Document:

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                                                                   EXHIBIT 10.88

                              SEATTLE'S BEST COFFEE
                               FRANCHISE AGREEMENT

                                     BETWEEN

                    CINNABON, INC., SUCCESSOR IN INTEREST TO
                           SEATTLE'S BEST COFFEE, LLC

                                       AND

                       -----------------------------------

                                                                Unit No.: ______
                                                           Dev. Agr. No.: ______
                                                            Dated: _____________

                                                             [ ] Cafe  [ ] Kiosk

                                                   [ ]Trad. Ven. [ ]Captive Ven.

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                              SEATTLE'S BEST COFFEE
                               FRANCHISE AGREEMENT

         THIS AGREEMENT (the "Agreement") is made this _______ day of
_________________, 200___, by and between CINNABON, INC., SUCCESSOR IN INTEREST
TO SEATTLE'S BEST COFFEE, LLC, a Washington corporation, with offices at Six
Concourse Parkway, Suite 1700, Atlanta, Georgia, 30328-5352 U.S.A. ("Franchisor"
or "SEATTLE'S BEST COFFEE") and _______ , [jointly and severally where more than
one], ("Franchisee").

                                   WITNESSETH:

         WHEREAS, Seattle's Best Coffee, LLC has developed and owns a unique and
distinctive system for the development, establishment and operation of retail
Cafes ("SBC Cafes") and Kiosks ("SBC Kiosks") (collectively, "SBC RETAIL UNITS")
specializing in the preparation and sale of specialty coffee beverages,
proprietary coffee products and other menu items developed and owned by
Franchisor (the "Seattle's Best Coffee System", "SBC System" or "System");

         WHEREAS, the distinguishing characteristics of the SBC SYSTEM include,
without limitation, the name "SEATTLE'S BEST COFFEE"; distinctive interior and
exterior design and layouts, decor, color schemes, and furnishings; confidential
food formulae and recipes used in the preparation of food products, formulas and
specifications for preparing specialty coffee drinks and other coffee and
non-coffee-based products; specialized menus; standards and specifications for
equipment, equipment layouts, products, operating procedures, and management
programs, all of which may be changed, improved, and further developed by
Franchisor from time to time;

         WHEREAS, Franchisor identifies the SBC SYSTEM by means of certain trade
names, service marks, trademarks, logos, emblems, and other indicia of origin,
including, but not limited to, the marks "SEATTLE'S BEST COFFEE", "SBC" and such
other trade names, service marks, trademarks and trade dress as are now, or may
hereafter, be designated by Franchisor for use in connection with the SBC SYSTEM
(collectively referred to as the "Proprietary Marks");

         WHEREAS, pursuant to a Master License Agreement and First Amendment
thereto, both dated July 13, 2003, by and between Cinnabon Inc., SBC and Seattle
Coffee Company, SBC granted a license to CBI for the use of the SBC System and
proprietary marks in performing its obligations under this Agreement;

         WHEREAS, Franchisor continues to develop, use, and control the use of
such Proprietary Marks in order to identify for the public the source of
services and products marketed thereunder in the SBC SYSTEM and to represent the
System's high standards of quality, appearance, and service;

         WHEREAS, Franchisee wishes to be assisted, trained, and licensed by
Franchisor as an SBC franchisee and licensed to use, in connection therewith,
the SBC SYSTEM and to continuously operate one SBC Retail Unit at the location
specified in Section 1.01 herein (the "Franchised Location");

         WHEREAS, Franchisee understands the importance of the SBC SYSTEM and
SEATTLE'S BEST COFFEE'S high and uniform standards of quality, cleanliness,
appearance, and service, and the necessity of opening and operating SBC RETAIL
UNITS in conformity with the SBC SYSTEM;

         NOW, THEREFORE, the parties hereto agree as follows:

I.                APPOINTMENT

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         1.01.    Franchisor grants to Franchisee a franchise to open and
operate an SBC Unit (the "Franchised Unit", or "Franchised Business") at one
location only, such location to be described as:

STORE NUMBER:

FRANCHISED
LOCATION:

UNIT FORMAT:      [ ] SBC Cafe            [ ] SBC Kiosk

                  [ ] Traditional Venue   [ ] Captive Venue

upon the terms and conditions herein contained and subject to the terms and
conditions contained in the development agreement between Franchisor and
Franchisee, dated _________, (the "Development Agreement"), which is
incorporated herein by reference; and a license to use in connection therewith
Franchisor's Proprietary Marks and the SBC SYSTEM. Franchisee may not operate
the Franchised Unit at any site other than the Franchised Location.

         1.02.    Except as otherwise set forth herein, (a) the franchise
granted to Franchisee under this Agreement is non-exclusive, and grants to
Franchisee the rights to establish and operate the Franchised Unit at only the
specific location set forth hereinabove, (b) no exclusive, protected or other
territorial rights in the contiguous area or market of such Franchised Unit or
otherwise is hereby granted or to be inferred and (c) Franchisor and/or its
affiliates have the right to operate and grant as many other franchises for the
operation of SBC Retail Units, anywhere in the world, as they shall, in their
sole discretion, elect. In addition to the foregoing, Franchisor may sell SBC
brand coffee and related coffee products anywhere, including, but not limited
to, sales on the Internet, by mail order, or through wholesale distribution
channels, including, but not limited to independent coffee retailers, department
stores, food marts, restaurants, cafes and grocery stores, during and after the
term of this Agreement ("Wholesale Accounts"). Wholesale Accounts of Franchisor
may, in return, sell SBC coffee and related products under the same or different
trademarks.

         1.03.    Nothing herein shall be deemed to be a grant to Franchisee of
any rights as a commercial agent or distributor of SBC Coffee and/or coffee
products in any jurisdiction. Franchisor reserves the right, in its sole
discretion, to grant such rights to any third party, during or after the term of
this Agreement. Franchisee may not sell any SBC Coffee Products (as defined
herein) and/or any other materials, supplies, or inventory bearing the
Proprietary Marks anywhere except at the SBC Retail Unit, without SBC's prior
written consent. Franchisee shall specifically be prohibited from selling any
such items at wholesale, except as specifically agreed to, in writing, by
Franchisor. The foregoing restriction shall not apply to catering events and/or
the offer of samples of SBC coffee products at or directly in front of the
Franchised Unit.

         1.04.    Franchisee acknowledges that, over time, Franchisor has
entered, and will continue to enter, into franchise agreements with other
franchisees that may contain provisions, conditions and obligations that differ
from those contained in this Agreement, including, without limitation, franchise
agreements for the operation of SBC Retail Units. The existence of different
forms of agreement and the fact that Franchisor and other franchisees may have
different rights and obligations does not affect the parties' duty to comply
with the terms of this Agreement.

II.               TERM

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         2.01.    Except as otherwise provided in this Agreement, the initial
term of this Franchise Agreement (the "Term") shall expire on the tenth (10th)
anniversary of the date of commencement of operation of the Franchised Unit. For
all purposes under this Agreement, the date of commencement of operation of the
Franchised Unit shall be the date verified in writing by Franchisor and
delivered to Franchisee in a form substantially similar to the "Notice" attached
hereto as Exhibit "A". Franchisee agrees and shall be obligated to operate the
Franchised Unit and perform hereunder for the full Term of this Agreement.

         2.02.    Franchisee may, at its option, renew this franchise for one
(1) additional period of five (5) years, provided that, at the time of such
renewal:

                  A.       Franchisee gives Franchisor written notice of such
                           election to renew not less than six (6) months nor
                           more than twelve (12) months prior to the end of the
                           then-current term. Failure by Franchisee to timely
                           provide Franchisor the required notice constitutes a
                           waiver by Franchisee of its option to remain a
                           franchisee beyond the expiration of the Initial Term
                           or the first Renewal Term;

                  B.       Franchisee executes Franchisor's then-current
                           standard form of franchise agreement, which may
                           include, without limitation, a higher royalty fee and
                           a higher advertising contribution, if any, than that
                           contained in this Agreement; and the term of which
                           shall be the renewal term as specified in Section
                           2.02. hereof, but shall contain no further renewal
                           rights;

                  C.       Franchisee shall execute a general release and a
                           covenant not to sue, in a form satisfactory to
                           Franchisor, of any and all claims against Franchisor
                           and its subsidiaries and affiliates, and their
                           respective past and present officers, directors,
                           shareholders, agents and employees, in their
                           corporate and individual capacities, including,
                           without limitation, claims arising under federal,
                           state and local laws, rules and ordinances, and
                           claims arising out of, or relating to, this
                           Agreement, any other agreements between Franchisee
                           and Franchisor and Franchisee's operation of the
                           Franchised Unit and/or other SBC Retail Units
                           operated by Franchisee;

                  D.       Franchisee is not in default under this Agreement or
                           any other agreements between Franchisee and
                           Franchisor (or any parent, subsidiary or affiliate of
                           Franchisor), and Franchisee has fully and faithfully
                           performed all of Franchisee's obligations throughout
                           the term of this Agreement; Franchisee is not in
                           default beyond the applicable cure period under any
                           real estate lease, equipment lease or financing
                           instrument relating to the Franchised Unit;
                           Franchisee is not in default beyond the applicable
                           cure period with any vendor or supplier to the
                           Franchised Unit; and, Franchisee shall not have been
                           in default beyond the applicable cure period under
                           this Agreement or any other agreements between
                           Franchisor and Franchisee more than 3 times during
                           the period 12 months before the date of Franchisee's
                           notice and 12 months before the expiration of the
                           Initial Term;

                  E.       Franchisee has paid or otherwise satisfied all
                           monetary obligations owed by Franchisee to Franchisor
                           and its subsidiaries and affiliates and any
                           indebtedness of Franchisee which is guaranteed by
                           Franchisor, and Franchisee has timely paid or
                           otherwise satisfied these obligations throughout the
                           term of this Agreement;

                  F.       Franchisee agrees, at its sole cost and expense, to
                           reimage, renovate, refurbish and modernize the
                           Franchised Unit, within the time frame required by
                           Franchisor, including the building design, parking
                           lot, landscaping, equipment, signs, interior and
                           exterior decor items, fixtures, furnishings, trade
                           dress, color scheme, presentation of trademarks

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                           and service marks, supplies and other products and
                           materials to meet Franchisor's then-current
                           standards, specifications and design criteria for SBC
                           RETAIL UNITS , as contained in the then-current
                           franchise agreement, Confidential Operating Standards
                           Manual (as defined herein), or otherwise in writing,
                           including, without limitation, such structural
                           changes, remodeling and redecoration and such
                           modifications to existing improvement as may be
                           necessary to do so;

                  G.       Franchisee shall pay to Franchisor a renewal fee
                           equal to fifty percent (50%) of Franchisor's standard
                           initial franchise fee in effect at the date of
                           renewal.

                  H.       Franchisee and its employees at the Franchised Unit
                           shall be in compliance with the then-current SBC
                           System training requirements.

                  I.       Franchisee has the right to remain in possession of
                           the premises of the Franchised Unit, or other
                           premises acceptable to Franchisor, for the Renewal
                           Term and all monetary obligations owed to
                           Franchisee's landlord must be current.

                  J.       As determined by Franchisor in its sole discretion,
                           Franchisee has operated the Franchised Unit in
                           accordance with this Agreement and the SBC System (as
                           set forth in the Manual or otherwise in writing and
                           as revised from time to time) and has operated all of
                           its other SBC Retail Units that are franchised by
                           Franchisor in accordance with the applicable
                           franchise agreements.

III.              FEES

         3.01.    In consideration of the franchise granted to Franchisee
herein, Franchisee shall pay to the Franchisor the following:

                  A.       A franchise fee of ___________THOUSAND DOLLARS
                           ($_________) payable upon execution of this Agreement
                           by Franchisee, less __________ Dollars ($________),
                           representing the portion of the Development Fee (as
                           defined in the Development Agreement), applicable to
                           the Franchise Fee payable hereunder. Such franchise
                           fee shall be fully earned by Franchisor upon
                           execution of this Agreement by Franchisee and is in
                           addition to any development fees paid to Franchisor
                           by Franchisee.

                  B.       A recurring, non-refundable royalty fee of FOUR
                           PERCENT (4%) of Gross Sales (as defined herein)
                           during the term of this Agreement, payable weekly, on
                           the Gross Sales of the preceding week (or on such
                           other basis as may be set forth in the Confidential
                           Operating Standards Manual (as defined herein) or
                           otherwise agreed to in writing by Franchisor). Upon
                           thirty (30) days prior written notice, Franchisor may
                           require Franchisee to authorize Franchisor to make
                           electronic debits from Franchisee's operating account
                           as a means of paying the royalty fee.

