pment Fee payment to satisfy half of the initial franchise fee due thereunder, and you shall pay the balance of the initial franchise fee.

4. DEVELOPMENT SCHEDULE AND MANNER FOR EXERCISING DEVELOPMENT RIGHTS

• 4.1. Separate Franchise Agreements. The Franchise Agreement for the first Store to be developed under this Agreement is the form attached as Attachment F. The Franchise Agreement for the second and each additional Store to be developed is the form of Franchisor's then-current Franchise Agreement, the terms of which may be materially different from the terms of Attachment F; provided that the initial franchise fee payable thereunder will be the amount reflected in the Summary Page.
• 4.2. Development Schedule. Recognizing that time is of the essence, you agree to satisfy the Development Schedule set forth in Attachment B.

4.3. Manner for Exercising Development Rights.

• 4.3.1. Before exercising any development rights granted hereunder, you shall apply to Franchisor for a franchise to operate a Store. If Franchisor, in its sole discretion, determines that you have met each of the following operational, financial, and legal conditions, then Franchisor will grant you a franchise for each respective Store:
• (a) Operational Conditions: You are in compliance with the Development Schedule and this Agreement, and you or your Affiliates are in compliance with any other agreement between them and Franchisor or its Affiliate. You are conducting the operation of your existing Stores, if any, and are capable of conducting the operation of the proposed Store in accordance with the terms and conditions of this Agreement, the respective Franchise Agreements, and the standards, specifications, and procedures set forth and described in the Manuals (defined in the Franchise Agreement).
• (b) Financial Conditions: You and your Owners satisfy Franchisor's then-current financial criteria for developers and Owners of Stores. You and your Owners have been and are faithfully performing all terms and conditions under each of the existing Franchise Agreements and related agreements with Franchisor or its Affiliate. You are not in default, and have not been in default during the 12-month period immediately preceding your request for financial approval, of any monetary obligations owed to Franchisor or its Affiliates under any Franchise Agreement or any other agreement between you or your Affiliates and Franchisor or its Affiliates.

Source: Item 22 — CONTRACTS (FDD page 68)