Fran anch chis isee ee s sha hall ll no not' t' wi with tho* o*tt pri prior or w writ ritte ten n co cons nsen entt o+ F Fra ranc nchi hiso sorr' pla place ce in' in' on or *p *pon on th the e loca locati tion on o+ th the e Fran Franch chis ised ed Fa Faci cili lity ty or in an any y comm*nication media' any +orm o+ adertising relating to the sale o+  the Franchised Facility or the rights granted here*nder here*nder&&

& %EA %EAT1 T1 !R IN"A$ IN"A$A"IT A"IT  !F FRAN FRAN"1ISE "1ISEE E  A&

In the eent o+ the death or incapacity o+ an indiid*al Franchisee' or  any partner o+ a Franchisee which is a partnership or any shareholder  owning +i+ty percent 5C6 or more o+ the capital stoc. o+ a +ranchisee which is a corporation' the heirs who are relaties o+ the decedent to *p to two degrees o+ consang*inity shall' within ninety 5H6 days o+ s*ch eent: @&

Apply to Fr Fra anchisor +or the rig igh ht to contin*e to operate the +ranchise +or the d*ration o+ the term o+ this Agreement and any renewals hereo+' which right shall be granted *pon the +*l+illment o+ all all o+ th the e co cond ndit itio ions ns se sett +o +ort rth h in $a $ara ragr grap aph h  o+ th this is  Agreement' e)cept that no trans+er +ee shall be re;*ired=

,&

Sell' assign' trans+er' or coney Franchisee>s interest in compliance with the proisions o+ $aragraphs I and I o+  this Agreement= proided' howeer' in the eent a proper and timely application +or the right to contin*e to operate has been made and re?ected' the ninety 5H6 days to sell' assign' trans+er' or coney shall be comp*ted +rom the date o+ said re?ection&

B&

In tthe he e e en entt o+ th the e de deat ath h or in inca capa pac cit ity y o+ an iind ndi iid id*a *all Fr Fran anch chis isee ee'' or  any partner or shareholder o+ a Franchisee which is a partnership or  corporation' where the a+oresaid proisions o+ $aragraph I hae not been +*l+illed within the time proided' all rights licensed to +ranchisee *nder *nd er thi this s Agr Agree eemen mentt sha shall' ll' at the op optio tion n o+ Fra Franch nchiso isorr' ter termin minate ate +ort +orth hwith with and a*t *to oma mati tica call lly y re eer ertt to Fra ranc nchi his sor with witho o*t an any y compensation& Franchisor may opt to p*rchase the physical assets at p*rchase price less depreciation and witho*t wi tho*t any good will money money&&

"&

Fo Forr p*r p*rpo pose ses s o+ thi this s A Agr gree eeme ment nt'' 2in 2inca capa paci city ty33 sha shall ll be de de+i +ine ned d as the inabil ina bility ity o+ Fra Franch nchise isee e to op opera erate te or oe oerse rsee e the ope operat ration ion o+ the Franchised Facility on a reg*lar basis by reason o+ any contin*ing physical' mental or emotional incapacity incapacity'' chemical dependency or other  limitation& Any disp*te as to the e)istence o+ an incapacity as de+ined herein shall be resoled by licensed medical physicians practicing in the region in which ich the Franchised Facili litty is located& The

 

22

determina determ inatio tion n o+ the med medica icall phy physic sician ian sh shall all be bin bindin ding g *po *pon n the parties and all costs o+ ma.ing said determination shall be borne by the party against whom it is made& I& RID1T !F FIR FIRST ST R REFJSA EFJSA  I+ Franchisee or its owners propose to sell the Franchised Facility 5or its assets6 or part or all o+ the ownership o+ Franchisee' Franchisee or its owners shall obtain and delier a bona +ide' e)ec*ted written o++er to p*rchase same to Franchisor' which shall' +or a period o+ thirty 56 days +rom the date o+  deli de lie ery ry o+ s* s*ch ch o++e o++err' ha hae e th the e rig right ht'' e) e)er erci cisa sabl ble e by wr writ itte ten n noti notice ce to Franchisee or its owners' to p*rchase the Franchised Facility 5or its assets6 or  s*ch ownership +or the price and on the terms and conditions contained in s*ch o++er to Franchisor' proided that Franchisor may s*bstit*te cash +or any +orm o+ payment proposed proposed in s*ch o+ o++er +er&& I+ Franchisor does n not ot e)ercise this right o+ +irst re+*sal' the o++er may be accepted by Franchisee or its owners' s*b?ect to the prior written approal o+ Franchisor' as proided in $aragraph I hereo+' proided that i+ s*ch o++er is not so accepted within 56 days o+  the date thereo+' Franchisor shall again hae the right o+ +irst re+*sal herein described& Sho*ld a trans+er +ranchisee ass*me the rights and obligations *nder this Agreement' s*ch trans+eree +ranchise shall li.ewise be s*b?ect to Franchisor>s right o+ +irst re+*sal *nder the terms and conditions as set +orth herein& II& IN%E$EN%ENT "!NTRA"T! "!NTRA"T!R R  A&