         3.02.    In addition to the payments provided for in Section 3.01.
hereof, Franchisee, recognizing the value of advertising and the importance of
the standardization of advertising and promotion to the goodwill and public
image of the System, agrees to pay to the SEATTLE'S BEST COFFEE national
marketing fund (the "NMF", f/k/a "NCP Fund") a recurring, non-refundable
contribution ("NMF Contribution", f/k/a "NCP Fund Contribution") in an amount to
be determined by Franchisor, in its sole discretion, up to [ ] THREE PERCENT
(3%) [ ] ONE PERCENT (1%) of the Gross Sales of the Franchised Unit, payable
weekly, for the preceding week (or on such other basis as may be set forth in
the Confidential Operating Standards Manual or otherwise agreed to in writing by
Franchisor). Upon thirty (30) days prior written notice, Franchisor may require
Franchisee to authorize Franchisor to make electronic

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debits from Franchisee's operating account as a means of paying the NMF
Contribution. The NMF Contribution shall be expended by the NMF for national,
regional, and/or local advertising and promotional materials and market research
for the SBC SYSTEM, under the following conditions and limitations:

                  A.       The NMF, all contributions thereto, and any earnings
                           thereon, shall be used exclusively to pay any and all
                           costs of maintaining, administering, directing,
                           producing and preparing market research, advertising,
                           marketing materials and/or promotional activities for
                           the SBC SYSTEM. Franchisee shall pay the NMF
                           Contribution by separate check made payable to the
                           NMF. All sums paid by the Franchisee to the NMF shall
                           be maintained in an account separate from other funds
                           of Franchisor and shall not be used to defray any of
                           Franchisor's expenses except as provided herein, and
                           as Franchisor may incur in activities reasonably
                           related to the administration or direction of the NMF
                           and advertising and marketing programs for
                           franchisees and the SBC SYSTEM. The NMF and its
                           earnings shall not otherwise inure to the benefit of
                           Franchisor. Franchisor shall maintain a separate
                           bookkeeping account for the NMF.

                  B.       The selection of media and locale for media placement
                           shall be at the sole discretion of the Franchisor.

                  C.       All reasonable costs incurred by Franchisor or
                           charged to Franchisor by third parties for market
                           research and the production and dissemination of
                           advertising, marketing and promotional materials may
                           be charged to the NMF.

                  D.       Franchisor, upon request, shall provide Franchisee
                           with an annual accounting of receipts and
                           disbursements of the NMF.

                  E.       It is anticipated that all contributions to and
                           earnings of the NMF will be expended for market
                           research, costs of creating and producing advertising
                           materials, marketing and/or promotional purposes and
                           reimbursement to Franchisor of costs directly related
                           to the management of the NMF (including personnel
                           costs) during the taxable year in which contributions
                           and earnings are received. If, however, excess
                           amounts remain in the NMF at the end of a taxable
                           year, all expenditures in the following taxable
                           year(s) shall be made first out of accumulated
                           earnings from previous years, next out of earnings in
                           the current year, and finally from contributions.

                  F.       The NMF is not, and shall not be, an asset of
                           Franchisor. Although the NMF is intended to be of
                           perpetual duration, Franchisor maintains the right to
                           terminate the NMF; provided, however, that the NMF
                           shall not be terminated until all monies in the NMF
                           have been expended for the purposes stated herein.

                  G.       Franchisee understands that such advertising and
                           marketing is intended to maximize the public's
                           awareness of SBC Retail Units and the SBC System, and
                           that Franchisor accordingly undertakes no obligation
                           to insure that any individual Franchisee benefits
                           directly or on a pro rata basis from the placement,
                           if any, of such advertising or marketing in its local
                           market. Franchisee further acknowledges that its
                           failure to derive any such benefit, whether directly
                           or indirectly, shall not be cause for Franchisee's
                           nonpayment or reduction of the required contributions
                           to the NMF.

         3.03.    If any monetary obligations owed by Franchisee to Franchisor
and its subsidiaries and affiliates are more than seven (7) days overdue,
Franchisee shall, in addition to such obligations, pay to Franchisor a sum equal
to one and one-half percent (1-1/2%) of the overdue balance per month, or the
highest rate permitted by law, whichever is less, from the date said payment is
due.

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         3.04.    For the purposes of this Agreement, the term "Gross Sales"
shall mean all revenues generated by Franchisee's business conducted upon, from
or with respect to the Franchised Unit, whether such sales are evidenced by
cash, check, credit, charge, account, barter or exchange. Gross Sales shall
include, without limitation, monies or credit received from the sale of food and
merchandise, from tangible property of every kind and nature, promotional or
otherwise, and for services performed from or at the Franchised Unit, including
without limitation such off-premises services as catering and delivery. Gross
Sales shall not include the sale of food or merchandise for which refunds have
been made in good faith to customers, the sale of equipment used in the
operation of the Franchised Unit, nor shall it include sales, meals, use or
excise tax imposed by a governmental authority directly on sales and collected
from customers; provided that the amount for such tax is added to the selling
price or absorbed therein, and is actually paid by Franchisee to such
governmental authority.

         3.05.    In addition to the payments otherwise provided for in Section
3.02, above, Franchisee shall expend each month during the term of this
Franchise Agreement an amount to be determined by Franchisor, in its sole
discretion, up to [ ] TWO PERCENT (2%) [ ] ONE PERCENT (1%) of the Gross Sales
of the Franchised Unit for the preceding week, which sum shall be expended by
Franchisee for local advertising, which shall be conducted in a dignified manner
and shall conform to such standards and requirements as Franchisor may specify
(hereinafter the "Local Area Marketing Expenditure", f/k/a ""Local Advertising
Expenditure"). Franchisee shall not use any advertising or promotional plans or
materials unless and until Franchisee has received written approval from
Franchisor, pursuant to the procedures and terms set forth in Section 10.09.
hereof. Franchisee's Local Area Marketing Expenditure shall be reduced by an
amount equal to Franchisee's actual contribution, for the corresponding period,
to a Local Area Marketing Cooperative established pursuant to Section 10.06. of
this Agreement, if any.

         3.06.    In addition to the payments provided for in Sections 3.01,
3.02 and 3.05 hereof, Franchisee shall expend at least [ ] TEN THOUSAND AND
NO/100 DOLLARS ($10,000.00) [ ] FIVE THOUSAND AND NO/100 DOLLARS ($5,000.00) for
grand opening advertising of the Franchised Unit during the first two (2) months
following the opening of the SBC Retail Unit, which advertising must be
approved, in advance, by Franchisor.

IV.               ACCOUNTING AND RECORDS

         4.01.    ACCURATE BOOKS AND RECORDS. During the Term of this Agreement,
Franchisee shall maintain and preserve, for at least three (3) years from the
dates of their preparation, full, complete and accurate books, records and
accounts in accordance with generally accepted accounting principles and in the
form and the manner prescribed by Franchisor from time-to-time in the
Confidential Operating Standards Manual or otherwise in writing. These records
shall include, without limitation, cash register sales tape (including
non-resettable readings), meals, sales and other tax returns, duplicate deposit
slips and other evidence of Gross Sales and all other business transactions.

         4.02.    ROYALTY REPORTS. Franchisee shall submit to Franchisor, weekly
reports on forms prescribed by Franchisor, accurately reflecting all Gross Sales
during the preceding week and such other forms, reports, records, financial
statements or information as Franchisor may reasonably require in the
Confidential Operating Standards Manual, or otherwise in writing. Even if
Franchisor requires Franchisee to implement an electronic cash register system
that transmits Franchisee's Gross Sales to Franchisor on a periodic basis,
Franchisor may still require Franchisee to submit written reports.

         4.03.    QUARTERLY STATEMENT. Franchisee shall, at its expense, submit
to Franchisor quarterly, within thirty (30) days following the end of each
quarter during the Term hereof, an unaudited financial statement with such
detail as Franchisor may reasonably require (hereinafter, "Quarterly Statement")
together with a certificate executed by Franchisee stating that such financial
statement is true and accurate. Upon Franchisor's request, Franchisee shall
submit to Franchisor, with each Quarterly Statement, copies of any state or
local sales tax returns

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("Sales Tax Returns") filed by Franchisee for the period included in the
Quarterly Statement. In the event Franchisee prepares financial statements on
the basis of thirteen (13), four (4) week periods ("Periods"), the Quarterly
Statements shall be submitted within thirty (30) days following the end of the
third (3rd), sixth (6th), ninth (9th) and thirteenth (13th) Periods.

         4.04.    ANNUAL FINANCIAL STATEMENTS. Franchisee shall, at its expense,
submit to Franchisor within ninety (90) days following the end of each calendar
or fiscal year during the Term of this Agreement, an unaudited financial
statement for the preceding calendar or fiscal year with such detail and in a
format as Franchisor may reasonably require, together with a certificate
executed by Franchisee certifying that such financial statement is true and
accurate (hereinafter, "Annual Financial Statements") and such other information
in such form as Franchisor may reasonably require. Upon written request from
Franchisor, the foregoing Annual Financial Statement shall include both a profit
and loss statement and a balance sheet, and shall be prepared in accordance with
generally accepted accounting principles. In the event Franchisee defaults under
this Agreement, Franchisor may require, upon written notice to Franchisee, that
all Annual Financial Statements submitted thereafter include a "Review Report"
prepared by an independent Certified Public Accountant.

         4.05.    OTHER REPORTS. Franchisee shall also submit to Franchisor, for
review or auditing, such other forms, financial statements, reports, records,
information and data as Franchisor may reasonably designate, in the form and at
the times and places reasonably required by Franchisor, upon request and as
specified from time-to-time in the Confidential Operating Standards Manual or
otherwise in writing. If Franchisee has combined or consolidated financial
information relating to the Franchised Unit with that of any other business or
businesses, including a business licensed by Franchisor, Franchisee shall
simultaneously submit to Franchisor, for review or auditing, the forms, reports,
records and financial statements (including, but not limited to the Quarterly
Statements and Annual Financial Statements) which contain the detailed financial
information relating to the Franchised Unit, separate and apart from the
financial information of such other businesses. Franchisee hereby authorizes all
of its suppliers and distributors to release to Franchisor, upon Franchisor's
request, any and all of its books, records, accounts or other information
relating to goods, products and supplies sold to Franchisee and/or the
Franchised Unit.

         4.06.    EQUIPMENT. Franchisee shall record all sales on cash registers
or other point-of-sale equipment approved, in writing, by Franchisor
(hereinafter "POS Equipment"). Franchisee agrees that Franchisor shall have the
free and unfettered right to retrieve any data and information from Franchisee's
P.O.S. Equipment and computers as Franchisor, in its sole discretion, deems
appropriate, with the telephonic cost of the retrieval to be borne by
Franchisor, including electronically polling the daily sales, menu mix and other
data of the Franchised Unit.

         4.07.    FRANCHISOR'S RIGHT OF AUDIT. Franchisor or its designated
agents or auditors shall have the right at all reasonable times to audit, review
and examine by any means, including electronically through the use of
telecommunications devices or otherwise, at its expense, the books, records,
accounts, and tax returns of Franchisee related to the Franchised Unit. If any
such audit, review or examination reveals that Gross Sales have been understated
in any report to Franchisor, Franchisee shall immediately pay to Franchisor the
royalty fee and NCP Fund Contribution due with respect to the amount understated
upon demand, in addition to interest from the date such amount was due until
paid, at the rate of one and one-half percent (1.5%) per month. If any such
understatement exceeds two percent (2%) of Gross Sales as set forth in the
report, Franchisee shall, in addition, upon demand, reimburse Franchisor for any
and all costs and expenses connected with such audit, review or examination
(including, without limitation, reasonable accounting and attorneys' fees). The
foregoing remedies shall be in addition to any other rights and remedies
Franchisor may have.

V.                PROPRIETARY MARKS

         5.01.    It is understood and agreed that the franchise granted herein
to use Franchisor's Proprietary Marks applies only to use in connection with the
operation of the Franchised Unit franchised in this Agreement at the

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location designated in Section I hereof, and includes only such Proprietary
Marks as are now designated or which may hereafter be designated, in the
Confidential Operating Standards Manual or otherwise in writing as a part of the
SBC System (which might or might not be all of the Proprietary Marks pertaining
to the System owned by the Franchisor), and does not include any other mark,
name, or indicia of origin of Franchisor now existing or which may hereafter be
adopted or acquired by Franchisor.

