What obligation does a Dermani Medspa area developer accept when granted development rights?

quitable interest, in their revenue, profits, rights or assets. The Owner(s) are identified on Exhibit C.

"Person" – any natural person, corporation, limited liability company, general or limited partnership, unincorporated association, cooperative, or other legal or functional entity.

"Premises" – the location that we approve for the dermani MEDSPA®.

"System Standards" – the mandatory and suggested specifications, standards, operating procedures and rules that we prescribe for the management and operation of the Franchised Business and dermani MEDSPA®.

The definitions provided above are in addition to other defined terms set forth in this Agreement.

1. GRANT OF DEVELOPMENT RIGHTS; TERRITORY

• 1.1. Grant of Development Rights. Pursuant to the terms and conditions of this Agreement, we hereby grant to you the right, and you accept the obligation, to develop a specified number of Franchised Businesses in the Development Area, as set forth Exhibit A attached hereto. In this regard, you further agree:
  • 1.1.1. To develop the Franchised Businesses and dermani MEDSPA®s pursuant to the development schedule set forth in Paragraph 3 of Exhibit A attached hereto (the "Development Schedule"). If at any time during the term of this Agreement you fail to satisfy the Development Schedule, then we have the right, but not the obligation, to exercise our termination rights and other rights pursuant to Section 8 below;
  • 1.1.2. that each dermani MEDSPA® developed under this Agreement must be established and managed by a Franchised Business pursuant to a separate dermani MEDSPA® Franchise Agreement (a "Franchise Agreement") that must be executed as provided in Section 3.1 below; and
  • 1.1.3. that each Franchised Businesses and dermani MEDSPA® developed under this Agreement must be located within the area that is specified in Paragraph 2 of Exhibit A, attached hereto (the "Development Area").
• 1.2. No Protections to Development Area. Your rights within the Development Area are nonexclusive, and we may award the same Development Area to multiple area developers. However, we will not sell the right to develop more dermani MEDSPA®s than the total number of available territories available in the Development Area.
• 1.3. Rights we Reserve. We retain all rights with respect to Franchised Businesses and dermani MEDSPA®s, the System, the Marks, the sale of similar or dissimilar services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to:
  • 1.3.1. the right to operate, and to grant others the right to operate, Franchised Businesses and similar medical management businesses or similar medspas or medical centers under different names or marks located anywhere within or outside the Development Area under any terms and conditions we deem appropriate and regardless of proximity to the Premises or the Development Area;

Source: Item 23 — RECEIPTS (FDD pages 66–311)