What is the HydroDog franchisee's obligation regarding the System Standards?

You agree to follow the standards, specifications and operating procedures we establish periodically for the HydroDog System that are described in the Manuals.

You also must comply with all updates and amendments to the HydroDog System as described in newsletters or notices we distribute, including via Computer System or other media we select).

The Manuals may be modified or updated and revised periodically to reflect changes in System Standards.

You are responsible for routinely monitoring any on-line version (or electronic format) of the Manuals for changes to them.

• (n) regulation of such other aspects of the operation and maintenance of your HydroDog Business that we determine from time-to-time to be useful to preserve or enhance the efficient operation, image or goodwill of the Marks and the HydroDog Businesses; or
  • (o) use of vehicle wraps and similar mobile advertising.

You agree that System Standards prescribed from time-to-time in the Manuals, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth. All references to this Agreement include all System Standards as periodically modified.

• 11.3 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine.

Such modifications may obligate you to invest additional capital in your HydroDog Business ("Capital Modifications") and/or incur higher operating costs.

However, such modifications will not alter your fundamental status and rights under this Agreement.

We agree to give you at least ninety (90) days to comply with Capital Modifications we require.

You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify.

Your failure to comply with any System Standards or Capital Modifications within the specified time period will result in: (a) a non-compliance fee as stated in Section 6.16 (Non-Compliance Fee); (b) mandatory remedial training at your expense; (c) suspension of your rights under this Agreement until compliance is achieved; and/or (d) termination of this Agreement, as we determine in our sole discretion.

You must at all times faithfully, honestly, and diligently perform your contractual obligations. System Standards may regulate the staffing levels and employee qualifications, training, dress, and appearance of your HydroDog Business.

• 11.4 Interior and Exterior Upkeep. You agree, at all times, to maintain the HydroDog Vehicle's interior and exterior and the surrounding area in the highest degree of cleanliness, orderliness and sanitation and comply with the requirements regarding the upkeep of the HydroDog Vehicle established in the Manuals and by federal, state and local laws.

• 11.5 Hours of Operation. You agree to operate your HydroDog Business during the hours and on the days prescribed by us in the Manuals or otherwise approved in advance in writing by us.

• 5.7 Business Management System.

You are required to use and adhere to all of the rules and regulations, specifications and System Standards for the Computer System, mapping, business management, Purchase Order System, scheduling, cost control, and accounting system we designate from time-to-time (collectively, the "Business Management System").

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