Are Bhc franchisees obligated to purchase the 'Apron (BHC)' from a designated supplier, even though the exact specifications are 'to be determined'?

es the landlord to fully cooperate with Franchisor in completing de-identification of the Franchised BHC Restaurant if this Agreement is terminated or expires without being renewed and Franchisor does not exercise its option to assume the lease for the Franchised BHC Restaurant premises. The Addendum to Lease is attached as Exhibit 5.

• (h) Franchisor has the right to regularly inspect Franchisee's Franchised BHC Restaurant and any other site where Franchisee conducts the Franchised Business.

7.3 Equipment and Inventory.

(i) Throughout the term of this Agreement, Franchisee must purchase, and maintain equipment and inventory as needed to meet reasonably anticipated consumer demand of the BHC Products. Franchisee must also purchase and sell ancillary products, which may include books, specialty foods, packaged foods, books, hats, t-shirts, and novelty items, as we periodically specify, for sale at your Franchised BHC Restaurant ("Ancillary Products"). To ensure highest degree of consistency, service, and quality, Franchisee must practice and conform to the standards, operating procedures, specifications, and rules Franchisor has established for the operation of a Franchised BHC Restaurant, as modified by Franchisor from time to time) including specifications as to ingredients, brand names, preparation, and presentation ("Standards"). Franchisee must purchase all products that Franchisee offers from

Franchisee's Franchised BHC Restaurant, including products which bear any of the Marks, solely and exclusively from Franchisor, or Franchisor's designated supplier.

• (j) Before opening the Franchised BHC Restaurant, Franchisee must purchase opening inventory of merchandise and supplies that includes certain proprietary products that Franchisee must purchase from Franchisor and Franchisor's affiliates.
• (k) Franchisor will provide Franchisee with a list of approved manufacturers, suppliers, and distributors ("Approved Suppliers List") and approved inventory products, fixtures, furniture, equipment, signs, stationery, supplies and other items or services necessary to operate the Franchised BHC Restaurant ("Approved Supplies List"). The Approved Supplies List may specify a required manufacturer or supplier of a specific product or piece of equipment. Franchisor reserves the right to designate a required source of supply for certain products and supplies, and Franchisor or an affiliate may be a required source. The lists also may include other specific products without reference to a particular manufacturer or supplier, or they may set forth the specifications and/or standards for other approved products. Franchisor may revise the Approved Suppliers List and Approved Supplies List. Franchisor gives Franchisee the approved lists as Franchisor deems advisable. Franchisor generally does not give these lists to approved suppliers. Franchisor will provide contact information for Franchisee's distributors and/or manufacturers of all products offered at the Franchised BHC Restaurant. Except where Franchisor identifies a sole single source, if Franchisee proposes to use in the operation of Franchisee's Franchised BHC Restaurant any product, supply, material, furnishing or equipment which has not yet been approved by Franchisor as conforming to Franchisor's specifications and quality and system standards ("Alternative Supplies") and/or from a supplier not yet approved in writing by Franchisor ("Alternative Supplier"), Franchisee must first notify Franchisor in writing and must submit to Franchisor, upon request, sufficient information, specifications, and samples so that Franchisor can determine whether the item or service complies with System standards or the supplier meets Franchisor's supplier criteria. Franchisor will provide Franchisee with written approval or disapproval within a reasonable time period (typically 30 days).
• (l) Franchisee may not use any product, supply, material, furnishing or equipment that Franchisor has not approved. Supplier approval will depend on product quality, delivery frequency and reliability, service standards, financial capability, customer relations, concentration of purchases with limited suppliers to obtain better prices and service, and/or a supplier's willingness to pay us or our affiliates for the right to do business with Franchisor's System. Franchisor may inspect or re-inspect the facilities and products of any approved supplier and revoke Franchisor's approval if the supplier fails to continue to meet Franchisor's criteria and specifications.

Source: Item 23 — Receipts (FDD pages 52–230)