Is Chicken Guy responsible for ensuring that the franchised restaurant is developed and operated in compliance with all applicable laws, ordinances, and regulations?

will at all times conduct themselves in a competent and courteous manner in accordance with the image and reputation of Chicken Guy and the System and, while on duty, comply with the dress attire, personal appearance and hygiene standards set forth in the Manual. Franchisee shall use reasonable efforts to ensure that Franchisee's employees maintain a neat and clean appearance and render competent and courteous service to all customers and fellow employees of the Franchised Restaurant.

• K. Signs and Logos. Subject to local ordinances, Franchisee shall prominently display in and upon the land and buildings of the Franchised Restaurant interior and exterior signs and logos using the name "CHICKEN GUY!," without any prefix or suffix, and those other names, marks, advertising signs and logos, of such nature, form, color, number, location and size, and containing that material as Chicken Guy may from time to time direct. Franchisee shall not display in or upon the Franchised Location any sign, logo or advertising media of any kind to which Chicken Guy objects.
• L. Entertainment Equipment. Franchisee shall not permit at the Franchised Restaurant any juke box, vending or game machine, gum machine, game, ride, gambling or lottery device, coin or token operated machine, or any other music, film or video device not authorized by Chicken Guy.

M. Compliance with Laws and Good Business Practices.

(1) Franchisee shall secure and maintain in force in its name all required licenses, permits and certificates relating to the operation of the Franchised Restaurant. Franchisee shall operate the Franchised Restaurant in full compliance with all applicable laws, ordinances and regulations including, without limitation, all laws or regulations governing or relating to the handling of food products, immigration and discrimination, occupational hazards and health insurance, employment laws, including, without limitation, workers' compensation insurance, unemployment insurance, and the withholding and payment of federal and state income taxes, social security taxes and sales taxes. Franchisee must provide

Chicken Guy with a copy of any health inspection report upon request. All advertising and promotion by Franchisee shall be completely factual and shall conform to the highest standards of ethical advertising. Franchisee shall, in all dealings with Franchisee's customers, suppliers and the public, adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct. Franchisee agrees to refrain from any business or advertising practice that may be injurious to the goodwill associated with the Proprietary Marks or the business of Chicken Guy or its affiliates, the System or other restaurants operated or franchised by Chicken Guy or its affiliates.

• (2) Franchisee agrees to abide by all applicable laws pertaining to the privacy of customer, employee, and transactional information ("Privacy Laws"). Franchisee agrees to comply with Chicken Guy's standards and policies pertaining to Privacy Laws. If there is a conflict between Chicken Guy's standards and policies pertaining to Privacy Laws and actual applicable law, Franchisee shall: (a) comply with the requirements of applicable law; (b) immediately give Chicken Guy written notice of said conflict; and (c) promptly and fully cooperate with Chicken Guy and its counsel in determining the most effective way, if any, to meet Chicken Guy's standards and policies pertaining to Privacy Laws within the bounds of applicable law.

Source: Item 22 — CONTRACTS (FDD page 50)