Is the Gold Star franchisee required to conduct the business in strict compliance with the standards, procedures, and policies established by the company?

at operation of the Business at such site or under such design or lease shall be successful.

• 4.9 Construction Schedule. Notwithstanding the foregoing, the FRANCHISEE must complete construction of the Store and cause it to be open for business within twelve (12) months of the approval of the Retail Location.

5. STANDARDS OF OPERATION.

5.1 System Standards. FRANCHISEE acknowledges and agrees that every detail of the System is important, not only to FRANCHISEE but also to the COMPANY and other Gold Star Chili franchisees, in order to develop and maintain uniform operating standards, increase the demand for the products and services offered by all franchisees, establish and maintain a reputation for the highest degree of quality, service, cleanliness and customer satisfaction, and to protect the goodwill of all Gold Star Chili franchises. FRANCHISEE further acknowledges and agrees that a fundamental requirement of the System, this Agreement, and other Gold Star Chili franchises is adherence by all franchisees to the uniform specifications, standards, operating procedures and rules prescribed by the COMPANY for the development and operation of the Store, including, without limitation, standards and specifications regarding ingredients, methods of food preparation and service, and weight, quality and dimensions of menu items and other products served in the Store (collectively referred to as "System Standards"). Accordingly, FRANCHISEE will conduct and operate the Business at all times in a manner that will preserve and build the goodwill of all Restaurants and of the COMPANY, will comply with each and every System Standard, as periodically modified and supplemented by the COMPANY in its sole and absolute discretion, and will not deviate from the System Standards during the term of this Agreement. System Standards prescribed from time to time in the Manual or otherwise communicated to FRANCHISEE in writing will constitute provisions of this Agreement as if fully set forth in this Agreement. All references to this Agreement include all System Standards as periodically modified.

• 5.2 Managers. FRANCHISEE shall designate, and give the COMPANY written notice of the name of the individual that will serve as manager (such manager and any area manager being referred to hereinafter individually as a "Manager" and collectively as the "Managers") of the Store. The identity of the Manager cannot be changed without prior written notice to the COMPANY of the identity of the replacement Manager, and FRANCHISEE shall be required to promptly comply with the applicable provisions of Section 2 hereof with respect to any training required of such replacement Manager. The Manager must devote his or her full time and best efforts to the diligent and conscientious day-to-day, on-premises supervision and operation of the Store (if FRANCHISEE has more than one Store, FRANCHISEE may appoint an area Manager to oversee the Store Managers but must also appoint a different person to serve as Manager of each Store). If FRANCHISEE is an individual, then FRANCHISEE either must be the designated Store Manager, or FRANCHISEE may designate another individual to serve as Store Manager but FRANCHISEE in that case must on a weekly basis be present and actively participate in the day-to-day, on-premises supervision and operation of the Restaurant for at least ten percent (10%) of the Restaurant's operating hours.

Source: Item 23 — Receipts (FDD pages 53–163)