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Article 9. RESTRICTIONS ON GOODS AND SERVICES OFFERED BY FRANCHISEE

9.1 Restrictions. You may sell or offer for sale to the public only services and goods of the kind and quality which comply with the reasonable standards designated in the Confidential Business Operation Manual or directives in writing provided by us from time to time. You may not use our name, trademarks, service marks, trade names, logotypes or commercial symbols in any business other than the franchised business. All products and services used or offered must be from an approved vendor.

9.2 Required Quality. Each of the goods and services supplied by you to the public are subject to the quality standards necessary to uphold the reputation and public image of the Freakie Fries system. All goods, services, supplies, fixtures, equipment, inventory and real estate used to serve the public must meet the standards as set forth in the Confidential Business Operation Manual and other written publications and as subject to change from time to time. You may only offer such services and sell such products as may be designed by us from time to time in writing in order to be consistent with our theme.

9.3 Approved Suppliers and Advertising. You may only offer such services and sell such products as may be designed by us from time to time in writing in order to be consistent with our theme. You will be supplied with a Confidential Business Operation Manual and/or written directive which will contain specifications and parameters developed by us and which are to be strictly followed.

We reserve the right to designate or consent to the content, themes, materials and placement of all advertising programs by you. All such advertising shall be submitted to us for our approval at least five business days prior to publication unless specifically waived in writing by us as to each particular ad or advertising campaign.

You will be supplied with our list of suggested and preferred suppliers by us, which may be updated by us from time to time. We do not request nor will we accept any compensation from any of our suggested suppliers

 

We evaluate, approve or disapprove suppliers based on suppliers who demonstrate to us with continued reasonable satisfaction: (1) an ability to meet our standards and specifications, (2) possess adequate quality control and the capacity to supply our franchisees’ needs promptly and reliably, and (3) who have been approved by us in our manuals or otherwise in writing. You are required to submit to us a written request to approve a proposed supplier together with such information as we may reasonably require including financials, total sales figures, written references, etc. We also reserve the right to require that our representative be permitted to inspect the suppliers’ facilities and that samples from the supplier be delivered for our evaluation and testing either to us or to an independent testing facility designated by us. A charge not to exceed the reasonable cost of the evaluation and testing is required to be paid by the franchisee whether or not the supplier is approved. We will notify you in writing of our approval or disapproval of the proposed supplier and the criteria for our approval and disapproval within 10 days after our receipt of your request and completion of the evaluation and testing.

 

To insure uniformity and quality in all units, you are required to purchase supplies, materials and products including food an beverages or components thereof that are equal to or exceed the specifications established by us. All Freakie Fries establishments  must meet the construction and appearance as well as equipment standards set forth in the then-current Confidential Business Operation Manual or written our written directives, however, you are not required to have construction services performed by any specific entity. Specifications set forth may include minimum standards for building size and style, sign(s), equipment

types, products including food and beverages sold, inventory, quality, delivery, performance, warranties, logo and trademark design and compliance, appearance and other restrictions. Such specifications are part of the Confidential Business Operation Manual or written directives which are issued to the you and are subject to change from time to time. You must promptly comply with all such changes. On occasion, an affiliated entity may be an approved supplier of items relating to the operation of the franchise business such as products, materials, services, supplies, equipment and facilities. You are not required to purchase such items from an affiliate, if another supplier is approved by us, except the required purchases by the Franchisee of “Service Orders” and specified hardware and software items with information relating to all such required purchases being contained in this agreement and/or the Confidential Business Operation Manual or our subsequent written directives.

You agree that we have the right to sample, review or test all equipment, products (food and  beverage), materials and supplies to determine compliance with our standards and conformity (as well as other factors such as advertising contributions, marketing assistance, and equipment loan arrangements). Those items failing to meet such standards will be disapproved and it will be your responsibility to replace such items with those meeting our requirements and standards. Our approval of your equipment, products, materials and supplies will not be unreasonably withheld, however, we reserve the right to require that you purchase and use specific brand name items to be used in the operation of the franchise center (although you are free to purchase such items from sources identified by you and approved by us as meeting our reasonable requirements) to obtain quality control, uniformity, and marketing and advertising contribution benefits. Where we have designated an approved brand name supplier and such supplier has agreed to make advertising contributions and/or other payments with respect to such approved product or service conditioned on use, sales or otherwise by us or you, all such payments by such approved brand name supplier are generally made to us or an entity appointed by us and shall be spent by us or such entity provided that any expenditure or other handling of such payments must be consistent with any restrictions or conditions imposed by such approved brand name supplier. We reserve the right to require that all products used by you meet our quality standards and other reasonable requirements.

 

9.4 Menu Items and Hours of Operation. You are required to prepare and serve only items on the menu as approved by us in advanced in writing. You shall submit in writing to us for approval all contemplated menu changes and additions to or deletions from the items presently approved for sale. All  menu items will be formulated, designed and enhanced by us. You may create and test new beverage items with our prior approval. You shall adequately stock the establishment with sufficient supplies of approved food and beverages and comply with all applicable health and sanitation ordinances.. You are required to operate the facilities continuously from 10 A.M. to 10 P.M.  seven (7) days per week unless different hours have been approved by us. Depending on your location, we set the days and hours of operation which may vary from location to location and from time to time

 

9.5 Vending Machines. Vending machines or other operated machines are permitted only with our prior written consent.