         5.02.    With respect to Franchisee's use of the Proprietary Marks
pursuant to this Agreement, Franchisee acknowledges and agrees that:

                  A.       Franchisee shall not use the Proprietary Marks as
                           part of Franchisee's corporate or other business
                           name;

                  B.       Franchisee shall not hold out or otherwise use the
                           Proprietary Marks to perform any activity or incur
                           any obligation or indebtedness in such manner as
                           might, in any way, make Franchisor liable therefor,
                           without Franchisor's prior written consent;

                  C.       Franchisee shall execute any documents and provide
                           such other assistance deemed necessary by Franchisor
                           or its counsel to obtain protection for the
                           Proprietary Marks or to maintain the continued
                           validity of such Proprietary Marks; and

                  D.       Franchisor reserves the right to substitute different
                           Proprietary Marks for use in identifying the System
                           and the franchised businesses operating thereunder,
                           and Franchisee agrees to immediately substitute
                           Proprietary Marks upon receipt of written notice from
                           Franchisor.

         5.03.    Franchisee expressly acknowledges Franchisor's exclusive right
to use the marks "SEATTLE'S BEST COFFEE" and "SBC" for restaurant services,
coffee products, and other related food and beverage products; the building
configuration; and the other Proprietary Marks of the System. Franchisee agrees
not to represent in any manner that it has any ownership in the Proprietary
Marks or the right to use the Proprietary Marks except as provided in this
Agreement. Franchisee further agrees that its use of the Proprietary Marks shall
not create in its favor any right, title, or interest in or to the Proprietary
Marks, and that all of such use shall inure to the benefit of Franchisor.

         5.04.    Franchisee acknowledges that the use of the Proprietary Marks
outside the scope of this license, without Franchisor's prior written consent,
is an infringement of Franchisor's exclusive right to use the Proprietary Marks,
and during the term of this Agreement and after the expiration or termination
hereof, Franchisee covenants not to, directly or indirectly, commit an act of
infringement or contest or aid in contesting the validity or ownership of
Franchisor's Proprietary Marks, or take any other action in derogation thereof.

         5.05.    Franchisee shall promptly notify Franchisor of any suspected
infringement of, or challenge to, the validity of the ownership of, or
Franchisor's right to use, the Proprietary Marks licensed hereunder. Franchisee
acknowledges that Franchisor has the right to control any administrative
proceeding or litigation involving the Proprietary Marks. In the event
Franchisor undertakes the defense or prosecution of any litigation relating to
the Proprietary Marks, Franchisee agrees to execute any and all documents and to
do such acts and things as may, in the opinion of counsel for Franchisor, be
necessary to carry out such defense or prosecution. Except to the extent that
such litigation is the result of Franchisee's use of the Proprietary Marks in a
manner inconsistent with the terms of this Agreement, Franchisor agrees to
reimburse Franchisee for its out of pocket costs in doing such acts and things,
except that Franchisee shall bear the salary costs of its employees.

         5.06.    Franchisee understands and agrees that its license with
respect to the Proprietary Marks is non-exclusive to the extent that Franchisor
has and retains the right under this Agreement:

                                                                               9
<PAGE>

                  A.       To grant other licenses for the Proprietary Marks, in
                           addition to those licenses already granted to
                           existing franchisees;

                  B.       To develop and establish other franchise systems for
                           the same, similar, or different products or services
                           utilizing proprietary marks not now or hereafter
                           designated as part of the System licensed by this
                           Agreement, and to grant licenses thereto, without
                           providing Franchisee any right therein; and

                  C.       To develop and establish other systems for the sale,
                           at wholesale or retail, of similar or different
                           products utilizing the same or similar Proprietary
                           Marks, without providing Franchisee any right
                           therein.

         5.07.    Franchisee acknowledges and expressly agrees that any and all
goodwill associated with the System and identified by the Proprietary Marks used
in connection therewith shall inure directly and exclusively to the benefit of
Franchisor and is the property of Franchisor, and that upon the expiration or
termination of this Agreement or any other agreement, no monetary amount shall
be assigned as attributable to any goodwill associated with any of Franchisee's
activities in the operation of the Franchised Unit granted herein, or
Franchisee's use of the Proprietary Marks.

         5.08.    Franchisee understands and acknowledges that each and every
detail of the SBC SYSTEM is important to Franchisee, Franchisor, and other
franchisees in order to develop and maintain high and uniform standards of
quality and services, and hence to protect the reputation and goodwill of SBC
RETAIL UNITS. Accordingly, Franchisee covenants:

                  A.       To operate and advertise the Franchised Unit, at
                           Franchisee's own expense, under the name "SEATTLE'S
                           BEST COFFEE," without prefix or suffix;

                  B.       To adopt and use the Proprietary Marks licensed
                           hereunder solely in the manner prescribed by
                           Franchisor;

                  C.       To observe such reasonable requirements with respect
                           to trademark registration notices as Franchisor may
                           from time to time direct in the Confidential
                           Operating Standards Manual or otherwise in writing.

         5.09.    In order to preserve the validity and integrity of the
Proprietary Marks licensed herein and to assure that Franchisee is properly
employing the same in the operation of the Franchised Unit, Franchisor or its
agents shall at all reasonable times have the right to inspect Franchisee's
operations, premises, and Franchised Unit and make periodic evaluations of the
services provided and the products sold and used therein. Franchisee shall
cooperate with Franchisor's representatives in such inspections and render such
assistance to the representatives as may reasonably be requested.

         5.10.    Franchisee shall not hold out or otherwise employ the
Proprietary Marks to perform any activity, or to incur any obligation or
indebtedness in such a manner as might, in any way, make Franchisor liable
therefor, without Franchisor's prior written consent.

VI.               OBLIGATIONS OF CORPORATE OR PARTNERSHIP FRANCHISEE

         6.01.    If Franchisee, or any successor to or assignee of Franchisee,
is a corporation, or limited liability company:

                                                                              10
<PAGE>

                  A.       Franchisee shall furnish to Franchisor, upon
                           execution or any subsequent transfer of this
                           Agreement, a copy of the Franchisee's Articles of
                           Incorporation, Certificate of Incorporation, Bylaws
                           and a list of shareholders showing the percentage
                           interest of each, and shall thereafter promptly
                           furnish Franchisor with a copy of any and all
                           amendments or modifications thereto;

                  B.       Franchisee shall promptly furnish Franchisor, on a
                           regular basis, with certified copies of such
                           corporate records (or limited liability company
                           records) material to the Franchised Business as
                           Franchisor may require from time to time in the
                           Confidential Operating Standards Manual or otherwise
                           in writing; and

                  C.       Franchisee shall maintain stop-transfer instructions
                           against the transfer, on its records, of any
                           securities with voting rights, subject to the
                           restrictions of this Agreement, and each stock
                           certificate of the corporate Franchisee representing
                           each share of stock, shall have conspicuously
                           endorsed upon it the following legend:

                                    "THE TRANSFER OF THIS STOCK IS SUBJECT
                                    TO THE TERMS AND CONDITIONS OF A
                                    SEATTLE'S BEST COFFEE FRANCHISE
                                    AGREEMENT WITH SEATTLE'S BEST COFFEE,
                                    LLC. DATED ___________. REFERENCE IS
                                    MADE TO THE PROVISIONS OF SAID
                                    FRANCHISE AGREEMENT AND TO THE ARTICLES
                                    AND BY-LAWS OF THIS CORPORATION."

         6.02.    If the Franchisee, or any successor to or assignee of
                  Franchisee, is a partnership, limited partnership or limited
                  liability partnership, Franchisee shall furnish to Franchisor,
                  upon execution or any subsequent transfer of this Agreement, a
                  copy of Franchisee's Articles of Partnership, if any, and
                  Partnership Agreement, and shall thereafter promptly furnish
                  Franchisor with a copy of any and all amendments or
                  modifications thereto.

         6.03.    Franchisee shall, upon execution of this Agreement, furnish to
Franchisor a completed Statement of Legal Composition attached as Exhibit C
hereto as to all the parties with an ownership interest in Franchisee, the
amount of such ownership interests, the jurisdiction in which Franchisee is
legally incorporated or organized, and other information specified. Franchisee
shall thereafter furnish to Franchisor an updated Statement of Legal Composition
promptly when requested by Franchisor. Franchisee shall promptly advise
Franchisor of any change in such information. Franchisee warrants, represents,
and covenants to Franchisor that all of the information furnished in the
completed Statement of Legal Composition is true and correct as of the date of
this Agreement, and when subsequently furnished to Franchisor.

VII.              CONFIDENTIAL OPERATING STANDARDS MANUAL.

         7.01.    In order to protect the reputation and goodwill of Franchisor
and the SBC SYSTEM and to maintain uniform standards of operation under
Franchisor's Proprietary Marks, Franchisee shall conduct the Franchised Business
in accordance with Franchisor's Confidential Operating Standards Manual
(hereinafter, together with any other manuals created or approved for use in the
operation of the Franchised Business granted herein, and all amendments and
updates thereto, the "Manual").

         7.02.    Franchisee shall at all times treat the Manual, and the
information contained therein, as confidential, and shall use all reasonable
efforts to keep such information secret and confidential. Franchisee shall not,
at any time, without Franchisor's prior written consent, copy, duplicate,
record, or otherwise make the Manual available to any unauthorized person or
entity.

         7.03.    The Manual shall at all times remain the sole property of
Franchisor.

                                                                              11
<PAGE>

         7.04.    In order for Franchisee to benefit from new knowledge
information, methods and technology adopted and used by Franchisor in the
operation of the System, Franchisor may from time-to-time revise the Manual and
Franchisee agrees to adhere to and abide by all such revisions.

         7.05.    Franchisee agrees at all times to keep its copy of the Manual
current and up-to-date, and in the event of any dispute as to the contents of
Franchisee's Manual, the terms of the master copy of the Manual maintained by
Franchisor at Franchisor's home office, shall be controlling.

         7.06.    The Manual is intended to further the purposes of this
Agreement, and is specifically incorporated, by reference, into this Agreement.
Except as otherwise set forth in this Agreement, in the event of a conflict
between the terms of this Agreement and the terms of the Manual, the terms of
this Agreement shall control.

VIII.             TRAINING

         8.01.    Franchisee, a partner of Franchisee if Franchisee is a
partnership, or a principal shareholder of Franchisee if Franchisee is a
corporation (or a principal member of Franchisee if Franchisee is a limited
liability company), must complete, to Franchisor's satisfaction, the SEATTLE'S
BEST COFFEE New Franchisee Orientation Program ("NFOP") prior to opening the
first franchised SBC RETAIL UNIT operated by Franchisee. NFOP shall consist of
up to three (3) days of workshops and seminars conducted at a training facility
and designated by Franchisor.

         8.02.    In addition to completing the NFOP, Franchisee (or a partner,
principal shareholder, principal member of Franchisee, or an Operations
Director/District Manager designated by Franchisee, and at least one designated
management employees of Franchisee (and, in all instances, a senior management
employee of Franchisee responsible for daily operations of the Franchised Unit),
must attend and complete, to Franchisor's satisfaction, the SBC FRANCHISE
ACADEMY PROGRAM ("FAP"), prior to opening the Franchised Unit. FAP l consists of
up to four (4) weeks of classroom and and operations training at an SBC Cafe
designated by Franchisor (an "SBC Certified Training Cafe"). A management
employee of Franchisee that successfully completes FAP, shall be certified by
Franchisor as an "SBC Certified Manager".

         8.03.    Franchisee shall maintain the number of FAP Certified Managers
designated by the Franchisor in the employ of the Franchised Unit throughout the
term of this Agreement, which in no event shall be less than one (1). In the
event that Franchisee or any SBC Certified Manager ceases active employment at
the Franchised Unit, Franchisee must enroll a qualified replacement in FAP
within thirty (30) days of cessation of such individual's employment. The
replacement employee shall attend and complete the next regularly scheduled FAP
to Franchisor's satisfaction.

         8.04.    The cost of conducting the initial NFOP and FAP (instruction
and required materials) shall be borne by Franchisor. All other expenses during
NFOP and FAP, including meals and lodging, wages and travel, shall be borne by
Franchisee.

         8.05.    Franchisor reserves the right to test any and all SBC
Certified Managers at any time, and may require such individuals to attend and
complete additional training at a training facility designated by Franchisor,
and at Franchisee's sole cost and expense, in the event they fail to achieve a
satisfactory score on such test. Additionally, Franchisor may make available to
Franchisee or Franchisee's employees, from time to time, such additional
training programs as Franchisor, in its sole discretion, may choose to conduct.
Attendance at said training programs may be mandatory. The cost of conducting
such additional training programs (instruction and required materials) shall be
borne by Franchisor. All other expenses during the training period, including
meals and lodging, wages and travel, shall be borne by the Franchisee.

                                                                              12
<PAGE>

IX.               DUTIES OF THE FRANCHISOR

         9.01.    Franchisor will make available to Franchisee standard plans
and specifications to be utilized only in the construction of the Franchised
Unit. No modification to or deviations from the standard plans and
specifications may be made without the written consent of Franchisor. Franchisee
shall obtain, at its expense, further qualified architectural and engineering
services to prepare surveys, site and foundation plans, and to adapt the
standard plans and specifications to applicable local or state laws, regulations
or ordinances. Franchisee shall bear the cost of preparing plans containing
deviations or modifications from the standard plans.

