What does the Face Foundrie Franchise Agreement say about the System's inventory and management control?

• 1.01 Face Foundrié Facial Bars. Franchisor and its Affiliates own, operate and franchise Face Foundrié Facial Bars. Franchisor has developed and owns a comprehensive system for developing and operating Face Foundrié Facial Bars, which includes trademarks, designs and layouts, distinctive standards, specifications and requirements for products, services, equipment, materials, and supplies; uniform standards, specifications, procedures and methods for operations and customer service standards; procedures for inventory and management control; training and assistance; technology standards; trade dress; marketing, advertising and promotional programs; and certain operational and business standards and policies, all of which Franchisor may add to, remove, change, improve, further develop or otherwise modify from time to time.

• (c) "Confidential Information" Any information related to the System or the development and operation of Face Foundrié Facial Bars that Franchisor or any of its Affiliates discloses to Franchisee that is designated confidential or that by its nature would reasonably be expected to be held in confidence, including, without limitation: (i) equipment, products, supplies, standards, procedures, protocols, and methods of service execution; (ii) plans and specifications for the development of Face Foundrié Facial Bars; (iii) sales, marketing and advertising programs and techniques for Face Foundrié Facial Bars; (iv) identity of suppliers and knowledge of specifications, processes, procedures, equipment, and pricing; (v) knowledge of operating results and financial performance of Franchisor or any Face Foundrié Facial Bars, other than the Facial Bar and any other Face Foundrié Facial Bar owned by Franchisee or its Affiliates; (vi) methods of inventory control, product handling, training and management relating to Face Foundrié Facial Bars; (vii) computer systems, software programs and software applications used or useful in Face Foundrié Facial Bars; and (viii) any and all other information that Franchisor provides or makes available that is labeled proprietary or confidential or which by its nature or character would reasonably be expected to be required to be treated as confidential.

8.03 Management of Facial Bar.

• (a) Franchisee must designate on Exhibit B an "Operating Partner", which individual must be approved by Franchisor and: (a) own and control, or have the right to own and control (subject to terms and conditions reasonably acceptable to Franchisor), not less than a twenty percent (20%) interest in Franchisee's equity and voting rights; (b) have the authority to bind Franchisee regarding all operational decisions with respect to the Facial Bar; and (c) have completed Franchisor's training program to its satisfaction.

The Operating Partner must devote full-time efforts to the Facial Bar, and the Operating Partner may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise that may conflict with his or her obligations hereunder without our approval.

• 1. Franchisor Right to Enter. Landlord acknowledges that, under the Franchise Agreement, Franchisor or its appointee has the right to assume the management and operation of the Tenant's business, on Tenant's behalf, under certain circumstances (to-wit: Tenant's abandonment, Tenant's failure to timely cure its default of the Franchise Agreement, and while Franchisor evaluates its right to purchase the Facial Bar). Landlord agrees that Franchisor or its appointee may enter upon the Premises for purposes of assuming the management and operation of Tenant's Facial Bar as provided in the Franchise Agreement and, if it chooses to do so, it will do so in the name of the Tenant and without assuming any direct liability under the Lease. Further, upon the expiration or earlier termination of this Lease or the Franchise Agreement, Franchisor or its designee may enter upon the Premises for the purpose of removing all signs and other material bearing the Face Foundrié Facial Bar name or trademarks, service marks, or other commercial symbols of Franchisor.

Source: Item 22 — CONTRACTS (FDD pages 73–74)