How should a Beehive Homes franchisee strive to uphold the Standards and goodwill created by the System?

• 8.1. Home. Franchisee covenants to construct, equip, staff and own one Home, at its own expense, at the Location; to open and commence operation of such Home no later than the date which is three (3) years after the Effective Date of this Agreement and to continuously operate such Home using the System under the Names and Marks, in compliance with this Agreement and the Standards, and in such a manner as to provide courteous, uniform, high quality service to the public, during the Term of this Agreement. Franchisee acknowledges that, although Franchisor provides the

Standards, Franchisee has exclusive day-to-day control of the business and operation of the Home and Franchisor does not in any way possess or exercise such control.

• 8.2.

Compliance With Standards.

Franchisee will comply with the Standards, including Franchisor's specifications for all supplies, products and services.

Franchisor may require Franchisee to purchase particular supplies, products or services meeting certain standards to maintain the common identity and uniqueness of the design, furnishings and appurtenances of the Homes, and Franchisee will comply with such requirements.

Unless Franchisor specifies otherwise, Franchisee may purchase supplies, products and services from any source of distribution which meets the specifications and Standards.

• 8.3.

Compliance With Manual.

Franchisee covenants to adhere to the Standards contained in the Manual.

Portions of the Manual may be state specific, and it is the Franchisee's obligation to identify those portions and to keep them current and up to date.

The Franchisee will not disclose the contents of the Manual to any unauthorized person and upon termination of this Agreement will return all Forms of Manual to Franchisor.

• 8.4.

Compliance with Laws.

Franchisee covenants to comply with all applicable statutes, ordinances, rules and regulations of federal, state and local governments and agencies thereof which in any way regulate or affect the operation of its franchise business and agrees not to engage in any activity or practice which results in violation of any such statutes, ordinances, rules and regulations or which results in or may reasonably be anticipated to result in any public criticism of the Franchisor's System or any part thereof.

6.3. Ownership and Use of Goodwill.

• (a) Ownership of Goodwill. Franchisee acknowledges and agrees that any and all goodwill associated with the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials, including any goodwill that might be deemed to have arisen through Franchisee's activities, shall inure directly and exclusively to the benefit of, and be owned solely by, Franchisor, except as otherwise provided herein or by applicable law.

• (b) Preservation of Goodwill. Franchisee acknowledges and agrees that valuable goodwill is attached to the Home, the System, the Names and Marks, Trade Secrets and Copyrighted Materials and that it will use the same solely in the manner prescribed by Franchisor, and will operate the Home and provide the services under the Names and Marks, Trade Secrets and Copyrighted Materials in strict accordance with the System, terms and conditions of this Agreement, the Manual and other operational Standards established by Franchisor from time to time. Franchisee covenants to protect and preserve the goodwill of the Names and Marks.

• 6.4. Web Sites. For purposes of this Section, "Site(s)" means domain names, the World Wide Web, the Internet, computer network/distribution systems, or any other electronic communications sites or means.

  • (a) Franchisee may not register, own, or maintain any Sites that relate to the Home or that include any of the Names and Marks. The only domain names, Sites, or Site contractors that Franchisee may use relating to the Home or this Agreement are those Franchisor assigns or otherwise approves in writing. Franchisee acknowledges that it may not, without a legal license or other legal right, post on its Sites any material in which any third party has any direct or indirect ownership interest. Franchisee must incorporate on its Sites any information Franchisor requires in the manner Franchisor deems necessary to protect its Names and Marks.

Source: Item 23 — RECEIPTS (FDD pages 34–123)