         9.02.    Franchisor shall provide consultation and advice to Franchisee
as Franchisor deems appropriate with regard to construction or renovation and
operation of the Franchised Unit, building layout, furnishings, fixtures and
equipment plans and specifications, employee selection and training, purchasing
and inventory control and those other matters as Franchisor deems appropriate.

         9.03.    Franchisor will make available to Franchisee such continuing
advisory assistance in the operation of the Franchised Business, in person or by
electronic or written bulletins made available from time to time, as Franchisor
may deem appropriate.

         9.04.    Franchisor, in its sole discretion, may provide opening
assistance to Franchisee at the Franchised Unit.

         9.05.    Franchisor will loan one (1) copy of the Manual to Franchisee
for the duration of this Agreement, which the Manual contains the standards,
specifications, procedures and techniques of the SBC System.

         9.06.    Franchisor will continue its efforts to maintain high and
uniform standards of quality, cleanliness, appearance and service at all SBC
Retail Units, to protect and enhance the reputation of the SBC System and the
demand for the products and services of the System. Franchisor will establish
uniform criteria for approving suppliers; make every reasonable effort to
disseminate its standards and specifications to prospective suppliers of the
Franchisee upon the written request of the Franchisee, provided that Franchisor
may elect not to make available to prospective suppliers the standards and
specifications for such food formulae or equipment designs deemed by Franchisor
in its sole discretion to be confidential; and may conduct periodic inspections
of the premises and evaluations of the products used and sold at the Franchised
Unit and in all other SBC Retail Units.

         9.07.    Franchisor will provide training to Franchisee as set forth in
Article VIII hereof.

X.                DUTIES OF THE FRANCHISEE

         Franchisee understands and acknowledges that every detail of the System
is important to Franchisor, Franchisee and other franchisees in order to develop
and maintain high and uniform operating standards, to increase the demand for
SEATTLE'S BEST COFFEE products and services, and to protect the reputation and
goodwill of Franchisor. Accordingly, Franchisee agrees that:

         10.01.   Franchisee shall maintain, at all times during the term of
this Agreement, at Franchisee's expense, the premises of the Franchised Unit and
all fixtures, furnishings, signs, systems and equipment (hereinafter
"improvements") thereon or therein, in conformity with Franchisor's high
standards and public image and to make such additions, alterations, repairs, and
replacements thereto (but no others, without Franchisor's prior written consent)
as may be required by Franchisor, including but not limited to the following:

                  A.       To keep the Franchised Unit in the highest degree of
                           sanitation and repair, including, without limitation,
                           such periodic repainting, repairs or replacement of
                           impaired equipment, and replacement of obsolete
                           signs, as Franchisor may reasonably direct;

                                                                              13
<PAGE>

                  B.       To meet and maintain the highest governmental
                           standards and ratings applicable to the operation of
                           the Franchised Business;

                  C.       At its sole cost and expense, to complete a full
                           reimaging, renovation, refurbishment and
                           modernization of the Franchised Unit, within the time
                           frame required by Franchisor, including the building
                           design, parking lot, landscaping, equipment, signs,
                           interior and exterior decor items, fixtures,
                           furnishings, trade dress, color scheme, presentation
                           of trademarks and service marks, supplies and other
                           products and materials, to meet Franchisor's
                           then-current standards, specifications and design
                           criteria for SBC Retail Units, including without
                           limitation, such structural changes, remodeling and
                           redecoration and such modifications to existing
                           improvements as may be necessary to do so
                           (hereinafter, a "Franchised Unit Renovation").
                           Franchisee shall not be required to perform a
                           Franchised Unit Renovation if there are less than
                           three (3) years remaining on the term of this
                           Agreement, and/or the lease for the premises occupied
                           by the Franchised Unit. Nothing herein shall be
                           deemed to limit Franchisee's other obligations,
                           during the term of this Agreement, to operate the
                           Franchised Unit in accordance with Franchisor's
                           standards and specifications for the SBC System,
                           including, but not limited to, the obligations set
                           forth in this Section X.

         10.02.   Franchisee shall operate the Franchised Unit in conformity
with such uniform recipes, methods, standards, and specifications as Franchisor
may from time to time prescribe in the Manual or otherwise in writing, to insure
that the highest degree of quality, service and cleanliness is uniformly
maintained and to refrain from any deviation therefrom and from otherwise
operating in any manner which reflects adversely on Franchisor's name and
goodwill or on the Proprietary Marks, and in connection therewith:

                  A.       To maintain in sufficient supply, and use at all
                           times, only such ingredients, products, materials,
                           supplies, and paper goods as conform to Franchisor's
                           standards and specifications, and to refrain from
                           deviating therefrom by using non-conforming items,
                           without Franchisor's prior written consent;

                  B.       To sell or offer for sale only proprietary "Seattle's
                           Best Coffee" brand coffee products and such other
                           products and menu items that have been expressly
                           approved for sale in writing by Franchisor, meet
                           Franchisor's uniform standards of quality and
                           quantity and as have been prepared in accordance with
                           Franchisor's methods and techniques for product
                           preparation; to sell or offer for sale the minimum
                           menu items specified in the Manual or otherwise in
                           writing; to refrain from any deviation from
                           Franchisor's standards and specifications for serving
                           or selling the menu items, without Franchisor's prior
                           written consent; and to discontinue selling or
                           offering for sale such items as Franchisor may, in
                           its discretion, disapprove in writing at any time;

                  C.       To use the premises of the Franchised Unit solely for
                           the purpose of conducting the business franchised
                           hereunder, and to conduct no other business or
                           activity thereon, whether for profit or otherwise,
                           without Franchisor's prior written consent;

                  D.       To keep the Franchised Unit open and in normal
                           operation during such business hours as Franchisor
                           may prescribe in the Manual or otherwise in writing;

                  E.       To permit Franchisor or its agents, at any time
                           during ordinary business hours, to remove from the
                           Franchised Unit samples of any ingredients, products,
                           materials, supplies, and paper goods used in the
                           operation of the Franchised Unit, without payment
                           therefor, in amounts reasonably necessary for testing
                           by Franchisor or an independent laboratory, to

                                                                              14
<PAGE>

                           determine whether such samples meet Franchisor's
                           then-current standards and specifications. In
                           addition to any other remedies it may have under this
                           Agreement, Franchisor may require Franchisee to bear
                           the cost of such testing if any such ingredient,
                           products, materials, supplier or paper goods have
                           been obtained from a supplier not approved by
                           Franchisor, or if the sample fails to conform to
                           Franchisor's specifications;

                  F.       To purchase, install and construct, at Franchisee's
                           expense, all improvements furnishings, signs and
                           equipment specified in the approved standard plans
                           and specifications, and such other furnishings, signs
                           or equipment as Franchisor may reasonably direct from
                           time to time in the Manual or otherwise in writing;
                           and to refrain from installing or permitting to be
                           installed on or about the premises of the Franchised
                           Unit, without Franchisor's written consent, any
                           improvements, furnishings, signs or equipment not
                           first approved in writing as meeting Franchisor's
                           standards and specifications;

                  G.       To comply with all applicable federal, state and
                           local laws, regulations and ordinances pertaining to
                           the operation of the Franchised Business; and

                  H.       Franchisee shall grant Franchisor and its agents the
                           right to enter upon the premises of the Franchised
                           Unit at any time during ordinary business hours for
                           the purpose of conducting inspections; cooperate with
                           Franchisor's representatives in such inspections by
                           rendering such assistance as they may reasonably
                           request; and, upon notice from Franchisor or its
                           agents, and without limiting Franchisor's other
                           rights under this Agreement, take such steps as may
                           be necessary immediately to correct the deficiencies
                           detected during any such inspection, including,
                           without limitation, immediately desisting from the
                           further use of any equipment, promotional materials,
                           products, or supplies that do not conform with
                           Franchisor's then-current specifications, standards,
                           or requirements.

         10.03.   To maintain the quality and distinct characteristics of fine
specialty coffee flavors that customers associate with the SBC System and the
Proprietary Marks, Franchisee shall offer and sell only SEATTLE'S BEST COFFEE
brand coffee and coffee products at or from the Franchised Unit and must
purchase all of its coffee and coffee products from Franchisor or its designee
("SBC Coffee Products"), and prepare all coffee products at the Franchised Unit
using Franchisor's proprietary recipes and methods of operation. Franchisor will
sell SBC Coffee Products to Franchisee on standard purchase terms that may vary
from time to time, F.O.B. Franchisor's designated distribution center, with all
freight, duties and shipping charges at Franchisee's sole cost and expense.
Franchisor will give prior notice of any material changes in purchase terms.

         10.04.   Franchisee shall (i) purchase all other ingredients, products,
materials, supplies, and other items required in the operation of the Franchised
Unit which are or incorporate trade-secrets of Franchisor, as designated by
Franchisor ("Trade-Secret Products") only from Franchisor or suppliers
designated by Franchisor.

         10.05.   Franchisee shall purchase all other ingredients, products,
materials, supplies, paper goods, and other items required for the operation of
the Franchised Business, except SBC Coffee Products and Trade-Secret Products,
solely from suppliers who demonstrate, to the continuing reasonable satisfaction
of Franchisor, the ability to meet Franchisor's reasonable standards and
specifications for such items; who possess adequate quality controls and
capacity to supply Franchisee's needs promptly and reliably; and who have been
approved in writing by Franchisor and such approval has not thereafter been
revoked. If Franchisee desires to purchase any such items from an unapproved
supplier, Franchisee shall submit to Franchisor a written request for approval,
or shall request the supplier itself to seek approval. Franchisor shall have the
right to require, as a condition of its approval, that its representatives be
permitted to inspect the supplier's facilities, and that samples from the
supplier be delivered, at Franchisor's option, either to Franchisor or to an
independent laboratory designated by Franchisor for testing prior to granting
approval. A charge not to exceed Franchisor's reasonable cost of inspection and
the actual cost of testing shall be paid by the supplier or Franchisee.
Franchisor reserves the right, at its option, to reinspect the facilities and

                                                                              15
<PAGE>

products of any such approved supplier from time to time and to revoke its
approval upon failure of such supplier to continue to meet any of the foregoing
criteria.

         10.06.   Advertising Cooperative. Franchisor shall have the right, in
its sole discretion, to designate any geographic area (which may consist of any
portion of a country or jurisdiction and/or more than one country or
jurisdiction) for the purposes of establishing an advertising cooperative
("Cooperative").

                  A.       If a Cooperative has been established in the
                           geographic area in which the Franchised Unit is
                           located, Franchisee shall become a member of such
                           Cooperative upon commencement of operation of the
                           Franchised Unit, if the Cooperative is in existence
                           at that time or no later than thirty (30) days after
                           the date on which the Cooperative commences
                           operation. In no event shall Franchisee be required
                           to be a member of more than one Cooperative with
                           respect to the Franchised Unit.

                  B.       If a Cooperative has been established, Franchisee
                           shall contribute an amount, to be determined by the
                           Cooperative, which shall be not more than [ ] TWO
                           PERCENT (2%) [ ] ONE PERCENT (1%) of the Gross Sales
                           of the Franchised Unit, payable each week, for the
                           preceding week (or such other period as may be set
                           forth, in writing, by the Cooperative).

                  C.       Each Cooperative shall be organized and governed in a
                           form and manner, and shall commence operations on a
                           date, approved in advance by Franchisor in writing.

                           (1)      Each Cooperative shall be organized for the
                                    exclusive purpose of administering regional
                                    advertising programs and developing, subject
                                    to Franchisor's approval, standardized
                                    promotional materials for use by its members
                                    in local advertising.

                           (2)      No advertising or promotional plans or
                                    materials may be used by a Cooperative or
                                    furnished to its members without the prior
                                    approval of the Franchisor, pursuant to the
                                    procedures and terms set forth in Section
                                    10.09. hereof.

                           (3)      Franchisee shall pay its required
                                    contribution to the Cooperative each week on
                                    Gross Sales for the preceding week, together
                                    with such other statements or reports as may
                                    be required by Franchisor, or by the
                                    Cooperative with the Franchisor's prior
                                    written approval.

                  D.       Franchisor, in its sole discretion, may grant an
                           exemption to any franchisee for any length of time
                           from the requirement of membership in a Cooperative,
                           and/or from the obligation to contribute thereto
                           (including a reduction, deferral or waiver of such
                           contribution), upon written request of such
                           franchisee stating reasons supporting such exemption.
                           Franchisor's decision concerning such request for
                           exemption shall be final. If an exemption is granted
                           to a franchisee, such franchisee shall be required to
                           expend on local advertising, during each Period, the
                           same amount as would otherwise be assessed by the
                           Cooperative, as set forth in Section 10.06.B hereof.

