What Disclosure Document items relate to Cicis franchisee compliance with standards and policies?

You will maintain your Restaurant in a high degree of sanitation, repair, and condition and otherwise comply with all requirements set forth in the Manuals with regard to such matters. Except as may be expressly provided in the Manuals, no alterations or improvements or changes of any kind in design, equipment, signs, interior or exterior decor items, fixtures, or furnishings will be made in or about your Restaurant or its premises without our prior written approval.

• B. Improvements and Modernization. You will, upon our request, make other improvements to your Restaurant premises, equipment (including computer hardware and software), game room equipment, signs, interior and exterior decor items, fixtures, furnishings, supplies, and other products and materials required for the operation of your Restaurant, to our then current System Standards.

• C. Manuals. During the Term, we will provide you with access to our manuals applicable to the development and operation of Cicis Restaurants (collectively, the "Manuals"). We will determine the content of the Manuals, the frequency in which it may be updated, and the manner and format in which it is delivered or made available to you. The Manuals may contain both mandatory specifications, standards, operating procedures and rules that we periodically prescribe for operating Cicis Restaurants and other specifications, standards and policies we may periodically suggest, and information on your other obligations under this Agreement (the "System Standards"), and other suggested specifications, standards and procedures. We may periodically modify the Manuals, including in the form of memoranda and newsletters, to reflect changes in System Standards. Our master copy of the Manuals is the controlling copy. The Manuals and any passwords and access credentials are part of our Confidential Information (defined below) and must be protected against improper use and disclosure. You may disclose the Manuals to your employees who need to know its contents provided they are themselves bound by written obligations of confidentiality. You may not at any time copy, duplicate, record, or otherwise reproduce, distribute or publish any part of the Manuals or use its contents in any other business.

• D. System Standards and Specifications. You understand the importance of maintaining uniformity among all of the Cicis Restaurants and the importance of complying with all of our standards, specifications, policies, and procedures relating to the operation of your Restaurant and, therefore, agree to comply with all System Standards as they exist from time to time. Though we retain the right to establish and periodically modify System Standards, you retain the right and sole responsibility for the day-to-day management and operation of your Restaurant and the implementation and maintenance of System Standards at your Restaurant. System Standards may regulate any aspect of the operation and maintenance of your Restaurant, including, but not limited to, any one or more of the following:

  • (1) sales, marketing, advertising and promotional programs and materials and media used in these programs;

• (2) staffing levels for your Restaurant and employee qualifications, dress, and appearance (although employee selection and promotion, hours worked, rates of pay and other benefits, work assigned and working conditions are your sole responsibility);

• (3) use and display of the Marks;

• (4) days and hours of operation;

• (5) methods of payment that your Restaurant may accept from customers;

• (6) policies for the registration, use, content, or management of online presences, or other technology systems, solutions, or products;

• (7) participation in market research and product and service testing programs;

• (8) participation in gift card programs;

• (9) menus, including product offerings, appearance, and inclusion of nutrition information;

• (10) bookkeeping, accounting, data processing and record keeping systems and forms; formats, content and frequency of reports to us of sales, revenue, and financial performance and condition;

• (11) participation in quality assurance and customer satisfaction programs;

• (12) use of any third-party food delivery services, online ordering services, or other food aggregation services;

• (13) types, amounts, terms and conditions of insurance coverage required for your Restaurant, including criteria for your insurance carriers; and

• (14) any other aspects of operating and maintaining your Restaurant that we determine to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and Cicis Restaurants.

The System Standards applicable to Cicis Buffet Restaurants may differ from those applicable to Cicis To Go Restaurants. Our periodic modification of the System Standards, which may accommodate regional or local variations, may obligate you to invest additional capital in your Restaurant and incur higher operating costs. At our discretion, we may require you to make certain modifications to the manner of operation of your Restaurant, including without limitation, modifying the hours of operation, changing the manner in which products or services shall be delivered to customers, limiting or changing the products or services that you shall provide to customers, and creating and displaying temporary signage, all of which may be required on a regional or local basis as necessary to address certain public health concerns. These modifications do not need to be implemented throughout the System, and in certain situations, could only affect your Restaurant, and could include requiring temporary closure. We will determine the scope and duration of such modifications.

E. Approved Suppliers. You will comply with all of the standards and specifications relating to the purchase of all food and beverage items (including the beverage brands that we require), ingredients, supplies, materials, fixtures, furnishings, exterior signage, equipment (including computer hardware and software) game room equipment, and other products used or offered for sale at your Restaurant. Except as provided in this Agreement, or as otherwise expressly approved by us in writing, if we have approved

suppliers for any such item (including manufacturers, distributors, and other sources), you must obtain these items from those suppliers. Our approved suppliers (which may include or be limited to us and our affiliates) are those who have been approved in writing by us prior to any purchases by you from any such supplier and who have not thereafter been disapproved by us. If you desire to purchase, lease, or use any products or other items from an unapproved supplier, you must submit to us a written request for such approval, or request the supplier itself to do so. You must not purchase or lease from any supplier until and unless such supplier has been approved by us in writing. We have the right to require that our representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered, either to us or to an independent laboratory we designate for testing. A charge, not to exceed the cost of the inspection and of the test (including our administrative costs attributable to both), must be paid by you or the supplier. We reserve the right, at our option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke our approval upon the supplier's failure to continue to meet any of our then-current criteria. Nothing in the foregoing will be construed to require us to approve any particular supplier, and we may, in our sole discretion, require any item used or offered for sale at your Restaurant to be purchased exclusively from us, our affiliates, or from a single third-party supplier or distributor. You acknowledge and agree that (1) we may change the number of approved or designated suppliers at any time and may designate us, our affiliates, or a third-party as the exclusive source for any particular item;

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 28–31)