What responsibilities does the Principal Executive of an Ella Cafe franchise have?

, and (ii) describes the nature and extent of each owner's interest in Franchisee. If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify Franchisor within 10 days.

• 2.5 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her

interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Franchisor reasonable approval.

• 2.6 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Franchisor, in the form of Attachment 3.
• 2.7 No Conflict. Franchisee represents to Franchisor that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order.
• 2.8 Sub-franchising/Agents. Franchisee shall not sublicense or attempt to sublicense the use of the System or Marks to any person or entity.
• 2.9 Territorial Restriction. Franchisee shall target and direct the marketing to customers located primarily within the Designated Area, and outside their Designated Area only with Franchisor's prior written consent, which consent may be given, conditioned or withdrawn in Franchisor's sole and absolute discretion. Franchisee shall never target and direct market or make sale inside another franchisee's designated area or within a Franchisor's affiliate owned location. Franchisee shall only offer and sell approved products and services from the Coffee House located within the Designated Area and, only to retail customers. On a case by case basis, Franchisor may at its own discretion authorize other sales, such as sales resulting from a sponsored event/ team building exercise where the company has previously paid. Franchisee shall obtain prior written approval before solicitation or accepting orders from consumers outside of the Designated Area, which may be withheld at our sole discretion. If such request is granted, Franchisor reserves the right to terminate upon written notice to the Franchisee, which the notice may be in a form of an electronic communication, in which case the Franchisee must immediately cease soliciting or accepting orders from consumers outside of the Designated Area. We reserve the right to control all internet-based marketing.
• 2.10 National Account. Franchisor also reserves the right, to enter into agreements with specific regional or national customers in order to establish a National Account, in any area, including in the Designated Area.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 39–40)