What are the consequences for a Baya Bar Developer who falsifies reports to the Franchisor?

[Item 23: RECEIPTS]

• 7.2.1 has misrepresented or omitted material facts in applying for the development rights granted hereunder;

• 7.2.2 falsifies any report required to be furnished Franchisor hereunder;

• 7.2.3 fails to comply with any federal, state or local law, rule or regulation, applicable to the development and operations of Developer's Baya Bar outlets, including, but not limited to, the failure to pay taxes;

• 7.2.4 fails to develop the Baya Bar outlets in accordance with the Mandatory Development Schedule.

• 7.2.5 attempts a Transfer in violation of the provisions of Article 6 of this Agreement;

• 7.2.6 is convicted of, or pleads no contest to, a felony or to a crime that could damage the goodwill associated with the Marks or does anything that may harm the reputation of the System or the goodwill associated with the Marks;

• 7.2.7 receives an adverse judgment or a consent decree in any case or proceeding involving allegations of fraud, racketeering, unfair or improper trade practices or similar claim which is likely to have an adverse effect on the System, or the Marks, the goodwill associated therewith or Franchisor's interest therein, in Franchisor's sole opinion;

• 7.2.8 fails to comply with the non-disclosure and non-competition covenants in Article 8 hereof:

• 7.2.9 defaults, or an affiliate of Developer defaults, under any other agreement, including any Franchise Agreement, with Franchisor, or any of Franchisor's affiliates or suppliers, or a landlord and does not cure such default within the time period provided in such other agreement; or

• 7.2.10 terminates this Agreement without cause.

• 7.3 Curable Defaults.

Developer shall be deemed to be in material default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, if Developer fails to cure the default within the time period set forth in this Section 7.3, effective immediately upon notice to Developer, if Developer:

Source: Item 23 — RECEIPTS (FDD pages 56–189)