What activities does Beard Papas engage in related to establishing and communicating systems and procedures for the Franchised Business?

WHEREAS, Franchisor has developed a distinctive and proprietary system (the "System") for the establishment, development and operation of a Beard Papa's shop featuring fresh and natural cream puffs and a limited selection of other desserts and beverages and other menu items(each, a "Franchised Business" or "Shop");

WHEREAS, the System and, therefore, each Shop is identified by the Marks (defined below) and distinctive trade dress, service offerings, business formats, equipment, products, supplies, operating procedures, programs, methods, procedures, and marketing and advertising standards, all of which are part of the System and all of which Franchisor may modify from time to time;

WHEREAS, simultaneous or prior to the execution of this Agreement, Franchisor and Franchisee have entered into a Shop Franchise Agreement for Franchisee's development and operation of a Shop (the "First Development Shop") to be located within a territory located within the Development Area (defined below);

WHEREAS, Franchisee has requested the right to develop and operate multiple Shops (each a "Development Shop") to be located with a defined geographical area (the "Development Area") in accordance with a development schedule that must be strictly adhered to, with each Shop within the Development Area being opened and operating utilizing the Marks and System pursuant to the terms and conditions set forth in a separate form of Franchisor's then current Franchise Agreement for Beard Papa's Shops (each, a "Franchise Agreement"); and

WHEREAS, Franchisee agrees that adherence to the terms of this Agreement, each and every Shop individual unit Franchise Agreement, Franchisor's Operations Manual, and Franchisor's System standards and specifications, are essential to the operation of all Beard Papa's Shops and the System as a whole.

"Know-How" refers to means our trade secrets and proprietary information relating to the development, establishment, marketing, promotion and/or operation of a Beard Papa's Shop including, but not limited to, methods, techniques, recipes, specifications, food preparation, procedures, policies, marketing strategies and information reflected in, included in, comprising and/or constituting a part of the System. Without limitation to the foregoing, Know-How shall further include information contained in the Operations Manual and the Confidential Information.

"Operations Manual" refers to and means, individually and collectively, the manual(s) designated by Franchisor and relating to the development and/or operations of Beard Papa's Shops including, but not limited to, the policies, procedures and requirements for the development and operation of Beard Papa's Shops.

The Operations Manual may consist of one or more volumes, handbooks, manuals, written materials, videos, electronic media files, cloud/internet based list-service, intranet, internet based and accessed databases, computer media, email, webinars and other materials as may be modified, added to, replaced or supplemented by Franchisor from time to time in Franchisor's Reasonable Business Judgment, whether by way of supplements, replacement pages, franchise bulletins, or other official pronouncements or means.

Subject to Franchisor's modification from time to time and, based on Franchisor's Reasonable Business Judgment, the Operations Manual may, among other things, designate the Approved Services and Products that must be exclusively offered and sold by the Franchised Business and, the System Supplies and designated vendors that must be exclusively used by Franchisee.

Source: Item 23 — RECEIPTS (FDD pages 58–275)