The Franchise Agreement requires you to devote your full-time and best efforts to the active management and operation of the Franchise, or to appoint a manager to devote such manager's full-time and best efforts to operation of the business. Although the Company recommends that you participate personally in the actual operation of your Franchise, you are entitled to appoint a full-time manager to operate the Franchise on a day-to-day basis, provided that: (1) the Company has approved the qualifications of such manager; and (2) you remain active in the business through monitoring such manager's performance in operating the Franchise. The Company will not unreasonably withhold its approval of your proposed manager, provided that such manager satisfies the Company's managerial standards and has completed the training course to the satisfaction of the Company. The individual responsible for management of the Franchise (you or your appointed manager) must assume such responsibilities on a full-time basis and may not engage in any other business or activity that requires significant time commitments or that may otherwise be detrimental to or interfere with the day-to-day management of the Franchise. If you are an entity such as a corporation, limited liability company or partnership, you may not be involved in any business or activities apart from ownership and operation of the Franchise (and operation of any other B-Bop's Restaurant pursuant to franchise agreements with the Company). In the event a manager is appointed to operate the Franchise, you are required under the Franchise Agreement to obtain an agreement from such manager containing a covenant not to compete and a restriction on the disclosure of confidential information. Your manager is not required to hold an ownership interest in the Franchise. The Franchise must at all times be operated under the on-premises supervision of you or your manager.

16. RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL

You are required by the Franchise Agreement to sell each of the food and beverage items contained in the standard B-Bop's Restaurant menu as established from time to time by the

Company. The Company has the right to modify the standard menu from time to time by deleting or adding food or beverage items and there are no limitations on the Company's right to make such modifications. You are prohibited by the Franchise Agreement from selling through the Franchise any food or beverage items not contained in the standard B-Bop's Restaurant menu and, in addition, from selling any other products or services not included in the Licensed System, unless such food or beverage item or such other product or service is first approved in writing by the Company. Similarly, you are prohibited from engaging in any business or activity on the Franchise premises apart from operation of a B-Bop's Restaurant.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE (FDD page 39)