                                                                              16
<PAGE>

         10.07.   Franchisor disclaims all express or implied warranties
concerning any approved products or services, including, without limitation, any
warranties as to merchantability, fitness for a particular purpose,
availability, quality, pricing or profitability. Franchisee acknowledges that
Franchisor may, under appropriate circumstances, receive fees, commissions,
field-of-use license royalties, or other consideration from approved suppliers
based on sales to franchisees, and that Franchisor may charge non-approved
suppliers reasonable testing or inspection fees.

         10.08.   All local advertising by Franchisee shall be in such media,
and of such type and format as Franchisor may approve; shall be conducted in a
dignified manner; and shall conform to such standards and requirements as
Franchisor may specify. Franchisee shall not use any advertising or promotional
plans or materials unless and until Franchisee has received written approval
from Franchisor, pursuant to the procedures and terms set forth in Section 10.09
hereof.

         10.09.   All advertising and promotional plans proposed to be used by
Franchisee or the Cooperative, where applicable, except such plans and materials
that have been previously approved by Franchisor shall be submitted to
Franchisor for Franchisor's written approval (except with respect to prices to
be charged) prior to any use thereof. Franchisor shall use its best efforts to
complete its review of Franchisee's proposed advertising and promotional plans
within fifteen (15) days after Franchisor receives such plans. If written
approval is not received by Franchisee or the Cooperative from Franchisor within
fifteen (15) days after receipt by Franchisor of such plans, Franchisor shall be
deemed to have disapproved such plans.

         10.10.   Franchisee shall, at Franchisor's request, require all of its
supervisory employees, as a condition of their employment, to execute an
agreement prohibiting them, during the term of their employment or thereafter,
from communicating, divulging, or using for the benefit of any person, persons,
partnership, association, corporation or other entity any confidential
information, trade secrets, knowledge, or know-how concerning the SBC System or
methods of operation of the Franchised Unit which may be acquired as a result of
their employment with Franchisee or other franchisees. A duplicate original of
each such agreement shall be provided by Franchisee to Franchisor immediately
upon execution.

         10.11.   If Franchisee operates more than five (5) Franchised Units,
Franchisee shall have a supervisor, which may be Franchisee, to supervise and
coordinate the operation of the Franchised Units (hereinafter, a "Supervisor").
In addition to the foregoing, Franchisee shall employ an additional Supervisor
upon the opening of Franchisee's sixth (6th) Franchised Unit and upon the
opening of each successive fifth (5th) Franchised Unit thereafter. Each
Supervisor shall attend and successfully complete the CMT program set forth in
Section 8.02 hereof prior to assuming any supervisory responsibilities and shall
meet such other standards as Franchisor may reasonably impose. No Supervisor may
have supervisory responsibility for more than five (5) Franchised Units.

         10.12.   If at any time the Franchised Unit is proposed to be operated
by an entity or individual other than the Franchisee, Franchisor reserves the
right to review and approve the operating entity or individual and to require
and approve an operating agreement prior to such party's assumption of
operations. Franchisor may, in its sole discretion, reject either the operating
entity, the individual operator or the operating agreement. If approved by
Franchisor, the operating entity and/or individual shall agree in writing to
comply with all of Franchisee's obligations under the Franchise Agreement as
though such party were the franchisee designated therein, on such form as may be
designated by Franchisor. The operation of the Franchised Unit by any party
other than Franchisee, without Franchisor's prior written consent, shall be
deemed a material default of this Agreement for which Franchisee may terminate
this Agreement pursuant to the provisions of Section 15.02 hereof.

         10.13.   Franchisee shall become a member of any purchasing cooperative
established by Franchisor for the SEATTLE'S BEST COFFEE System and shall remain
a member in good standing thereof throughout the term of this Agreement and
shall pay all reasonable membership fees assessed by such purchasing
association.

                                                                              17
<PAGE>

         10.14.   Franchisee shall, within thirty (30) days from receipt of
written notice from Franchisor, at its sole cost and expense, purchase and
install at the Franchised Unit and/or at Franchisee's principal business office
such computer hardware and software equipment, required dedicated telephone and
power lines, modems, printers and other computer related accessory and
peripheral equipment as Franchisor specifies in the Manual or otherwise in
writing (the "Required Computer Equipment"). The Required Computer Equipment
shall include telecommunications devices and may include a single software
program or set of programs, all of which must be obtained in accordance with the
Franchisor's standards and specifications. The Required Computer Equipment shall
permit 24 hour per day electronic communications between Franchisor and
Franchisee including access to the internet and Franchisor's current intranet,
or any successor thereto. Franchisee shall only be required to purchase and
install the Required Computer Equipment at one, central location, which shall
satisfy the conditions of this Section 10.02 (or its equivalent) for all
Franchised Units operated by Franchisee, provided information for all Franchise
Units is maintained at such location.

         10.15    Franchisee shall comply with all other requirements set forth
in this Agreement.

XI.               INSURANCE

         11.01.   Insurance Program. Franchisee shall procure, prior to
commencement of construction of the Franchised Unit, and shall maintain in full
force and effect during the Term of this Agreement at Franchisee's expense, an
insurance policy or policies protecting Franchisee and Franchisor, and their
officers, directors, agents and employees, against any loss, liability, or
expense whatsoever from personal injury, death or property damage or casualty,
including, fire, lightning, theft, vandalism, malicious mischief, and other
perils normally included in an extended coverage endorsement arising from,
occurring upon or in connection with the construction, operation or occupancy of
the Franchised Unit, as Franchisor may reasonably require for its own and
Franchisee's protection.

         11.02.   Insurance Requirements. Such policy or policies shall be
written by an insurance company satisfactory to Franchisor, and shall include,
at a minimum the following coverage:

                  A.       Workers' Compensation Insurance, with statutory
                           limits as required by the laws and regulations
                           applicable to the employees of Franchisee who are
                           engaged in the performance of their duties relating
                           to the Franchised Unit, including any pre-opening
                           training programs, as well as such other insurance as
                           may be required by statute or regulation of the state
                           in which the Franchised Unit is located.

                  B.       Employer's Liability Insurance, for employee bodily
                           injuries and deaths, with a limit of $500,000 each
                           accident.

                  C.       Comprehensive or Commercial General Liability
                           Insurance, covering claims for bodily injury, death
                           and property damage, including Premises and
                           Operations, Independent Contractors, Products and
                           Completed Operations, Personal Injury, Contractual,
                           and Broadform Property Damage liability coverages,
                           with limits as follows:

                           Occurrence/Aggregate Limit of $1,000,000 for bodily
                           injury, death and property damage each occurrence and
                           $2,000,000 for general aggregate or Split liability
                           limits of:

                                    $1,000,000  for bodily injury per person
                                    $1,000,000  for bodily injury per occurrence
                                    $  500,000  for property damage

                                                                              18
<PAGE>

                  D.       Comprehensive Automobile Liability Insurance, if
                           applicable, covering owned, non-owned and hired
                           vehicles, with limits as follows:

                           Combined Single Limit of $500,000 for bodily injury,
                           death and property damage per occurrence or Split
                           liability limits of:

                                    $500,000 for bodily injury per person
                                    $500,000 for bodily injury per occurrence
                                    $250,000 for property damage

                  E.       All Risk Property Insurance, on a replacement cost
                           basis, with limits as appropriate, covering the real
                           property of Franchisee and any real property which
                           the Franchisee may be obligated to insure by
                           contract. Such real property may including building,
                           machinery, equipment, furniture, fixtures and
                           inventory.

         11.03.   All such policies of insurance shall provide that the same
shall not be canceled, modified or changed without first giving thirty (30) days
prior written notice thereof to Franchisor. No such cancellation, modification
or change shall affect Franchisee's obligation to maintain the insurance
coverages required by this Agreement. Except for Workers' Compensation
Insurance, Franchisor shall be named as an Additional Insured on all such
required policies. All liability insurance policies shall be written on an
"occurrence" policy form. Franchisee shall be responsible for payment of any and
all deductibles from insured claims under its policies of insurance. Franchisee
shall not satisfy the requirements of this Article XI unless and until
certificates of such insurance, including renewals thereof, have been delivered
to and approved by Franchisor. Franchisee shall not self-insure any of the
insurance coverages required by this Agreement, or non-subscribe to any State's
applicable workmen's compensation laws without the prior written consent of
Franchisor. Franchisor shall have the right, at any time during the term of this
Agreement to increase the minimum limits of insurance coverage or otherwise
modify the insurance requirements of this Agreement upon written notice in the
Manual or as otherwise prescribed by Franchisor in writing. If Franchisee shall
fail to comply with any of the insurance requirements herein, upon written
notice to Franchisee by Franchisor, Franchisor may, without any obligation to do
so, procure such insurance and Franchisee shall pay Franchisor, upon demand, the
cost thereof plus interest at the maximum rate permitted by law, and a
reasonable administrative fee designated by Franchisor.

         11.04.   Insurance Obtained by Franchisee Shall Be Primary to
Franchisor's Own Insurance. Franchisee agrees that all insurance policies
obtained by Franchisee pursuant to Sections 11.01 and 11.02 shall be primary
coverage, the applicable limits of which shall be exhausted before any benefits
(defense or indemnity) may be obtained under any other insurance (including
self-insurance) providing coverage to Franchisor. In the event payments are
required to be made under Franchisor's own insurance policies or self-insurance
(whether for defense or indemnity) before the applicable coverage limits for the
insurance policies obtained by Franchisee are exhausted, then Franchisee hereby
agrees to reimburse, hold harmless and indemnify the Franchisor and its insurers
for such payments. Franchisee shall notify its insurers of this Agreement and
shall use best efforts to obtain an endorsement on each policy it obtains
pursuant to Sections 11.01 and 11.02 stating as follows:

                  The applicable limits of this policy shall be
                  applied and exhausted before any benefits may be
                  obtained (whether for defense or indemnity) under
                  any other insurance (including self-insurance) that
                  may provide coverage to Franchisor. All insurance
                  coverage obtained by Franchisor shall be considered
                  excess insurance with respect to this policy, the
                  benefits of which excess insurance shall not be
                  available until the applicable limits of this policy
                  are exhausted.

                                                                              19
<PAGE>

         11.05    No Limitation on Coverage. Franchisee's obligation to obtain
and maintain the foregoing policy or policies of insurance in the amounts
specified shall not be limited in any way by reason of any insurance which may
be maintained by Franchisor, nor shall Franchisee's performance of that
obligation relieve it of liability under the indemnity provisions set forth in
Section XVIII of this Agreement.

         11.06.   Issuance of Insurance. Franchisee must obtain the insurance
required by this Agreement no later than fifteen (15) days before the date on
which any construction is commenced. The Franchised Unit shall not be opened for
business prior to Franchisor's receipt of satisfactory evidence that all
insurance required by this Agreement is in effect. Upon obtaining such
insurance, and on each policy renewal date thereafter, Franchisee shall promptly
submit evidence of satisfactory insurance and proof of payment therefor to
Franchisor, together with, upon request, copies of all policies and policy
amendments. The evidence of insurance shall include a statement by the insurer
that the policy or policies will not be canceled or materially altered without
at least thirty (30) days prior written notice to Franchisor.

XII.              CONFIDENTIAL INFORMATION

         12.01.   Franchisee shall not, during the term of this Agreement or
thereafter, communicate, divulge, or use for the benefit of any other person,
persons, partnership, association, corporation or other entity, any confidential
information, knowledge or know-how concerning the construction and methods of
operation of the Franchised Business which may be communicated to Franchisee, or
of which Franchisee may be apprised, by virtue of Franchisee's operation under
the terms of this Agreement. Franchisee shall divulge such confidential
information only to such employees of Franchisee as must have access to it in
order to exercise the franchise rights granted hereunder and to establish and
operate the Franchised Unit pursuant hereto and as Franchisee may be required by
law, provided Franchisee shall give Franchisor prior written notice of any such
required disclosure immediately upon receipt of notice by Franchisee in order
for Franchisor to have the opportunity to seek a protective order or take such
other actions as it deems appropriate under the circumstances.

         12.02.   Any and all information, knowledge, and know-how, including,
without limitation, drawings, materials, equipment, recipes, prepared mixtures
or blends of spices or other food products, and other data, which Franchisor
designates as confidential, and any information, knowledge, or know-how which
may be derived by analysis thereof, shall be deemed confidential for purposes of
this Agreement, except information which Franchisee can demonstrate came to
Franchisee's attention prior to disclosure thereof by Franchisor; or which, at
the time of disclosure thereof by Franchisor to Franchisee, had become a part of
the public domain, through publication or communication by others; or which,
after disclosure to Franchisee by Franchisor, becomes a part of the public
domain, through publication or communication by others.

