What laws, rules, and regulations must a Bambu franchisee comply with when operating their Bambu shoppe?

k, lettering, logos, display and advertising material that Bambu approves from time to time.

• b. Compliance with Laws and Good Business Practices. Franchisee shall conduct itself and operate its Bambū shoppe in compliance with all applicable laws, rules and regulations, and ordinances, including, without limitation, health department regulations and other ordinances in such a manner so as to promote a good public image in the business community. In connection therewith, Franchisee will be solely and fully responsible for obtaining any and all other licenses to carry on business at the Bambū shoppe. Franchisee shall promptly forward to Bambu copies of all health department, fire department, building department and other similar reports of inspections as and when they become available, and shall notify Bambu in writing within three business days of: (1) the commencement of any action, suit or proceeding relating to the shoppe; (2) the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality relating to the shoppe; (3) any notice or violation of any law, ordinance or regulation relating to the shoppe; (4) receipt of any notice of complaint from the Better Business Bureau, and local, state or federal consumer affairs department or division, or any other governmental or independent third party involving a complaint from a customer or potential customer relating to the shoppe, or (5) written complaints from any customer or potential customer, providing Bambu copies of any documentation along with the notice. Franchisee shall resolve or otherwise address any matter listed in (1) through (5) above in a prompt and reasonable manner in accordance with good business practices. Additionally, Franchisee shall comply with the terms and conditions of any mandatory product recall promptly upon receipt of notice from Bambu of such recall. Franchisee shall be solely responsible for any penalties or fines assessed for failure to abide by such laws and regulations. Bambu has no obligation to advise Franchisee of any legislative or other legal developments that may affect its Bambū shoppe. Franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, ordinances, and regulations, and determining those actions required for compliance. Any information

Bambu provides to Franchisee regarding applicable laws, ordinances, or regulations does not relieve Franchisee of its responsibility to consult with its own legal advisor and otherwise take appropriate action to inquire about and comply with applicable laws, ordinances, and regulations.

• c. Management. Franchisee acknowledges that proper management of the Bambū shoppe is important. Consequently, Franchisee shall employ at all times and register with Bambu in such manner as Bambu may require from time to time, at least three Bambū Certified Team Leaders who have satisfactorily completed Bambu's Training Program and who shall be responsible for the supervision and management of Franchisee's Bambū shoppe. One of the Bambū Certified Team Leaders must be available at all times to be at the Bambū shoppe upon demand by Bambu. At least one of Franchisee's Bambū Certified Team Leaders may not engage in any other business or other activity, directly or indirectly, that requires any significant management responsibility, time commitment, or otherwise may conflict with his or her obligations to operate and manage Franchisee's Bambū shoppe. The Bambū Certified Team Leaders shall assign one or more qualified employees (a "Shift Leaders") to be present at the shoppe during all operating hours when a Bambū Certified Team Leader is not present.

Source: Item 23 — Receipts (FDD pages 52–209)