What does the B Bops Franchisee acknowledge regarding the Licensed Marks?

Franchisee acknowledges and agrees that Franchisee has a duty and that it is in Franchisee's best interest to maintain and enhance the goodwill inherent in the Licensed Marks. Franchisee accordingly agrees that its use of the Licensed Marks shall comply with the policies set forth in the Operations Manual and be limited solely to display in connection with operation of the Franchise on the Franchise Premises. Franchisee agrees not to use, display or imitate the Licensed Marks in connection with any goods or services not authorized for the Licensed System, except with the prior written consent of Company. Franchisee further agrees not to use the words "B-Bop's" as a part of the name of any partnership, corporation or limited liability company through which the Franchise is to be owned or operated. Franchisee shall use no trademark, trade name or service mark in connection with the Franchise other than the Licensed Marks, unless such use is first approved in writing by Company. Franchisee shall, when using the Licensed Marks, comply with all laws pertaining to trade names, trademarks and service marks, including marking all documents and materials showing registration to Company. Company may from time to time add to the Licensed Marks by notifying Franchisee of such additions in writing, and said additions shall, for purposes of this Agreement, be classified as Licensed Marks. Company shall additionally have the right, in its sole discretion, to require Franchisee to discontinue or modify use of any of the Licensed Marks within thirty (30) days of receipt of written notice from Company.

Franchisee agrees to immediately notify Company in writing of the following: (a) any challenge to Franchisee's use of the Licensed Marks; (b) any claim by a third party to rights in any of the Licensed Marks (or confusingly similar marks) that comes to the attention of Franchisee; or (c) any apparent infringement of the Licensed Marks that comes to the attention of Franchisee. Company shall have complete discretion in taking such action as it may deem appropriate upon notification of any such challenge, claim or infringement, and shall have exclusive control over any litigation or other proceeding instituted with respect to the Licensed Marks. Franchisee agrees to cooperate with Company in investigating, prosecuting or defending any action involving any of the Licensed Marks or other trade secrets of Company.

Source: Item 22 — CONTRACTS (FDD page 53)