What is the developer's obligation regarding the use of equipment in the Lees Famous Recipe System?

y or indirectly owns a five percent (5%) or greater interest in you. If any corporation or other entity other than a partnership is a Principal Owner, a "Principal Owner" also will mean a shareholder or owner of a five percent (5%) or greater interest in such corporation or other entity. If a partnership is a Principal Owner, a "Principal Owner" also will mean each general partner of such partnership and, if such general partner is an entity, each owner of a five percent (5%) or greater interest in such general partner.

• S. "Restaurant" means the Lee's Famous Recipe Restaurants developed and operated under this Agreement.
• T. "System" means our system relating to the franchising of Lee's Famous Recipe Restaurants that sell chicken and other approved food, beverage and other products sold, which System includes site

evaluation assistance, equipment selection and layouts, merchandising, advertising, sales and promotional techniques, operations training, and other matters relating to the operation and promotion of such restaurants, all of which are designed to enhance the reputation and goodwill with the public of establishments operated in accordance with the System.

2. DEVELOPMENT AREA; DEVELOPMENT SCHEDULE; AND RESERVATION OF RIGHTS.

• A. Subject to the terms and conditions set forth herein, we grant you the right, and Developer undertakes the obligation, to develop and establish the number of Restaurants set forth in the Development Area, provided you open and commence operations of such Restaurants in strict accordance with the Development Schedule.
• B. You also understand and agree that the Development Area does not include, and we reserve all franchise and development rights respecting any Non-Traditional Venues located within the geographic boundaries of the Development Area.
• C. If you are in compliance with your obligations under this Agreement and all of the Franchise Agreements between you (including any affiliate of yours) and us, then we shall not establish, nor license anyone other than you to establish, a Restaurant in the Development Area until the earlier of (i) the termination or expiration of this Agreement, (ii) the opening of the last required Restaurant under the Development Schedule, or (iii) the last date specified in the Development Schedule, except as otherwise provided under Sections 1(D) below.
• D. Notwithstanding Section 1(C) of this Agreement, we (for ourselves and our affiliates) retain the right to:
  • 1. Directly operate, or to grant other persons the right to operate, Lee's Famous Recipe Restaurants at locations outside the Development Area;
  • 1. Directly operate, or to grant other persons the right to operate, Lee's Famous Recipe Restaurants at Non-Traditional Venues within and outside the Development Area;
  • 1. Promote, sell and distribute anywhere, including through restaurants and other establishments, products and services authorized for sale at Lee's Famous Recipe Restaurants under trademarks and service marks other than the Marks through similar or dissimilar channels of distribution;

Source: Item 23 — RECEIPTS (FDD pages 70–287)