Can Chicken Guy modify the System, including the menu and required equipment?

**A.

System Modifications.** Chicken Guy, in its sole discretion, shall be entitled from time to time to change or modify the System, including modifications to the Manual, the menu and menu formats, the required equipment, the signage, the building and premises of the Franchised Restaurant (including the trade dress, décor and color schemes), the presentation of the Proprietary Marks, the adoption of new administrative forms and methods of reporting and of payment of any monies owed to Chicken Guy (including electronic means of reporting and payment) and the adoption and use of new or modified Proprietary Marks or copyrighted materials.

Franchisee shall accept and use or display in the Franchised Restaurant any such changes or modifications to the System as if they were a part of the System at the time this Agreement was executed, and Franchisee will make such expenditures as the changes or modifications in the System may reasonably require.

• **B.

Authorized Menu Items.** Within 30 days after receipt of written notice from Chicken Guy, Franchisee shall begin selling any newly authorized menu items and cease selling any menu items that are no longer authorized.

All food, beverage and merchandise items authorized for sale at the Franchised Restaurant shall be offered for sale under the specific name designated by Chicken Guy.

Chicken Guy, in its sole discretion, may restrict sales of menu items to certain time periods during the day.

If Franchisee has a suggestion for a new menu item or for a change to an authorized menu item or Franchisee desires to participate in a test market program, Franchisee shall provide Chicken Guy written notice prior to implementation.

Franchisee shall not add or modify any menu item or participate in a test market program without first having obtained Chicken Guy's prior written approval.

Franchisee shall purchase any additional equipment and smallwares as Chicken Guy deems reasonably necessary in connection with new menu items.

If Chicken Guy requires Franchisee to begin offering a new menu item which requires the purchase of additional equipment, a reasonable period of time, as determined in the sole discretion of Chicken Guy, shall be provided for the financing, purchase and installation of any such equipment before such new menu items must be offered for sale at the Franchised Restaurant.

• **C.

Renovation of Franchised Restaurant.** Extensive structural changes, major remodeling and renovations, and substantial modifications to existing equipment and improvements to modernize and conform the Franchised Restaurant to the image of the System for new franchised and company restaurants shall be required at Chicken Guy's request (but not more often than every 5 years).

Capital expenses necessary for the repair and maintenance of the Franchised Location are not subject to the time limitations described in the preceding sentence.

Within 60 days after receipt of Chicken Guy's written notice regarding the required modernization, Franchisee shall prepare and complete drawings and plans for the required modernization.

These drawings and plans must be submitted to, and their use approved by, Chicken Guy prior to the commencement of work.

Source: Item 22 — CONTRACTS (FDD page 50)