Is the Gold Star franchisee responsible for ensuring store operations comply with the system?

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. If FRANCHISEE is a corporation, limited liability company or partnership, then either a Principal must serve as Store Manager or, if some other individual serves as Store Manager then a Principal must, on a weekly basis, be present and actively participate in the day-to-day, on-premises supervision and operation of the Store for at least ten percent (10%) of the operating hours of the Store or the Manager must be an owner of at least a ten percent (10%) interest in FRANCHISEE.
• 5.3 Signage. FRANCHISEE shall obtain, display and maintain, at FRANCHISEE's expense, a package of signs conforming to the COMPANY's requirements (except to the extent modified with the approval of the COMPANY due to local legal restrictions), at, on or near the front of the Retail Location, describing the premises only as "Gold Star Chili" and such other signs, if any, as the COMPANY may require in the Manual or otherwise in writing. FRANCHISEE shall not place on display at the Retail Location (interior or exterior) any sign other than those that have been and continue to be approved by the COMPANY for display by FRANCHISEE in the Manual or otherwise in writing.
• 5.4 Hours of Operation. FRANCHISEE shall keep the Store open for such days and hours as the COMPANY shall reasonably require; provided, however, that nothing herein shall prevent FRANCHISEE from closing the Store to the extent required by local laws.
• 5.5 Staffing, Inventory. FRANCHISEE shall keep the Store adequately staffed with a sufficient number of adequately trained and competent employees, and maintain a sufficient inventory of Products, as to enable FRANCHISEE to operate the Store efficiently and in accordance with the COMPANY'S standards and System.
• 5.6 Employee Uniforms. FRANCHISEE shall cause all employees, while working in the Store, to wear uniforms of such color, design and other specifications as the

• COMPANY may designate from time to time in the Manual or otherwise in writing, and present a neat and clean appearance.
• 5.7 Inspections by the Company. The COMPANY's employees and agents shall have the right to enter upon the Retail Location at any reasonable time, whether or not FRANCHISEE is present and without prior notice, to inspect whether the Business is being conducted in accordance with this Agreement and the System Standards and to preserve and protect the validity and integrity of the Marks and System. During such inspection, FRANCHISEE shall cooperate and shall cause its employees to cooperate with the COMPANY's employees and agents, who shall have the right to inspect the Retail Location and FRANCHISEE's books and records; observe the manner in which FRANCHISEE renders services and otherwise conducts operations; confer with FRANCHISEE's customers and employees, conduct, supervise or observe physical inventories or quality or other audits;

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