What assistance and services does Churchs Chicken provide to franchisees under the Franchise Agreement?

Development Agreement, Section 7.A)

Franchise Agreement:

Under the Franchise Agreement, we must provide certain assistance and services to you. Although the Franchise Agreement does not specify when we must perform these services, we intend to perform the following services before the opening of the Restaurant. Except as provided below, we are not required to provide you with any assistance.

• 1. We will make available our New Franchisee Orientation Program for you, and our Manager-in-Training Program for you and up to 4 designated management employees;see "The Orientation Program" below for more information. (Franchise Agreement, Section 8.A and 8.B)
• 1. We will provide our Pathways to Excellence Training Program materials for you to train your employees in connection with the opening of the Restaurant.
• 1. We will conduct a Grand Opening Advertising Campaign using the Grand Opening Advertising Funds beginning no earlier than the date the Restaurant opens and concluding no later than 90 days after the Restaurant opens. (Franchise Agreement, Section 3.J)

Continuing Obligations.

Listed below are our obligations under the Franchise Agreement during the on-going operation of the Restaurant. Unless listed below, we need not provide any assistance to you.

• 1. We will make available to you additional training programs as we, in our discretion, choose to conduct. (Franchise Agreement, Section 8.C)
• 1. We will advise and consult with you in connection with the operation of the Restaurant, as we deem appropriate. As we deem appropriate, we will provide to you our knowledge and expertise regarding the System and pertinent new developments, techniques and improvements in the areas of restaurant design, management, food and beverage preparation, sales promotion, service concepts and other areas. We may provide these services through visits by our representatives, the distribution of printed or filmed material or electronic information, meetings or seminars, telephone communications, electronic mail communications or other communications. (Franchise Agreement, Section 9.B)

• 1. We (or our designated affiliate) will maintain and administer an Advertising Fund, and in some areas, an Ad Co-Op (as defined in this Item), to increase the public's awareness of the Restaurants and the System. (Franchise Agreement, Section 5)
• 1. We will lend you one copy of the Manual. The Manual contains the System's standards, specifications, operating procedures and techniques. We may supplement or amend the Manual from time to time by letter, electronic mail, updates to our www.TeamChurchs.com website, bulletin, digital video disk, compact disk, USB flash drive, software or other communications. (Franchise Agreement, Section 6; Development Agreement, Section 9) You must abide by all revisions to the Manual.
• 1. We will lend you one copy of our Pathways to Excellence Training Program materials that are to be used in training restaurant employees on our System standards. The Pathways to Excellence Training Program materials are part of the Manual. (Franchise Agreement, Section 8.D)
• 1. We will establish uniform criteria for approving suppliers and will make reasonable efforts to share our standards and specifications with your prospective suppliers on your written request. We may choose not to make available to prospective suppliers the standards and specifications for any food formula or equipment design that we deem to be confidential. (Franchise Agreement, Section 10.C)
• 1. We will inspect the Restaurant and its operations to assist your operations and ensure compliance with the System, at times we determine. (Franchise Agreement, Section 9.C)
• 1. We will provide you access to any mandatory Order Ahead Program and provide training and operational support. (Franchise Agreement, Section 10.N)

Site Selection and Length of Time before Opening.

The Development Agreement grants you a specific Development Area in which to establish and operate Restaurants under the System at specific locations to be designated in separate Franchise Agreements.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)