Is a Hydrodog franchisee required to utilize a Computer System designated or approved by the franchisor?

t is your responsibility to obtain accounting services and any required hardware or software related to them, from suppliers approved by us. You will at all times maintain the records reasonably specified in the Manuals, including, without limitation, sales, inventory and expense information.

• 11.8 Computer System. We may require that you acquire and use in developing and operating your HydroDog Business a Computer System consisting of the computer services, components,

equipment, computer hardware, telecommunications equipment or services, the software used in connection with the Business Management System and other operating or communications software we designate or approve for use by the HydroDog Businesses (collectively, the "Software") that we may periodically specify in the manner we designate (collectively, the "Computer System"). We may require you to obtain specified computer and communications hardware, equipment, components or Software and services (like DSL, Frac, T-1, Cable Modem or ISP) and may modify specifications for and components of the Computer System from time-to-time. We require you to acquire high speed internet capabilities (like DSL, Frac, T-1, Cable Modem or ISP), as well as mobile tablet and smart phone usage and access. Our and our designees' modifications and specifications for components, equipment, services and operating or communications of the Computer System may require you to incur cost to purchase, lease or license new or modified Software or computer or communications hardware, equipment, components or Software and to obtain service and support for the Computer System during the Term of this Agreement. You agree to incur such costs in connection with obtaining the computer hardware and Software comprising the Computer System (or additions or modifications) operating it in accordance with our System Standards and ensuring that it is compatible with, and capable of participation in and performing the functions we designate for the Business Management System and engaging in any form of e-commerce we designate or approve, as long as the Computer System we specify for use is the same Computer System that we or our affiliates then currently use in the HydroDog Businesses that we or they own and operate, or an alternative system that we approve in writing. The Computer System must be capable of connecting with our Computer System performing the functions we designate for the Business Management System, permitting us to review the results of your HydroDog Business's operations, and engaging in any ecommerce activities that we designate or approve. We also have the right to charge you a reasonable systems fee, as determined by us, for modifications of and enhancements made to any proprietary Software that we license to you and other maintenance and support services that we or our affiliates furnish to you related to the Computer System. From time-to-time, upon our notice to you, you must enter into the then current form of such Computer System or Software related agreements as we may designate. You must not use the Computer System for any purposes not authorized by us or our affiliates.

• 11.9 Trade Accounts and Taxes. You agree to maintain your trade accounts in a current status and seek to resolve any disputes with trade suppliers promptly, and to keep us informed of any significant disputes that may affect your HydroDog Business. You agree to timely pay all taxes incurred in connection with your HydroDog Business's operations. If you fail to maintain your trade accounts in a current status, timely pay such taxes or any other amounts owing to any third parties or perform any nonmonetary obligations to third parties, we may, but are not required to, pay any and all such amounts and perform such obligations on your behalf, and you shall indemnify us for any such payments or actions taken.

Source: Item 23 — RECEIPTS (FDD pages 43–166)