What is the Chicken Guy franchisee's responsibility regarding site selection for the Franchised Restaurant?

ewal Fee shall be in addition to any capital expenditures that Franchisee is required to make pursuant to Section 2.B.(2)(B). Failure by Franchisee to sign the renewal franchise agreement and return it to Chicken Guy (along with the Renewal Fee) within this time shall be deemed an election by Franchisee not to renew the Franchise and shall result in termination of this Agreement and the Franchise granted by this Agreement at the expiration of the Initial Term. Provided Franchisee has timely complied with all of the conditions set forth in this Section 2.B., Chicken Guy shall execute the renewal franchise agreement and promptly return a fullyexecuted copy to Franchisee.

3. DEVELOPMENT PROCEDURES

If Franchisee is developing the Franchised Restaurant pursuant to a Chicken Guy! Restaurant Development Agreement or Chicken Guy has approved the site for the Franchised Restaurant as of the date of this Agreement, the provisions of this Section 3 shall not apply.

A. Franchisee's Responsibility. Franchisee shall select the site from within, the geographic area identified in the attached Data Sheet ("Site Selection Area"). Prior to the site approval deadline set forth in in the attached Data Sheet ("Site Approval Deadline"), Franchisee shall obtain site approval from Chicken Guy for the Franchised Restaurant. If Chicken Guy has not approved a site within this time period, Chicken Guy, at its option, may terminate this Agreement pursuant to Section 22. Franchisee assumes all cost, liability and expense for locating, obtaining and developing a site for the Franchised Restaurant and constructing and equipping the Franchised Restaurant in accordance with Chicken Guy's standards at an approved site. Chicken Guy reserves the right to require Franchisee to engage the services of a real estate broker approved by Chicken Guy to assist Franchisee in identifying and securing a site for the Franchised

Restaurant. Franchisee shall not make any binding commitments to purchase or lease a site until Chicken Guy has approved the site in writing.

• B. Site Selection Assistance. Chicken Guy will provide Franchisee with the following site selection assistance: (1) Chicken Guy's site selection guidelines and, as Franchisee may request, a reasonable amount of consultation with respect thereto; and (2) such on-site evaluation as Chicken Guy may deem advisable as part of its evaluation of Franchisee's request for site approval. Chicken Guy reserves the right to retain the services of third party real estate analysts to evaluate proposed sites for Chicken Guy! Restaurants.
• C. Real Estate Site Application. Franchisee shall submit to Chicken Guy a Real Estate Site Application (containing that information as Chicken Guy may reasonably require) for a proposed site which Franchisee reasonably believes to conform to site selection criteria that Chicken Guy establishes from time to time for demographic characteristics, traffic patterns, parking, character of the neighborhood, competition from other businesses in the area, the proximity to other businesses (including restaurants operated or franchised by Chicken Guy or its affiliates), the nature of other businesses in proximity to the site and other commercial characteristics (including the purchase price, rental obligations and other lease terms for the proposed site) and the size, appearance, other physical characteristics, and a site plan of the premises.
• D. Business Plan. Franchisee shall develop and submit to Chicken Guy, simultaneously with the submission of the Real Estate Site Application, a three-year business plan ("Business Plan") outlining the actions that Franchisee will take to ensure that Franchisee's operation and management of the Franchised Restaurant are in compliance with Chicken Guy's standards. During the term of this Agreement, Franchisee agrees to revise the Business Plan as required by Chicken Guy and further agrees to implement that Business Plan as approved by Chicken Guy.

E. Site Approval

• (1) Within 15 days after Chicken Guy's receipt of the Real Estate Site Application, the Business Plan and any additional information that Chicken Guy may reasonably require, Chicken Guy's Real Estate Review Committee shall review that information, evaluate the proposed site and advise Franchisee in writing whether it has approved a particular site. If Chicken Guy does not respond within that time period, Chicken Guy shall be deemed to have rejected the site. Chicken Guy's approval or rejection of a site may be subject to reasonable conditions as determined in its sole discretion.
• (2) Franchisee acknowledges that, in order to preserve and enhance the reputation and goodwill of all restaurants franchised by Chicken Guy and the goodwill of the Proprietary Marks, all Chicken Guy! Restaurants must be properly developed, operated and maintained. Accordingly, Franchisee agrees that Chicken Guy may refuse to approve a site for a proposed Franchised Restaurant unless Franchisee demonstrates sufficient financial capabilities, in Chicken Guy's sole judgment, applying standards consistent with criteria Chicken Guy uses to establish restaurants in other comparable market areas, to properly develop, operate and maintain the proposed Franchised Restaurant. To this end, Franchisee shall furnish Chicken Guy with such financial statements and other information regarding Franchisee and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as Chicken Guy reasonably may require.
• **(3) Chicken Guy's approval of one or mo

Source: Item 22 — CONTRACTS (FDD page 50)