What legal requirements must a Chatime franchisee comply with, including laws and regulations related to occupational health and safety and food safety?

4.1 Franchise Arrangements

Franchisee:

• (1) Must itself comply with all Legal Requirements including, without limitation, any laws or regulations relating to occupational health and safety and food safety; and
• (2) Must ensure that Franchisor is named as a third party beneficiary of this Agreement and that Franchisor will have the right, but not the obligation, to assume Franchisee's obligations under this Agreement.

5.6 Governmental Approvals (Including Registration)

(1) Franchisee agrees to execute any and all instruments and documents, render such assistance, and otherwise cooperate with Franchisor, in order to obtain all governmental approvals Franchisor is required to obtain or which, in the opinion of Franchisor, are

• necessary at any time during the Initial Term, in the opinion of Franchisor, to comply with any Legal Requirements.
• (2) Franchisor has the right exercisable at its option, to submit, or to require Franchisee to submit, this Agreement to any Agency for registration or approval in the event Franchisor determines such registrations or approvals are necessary in order to comply with any Legal Requirements. If the Agency requires that any amendments be made to this Agreement as a condition to such approval or registration and such amendments are acceptable to Franchisor, Franchisor will deliver to Franchisee for execution an addendum to this Agreement, or other appropriate documents, to reflect such amendments.

5.7 Compliance With Legal Requirements

• (1) Franchisee must secure and maintain in force in its name all required licenses, permits, and certificates relating to Franchisee's obligations under this Agreement. For the avoidance of doubt, Franchisee must ensure that it is qualified to import the Products, clear the customs and do anything relating thereto at its Cost.

• (2) All advertising by Franchisee must be completely factual and conform to high standards of ethical advertising. Franchisee must adhere to high standards of honesty, integrity, fair dealing and ethical conduct, and refrain from any practice which may be injurious to the reputation of Franchisor and the goodwill associated with the Marks and Outlets.

• (3) Franchisee must notify Franchisor immediately when it becomes aware of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of Franchisee or the Outlet.

• (40) Legal Requirements means all applicable laws, ordinances, regulations, rules, administrative orders, decrees, and policies of any government, governmental agency, or department including, without limitation, the governments of the Development Area, unless otherwise stated in this Agreement.

Source: Item 23 — Receipts (FDD pages 58–262)