XIII.             COVENANTS

         13.01.   Franchisee covenants that, during the term of the Agreement,
except as otherwise approved in writing by Franchisor, Franchisee or,
alternatively, one designated management employee if that employee assumes
primary responsibility for the operation of the Franchised Unit, shall devote
full time, energy and best efforts to the management and operation of the
Franchised Business.

         13.02.   Franchisee acknowledges that, pursuant to this Agreement,
Franchisee will receive valuable specialized training and confidential
information, including without limitation, information regarding the
operational, sales, promotional, and marketing methods, procedures and
techniques of Franchisor and the System. Franchisee covenants that, during the
term of this Agreement, Franchisee

                                                                              20
<PAGE>

(who, unless otherwise specified, shall include, for purposes of this Section
XIII, collectively and individually, (i) all officers, directors and holders of
a beneficial interest of five percent (5%) or more of the securities with voting
rights of Franchisee and of any corporation, directly or indirectly controlling
Franchisee, if Franchisee is a corporation,; (ii) the general partner and any
limited partners, including any corporation, and the officers, directors and
holders of a beneficial interest of five percent (5%) or more of securities with
voting rights of a corporation which controls, directly or indirectly, any
general or limited partner, if Franchisee is a partnership; and (iii) any
members and managers and holders of a beneficial interest of five percent (5%)
or more of securities with voting rights of any corporation which controls
directly or indirectly, any limited liability company) shall not, either
directly or indirectly, for itself or on behalf of, or in conjunction with, any
person, persons, partnership, limited liability company, association or
corporation or other entity:

                  A.       Divert or attempt to divert any business or customer
                           of the business franchised hereunder to any
                           competitor by direct or indirect inducements or
                           otherwise, or to do or perform, directly or
                           indirectly, any other act injurious or prejudicial to
                           the goodwill associated with Franchisor's Proprietary
                           Marks and the SBC System;

                  B.       Employ or seek to employ any person who is, at that
                           time, employed by Franchisor or by any other
                           SEATTLE'S BEST COFFEE franchisee, or otherwise,
                           directly or indirectly, induce such person to leave
                           his or her employment therewith; or

                  C.       Own, maintain, operate, engage in, or have any
                           interest in any business that prepares, offers,
                           sells, roasts and/or distributes specialty coffee
                           products and/or any product or service substantially
                           similar to those sold within the SEATTLE'S BEST
                           COFFEE System (a "Specialty Coffee Shop"); provided,
                           however, that the term "Specialty Coffee Shop" shall
                           not apply to any business operated by Franchisee
                           under a franchise agreement with Franchisor or an
                           affiliate of Franchisor. During the term of this
                           Agreement, there is no geographical limitation on
                           this restriction.

         13.03.   Franchisee covenants that Franchisee shall not, regardless of
the cause for termination, either directly or indirectly, for itself, or
through, on behalf of, or in conjunction with any person, persons, partnership,
limited liability company, association, corporation or other entity:

                  A.       For a period of two (2) years following the
                           termination or expiration of this Agreement, own,
                           maintain, engage in, or have any interest in any
                           Specialty Coffee Shop which is located within a
                           radius of ten (10) miles of the location specified in
                           Section I hereof, or the location of any other SBC
                           Retail Unit under the SBC System, whether owned by
                           Franchisor or any other SBC franchisee, which is in
                           existence as of the date of expiration or termination
                           of this Agreement; or

                  B.       For a period of one (1) year following the
                           termination or expiration of this Agreement, employ
                           or seek to employ any person who is, at the time,
                           employed by Franchisor or by any other SEATTLE'S BEST
                           COFFEE franchisee, or otherwise, directly or
                           indirectly, induce such person to leave his or her
                           employment therewith.

         13.04.   At Franchisor's request, Franchisee shall require and obtain
execution of covenants similar to those set forth in this Section XIII
(including covenants applicable upon the termination of a

                                                                              21
<PAGE>

person's relationship with Franchisee) in a form satisfactory to Franchisor,
including, without limitation, specific identification of Franchisor as a third
party beneficiary of such covenants with the independent right to enforce them,
from any or all of the following persons:

                  A.       All managers and assistant managers of the Franchised
                           Unit, and any other personnel employed by Franchisee
                           who have received or will receive training from
                           Franchisor;

                  B.       All officers, directors, and holders of a direct or
                           indirect beneficial ownership interest of five
                           percent (5%) or more in Franchisee.

         The failure of Franchisee to obtain execution of a covenant required by
this Section 13.04 shall constitute a material breach of this Agreement. A
duplicate original of each such covenant shall be provided by Franchisee to
Franchisor immediately upon execution.

         13.05.   The parties agree that each of the foregoing covenants shall
be construed as independent of any other covenant or provision of this
Agreement. If all or any portion of a covenant in this Section XIII, is held
unreasonable or unenforceable by a court or agency having jurisdiction in a
final decision, Franchisee expressly agrees to be bound by any lesser covenant
subsumed within the terms of such covenant that imposes the maximum duty
permitted by law, as if the resulting covenant was separately stated in and made
a part of this Section XIII.

                  A.       Right to Reduce Covenants. Franchisee understands and
                           acknowledges that Franchisor shall have the right, in
                           its sole discretion, to reduce the scope of any
                           covenant set forth in Sections 13.02. and 13.03. of
                           this Agreement, or any portion thereof, without
                           Franchisee's consent, effective immediately upon
                           receipt by Franchisee of written notice thereof, and
                           Franchisee agrees that it shall comply with any
                           covenant as so modified, which shall be fully
                           enforceable notwithstanding the provisions of Section
                           XXII hereof.

                  B.       Injunctive Relief. The parties acknowledge that it
                           will be difficult to ascertain with any degree of
                           certainty the amount of damages resulting from a
                           breach by Franchisee of any of the covenants
                           contained in this Section XIII. It is further agreed
                           and acknowledged that any violation by Franchisee of
                           any of said covenants will cause irreparable harm to
                           Franchisor. Accordingly, Franchisee agrees that upon
                           proof of the existence of a violation of any of said
                           covenants, Franchisor will be entitled to injunctive
                           relief against Franchisee in any court of competent
                           jurisdiction having authority to grant such relief,
                           together with all costs and reasonable attorney's
                           fees incurred by Franchisor in bringing such action.

XIV.              TRANSFERABILITY OF INTEREST

         14.01.   Transfer by Franchisor. This Agreement shall inure to the
benefit of the successors and assigns of Franchisor. Franchisor shall have the
right, without Franchisee's consent, to transfer or assign its interest in this
Agreement to any person, persons, partnership, association, corporation, or
other entity and Franchisee agrees promptly to execute any documents in
connection therewith. If Franchisor's assignee assumes all the obligations of
Franchisor hereunder and sends Franchisee written notice of the assignment so
attesting, Franchisee agrees promptly to execute a general release of
Franchisor, and any affiliates of Franchisor, from claims or liabilities of
Franchisor under this Agreement.

                                                                              22
<PAGE>

         14.02.   Transfer by Franchisee. Franchisee understands and
acknowledges that the rights and duties set forth in this Agreement are personal
to Franchisee, and that Franchisor has granted this Agreement in reliance on
Franchisee's business skill and financial capacity. Accordingly, neither (i)
Franchisee, nor (ii) any immediate or remote successor to Franchisee, nor (iii)
any individual, partnership, corporation or other legal entity which directly or
indirectly owns any interest in the Franchisee or in this Franchise Agreement,
shall sell, assign, transfer, convey, donate, pledge, mortgage, or otherwise
encumber any direct or indirect interest in this Agreement or in any legal
entity which owns the Franchised Business without the prior written consent of
Franchisor. Acceptance by Franchisor of any royalty fee, advertising fee or any
other amount accruing hereunder from any third party, including, but not limited
to any proposed transferee, shall not constitute Franchisor's approval of such
party as a transferee or the transfer of this Franchise Agreement to such party.
Any purported assignment or transfer, by operation of law or otherwise, not
having the written consent of Franchisor, shall be null and void, and shall
constitute a material breach of this Agreement, for which Franchisor may then
terminate without opportunity to cure pursuant to Section 15.02.E. of this
Agreement.

         14.03.   Conditions for Consent. Franchisor shall not unreasonably
withhold its consent to any transfer referred to in Section 14.02. hereof, when
requested; provided, however, that prior to the time of transfer;

                  A.       All of Franchisee's accrued monetary obligations to
                           Franchisor and its subsidiaries and affiliates shall
                           have been satisfied;

                  B.       Franchisee shall have agreed to remain obligated
                           under the covenants contained in Section XIII hereof
                           as if this Agreement had been terminated on the date
                           of the transfer;

                  C.       The transferee must be of good moral character and
                           reputation, in the reasonable judgment of the
                           Franchisor;

                  D.       The Franchisor shall have determined, to its
                           satisfaction, that the transferee's qualifications
                           meet the Franchisor's then current criteria for new
                           franchisees;

                  E.       Franchisee and transferee shall execute a written
                           assignment, in a form satisfactory to Franchisor,
                           pursuant to which the transferee shall assume all of
                           the obligations of Franchisee under this Agreement
                           and Franchisee shall unconditionally release any and
                           all claims Franchisee might have against Franchisor
                           as of the date of the assignment;

                  F.       The transferee shall execute the then-current form of
                           SEATTLE'S BEST COFFEE Franchise Agreement and such
                           other then-current ancillary agreements as Franchisor
                           may reasonably require. The then-current form of
                           Franchise Agreement may have significantly different
                           provisions including, without limitation, a higher
                           royalty fee and advertising contribution than that
                           contained in this Agreement. The then-current form of
                           Franchise Agreement will expire on the expiration
                           date of this Agreement and will contain the same
                           renewal rights, if any, as are available to
                           Franchisee herein;

                  G.       The transferee shall agree at its sole cost and
                           expense, to (i) complete a Franchised Unit Renovation
                           (as defined in Section 10.01.C herein), within the
                           time frame required by Franchisor, unless a
                           Franchised Unit Renovation was

                                                                              23
<PAGE>

                           completed within three (3) years prior to the date of
                           the transfer and (ii) perform such other scope of
                           work as may be determined by Franchisor.

                  H.       The transferee and such other individuals as may be
                           designated by Franchisor in the Manual or otherwise
                           in writing, must have successfully completed the SBC
                           training course then in effect for new SBC
                           franchisees. If the Franchised Unit is the
                           transferee's first SBC Retail Unit, the transferee
                           shall pay to Franchisor the then-standard Training
                           Fee;

                  I.       If the transferee is a partnership or limited
                           liability company, the partnership agreement or
                           limited liability company organizational documents
                           shall provide that further assignments or transfers
                           of any interest in the partnership or limited
                           liability company, respectively, are subject to all
                           restrictions imposed upon assignments and transfers
                           in this Agreement;

                  J.       Franchisee shall, at Franchisor's option and request,
                           execute a written guarantee of the transferee's
                           obligations under the Agreement, which guarantee
                           shall not exceed a period of three (3) years from the
                           date of transfer; and all principals of the
                           transferee shall also guarantee Franchisee's
                           obligations hereunder, and

                  K.       The Franchisee or transferee shall pay to Franchisor
                           a transfer processing fee of Two Thousand Five
                           Hundred Dollars ($2,500), to cover Franchisor's
                           administrative expenses in connection with the
                           transfer and a training fee in the amount of Five
                           Thousand Dollars ($5,000); however no additional
                           franchise fee shall be charged by Franchisor for a
                           transfer. If the transferee is (i) a corporation or
                           limited liability company formed by Franchisee for
                           the convenience of ownership and in which the
                           Franchisee is the sole shareholder or limited
                           liability company member, or (ii) an existing
                           Franchisee under this Agreement, no transfer
                           processing fee and/or training fee shall be required.

         14.04.   Grant of Security Interest. Franchisee shall grant no security
interest in this Agreement, the Franchised Business, or in any of its assets
unless the secured party agrees that, in the event of any default by Franchisee
under any documents related to the security interest (i) Franchisor shall be
provided with notice of default and given a reasonable time within which to cure
said default, (ii) Franchisor shall have the right and option to be substituted
as obligor to the secured party and to cure any default of Franchisee or to
purchase the rights of the secured party upon payment of all sums then due to
such secured party, except such amounts which may have become due as a result of
any acceleration of the payment dates based upon the Franchisee's default, and
(iii) the secured party shall agree to such other requirements as Franchisor, in
its sole discretion, deems reasonable and necessary to protect the integrity of
the Proprietary Marks and the SEATTLE'S BEST COFFEE System.

