Does the Beverly Anns Cookie franchise agreement require a renewal provision?

advertise in any media whose primary circulation is outside of the Territory without our permission unless the advertisement is part of a cooperative advertising program.

A franchisee who infringes upon another franchisee's territory is subject to the following fines, payable to us within five days after the infringement(s) is/are proven:

• (1) first violation $1,000 plus the amount of applicable products or services you invoiced while infringing; and
• (2) second violation and subsequent violations $5,000 plus the amount applicable products or services you invoiced while infringing.

Any fines we collect shall become our sole property and may be distributed by us in our sole discretion. You agree that violations are counted cumulatively over the life of the Franchised Business regardless of where and when they occur, including in any prior terms if this is a Successor Franchise Agreement.

5. TERM AND RENEWAL

Generally

The term of this Franchise Agreement will begin on the Effective Date and continue for 10 years ("Term"). If you would like to operate more than one GR Vehicle, you will be required to purchase an additional franchised business for each GR Vehicle and execute an additional franchise agreement. If this Franchise Agreement is the initial franchise agreement for your Franchised Business, you may enter into a maximum of two successor franchise agreements (a "Successor Franchise Agreement"), as long as you meet the conditions for renewal specified below. The Successor Franchise Agreement shall be the current form of franchise agreement we use in granting Beverly Ann's Cookie Truck franchises as of the expiration of the Term. The terms and conditions of the Successor Franchise Agreement may vary materially and substantially from the terms and conditions of this Franchise Agreement, including a higher Royalty. Each successor term will be ten years. If you are signing this Franchise Agreement as a Successor Franchise Agreement, the references to "Term" shall mean the applicable renewal term of the Successor Franchise Agreement. Except as otherwise provided in this Section, you will have no further right to operate your Franchised Business following the expiration of the successor term unless we grant you the rights to enter into another franchise agreement, in our sole discretion. If you are renewing a prior franchise agreement with us under this Franchise Agreement, the renewal provisions in your initial franchise agreement will dictate the length of the Term of this Franchise Agreement, and your remaining rights to enter into Successor Franchise Agreements, if any.

Renewal Requirements

To enter into a Successor Franchise Agreement, you must:

• 5.2.1 Notice. Notify us in writing of your desire to enter into a Successor Franchise Agreement not less than six months nor more than twelve months before the expiration of the Term;
• 5.2.2. No Defaults. Not be in default under this Franchise Agreement or any other agreement with us or any affiliate of ours at the time you send the renewal notice or the time you sign the Successor Franchise Agreement or on the date on which the term of the Successor Franchise would commence and you must not have received more than three separate written notices of default from us in the previous term;
• 5.2.3 Modifications. Have the right to maintain possession of your GR Vehicle and, if your GR Vehicle is not in compliance with our current standards you must either: (i) replace, remodel, repair and/or upgrade the GR Vehicle (and any Additional Equipment) you have for your Franchised Business in accordance with Section 13.4 of this Franchise Agreement, as well as add or replace improvements, assets, signage, and otherwise modify the Franchised Business as we require to comply with our then-current System standards for new Beverly Ann's Cookie Truck franchised businesses at your sole cost and expense;
• 5.2.4 Successor Franchise Agreement. Sign the Successor Franchise Agreement and all ancillary documents we require franchisees to sign;
• 5.2.5 General Release.

Source: Item 23 — RECEIPTS (FDD pages 57–235)