What specific items are Burros Fries franchisees required to sell as approved retail items?

or offered at the Business (See Item 8).

You are required to offer only approved menu items and services and sell approved retail items as specified by us that include but are not limited to: a variety of sandwiches, plates and salads, a variety of side dishes, beverages (such as carbonated drinks, juices, teas and bottled water) and counter service, take-out, limited seating, and the sale of approved merchandise and other food and beverage products or services as expressly authorized by us in writing or in the Operations Manual, or developed by us and any updates to be incorporated in the Operations Manual periodically. You must offer only approved menu items and services and sell only approved retail items from your Business. All food and menu items must be prepared by you in accordance with our recipes, standards, techniques, processes and presentation as designated by us, however you can add any menu or retail item that is specific to your geographic area as long as such menu or retail item complies with our standards which will be provided to you during our training program and as specified in our Operations Manual.

You may also offer additional services that are unique to your area in an effort to blend in with your community; however, you must obtain our written approval before such products, menu items, retail items and services are offered and the time to approve or deny your request is described below. Our response to a written request by you to approve any product, menu item, retail item or service you wish to offer will be made within thirty (30) days after we receive it. Approval may be revoked in our sole discretion where an approved product, menu item, retail item or service does not adhere to our standards as specified in the Operations Manual. We will notify you either by email or any other written form of communication of our approval, disapproval or revocation of any prior approval of any product, menu item, retail item or service. You can sell menu items, retail items, conduct off-site events and/or provide catering services to anyone located anywhere within your Territory. You acknowledge that we and other franchisees can also sell menu and retail items to anyone who comes from anywhere and also conduct off-site events and/or provide catering services within your Territory if it is determined to be in the best interest of such business or service so long as such sales do not result from any Target Marketing (see Item 12). You can offer menu items, sell retail items and provide services at any prices you establish as we will suggest pricing strategy and we may establish minimum and maximum prices at which you may offer menu items, sell retail items and provide services to the extent allowed by federal and state laws. You must discontinue using, offering and selling any product,

menu item, retail item or service that we may disapprove in writing at any time, whether or not a product menu item or retail item being submitted for approval is currently in use. There are no limits on our right to do so. We will inform you by email or by any other form of written communication of such changes and/or modifications. You may not independently act as an exclusive distributor for any third party vendor or secure any exclusive rights for any vendor or proprietary product or equipment without our prior written consent.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 45–46)