What is the effect of the 'System Standards' on the Ella Cafe Franchisee's business?

7.1 Compliance with Manual and System Standards. Franchisee shall at all times and at its own expense comply with all mandatory obligations contained in the Manual and with all other System Standards. Franchisee understands and acknowledges that compliance with the System is

essential to maintain and enhance the goodwill associated with the Marks and the integrity of the brand. Accordingly, Franchisee will:

• (a) Operate the Coffee House according to the highest applicable health standards and ratings, timely obtain any and all permits, certificates, or licenses necessary for the lawful operation of the Coffee House, operate the Coffee House according to Franchisor's operating methods, Standards, and specifications, and maintain, at all times, a high moral and ethical standard in the operation of the Coffee House.

• (b) Accept debit cards, credit cards, stored value cards, or other non-cash payment systems and methods that Franchisor specifies periodically and participate in Franchisor's required payment procedures and collection of funds relating thereto.

Further Franchisee will acquire and install all necessary hardware and/or software used in connection with these non-cash payment systems and pay the costs associated therewith.

• 7.9 Customer Complaints. Franchisee agrees to promptly address all complaints in accordance with the procedures contained in the Operations Manual or as otherwise provided by the Franchisor.

If Franchisee is unable or unwilling to resolve a customer complaint within fortyeight (48) hours, and it becomes necessary for Franchisor to reimburse a customer in settlement of his or her complaint about work performed at or by your Coffee House, Franchisee agrees to promptly reimburse Franchisor for amounts expended on account of any such complaint.

• 7.10 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Franchisor for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and

mystery shopping. Franchisor shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any minimum score requirements set by Franchisor for such programs.

Franchisee recognizes that from time to time, Franchisor may introduce, as part of the System, other methods or technology which require certain System modifications including, without limitation, new computer hardware and software, equipment; methods, recipes, new or different payment systems; loyalty programs; certifications and licenses; furnishings and new techniques and methodologies, and additional or substitute trademarks, service marks, and

Changes to the System may further include, without limitation, abandoning the System altogether in favor of another system in connection with a merger, acquisition, other business combination; and modifying or substituting entirely the building, premises, equipment, furnishings, signage, Trade dress, décor, color schemes and uniform specifications and all other unit construction, design, appearance and operational attributes which Franchisee is required to observe hereunder.

Franchisee shall, upon reasonable notice, accept, implement, use and display in the operation of the Franchised Business any such changes in the System, as if they were part of this Agreement at the time of execution hereof at If such additional investment is required to be made in the last two years of the initial term, Franchisee may avoid making the investment by providing notice of intent not to renew the Franchise unless the investment is in connection with a modification to the System required by law or court order.

Source: Item 22 — CONTRACTS (FDD page 50)