         14.05.   Transfer on Death or Mental Incapacity. Upon the death or
mental incapacity of any person with an interest in this Agreement, the
Franchised Business or Franchisee, the executor, administrator, or personal
representative of such person shall transfer his interest to a third party
approved by Franchisor within twelve (12) months after such death or mental
incapacity. Such transfer, including, without limitation, transfer by devise or
inheritance, shall be subject to the same conditions as any inter vivos
transfer. However, in the case of transfer by devise or inheritance, if the
heirs or beneficiaries of any such person are unable to meet the conditions in
this Section XIV, the personal representative of the deceased Franchisee shall
have a reasonable time, but in no event more than eighteen (18) months from
Franchisee's death, to dispose of the deceased's interest in this Agreement and
the business conducted pursuant hereto, which disposition shall be subject to
all the terms and conditions for assignments and

                                                                              24
<PAGE>

transfers contained in this Agreement. If the interest is not disposed of within
twelve (12) or eighteen (18) months, whichever is applicable, Franchisor may
terminate this Agreement.

         14.06.   Right of First Refusal. Any party holding an interest in this
Agreement, the Franchised Business or in Franchisee, and who desires to accept a
bona fide offer from a third party to purchase such interest, shall notify
Franchisor in writing of such offer within ten (10) days of receipt of such
offer, and shall provide such information and documentation relating to the
offer as Franchisor may require. Franchisor shall have the right and option,
exercisable within thirty (30) days after receipt of such written notification,
to send written notice to the seller that Franchisor intends to purchase the
seller's interest on the same terms and conditions offered by the third party.
In the event that Franchisor elects to purchase the seller's interest, closing
on such purchase must occur within sixty (60) days from the date of notice to
the seller of the election to purchase by Franchisor. Any material change in the
terms of any offer prior to closing shall constitute a new offer subject to the
same rights of first refusal by Franchisor as in the case of an initial offer.
Failure of Franchisor to exercise the option afforded by this Section 14.06.
shall not constitute a waiver of any other provisions of this Agreement,
including all of the requirements of this Section XIV, with respect to a
proposed transfer.

         In the event the consideration, terms, and/or conditions offered by a
third party are such that Franchisor may not reasonably be required to furnish
the same consideration, terms, and/or conditions, then Franchisor may purchase
the interest in this Agreement, Franchisee, or the Franchised Business proposed
to be sold for the reasonable equivalent in cash. If the parties cannot agree
within a reasonable time as to the reasonable equivalent in cash of the
consideration, terms, and/or conditions offered by the third party, an
independent appraiser shall be designated by Franchisor, and his determination
shall be binding upon the parties.

         14.07.   Offerings by Franchisee. Securities or partnership interests
in Franchisee may be offered to the public, by private offering or otherwise,
only with the prior written consent of Franchisor, which consent shall not be
unreasonably withheld. All materials required for such offering by applicable
federal or state law shall be submitted to Franchisor for review prior to their
being filed with any governmental agency; and any materials to be used in any
exempt offering shall be submitted to Franchisor for review prior to their use.
No offering of such securities shall imply (by use of the Proprietary Marks or
otherwise) that Franchisor is participating in the underwriting, issuance, or
offering of securities by Franchisee; and Franchisor's review of any offering
shall be limited solely to the subject of the relationship between Franchisee
and Franchisor. Franchisee and the other participants in the offering shall
fully indemnify Franchisor in connection with the offering. For each proposed
offering, Franchisee shall pay to Franchisor a non-refundable fee of Five
Thousand Dollars ($5,000), or such greater amount as is necessary to reimburse
Franchisor for its reasonable costs and expenses associated with reviewing the
proposed offering, including, without limitation, legal and accounting fees.
Franchisee shall give Franchisor written notice at least sixty (60) days prior
to the date of commencement any offering or other transaction covered by this
Section 14.07.

XV.               TERMINATION

         15.01.   Franchisee shall be deemed to be in default under this
Agreement, and all rights granted herein shall automatically terminate without
notice to Franchisee, if Franchisee shall become insolvent or make a general
assignment for the benefit of creditors; if a petition in bankruptcy is filed by
Franchisee or such a petition is filed against Franchisee and not opposed by
Franchisee; or if Franchisee is adjudicated bankrupt or insolvent; or if a
receiver or other custodian (permanent or temporary) of Franchisee's assets or
property, or any part thereof, is appointed by any court of competent
jurisdiction; or if proceedings for a composition with creditors under the
applicable law of any jurisdiction should be instituted by Franchisee or against
Franchisee and not opposed by Franchisee; or if a final judgment remains
unsatisfied or of record

                                                                              25
<PAGE>

for thirty (30) days or longer (unless a supersedeas bond is filed or other
steps are taken to stay effectively the enforcement of such judgment in the
relevant jurisdiction); or if Franchisee is dissolved; or if execution is levied
against Franchisee's property or business; or if suit to foreclose any lien or
mortgage against the premises or equipment of the Franchised Unit is instituted
against the Franchisee and not dismissed within thirty (30) days; or if the real
or personal property of any other SBC Retail Unit operated by Franchisee shall
be sold after levy thereon by any sheriff, marshal, or constable.

         15.02.   Franchisee shall be deemed to be in default and Franchisor
may, at its option, terminate this Agreement and all rights granted hereunder
without affording Franchisee any opportunity to cure the default (effective
immediately upon receipt of notice by Franchisee as described in Section XX
hereof) upon the occurrence of any of the following events:

                  A.       If Franchisee fails to complete construction of the
                           Franchised Unit and opens for business within one
                           hundred eighty (180) days of execution of this
                           Agreement. Franchisor may, in its sole discretion,
                           extend this period to address unforeseen construction
                           delays, not within the control of Franchisee.

                  B.       If Franchisee at any time ceases to operate the
                           Franchised Unit or otherwise abandons the Franchised
                           Unit, or loses the right to possession of the
                           premises of the Franchised Unit, or otherwise
                           forfeits the right to do or transact business in the
                           jurisdiction where the Franchised Unit is located;
                           provided, however, that if, through no fault of
                           Franchisee, the premises are damaged or destroyed by
                           an event not within the control of Franchisee such
                           that repairs or reconstruction cannot be completed
                           within one hundred eighty (180) days thereafter, then
                           Franchisee shall have thirty (30) days after such
                           event in which to apply for Franchisor's approval to
                           relocate and/or reconstruct the premises, which
                           approval shall not be unreasonably withheld, but may
                           be conditioned upon the payment of an agreed minimum
                           royalty to Franchisor during the period in which the
                           Franchised Unit is not in operation;

                  C.       If Franchisee is convicted of or pleads guilty to a
                           felony, a crime involving moral turpitude, or any
                           other crime or offense that Franchisor believes is
                           reasonably likely to have an adverse effect on the
                           System, the Proprietary Marks, the goodwill
                           associated therewith, or Franchisor's interest
                           therein;

                  D.       If a threat or danger to public health or safety
                           results from the construction, maintenance, or
                           operation of the Franchised Unit;

                  E.       If Franchisee, or any partner, shareholder or member
                           of Franchisee purports to transfer any rights or
                           obligations under this Agreement or any interest in
                           Franchisee to any third party without Franchisor's
                           prior written consent, contrary to the terms of
                           Section XIV hereof;

                  F.       If Franchisee fails to comply with the in-term
                           covenants in Section 13.02. hereof or fails to obtain
                           execution of the covenants required under Sections
                           10.10. or 13.04. hereof;

                  G.       If, contrary to the terms of Section VII hereof,
                           Franchisee discloses or divulges the contents of the
                           Manual or any other confidential information provided
                           to Franchisee by Franchisor;

                                                                              26
<PAGE>

                  H.       If an approved transfer is not effected as required
                           by Section 14.05 hereof, following the death or
                           mental incapacity of a person described therein;

                  I.       If Franchisee knowingly maintains false books or
                           records, or submits any false reports to Franchisor;

                  J.       If Franchisee or any individual, group, association,
                           limited or general partnership, corporation or other
                           business entity which directly or indirectly
                           controls, is controlled by, or is under common
                           control with Franchisee; or which directly or
                           indirectly owns, controls, or holds power to vote ten
                           percent (10%) or more of the outstanding voting
                           securities of Franchisee; or which has in common with
                           Franchisee one or more partners, officers, directors,
                           trustees, branch managers, or other persons occupying
                           similar status or performing similar functions
                           ("Affiliate") commits any act of default under any
                           other Franchise Agreement, Development Agreement
                           (except for failure to meet the development schedule
                           thereunder), asset purchase agreement, promissory
                           note or any other agreement entered into by
                           Franchisee or an Affiliate of Franchisee, and
                           Franchisor, or any parent, subsidiary, affiliate,
                           predecessor or successor to Franchisor;

                  K.       If Franchisee, after or during a default pursuant to
                           Section 15.03. hereof, commits the same default
                           again, whether or not such default is cured after
                           notice; or

                  L.       If Franchisee defaults more than once in any twelve
                           (12) month period under Section 15.03. hereof for
                           failure to substantially comply with any of the
                           requirements imposed by this Agreement, whether or
                           not cured after notice.

                  M.       If Franchisee refuses to permit Franchisor or its
                           agents to enter upon the premises of the Franchised
                           Unit to conduct any periodic inspection as set forth
                           in Sections 5.09. and 10.02.H hereof.

                  N.       If Franchisee uses any of Franchisor's Proprietary
                           Marks in any unauthorized manner or is otherwise in
                           default of the provisions of Section V hereof.

                  O.       Franchisor discovers that Franchisee made a material
                           misrepresentation or omitted a material fact in the
                           information that was furnished to Franchisor in
                           connection with its decision to enter into this
                           Agreement.

                  P.       Franchisee knowingly falsifies any report required to
                           be furnished Franchisor or makes any material
                           misrepresentation in its dealings with Franchisor or
                           fails to disclose any material facts to Franchisor.

                  Q.       There is a material breach of any representation or
                           warranty set forth in this Agreement.

                  R.       If Franchisee, at any time, offers for sale from the
                           franchised Unit any coffee products and/or beverages
                           other than SBC Coffee Products.

                                                                              27
<PAGE>

         15.03.   Except as provided in Sections 15.01 and 15.02 of this
Agreement, upon any default by Franchisee which is susceptible of being cured,
Franchisor may terminate this Agreement only by giving written Notice of
Termination stating the nature of such default to Franchisee at least ten (10)
days prior to the effective date of termination if the default is for failure to
pay royalties, NCP Fund Contributions (including Cooperative Contributions, if
any are due, and/or any other financial obligations owed to Franchisor by
Franchisee), and thirty (30) days, prior to the effective date of termination
for any other default, provided, however, that Franchisee may avoid termination
by curing such default to Franchisor's satisfaction within the ten (10) day or
thirty (30) day period, as applicable. If any such default is not cured within
the specified time, this Agreement shall terminate without further notice to
Franchisee effective immediately upon the expiration of the ten (10) day or
thirty (30) day period, as applicable, or such longer period as applicable law
may require. Notwithstanding anything to the contrary set forth in this
Agreement, Franchisee hereby acknowledges that any agreement between Franchisee
and Franchisor relating to past due amounts accruing hereunder, (an "Arrearage
Agreement"), including, but not limited to any promissory note, payment plan or
amendment to this agreement shall be deemed to be a material part of this
agreement and shall be incorporated herein by reference. A default under any
Arrearage Agreement shall be deemed a material default of this Franchise
Agreement, regardless of the reason Franchisee fails to pay the amount which is
the subject of such Arrearage Agreement.

         15.04.   Franchisee shall indemnify and hold Franchisor harmless for
all costs, expenses and any losses incurred by Franchisor in enforcing the
provisions hereof, or in upholding the propriety of any action or determination
by Franchisor pursuant to this Agreement, or in defending any claims made by
Franchisee against Franchisor, or arising in any manner from Franchisee's breach
of or failure to perform any covenant or obligation hereunder, including,
without limitation, reasonable litigation expenses and attorney's fees incurred
by Franchisor in connection with any threatened or pending litigation relating
to any part of this Agreement, unless Franchisee shall be found, after due legal
proceedings, to have complied with all of the terms, provisions, conditions and
covenants hereof.

         15.05    In addition to the other provisions of this Section XVI, if
Franchisor reasonably determines that Franchisee becomes or will become unable
to meet its obligations to Franchisor under this Agreement, Franchisor may
provide Franchisee written notice to that effect and demand that Franchisee
provide those assurances reasonably designated by Franchisor, which may include
security or letters of credit for the payment of Franchisee's obligations to
Franchisor. If Franchisee fails to provide the assurances demanded by Franchisor
within 30 days after its receipt of written notice from Franchisor, this
Agreement shall terminate without further notice to Franchisee effective
immediately upon expiration of that time, unless Franchisor notifies Franchisee
otherwise in writing.

