What are the Standards that a Bhc Master Franchisee must conform to?

• (a) At all times, and subject to applicable state law and regulations, Master Franchisee must be, or employ, a General Manager who will devote his or her entire time during normal business hours, as defined in the Operations Manual, to the management, operation, and development of the Franchised Business. The General Manager must ensure that Master Franchisee fulfill its obligations to Master Franchisee's customers in a timely and professional manner and he or she may not engage in any other business requiring his or her active participation during normal business hours. At least one Principal Equity Operator, with or through the General Manager, must participate personally in the direct operation of the Master Franchise Business.
• (b) Master Franchisee must, and ensure that your Subfranchisees, sell to customers BHC Products and other food and beverages specified in Franchisor's then authorized menu, and related products and accessories supplied by designated vendors and approved suppliers for resale at the BHC Restaurants in accordance with this Agreement and the Operations Manual (as periodically amended by Franchisor). Master Franchisee must only operate the Franchised Business at a Franchised BHC Restaurant, and ensure the Subfranchisees only operate their Business, in strict accordance with the procedures set forth in the Operations Manual or otherwise provided to Master Franchisee by Franchisor in writing. Master Franchisee must, and ensure the Subfranchisee, maintain an adequate level of supplies and inventory in order to properly operate the BHC Restaurant. Online ordering by customers of BHC

Products may only be made through the authorized page on Franchisor's website. Master Franchisee must, and ensure the Subfranchisee, use the standard signs and formats that Franchisor prescribes in operating the BHC Restaurant and conducting the Franchised Business.

• (a) A standard menu format and menu items (including new items) is required by Franchisor and must be used by Master Franchisee and Subfranchisees. Any changes, additions, or deletions in the menu format to be used at the BHC Restaurant must be approved in writing by Franchisor prior to its use by Master Franchisee or Subfranchisees. Master Franchisee agrees to indemnify and hold Franchisor and Franchisor's affiliated entities, equity owners, managers, officers, employees, and agents harmless from and against any and all loss, damage, cost, or expense, including reasonable attorney's fees, resulting from any change Master Franchisee makes in the standard menu or for any deviation of Master Franchisee's products from the descriptions contained in Franchisor's approved menu. Franchisor may change the standard menu format at any time.
• (b) To enhance the customer experience at the BHC Restaurant and to protect Franchisor's reputation, Franchisor is entitled to prescribe standard uniforms and attire for all of Master Franchisee's and Subfranchisees' personnel. Master Franchisee is required to, and ensure the Subfranchisees, obtain such uniforms and attire only from an e-BHC Restaurant set up by Franchisor or from other designated or approved manufacturers or distributors.
• (c) Master Franchisee agrees that Franchisor, Subfranchisees, and everyone else involved in the System benefits from the maintenance of the highest standards of uniformity, quality, similar appearance, and prominent display of the Marks at Master Franchised BHC Restaurant and elsewhere in Master Franchisee's Development Area. Therefore, Master Franchisee agrees to, and ensure the Subfranchisees, maintain the uniform standards of quality, appearance, and display of the Marks in strict accordance with this Agreement and the Operations Manual as it may be periodically revised, or as Franchisor may otherwise direct in writing. To assist Franchisor in maintaining consumer brand recognition through advertising and an effective network of Master Franchisees, Master Franchisee specifically agrees it will not display the Marks except in the manner Franchisor authorizes.

(a) Franchisor requires Master Franchisee to, and ensure Sublicensees, maintain and periodically refurbish the BHC Restaurant to conform to the then- current building design, Trade Dress, and color schemes then applicable for a BHC Restaurant. Such maintenance and refurbishment may require expenditures by Master Franchisee on, among other things, structural changes, installing new equipment, remodeling, redecoration and modifications to existing improvements and such modifications as may be necessary to comply with System-wide standards then in effect for BHC Restaurants or to accommodate new BHC Products. Accordingly, Master Franchisee must (i) maintain all equipment used at the BHC Restaurant on an as needed basis, (ii) immediately and completely resolve to Franchisor's satisfaction any maintenance deficiencies Franchisor identifies and (iii) make all upgrades to equipment and any technology used in BHC Restaurant that Franchisor may require.

• (a) Master Franchisee must, and ensure Subfranchisees, always (i) operate the BHC Restaurant and the Franchised Business in compliance with all applicable laws, rules, and regulations of applicable government authorities, (ii) comply with all applicable wage, hour and other laws and regulations of federal, state, or local governments, (iii) prepare and file all necessary tax returns, and (iv) pay promptly all taxes imposed upon Master Franchisee or upon Master Franchisee's business or property. Master Franchisee represents and warrants it will obtain and always maintain the permits, certificates, or licenses necessary to operate the BHC Restaurant and conduct the Franchised Business in the city, county, and state where the BHC Restaurant is located.

• (b) Master Franchisee must immediately notify Franchisor of any litigation, arbitration, disciplinary action, criminal proceeding, or any other legal proceeding or action brought against or involving Master Franchisee, or any entity affiliated with Master Franchisee, or any agent, employee, owner, director or partner of Master Franchisee, which notification must include all relevant details in respect thereof, according to the procedures set forth in the Operations Manual.

• (a) During the term of this Agreement, Master Franchisee and Subfranchisees will use the BHC website, and any other Internet or social media only as specifically authorized by Franchisor in section 6.2(a) of this Agreement, the Operations Manual or otherwise in writing to market the Franchised Business conducted at Master Franchised BHC Restaurant and in the Territory. Master Franchisee or Subfranchises may not during the term of this Agreement (i) establish an independent website or social networking media BHC Restaurant dedicated to marketing the Franchised Business, or (ii) register an Internet domain or social networking media BHC Restaurant name using any of the Marks.

• (b) Any alternative distribution methods and programs Master Franchisee would like to use to engage in the Franchised Business, including e-commerce, web sites, Internet sub-dealers, tele sales and telemarketing, or any other non-retail method of distribution, is subject to Franchisor's prior written approval, which approval will be in Franchisor's sole discretion.

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