This Agreement does not create a +id*ciary relationship between the par arti tie es' no norr do does es it co con nst stit it*t *te e Fra ranc nch hisee isee as an age gen nt' le lega gall re repr pres esen enta tati tie e'' ?oin ?ointt e ent nt*r *re e pa part rtne nerr' em empl ploy oyee ee'' or se ser ran antt o+  Franchisor +or any p*rpose whatsoeer& It is *nderstood between the parties hereto that Franchisee shall be an independent contractor and its employees cannot be considered as employees o+ the Franchisor& The Franchisee is solely responsible +or its employees and hereby hold ho lds s th the e Fr Fran anch chis isor or +r +ree ee +r +rom om an any y liabi liabili lity ty wh what atso soe eer er== wi with th it its s employees on any claim whateer nat*re& The Franchisee is in no way a*thori(ed to ma.e any contrac ract' agree reement' warranty or  representation on behal+ o+ Franchisor to inc*r any debt' or to create any obligation' e)press or implied' on behal+ o+ Franchisor&

B&

%*ring the term o+ this Agreement and any e)tension hereo+' Fr Fran anch chis isee ee sh shal alll ho hold ld its itsel el++ o* o*tt to th the e p* p*bl blic ic as an in inde depe pend nden entt cont co ntra ract ctor or op oper erat atin ing g the the b* b*si sine ness ss p* p*rs rs*a *ant nt to a +r +ran anch chis ise e +r +rom om Franchisor Franc hisor&& Fran Franchise chisee e shall ta.e s*ch a++irm a++irmatie atie actio action n as may be necessary to do so' incl*ding' witho*t limitation' e)hibiting a notice o+  that +act in a conspic*o*s place on the premises o+ the Franchised Facilit Fac ility y and on all +or +orms' ms' sta statio tioner nery y' or oth other er wri writte tten n ma mater terial ials' s' the content o+ which Franchisor reseres the right to speci+y speci+y&&

"&

Franchisee shall de de++end at his ow own n cost and indemni+y and hold harmle har mless ss Fra Franch nchiso isorr' its gen genera erall par partne tners rs and the their ir sha shareh rehold olders ers'' directors' o++icers' employees and agents' +rom and against any and all loss lo ss'' co cost sts' s' attorneys> e) e)pe pens nses esand 5i 5inc ncl* l*di ding ng'witness ' wi with tho* o*t t li limi mita tati tion on' re reas ason onab able le acco*ntants>' e)pert +ees' costs o+' inestigation

 

23

and proo+ o+ +acts' co*rt costs other litigation e)penses and trael and liing e)penses6' damages and liabilities' howeer ca*sed' res*lting dire direct ctly ly or indi indire rect ctly ly +r +rom om or pe pert rtai aini ning ng to th the e *s *se' e' co cond ndit itio ion n or  constr*ction' e;*ipping' decorating' maintenance or operation o+ the Franchised Facility' incl*ding the sale o+ any prod*ct sold +rom the Franchised Facility& S*ch loss' claims' costs' e)penses' damages and liabilities shall incl*de' witho*t limitation' those arising +rom latent or  other de+ects in the Franchised Facility' whether or nottodiscoerable Franchisor' and those arising +rom the death or in?*ry any person by or  arising +rom damage to the property o+ Franchisee or Franchisor' their  agents or employees' or any third person' +irm or corporation' whether  or not s*ch losses losses'' claim claims' s' cost costs' s' e)pe e)penses nses'' dama damages' ges' or liab liabilities ilities were act*ally or allegedly ca*sed wholly or in part thro*gh the actie or  passie negligence o+ Franchisor or any o+ its agents or employees or  res*lted +rom any strict liability imposed on Franchisor or any o+ its agents or employees& All s*ch indemni+ication shall s*rie termination o+ this Agreement& %&

