What is Browns Chicken granting to the franchisee in the franchise agreement?

hisee's application, including without limitation representations about the ownership of Franchisee.

2. GRANT AND RENEWAL OF FRANCHISE.

A. Grant And Term of Franchise.

Subject to the provisions of this Agreement, Brown hereby grants to Franchisee a franchise (the "Franchise") to operate a BROWN'S Store (the "Store") as identified on the cover page of this Agreement, and a license to use the Marks in the operation of the Store for a term commencing on the date hereof, and terminating on , , which is the March 30th or September 30th immediately following the fifteenth (15th) anniversary of the date of the Store opening; provided that if the Store is opened on March 30th or September 30th, the franchise agreement will expire on the fifteenth (15th) anniversary of the Store opening. (The date will be inserted by the parties and become a part of this Agreement upon the opening of the Store.) The Store will be located at the following premises (the "Premises"):

The phrase "term of the Franchise" means the initial term of this Agreement and all renewal terms if the Franchise is renewed. Termination or expiration of this Agreement shall constitute termination or expiration of the Franchise. Franchisee agrees that he will at all times faithfully, honestly, and diligently perform his obligations hereunder, and that he will continuously exert his best efforts to promote and enhance the business of the Store and the goodwill of the Marks.

B. Renewal Of Franchise.

(1) Franchisee's Right to Renew.

Upon expiration of the initial term of the Franchise or any renewal term of the Franchise, if:

• a. Brown is then offering franchises for BROWN'S Stores in the state where the Store is located; and
• b. Franchisee has substantially complied with this Agreement (or the then-effective franchise agreement) during its term; and
• c. Franchisee is not in default under or in any violation of any term of any other franchise agreement, lease, or other agreement with Brown;
• d. Franchisee maintains possession of and remodels and/or expands the Premises, adds or replaces equipment, fixtures, furnishings, furniture and signs and otherwise modifies the Store to bring it into compliance with specifications and standards then applicable under new or renewal franchises for BROWN'S Stores; or if Franchisee is unable to maintain possession of the Premises, or in the judgment of Brown, the Store should be relocated. Franchisee has secured substitute premises in compliance with specifications and standards then applicable under new or renewal franchises for BROWN'S Stores; and
• e. Franchisee complies with Brown's then-current qualification and training requirements,

then Franchisee shall have the right to renew the Franchise for a renewal term of one (1) to five (5) years on the terms and conditions described below.

Notwithstanding the foregoing renewal provisions, if upon the expiration of the term of the Franchise or of any renewal term of the Franchise: (1) Franchisee has not, in Brown's judgment, updated the equipment, fixtures, furniture and signs and otherwise modified the Store to meet the specifications and standards then applicable under new franchises for BROWN'S Stores; or (2) Franchisee has failed to pay consistently when due any royalty fees, advertising

contributions or other payments due to Brown; or (3) Franchisee has failed to submit consistently when due reports or other data, information, supporting records or financial statements: then Brown may, in its-sole discretion, renew the Franchise only for a one (1) year term or for a term shorter than one (1) year, in Brown's sole discretion, on the terms and conditions provided in Brown's then standard franchise agreement for BROWN'S Stores (with appropriate modifications to reflect that it is for a renewal term).

(2) Notice Of Renewal and Non-Renewal.

Brown and Franchisee each agree to give the other not less than six (6) and not more than twelve (12) months prior written notice of an election not to renew the Franchise. A notice of election by Brown not to renew the Franchise shall state the reason for the non-renewal. If the Franchise is not renewed, Franchisee must comply with Section 21 of this Agreement.

Source: Item 22 — Contracts (FDD page 43)