What is an Ella Cafe franchisee required to maintain at all times in the operation of the Coffee House?

ARTICLE 7. OPERATIONS

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.

• 7.13 Maintenance and Repair. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair.

In addition, Franchisee shall promptly perform all work on the physical property of the Business as Franchisor may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn-out signage, floor coverings, furnishings, equipment and décor.

Franchisee acknowledges that the System Standards may include requirements for cleaning, maintenance, and repair.

• (a) Franchisee shall prominently display, at Franchisee's expense, both on the interior and exterior of the Franchisee's ELLA Coffee House business premises, signs in such form, color, number, location and size, and containing such Marks Franchisor may designate.

• (b) Franchisee shall conform to all quality and customer service standards prescribed by the Franchisor in writing.

• 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.

• 7.11 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Franchisor (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems).

Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).

• 7.12 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Franchisor, in the manner specified by Franchisor in the Manual or otherwise in writing.

Source: Item 22 — CONTRACTS (FDD page 50)