Who owns the copyrights to the Copyrighted Works used in a Craters & Freighters franchise?

The information contained in the Operations Manuals is proprietary and is protected by copyright and other laws. The Operations Manuals and the limitations of the use of it by you and your employees are described in Item 11 and the Franchise Agreement. The designs contained in the Marks, the layout of our advertising materials, as well as any other writings, recordings in print or electronic form are also protected by copyright and other laws. Although we have not filed an application for copyright registration for the Operations Manuals, the trademarks, our website, our computer software programs, the advertising materials, or any other writings and recordings, we claim common law and federal copyrights in these items. We grant you the right to use this proprietary and copyrighted information ("Copyrighted Works") in connection with your operation of your Franchised Business, but these copyrights remain our sole property.

There are currently no effective determinations of the United States Copyright Office or any court regarding any Copyrighted Works of ours, nor are any proceedings pending, nor are there any currently effective agreements between us and third parties pertaining to the Copyrighted Works that will or may significantly limit your use of our Copyrighted Works.

Our Operations Manuals, electronic information and communications, sales and promotional materials, the development and use of our system, standards, specifications, policies, procedures, information, concepts and systems on, knowledge of and experience in the development, operation and franchising of Craters & Freighters Franchised Businesses, and training techniques used to provide services, information concerning product and service sales, operating results, financial performance and other financial data of Craters & Freighters Franchised Businesses and other related materials are proprietary and confidential ("Confidential Information") and are considered to be our property to be used by you only as described in the Franchise Agreement or the Operations Manuals. Where appropriate, certain information has also been identified as trade secrets ("Trade Secrets"). You must maintain the confidentiality of our Confidential Information and Trade Secrets and adopt reasonable procedures to prevent unauthorized disclosure of our Trade Secrets and Confidential Information. You must ensure and require that all of the owners, officers, directors, shareholders, and partners of the franchisee entity execute a prescribed form of confidentiality and non-competition agreement that will be in substantially the same form attached to the Franchise Agreement as Exhibit E ("Confidentiality and Non-Competition Agreement").

We will disclose parts of the Confidential Information and Trade Secrets to you as we deem necessary or advisable for the development of your Franchised Business during training and in guidance and assistance furnished to you under the Franchise Agreement, and you may learn or obtain from us additional Confidential Information and Trade Secrets during the term of the Franchise Agreement. The Confidential Information and Trade Secrets are valuable assets of ours and are disclosed to you on the condition that you, and your owners, if you are a business entity, and employees agree to maintain the information in confidence by entering into a confidentiality agreement that we can enforce.

Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)