How must a Craters & Freighters franchisee manage and operate their Franchised Business?

Franchisee must manage and operate the Franchised Business in an ethical and honorable manner.

Franchisee must ensure that all those working at the Franchised Business provide courteous and professional services to customers and always keep the customers' interests in mind while protecting the goodwill of the Marks, System, and Franchised Business.

Franchisee must handle all customer complaints and requests for refunds and adjustments in a manner consistent with applicable laws and regulations and Franchisor's applicable standards and specifications.

Franchisee must also work with other Craters & Freighters franchisees in an ethical, honorable, and cooperative manner.

Franchisor cannot willfully engage in a course of conduct which includes any misrepresentations or deceptive or unlawful acts or practices in connection with offering and/or selling products and services to customers.

To protect the reputation and goodwill of Franchisor and the System, and to maintain uniform standards of operation under the Marks, Franchisee will conduct the Franchised Business in strict accordance with the specifications, standards, operating procedures, and rules set forth in this Agreement, the Operations Manuals, and otherwise established and communicated by Franchisor (collectively the "System Standards").

Franchisee acknowledges the System Standards are intended to protect Franchisor's standards, systems, names, Marks, Confidential Information, and Trade Secrets (including but not limited to the Proprietary Software) and are not intended to control the day-to-day operation of Franchisee's Franchised Business.

Franchisee further acknowledges and agrees that Franchisee's Franchised Business will be under the control of the Franchisee at all times and that Franchisee will be solely responsible for the day-to-day operation of the business.

So long as Franchisor is in compliance with all terms and conditions of this Agreement, Franchisor will provide Franchisee with access to Franchisor's proprietary and confidential operations manuals ("Operations Manuals"), which will include all manuals, written materials, directives, books, pamphlets, bulletins, memoranda, order forms, packing slips, invoices, letters, e-mail, internet or intranet data, or other publications, documents, software programs, transmittances or communications, in whatever form (including electronic form) prepared by or on behalf of Franchisor for use by the System franchisees generally or for Franchisee in particular, containing information, methods, standards, operating procedures, requirements, instructions, information about (and processes involving) approved suppliers, and/or policies relating to the operation of a Craters & Freighters franchised business, as they may be added to, deleted, or otherwise amended by Franchisor from time to time.

Franchisor will develop, maintain, and grant Franchisee the right to use Franchisor's proprietary operating software ("Proprietary Software").

Additionally, all royalty reports submitted by the Franchised Business will be managed exclusively through the Proprietary Software, which is also designed to assist Franchisee in streamlining operations and complying with Franchisor's standards.

Franchisor will provide Franchisee with promotional support for the opening of the Franchised Business.

Franchisee agrees to be solely responsible for all employment decisions and, in accordance with Section 6.10 of this Agreement, to comply with all state, federal, and local hiring laws and functions of the Franchised Business, including without limitation, those related to hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety of employees, paid or unpaid, full or part-time.

Franchisee must comply with both the Lease and any additional leasehold covenants and regulations of the building in which the Premises is located.

Prior to the opening of the Franchised Business, Franchisor will furnish Franchisee with an initial training program regarding the operation of a Craters & Freighters Franchised Business in accordance with Franchisor's then-current initial training program (collectively, "Initial Training Program"). There is no limit on the number of people who may participate in the Initial Training Program, so long as Franchisee's owner(s) and the Designated Manager (as such term is defined below) participate and complete the Initial Training Program to Franchisor's satisfaction prior to opening the Franchised Business. Franchisee will be responsible for all travel and living expenses incurred in connection with participating in the Initial Training Program.

Source: Item 22 — CONTRACTS (FDD pages 49–50)