pal office at | | | | | | | | | | (referred to in this Agreement as "Franchisee," "you," or "your"). | | | | | | |

1. INTRODUCTION.

1.1 The HydroDog System. We, our affiliates and our predecessor have expended considerable time and effort developing retail businesses offering, on a mobile basis, pet grooming services (the "Products" and/or the "Services"), in a distinctive and innovative environment (each a "HydroDog Business"). HydroDog Businesses utilize our approved vehicles (the "HydroDog Vehicles") and operate in accordance with our standards and specifications (our "System Standards"). A key to the development, operation, franchising and success of the HydroDog Businesses is the use of our System. The "System" includes, but is not limited to, distinctive designs, layouts, color schemes and signs, equipment, inventory, marketing methods, service requirements, standards and specifications, products, inventory, and suppliers; rules; training and assistance; and other methods and procedures relating to the establishment and operation of a HydroDog Business.

We use, promote and license in the operation of HydroDog Businesses certain trademarks, service marks and other commercial symbols, including the trade and service mark "HydroDog" and other assorted associated logos, designs, and commercial symbols (collectively, the "Marks"). We also use, promote and license in the operation of HydroDog Businesses certain information capable of being rendered into tangible form that we claim as our copyrights, including spreadsheets, pro forma documents, forms, marketing materials, manuals, pricing lists, vendor lists, product and service offering menus, formulas, advertisements, our website, and any other written materials, marketing materials or advertisements (including the look, compilation, feel and content of them) (collectively, the "Copyrights").

Each HydroDog Business operates on a mobile basis using the HydroDog Vehicle within a defined geographic area approved by us within which your HydroDog Business must confine its operations and must provide only the Products and Services we designate or approve in accordance with our System and using our Marks and Copyrights.

We grant to persons who meet our qualifications and are willing to undertake the investment and effort, a franchise to own and operate a single HydroDog Business offering the Products and Services we authorize and approve and utilizing the Marks, Copyrights and System.

You have applied for a franchise to own and operate a HydroDog Business and we have accepted your application.

1.2 Representations. You, represent to us, as an inducement to our entry into this Agreement, that:

• (a) all statements you have made and all materials you have submitted to us in connection with your purchase of a HydroDog Business franchise are accurate and complete and that you have made no misrepresentations or material omissions in obtaining the franchise;

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