How should the paragraph headings in the Azal Coffee Franchise Agreement be used?

" "us," and "our" | refers | to | | Franchisor and "you" and "your" refers to Franchisee. | | |

ARTICLE 1 - INTRODUCTION

1.1 Franchise Systems.

We and our affiliates, as the result of the expenditure of time, skill, effort, and money, have developed a coffee café that specializes in Yemeni-grown coffee and that sells coffee based beverages, cold drinks, teas, coffee beans, coffee accessories, pastries, baked goods, and other related items, all of which constitute trade secrets and are identified by the public with Azal Coffee products; prescribed exterior and interior design, decor, seating, fixtures, and furnishings; standards and specifications for products and supplies; service standards; uniform standards, specifications, and procedures for operations; training and assistance; and advertising and promotional programs (collectively "Systems"); all of which may be changed, improved, and further developed by us. The Systems we specify for use by the store concept to be licensed to you under to this Agreement are referred to as the "Franchise Systems."

1.2 Franchise Marks and Trade Dress.

We identify our store concept by means of certain trademarks, service marks, trade names, logos, and other marks ("Marks") and by location designs, layouts, and other characteristics of visual appearance ("Trade Dress"). The Marks and Trade Dress we authorize for use by the store concept licensed to you under this Agreement are referred to as the "Franchise Marks" and the "Franchise Trade Dress."

1.3 Franchise Business.

A business operated under the Franchise Systems, Franchise Marks, and Franchise Trade Dress, whether operated by us or our affiliates or other persons authorized by us, will be referred to in this Agreement as a "Store." The Store that you are licensed to operate under this Agreement will be referred to in this Agreement as the "Franchise Business."

1.4 Your Desire to Obtain a Franchise.

You recognize the advantages of operating under the Franchise Systems, Franchise Marks, and Franchise Trade Dress and desire to obtain the right to operate a Store. We are willing to grant you a license to open and operate a Store on the terms and conditions in this Agreement.

ARTICLE 2 - GRANT OF FRANCHISE

2.1 Grant of Franchise.

We grant you the nonexclusive right to use the Franchise Marks, Franchise Trade Dress, and the Franchise Systems in connection with the operation of a single Store in accordance with this Agreement and our "Brand Standards Manual" (as defined in Section 8.2). The Franchise Business must be operated at the location designated in accordance with Section 6.1 (the designated location is referred to as the "Franchise Location").

2.2 Limitations.

The rights we grant you in this Agreement relate only to the sale of products over-the-counter at the Franchise Location, and you are not granted any exclusive area or other territorial rights, except as specifically provided in Section 2.3. You acknowledge that we have the right to control catering, delivery, and online ordering services offered by Stores. You will not have the right to provide catering, delivery (including delivery by third-party delivery services), or online ordering services except as authorized in writing by us and then only under the policies and procedures specified by us. You will not have the right to solicit or conduct business through the use of toll-free telephone numbers, catalogs, direct mail, mobile applications, internet or other advertising or solicitation methods not involving only sales over-the-counter at the Franchise Location unless you have our prior written approval.

2.3 Protected Area; Limited Exclusivity; Exceptions.

Except as otherwise provided in this Agreement, as long as this Agreement is in effect and you are not in default under this Agreement, we will not open or authorize any other person to open a Store within a protected area we designate for you (the "Protected Area").

Source: Item 22 — CONTRACTS (FDD page 51)