Does the renewed Pearce Bespoke Franchise Agreement contain further rights of renewal?

A. Term.

The term of this Agreement will be for ten (10) years commencing on the Effective Date, unless terminated sooner in accordance with the terms hereof.

B. Renewal.

Franchisee will have the right to renew its Pearce Bespoke franchise for the Franchised Territory for two (2) successive five (5) year terms, provided Franchisee meets the following conditions:

• 1. Franchisee has given Franchisor written notice at least one hundred eighty (180) days before the end of the term of this Agreement of its intention to renew; and
• 1. Franchisee has complied with all of the material provisions of this Agreement, including the payment of all monetary obligations owed by Franchisee to Franchisor and its affiliates and suppliers, and has complied with Franchisor's material operating and brand standards and procedures and meets all current brand standards during the term of the Franchise Agreement; and
• 1. Franchisee has at its expense made such reasonable capital expenditures necessary to replace and modernize the supplies, items, and custom equipment in Franchisee's business so that Franchisee's business reflects the then current requirements of a new Pearce Bespoke Franchise; and
• 1. At Franchisor's discretion, assist Franchisor or its designee with an audit of the Pearce Bespoke Franchise, which shall be conducted by Franchisor or its designee, including without limitation, a financial audit and an operational audit to determine their compliance with then current brand standards. Any deficiencies identified during the audit must be satisfied prior to the expiration of the then current term. If any audit reveals any deficiencies the costs incurred by Franchisor in connection with any such audit are payable upon demand by Franchisee prior to the expiration of the then existing term, including any audit costs, transportation, lodging, meals, and any other expenses incurred.
• 1. Franchisee has paid a Renewal Fee equal to the greater of (i) Five Thousand Dollars ($5,000.00), or (ii) twenty-five percent (25%) of the then-current franchise fee to Franchisor at least thirty (30) days before the expiration of the initial (and any renewal) term of this Agreement expires; and
• 1. Execute prior to the expiration of the then existing term the then-current Franchise Agreement, provided, however, that Franchisee will be required to pay the Renewal Fee in lieu of the Initial Franchise Fee stated in such Franchise Agreement, and that such Franchise Agreement may not contain any further rights of renewal, but may contain continuing rates

and advertising contributions (which may be different than those contained in this Agreement), and an altered Franchised Territory; and

• 1. Execute prior to the expiration of the then existing term a general release in favor of Franchisor, its Affiliates and related individuals and entities, from any claims arising before or during the term hereof; and
• 1. If Franchisee fails to timely meet any of the renewal conditions within the applicable timeframes, Franchisor may choose, in its sole discretion and without any obligation to do s

Source: Item 22 — CONTRACTS (FDD page 39)