Under what conditions can Buona establish or license others to establish Franchised Restaurants in the Development Area before the Development Schedule expires?

The terms and conditions of each such Franchise Agreement shall control the establishment and operation of such Franchised Restaurant.

• 1.3 Except as otherwise provided in this Agreement, and as long you are in compliance with the Development Schedule and otherwise in compliance with this Agreement, we shall not establish, nor license anyone other than Developer the right to establish any Franchised Restaurant in the Development Area prior to the expiration of the Development Schedule set forth in Exhibit B.

As an alternative to a contiguous Development Area in which all Franchised Restaurants will be developed, we may designate a separate Development Area for each Franchised Restaurant to be developed and each specified Development Area will expire according to the development deadlines for that particular Franchised Restaurant as set forth in Exhibit B.

We (and any affiliate) reserve the right to:

• (a) distribute products and services which comprise, may in the future comprise or which do not comprise, a part of the System through any alternative distribution channels including, but not limited to, supermarkets and other retail facilities, wholesale sale, catalogs, direct marketing, the Internet or similar electronic media, using the Marks ("Alternate Distribution Channels");

• (b) establish businesses which are franchised, licensed or owned by Franchisor or any affiliate at any locations Franchisor deems appropriate or distribute products or services which are similar to the products and services offered under the System under trade names, trademarks, service marks, trade dress or other commercial symbols other than the Marks.

• (c) to acquire or be acquired by a Franchisor establishing businesses identical or similar to the Franchised Restaurant, even if the other business operates, franchises, and/or licenses competitive businesses anywhere, including the Protected Area; and

• (d) to implement and maintain multi-area marketing programs at any time, including internet and regional or national accounts.

Franchisor reserves the right to establish mandatory policies and procedures for these multi-area marketing programs; and

• (e) to engage in any other business activities not expressly prohibited by this Agreement.

Franchisor Five Flavors Franchising LLC reserves the right to grant franchises and/or development rights for the development of The Original Rainbow Cone Restaurants within any Development Area that is specified only for the development of a Buona Restaurant.

Source: Item 22 — CONTRACTS (FDD page 78)