How is the renewal of a B Bops franchise governed?

f this Agreement.

• 1. RENEWAL OF FRANCHISE. The Franchise granted hereunder may be renewed at the option of Franchisee upon the expiration of the Term of this Agreement for one (1) additional ten (10) year term upon the same terms and conditions as for initial franchises being offered by Company at the time of such expiration, provided that:
  • A. Franchisee gives Company written notice of its election to renew not less than six (6) months, nor more than twelve (12) months, prior to the expiration of the Term;
  • B. Franchisee, when notice is given and at the time of renewal, is not in breach of any material provision of this Agreement, or of any other agreement between Franchisee and Company or any affiliate thereof, and has substantially complied with the material terms and conditions of this Agreement and all such other agreements during the Term hereof;
  • C. All monetary obligations owed to Company or any affiliate thereof have been satisfied prior to renewal;
  • D. Franchisee executes Company's standard form of franchise agreement being utilized by Company on the date of renewal to grant new B-Bop's Restaurant franchises;
  • E. Franchisee pays to Company a nonrefundable renewal fee of Five Thousand Dollars ($5,000) payable in full upon execution of the then current franchise agreement;
  • F. Franchisee performs such remodeling, repairs and/or redecoration as Company may reasonably require to cause the Franchise Premises and the equipment, fixtures, furniture, signs and other improvements to conform with the specifications being used for new B-Bop's Restaurants being franchised on the date of renewal;
  • G. Franchisee (and each of its partners, shareholders or members if Franchisee is a partnership, corporation or limited liability company) executes a general release, in form and substance satisfactory to Company, releasing Company and its affiliates and their respective directors, officers, agents and employees from any and all claims;
  • H. Franchisee furnishes Company with a copy of the lease for the Franchise Premises indicating possession is assured for the renewal term, or if Franchisee is unable to maintain possession of the Franchise Premises or if the parties agree that the Franchise should be relocated, Franchisee secures an alternative site that is approved by Company with the understanding that such site will be developed in accordance with Company's then current standards and specifications. Company shall be entitled to assess a reasonable charge (not to exceed $2,000) to Franchisee to cover Company's expenses in assisting in relocation

of the Franchise Premises (which charge shall be in addition to the renewal fee specified above); and

I. Franchisee attends and satisfactorily completes any refresher training program that Company may require.

Upon Company's determination that Franchisee has satisfied each of the foregoing conditions, Company shall renew the Franchise granted hereunder.

Source: Item 22 — CONTRACTS (FDD page 53)