How does Burros Fries communicate its standards, techniques, and operational procedures to the franchisee?

rson or entity which has, have been or becomes patrons of the Business;

• 1. The terms of and negotiations relating to past or current Franchise Agreements with respect to the System;
• 1. The operating procedures of the System, including without limitation: specific food preparation methods and techniques; product knowledge, ingredients and specifications, food presentation standards, kitchen equipment operation, safety procedures, usage of POS system and related software, cost and pricing strategies; use of contracts, forms and waivers; record keeping, accounting systems and procedures; effective advertising, promotional and marketing methods, recommendations for hiring and training staff and strategies when purchasing from vendors and suppliers;
• 1. The economic and financial characteristics of the System and franchisees, including without limitation: pricing policies, training, profitability, earnings and losses and capital and debt structures;
• 1. The Products and Services of a Burros & Fries Business, including, without limitation, the scope of services performed and services refused; and
• 1. All documentation of the information listed in Section 16.A including, without limitation, our training program and Operations Manual. During the term of this Agreement and for a period of five (5) years following the expiration or termination of this Agreement, Franchisee agrees not to use, divulge, directly or indirectly, any Confidential Information, without our prior written consent. Nothing contained herein shall be construed so as to require Franchisee to divulge any secret processes, techniques, formulas, or the like.
• B. Franchisee's Employees Will Not Disclose Confidential Information

Franchisee must keep the methods of operations (confidential information found in our materials and other documents) and Operations Manuals confidential and not disclose them except to Franchisee's employees, agents and representatives, as they must have access to it in order to operate the Business. Franchisee must follow all our security procedures, which include the execution and delivery to us of

approved nondisclosure or non-competition agreements from each General Manager within one week after they are hired. These agreements state that such person shall not during the course of his/her employment, representation, or agency with Franchisee, or for a period of three (3) years thereafter, use, divulge, disclose or communicate, directly or indirectly, in any form or manner, to any person, firm or corporation or other Entity, any of our Confidential Information.

The Operations Manual (and all other manuals) are, and remain, our exclusive property. We will loan Franchisee one copy (hard or electronic) of the Operations Manual for the term of this Agreement. Franchisee must return the Operations Manual (and/or destroy any electronic versions of the Operations Manual) to us at the termination or expiration of this Agreement for any reason, or at any other time at our request. The Operations Manual contains mandatory and suggested specifications for the Business, service standards and operating procedures and further defines Franchisee's other obligations under this Agreement. We may change or add to the Operations Manual to reflect changes in our image, specifications, and procedures and methods of operation, and will lend Franchisee copies of any changes or additions. However, we will not make any change that will change Franchisee's fundamental status and rights under this Agreement. Franchisee shall not copy any part of the Operations Manual (except for designated training sections), either physically or electronically. If Franchisee's copy of the Operations Manual is lost, destroyed or significantly damaged, Franchisee must replace the Operations Manual at its own expense as set forth in Section 20.G.

C.

Source: Item 22 — CONTRACTS (FDD page 53)