What is the 'Bambu system' as it relates to a Bambu franchise?

nature page of this Agreement (the "Franchisee"), who, on the basis of the following understandings and agreements, agree as follows:

1. PURPOSE

• 1.1 Bambu has developed methods for establishing, operating and promoting fast casual beverage businesses featuring freshly made Vietnamese dessert drinks (Chè), Vietnamese style coffee drinks (Cà Phê), Vietnamese style blended yogurts (Yonami), Asian-inspired teas (including Taiwanese bubble tea), and real fruit smoothies (Sinh Tố), with freshly made tapioca boba, house-prepared proprietary ingredients, and a wide-variety of drink toppings, along with mochi waffles and other complementary snack, food and dessert items ("Bambū shoppes" or "shoppes") which use the mark "BAMBŪ® " and related service marks, trade names and trademarks ("Marks") and Bambu's proprietary methods of doing business ("Bambū system").
• 1.2 Bambu grants the right to others to develop and operate Bambū shoppes under the Marks and pursuant to the Bambū system.
• 1.3 Franchisee desires to establish a Bambū shoppe at a location identified herein or to be later identified, and Bambu desires to grant Franchisee the right to operate a Bambū shoppe at such location under the terms and conditions which are contained in this Agreement.

2. GRANT OF FRANCHISE

• 2.1 Grant of Franchise. Bambu grants to Franchisee, and Franchisee accepts from Bambu, the right to use the Marks and Bambū system in connection with the establishment and operation of one Bambū shoppe, at the location described in Article 3 of this Agreement. Franchisee agrees to use the Marks and Bambū system, as they may be changed, improved, and further developed by Bambu from time to time, only in accordance with the terms and conditions of this Agreement.
• 2.2 Scope of Franchise Operations. Franchisee shall at all times comply with Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the Bambū shoppe. Franchisee shall utilize the Marks and Bambū system to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by Bambu, all of which are a part of the Bambū system. Franchisee's Bambū shoppe shall offer all products and services as Bambu designates and shall be restricted from offering or selling any products and services not previously approved by Bambu in writing. If Franchisee is a corporation, partnership, limited liability company or other entity, Franchisee shall not engage in any business other than the operation of a Bambū shoppe.

3. FRANCHISED LOCATION AND TERRITORIAL RIGHTS

3.1 Franchised Location. Franchisee is granted the right and franchise to own and operate a Bambū shoppe at the address and location which shall be set forth in Attachment I, attached to this Agreement ("Franchised Location"). If, at the time of execution of this Agreement, the Franchised Location cannot be designated as a specific address because a location has not been selected and approved, then Franchisee

shall promptly take steps to choose and acquire a location for its Bambū shoppe within the "Designated Area," set forth in Attachment I. In such circumstances, Franchisee shall select and propose to Bambu for Bambu's prior written approval a specific location for the Franchised Location which, once approved by Bambu, shall then be described in the rider to Attachment I.

• 3.2 Protected Area. Subject to Bambu's reservation of rights described in Section 3.4 below, Bambu shall not establish and operate, or franchise another person or entity to establish and operate, a Bambū shoppe within the geographic area described in Attachment I, attached hereto (the "Protected Area"). However, nothing in this Agreement restricts any Bambu-owned or franchised Bambū shoppes from advertising in, or soliciting customers from, Franchisee's Protected Area. Franchisee does not have exclusive rights to the customers in its Protected Area.
• 3.3 Limitation on Franchise Rights.

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