Is Monicals Pizza required to provide general guidance to franchisees regarding restaurant planning, opening, and operation?

uidance

Franchisor shall make a reasonable effort to discuss problems and offer general guidance to Franchisee by telephone, e-mail, facsimile, or other methods with respect to planning, opening and operating the Franchised Restaurant. However, Franchisee shall use its independent judgment to make all business decisions and should not rely solely upon any advice given or statements made by Franchisor. Franchisor shall not charge for this service, however, Franchisor retains the right to refuse to provide, or to charge a fee for, this service should Franchisor deem Franchisee to be utilizing this service too frequently or in an unintended manner. Franchisor's advice or guidance to Franchisee relative to prices for products and services that, in Franchisor's judgment, constitutes good business practice is based upon the experience of Franchisor and its franchisees in operating Monical's Restaurants and an analysis of costs and prices charged for competitive products and services. Franchisee shall have the sole right to determine the prices to be charged by the Franchised Restaurant.

14.2 Periodic Visits

Franchisor or Franchisor's representatives may, but are not required to, make periodic visits to the Franchised Restaurant, which may be announced or unannounced for the purposes of inspection, consultation, assistance or guidance with respect to various aspects of the operation and management of the Franchised Restaurant. Franchisor and Franchisor's representatives who visit the Franchised Restaurant may prepare, for the benefit of both Franchisor and Franchisee, written reports detailing any problems or concerns noted during any such visit and outlining any required or suggested changes or improvements in the operations of the Franchised Restaurant. A copy

of any such written report may be provided to Franchisee. Franchisee shall implement any required changes or improvements in a timely manner.

15. INSURANCE

15.1 Types and Amounts of Coverage

Within ninety (90) days of the Effective Date, but in no event later than the commencement of operations, Franchisee shall procure and thereafter maintain in full force and effect during the term of this Agreement, the insurance listed below. The liability policy including any applicable umbrella/excess policies shall expressly name Franchisor as an additional insured. In addition to any other insurance that may be required by applicable law, or by any lender or lessor, Franchisee shall procure:

• 15.1.1 "Special Form" (all risk) property insurance coverage on all assets including inventory, furniture, fixtures, equipment, supplies, and leasehold improvements and betterments and other property used in the operation of the Franchised Restaurant at full replacement cost;
• 15.1.2 Workers' compensation insurance that complies with the statutory requirements of the state in which the Franchised Restaurant is located and employer liability coverage with a minimum limit of ONE MILLION DOLLARS ($1,000,000.00) or, if higher, the statutory minimum limit as required by applicable state law;

Source: Item 23 — RECEIPTS (FDD pages 46–257)