What operational standards established by Beehive Homes must a franchisee adhere to?

• 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.

• 11.1. Management and Supervision. Franchisee, at its own expense, shall provide sufficient and proper management, supervisory and other personnel for the operation of the Home, in accordance with the Manual, Franchisor's Standards and requirements and applicable federal, state and local laws and regulations and industry standards.
• 11.5. Maintenance. The Franchisee shall at all times maintain the interior and exterior of the Home and the surrounding premises used in connection with said business in the highest degree of cleanliness, orderliness, sanitation and repair, in accordance with Franchisor's Standards.
• 11.8. Printed Materials. The Franchisee shall use only such printed materials, including letterheads, checks, invoices, menus, signs and other promotional material, as comply with the Franchisor Standards, from time to time.
• 11.9. Regulations. The Franchisee obligates itself to strictly conform to and obey all regulations which are or shall hereafter be enacted by Franchisor for all of its Franchisees.
• 8.9. Advertising Conditions. Franchisee covenants to advertise and promote the Home and related services using the Standards for all Homes, at its cost and expense. Franchisee will not use any advertising or promotional materials (including any materials in digital, electronic or computerized form or in any form of media that exists now or is developed in the future) which have not been previously submitted to and approved in writing by Franchisor. Franchisee will immediately discontinue its use of any advertising or promotional material which is disapproved by Franchisor, even if previously approved. Further, Franchisee covenants that it will use only the website provided by Franchisor and that it will not maintain any other website or link to any other website relating to activities conducted in connection with this Agreement, without the express written approval of Franchisor.

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