How does Chop5 Salad Kitchen treat pre-opening activities in relation to the franchise license?

to visit your Restaurant; or (b) by you and your personnel to attend training programs or conferences.

"We" or "us" is defined in the Introductory Paragraph.

"You" is defined in the Introductory Paragraph.

• 2. GRANT OF FRANCHISE. We hereby grant you the right, license and obligation to own and operate one (1) Restaurant using our Intellectual Property from the site we approve. As a franchisee, you will establish and operate a fast-casual restaurant featuring made-to-order salads, bowls, soups and other healthy food options under the name CHOP5 Salad Kitchen®. We reserve all rights not expressly granted to you.
• 3. TERRITORIAL RIGHTS AND LIMITATIONS. We grant you a territory (your "Territory") that consists of the area within a one-half (½) mile radius from the site that we approve for your Restaurant. During the Term we will not develop or operate, or license a third party to develop or operate, a Restaurant that is physically located within the Territory except as otherwise provided in this Section with respect to Captive Venues and Acquisitions. At any time during the Term we reserve the right to: (a) develop and operate, and license third parties to develop and operate, Restaurants in Captive Venues that are located within your Territory; and (b) engage in Acquisitions, even if as a result of an Acquisition one or more competitive businesses of the acquired or acquiring company begin using our Intellectual Property (including our Marks) and are located within the Territory. We reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Territory through Alternative Channels of Distribution.

4. TERM AND RENEWAL.

4.1. Generally. This Agreement grants you the right to operate your Restaurant only during the Term. Provided that you satisfy all conditions for renewal specified below, you may enter into a maximum of two (2) Successor Agreements following the expiration of the Term. Each Successor Agreement shall be the current form of franchise agreement we use in granting franchises as of the expiration of the Term or renewal term, as applicable, the terms of which may vary materially and

substantially from the terms of this Agreement. Upon renewal, we reserve the right to modify the boundaries of your Territory in accordance with our then-current territory guidelines and criteria. Each renewal term will be five (5) years. The parties may agree to further renewals after expiration of the second (2nd) renewal term, but neither party is obligated to do so. If this Agreement is a Successor Agreement, the renewal provisions in your original franchise agreement will dictate the length of the Term of this Agreement and your remaining renewal rights, if any.

• **4.2.

Source: Item 23 — RECEIPT (FDD pages 50–178)