Fra ranc nchi his sor sh shal alll not ot'' by i irt rt*e *e o+ any ap app pro roa als ls'' ad dic ice e or se ser ric ices es proide to Franchisee' ass*me responsibility or liability to Franchisee or any third parties to which Franchisor wo*ld not otherwise be s*b?ect&

II  III& I& N! N!N4 N49 9AI AI/E /ER R 9aier by Franchisor o+ any partic*lar de+a*lt by Franchisee shall not be binding *nless in writing and e)ec*ted by the party so*ght to be charged and shall not a++ect or impair Franchisor>s right with respect to any s*bse;*ent de+a*lt o+ the same or o+ a di++erent nat*re= nor shall any delay' waier' +orbearance' or omission o+ Franchisor to e)ercise any power or rights arising o*t o+ any breach or de+a*lt by Franchisee o+ any o+ the terms' proisions' or  coenants hereo+' a++ect or impair Franchisor>s rights nor shall s*ch constit*te a waier by Franchisor o+ any right here*nder or o+ the right to declare any s*bse;*ent breach or de+a*lt& S*bse;*ent acceptance by Franchisor o+ any paym pa ymen ent5 t5s6 s6 d* d*e e to it he here re*n *nde derr sh shal alll no nott be de deem emed ed to be a wa wai ier er by Franchisor o+ any preceding breach by Franchisee o+ any terms' coenants or  conditions o+ this Agreement& I/  I/&& N! N!TI TI"E "E  Any and all notices re;*ired or permitted *nder this Agreement shall be in writing and shall be considered sered i+ personally deliered or sent by registered mail or "o*rier serice to the respectie parties at the address as indicated on $age one o+ this Franchise Agreeme Agreement nt or transmit them ia email or on the website o+ Franchisor or ia andlord o+ the Franchised Facility Facility&& /&A$$I"ABE A9 Franchisee ac.nowledges that this Agreement is entered into in 0*e(on "ity and that any action so*ght to be bro*ght by either party' e)cept those claims re;*ired to be s*bmitted to arbitration' shall be bro*ght in the trial co*rt o+  0*e( 0* e(on on "i "ity ty an and d th the e pa part rtie ies s do he here reby by wa wai ie e al alll ;* ;*es esti tion ons s o+ pe pers rson onal al  ?*risdiction or en*e +or the p*rposes p*rposes o+ carrying o*t this proision& proision&

 

24

/I& / I& ARB ARBITR ITRA ATI! TI!N N  Any controersy regarding the establishment o+ the +air mar.et al*e o+  leasehold leas ehold improem improements ents and other Franchis Franchised ed Facil Facility ity ass assets ets p*rs* p*rs*ant ant to $aragr $ar agraph aph /I /III II the thereo reo++ sha shallll be s*b s*bmit mitted ted to bin bindin ding g arb arbitra itratio tion& n& Not Nothin hing g cont co ntai aine ned d he here rein in sh shal all' l' ho howe wee err' be co cons nstr tr*e *ed d to li limi mitt or to pr prec ecl* l*de de Franchisor +rom bringing any action in any co*rt o+ competent ?*risdiction +or  in?*nctie or other proisional relie+ as Franchisor deems to be necessary or  appropriate to compel Franchisee to comply with his obligations here*nder or  to protect the #ar.s or other property rights rights o+ Franchisor Franchisor&& In addition' nothing contained herein shall be constr*ed to limit or to precl*de Franchisor +rom  ?oining with any action +or in?*nctie or proisional relie+ all monetary claims that Franchisor may hae against Franchisee which arise o*t o+ the acts or  omissions to act giing rise to the action +or in?*nctie or proisional relie+& The arbitration proision shall be deemed to be sel+4e)ec*ting and in the eent that Franchisee +ails to appear at any properly noticed arbitration proceeding' award awa rd may be ent entere ered d aga agains instt Fra Franch nchise isee e not notwit withst hstand anding ing his +ai +ail*r l*re e to appear& /II& 2FRAN"1ISEE3 %EFINE% AN% DJARANT  As *sed in this Agreement' the term 2Franchisee3 shall incl*de all persons who s*cceed to the interest o+ the original Franchisee by trans+er or operation o+ law and shall be deemed to incl*de not only the indiid*al or entity de+ined as 2Franchisee3 in the introd*ctory paragraph o+ this Agreement' b*t shall also incl*de all partners o+ the entity that e)ec*tes this Agreement' in the eent said entity is a partnership' and all shareholders' o++icers and directors o+ the entity that e)ec*tes this Agreement in the eent said entity is a corporation& By their signat*res hereto' all partners' shareholders' o++icers and directors o+  the entity that signs this Agreement as Franchisee ac.nowledges ac.nowledges and accepts the d*ties and obligations imposed *pon each o+ them' indiid*ally' by the terms o+ this Agreement& /I  /III II&& "A "A/E /EA AT The s*c s*cces cess s o+ the b*s b*sine iness ss en ent*r t*re e co conte ntempl mplate ated d to be *nd *ndert erta.e a.en n by Franchisee by irt*e o+ this Agreement is spec*latie and depends' to a large e)tent' *pon the ability o+ as ano+independent b*sinessman' and his actie participation in Franchisee the daily a++airs the b*siness as well as other  +actors& Franchisor does not ma.e any re representation presentation or warranty e e)press )press or  implied as to the potential s*ccess o+ the b*siness ent*re contemplated hereby& I& I & A"K A"KN!9 N!9E% E%DE# DE#ENT ENTS S  A&

Franchisee represents and ac.nowledges that it has receied' read and *n *nder dersto stood od thi this s Agr Agree eemen mentt an and d tha thatt Fra Franc nchis hisor or has acc accord orded ed Franchisee ample time and opport*nity to cons*lt with adisors o+ its own choosing abo*t the potential bene+its and ris.s o+ entering into this  Agreement&

B&

Fr Fran anch chis isee ee a ac. c.no nowle wledg dges es ttha hatt it h has as rrec ecei eie ed dac cop opy y o+ th this is Ag Agre reem emen entt prior to the date on which this Agreement was e)ec*ted&

 

25

"&

Fr Fran anch chis isee ee * *nd nder erst stan ands ds a and nd a ac. c.no nowl wled edge ges s th that at a all ll re repr pres esen enta tati tion ons s o+  +act contained contained herei herein n are made sole solely ly by Fran Franchiso chisorr& All doc*me doc*ments' nts' incl*ding Franchisor>s Franchise Agreement hae been prepared solely in reliance *pon representations made and in+ormation proided by Franchisor'' its o++icers and its directors& Franchisor

%&

Bo Both th p par artie ties s +* +*rt rthe herr ag agre ree e to rrel elea ease se ++ro rom m al alll li liab abili ility ty and and iind ndem emni ni+y +y a and nd hold harmless the preparer o+ this +ranchise agreement' addend*ms and e)hibits thereto +rom any and all loss' costs' e)penses' incl*ding attor ttorne ney ys> +e +ees es'' dam amag age es and li lia abi bili liti tie es re res s*l *lti ting ng +r +rom om any representations and7or claims made by Franchisor in s*ch doc*ments&

IN 9ITNESS 91ERE!F' the parties hereto' intending to be legally bo*nd hereby' hae ha e d*l d*ly y e)e e)ec*t c*ted ed'' sea sealed led and del delie iered red thi this s Agr Agreem eement ent in ;* ;*adr adr*pl *plica icate te this this  888888 day o+ 888888888 888888888 ,88 in 0*e 0*e(on (on "ity "ity&& FRAN"1IS!R

FRAN"1ISEE

FARINAS BEST I!"!S E#$ANA%A IN"&   _____________________________________ 

 88888888888888888888888  88888888888 88888888888888888888 88888888 888888888888 888888888888888888888888 88888888888888888888  88888888  1a(el Farinas

Name: 888888888888 888888888888888888888888 88888888888888  88 

Signed in the presence o+:

 88888888888888888888888  88888888888 888888888888888888 888888

888888888888 888888888888888888888888 88888888888888888888  88888888 

Name Na me:: 88 8888 8888 8888 8888 8888 8888 8888 8888 8888 8888 888 8

Na Name me:: 88 8888 8888 8888 8888 8888 8888 8888 8888 8888 8888 8888 8888  88 

 

26

ACKNOWLEDGEMENT

RE$JBI" !F T1E $1II$$INES6 0JEO!N "IT6 S&S& Be+ore me' a Notary $*blic' this day personally appeared NA#E D!/ERN#ENT I%P ISSJE% !N

ISSJE% IN

1a(el Farinas

.nown to me and to be .nown to be the same persons who signed and e)ec*ted the +oregoing instr*ment and o+ the "ompanies they represent +or the *ses and p*rpose therein set +orth& Signed and sealed by me on 8888888888888888888 8888888888888888888888888  888888  N!TAR N!TAR  $JBI $JBI" " %!"& N! 8888888888  $ADE N! 8888888888  B!!K N! 888888888  SERIES !F ,888