XVI.              EFFECT OF TERMINATION OR EXPIRATION

         16.01.   Upon termination or expiration of this Agreement, all rights
granted herein shall forthwith terminate, and:

                  A.       Franchisee shall immediately cease to operate the
                           Franchised Unit as an SBC Retail Unit, and shall not
                           thereafter, directly or indirectly, represent to the
                           public that the business is an SBC Retail Unit;

                  B.       Franchisee shall immediately and permanently cease to
                           use, by advertising or in any manner whatsoever, any
                           menus, recipes, confidential food for formulae,
                           equipment, methods, procedures, and the techniques
                           associated with the System, Franchisor's Proprietary
                           Marks, and Franchisor's other trade names, trademarks
                           and service marks associated with the SBC System. In
                           particular, and without

                                                                              28
<PAGE>

                           limitation, Franchisee shall cease to use all signs,
                           furniture, fixtures, equipment, advertising
                           materials, stationery, forms, packaging, containers
                           and any other articles which display the Proprietary
                           Marks;

                  C.       Franchisee agrees, in the event Franchisee continues
                           to operate or subsequently begins to operate a
                           restaurant, coffee shop or other businesses, not to
                           use any reproduction, counterfeit, copy, or colorable
                           imitation of the Proprietary Marks in conjunction
                           with such other business which is likely to cause
                           confusion or mistake or to deceive, and further
                           agrees not to utilize any trade dress, designation of
                           origin, description, or representation which falsely
                           suggests or represents an association or connection
                           with Franchisor;

                  D.       Franchisee agrees, upon termination or expiration of
                           this Agreement or upon cessation of the Franchised
                           Business at the location specified in Section I
                           hereof for any reason, whether or not Franchisee
                           continues to operate any business at such location,
                           and whether or not Franchisee owns or leases the
                           location, to make such modifications or alterations
                           to the Franchised Unit premises immediately upon
                           termination or expiration of this Agreement or
                           cessation of operation of the Franchised Business as
                           may be necessary to prevent the operation of any
                           businesses thereon by Franchisee or others in
                           derogation of this Section XVI, and shall make such
                           specified additional changes thereto as Franchisor
                           may reasonably request for that purpose. The
                           modifications and alterations required by this
                           Section XVI shall include, but are not limited to,
                           removal of all trade dress, proprietary marks and
                           other indicia of the SBC System;

                  E.       Franchisee shall immediately pay all sums owing to
                           Franchisor and its subsidiaries and affiliates. In
                           the event of termination for any default by
                           Franchisee, such sums shall include all damages,
                           costs and expenses, including reasonable attorneys'
                           fees, incurred by Franchisor as a result of the
                           default; and

                  F.       Franchisee shall immediately turn over to Franchisor
                           the Manual, all other manuals, records, files,
                           instructions, correspondence and any and all other
                           materials relating to the operation of the Franchised
                           Business in Franchisee's possession and all copies
                           thereof (all of which are acknowledged to be
                           Franchisor's property) and shall retain no copy or
                           record of any of the foregoing, with the exception of
                           Franchisee's copy of this Agreement, any
                           correspondence between the parties, and any other
                           documents which Franchisee reasonably needs for
                           compliance with any provision of law.

         16.02.   Franchisor shall have the right (but not the duty) to be
exercised by notice of intent to do so within thirty (30) days after termination
or expiration of this Agreement, to purchase any and all improvements,
equipment, advertising and promotional materials, ingredients, products,
materials, supplies, paper goods and any items bearing Franchisor's Proprietary
Marks at current fair market value. If the parties cannot agree on a fair market
value within a reasonable time, an independent appraiser shall be designated by
Franchisor, and his determination of fair market value shall be binding. If
Franchisor elects to exercise any option to purchase herein provided, it shall
have the right to set-off all amounts due from Franchisee under this Agreement
and the cost of the appraisal, if any, against any payment therefor.

         16.03.   In the event the premises of the Franchised Unit are leased to
Franchisee, Franchisee shall, upon termination or expiration of this Agreement
and upon request by Franchisor, immediately

                                                                              29
<PAGE>

assign, set over and transfer unto Franchisor, at Franchisor's sole option and
discretion, said lease and the premises, including improvements. Any such lease
entered into by Franchisee shall contain a clause specifying the landlord's
consent to assign such lease to Franchisor or its assignee in the event this
Agreement is terminated.

         16.04.   Franchisee shall pay to Franchisor all damages, costs, and
expenses, including reasonable attorneys' fees, incurred by Franchisor in
seeking recovery of damages caused by any action of Franchisee in violation of,
or in obtaining injunctive relief for the enforcement of, any portion of this
Section XVI. Further, Franchisee acknowledges and agrees that any failure to
comply with the provisions of this Section XVI, shall result in irreparable
injury to Franchisor.

         16.05.   All provisions of this Agreement which, by their terms or
intent, are designed to survive the expiration or termination of this Agreement,
shall so survive the expiration and/or termination of this Agreement.

         16.06.   Franchisee shall comply with the covenants contained in
Section XIII of this Agreement.

         16.07.   Franchisee shall execute such documents as Franchisor may
reasonably require to effectuate termination of the franchise and Franchisee's
rights to use the trademarks and systems of Franchisor.

XVII.             TAXES, PERMITS, AND INDEBTEDNESS

         17.01.   Franchisee shall promptly pay when due all taxes, accounts and
other indebtedness of every kind incurred by Franchisee in the conduct of the
Franchised Business under this Agreement.

         17.02.   Franchisee, in the conduct of the Franchised Business, shall
comply with all applicable laws and regulations, and shall timely obtain any and
all permits, certificates, or licenses necessary for the full and proper conduct
of the businesses operated under this Agreement, including, without limitation,
licenses to do business, trade name registrations, sales tax permits and fire
clearances.

XIII.             INDEPENDENT CONTRACTOR AND INDEMNIFICATION

         18.01.   This Agreement does not constitute Franchisee an agent, legal
representative, joint venturer, partner, employee or servant of Franchisor for
any purpose whatsoever. It is understood and agreed that Franchisee shall be an
independent contractor and is in no way authorized to make any contract,
agreement, warranty, or representation on behalf of Franchisor. The parties
further agree that this Agreement does not create any fiduciary relationship
between them.

         18.02.   During the term of this Agreement and any extensions hereof,
Franchisee agrees to take such action as Franchisor deems reasonably necessary
for Franchisee to inform and hold itself out to the public as an independent
contractor operating the Franchised Business pursuant to a franchise from
Franchisor, including, without limitation, exhibiting a notice of that fact at
the Franchised Business in form and substance satisfactory to Franchisor.

         18.03    Franchisee agrees to defend, indemnify and hold harmless
Franchisor, its parent, subsidiaries and affiliates, and their respective
officers, directors, employees, agents, successors and assigns from all claims,
demands, losses, damages, liabilities, cost and expenses (including attorney's
fees and expense of litigation) resulting from, or alleged to have resulted
from, or in connection with Franchisee's

                                                                              30
<PAGE>

operation of the Franchised Business, including, but not limited to, any claim
or actions based on or arising out of any injuries, including death to persons
or damages to or destruction of property, sustained or alleged to have been
sustained in connection with or to have arisen out of or incidental to the
Franchised Business and/or the performance of this contract by Franchisee, its
agents, employees, and/or its subcontractors, their agents and employees, or
anyone for whose acts they may be liable, regardless of whether or not such
claim, demand, damage, loss, liability, cost or expense is caused in whole or in
part by the negligence of Franchisor, Franchisor's representative, or the
employees, agents, invitees, or licensees thereof.

         18.04    Franchisor shall advise Franchisee in the event Franchisor
receives notice that a claim has been or may be filed with respect to a matter
covered by this Agreement, and Franchisee shall immediately assume the defense
thereof at Franchisee's sole cost and expense. In any event, Franchisor will
have the right, through counsel of its choice, to control any matter to the
extent it could directly or indirectly affect Franchisor and/or its parent,
subsidiaries or affiliates or their officers, directors, employees, agents,
successors or assigns. If Franchisee fails to assume such defense, Franchisor
may defend, settle, and litigate such action in the manner it deems appropriate
and Franchisee shall, immediately upon demand, pay to Franchisor all costs
(including attorney's fees and cost of litigation) incurred by Franchisor in
affecting such defense, in addition to any sum which Franchisor may pay by
reason of any settlement or judgment against Franchisor.

         18.05    Franchisor's right to indemnity hereunder shall exist
notwithstanding that joint or several liability may be imposed upon Franchisor
by statute, ordinance, regulation or judicial decision.

         18.06    Franchisee agrees to pay Franchisor all expenses including
attorney's fees and court costs, incurred by Franchisor, its parent,
subsidiaries, affiliates, and their successors and assigns to remedy any
defaults of or enforce any rights under this Agreement, effect termination of
this Agreement or collect any amounts due under this Agreement.

XIX.              APPROVALS AND WAIVERS

         19.01.   Whenever this Agreement requires the prior approval of
Franchisor, Franchisee shall make a timely written request to Franchisor
therefor, and such approval or consent shall be in writing.

         19.02.   Franchisor makes no warranties or guarantees upon which
Franchisee may rely, and assumes no liability or obligation to Franchisee or any
third party to which Franchisor would not otherwise be subject, by providing any
waiver, approval, advice, consent, or suggestions to Franchisee in connection
with this Agreement, or by reason of any neglect, delay, or denial of any
request therefor.

         19.03.   No failure of Franchisor to exercise any power reserved to it
in this Agreement, or to insist upon compliance by Franchisee with any
obligation or condition in this Agreement, and no custom or practice of the
parties at variance with the terms hereof, shall constitute a waiver of
Franchisor's right to demand exact compliance with the terms of this Agreement.
Waiver by Franchisor of any particular default shall not affect or impair
Franchisor's right in respect to any subsequent default of the same or of a
different nature, nor shall any delay, forbearance, or omission of Franchisor to
exercise any power or rights arising out of any breach or default by Franchisee
of any of the terms, provisions, or covenants of this Agreement, affect or
impair Franchisor's rights, nor shall such constitute a waiver by Franchisor of
any rights, hereunder or right to declare any subsequent breach or default.
Subsequent acceptance by Franchisor of any payments due to it shall not be
deemed to be a waiver by Franchisor of any preceding breach by Franchisee of any
terms, covenants, or conditions of this Agreement.

                                                                              31
<PAGE>

XX.               NOTICES

         Any and all notices required or permitted under this Agreement shall be
in writing and shall be personally delivered , sent by registered mail, or by
other means which will provide evidence of the date received to the respective
parties at the following addresses unless and until a different address has been
designated by written notice to the other party:

Notices to Franchisor:                      SBC Legal Department
                                            c/o AFC Enterprises, Inc.
                                            Six Concourse Parkway
                                            Suite 1700
                                            Atlanta, Georgia  30328-5352
                                            U.S.A.
                                            Telefax Number: (770) 353-3060

with copies to:                             President, International Division
                                            AFC Enterprises, Inc.
                                            Six Concourse Parkway
                                            Suite 1700
                                            Atlanta, Georgia  30328-5352
                                            U.S.A.
                                            Telefax Number: (770) 353-3312

Notices to Franchisee:                      _____________________________
                                            _____________________________
                                            _____________________________

         All written notices and reports permitted or required to be delivered
by the provisions of this Agreement shall be addressed to the party to be
notified at its most current principal business address (or telefax number) of
which the notifying party has been notified (under the provisions of this
Section XX) and shall be deemed so delivered (i) at the time delivered by hand;
(ii) one (1) business day after sending by telegraph, facsimile, electronic mail
or comparable electronic system with electronic confirmation of receipt; or
(iii) if sent by registered or certified mail or by other means which affords
the sender evidence of delivery, on the date and time of receipt or attempted
delivery if delivery has been refused or rendered impossible by the party being
notified.

XXI.              SEVERABILITY AND CONSTRUCTION

         21.01.   Except as expressly provided to the contrary herein, each
section, paragraph, part, term, and/or provision of this Agreement shall be
considered severable; and if, for any reason, any section, part, term, and/or
provision herein is determined to be invalid and contrary to, or in conflict
with, any existing or future law or regulation by a court or agency having valid
jurisdiction, such shall not impair the operation, or have any other effect
upon, such other portions, sections, parts, terms, and/or provisions of this
Agreement as may remain otherwise intelligible, and the latter shall continue to
be given full force and effect to bind the parties hereto; and said invalid
portions, sections, parts, terms, and/or provisions shall be deemed not to be
part of this Agreement.

         21.02.   Except as has been expressly provided to the contrary herein,
nothing in this Agreement is intended, nor shall be deemed, to confer upon any
person or legal entity other than Franchisee,

                                                                              32
<PAGE>

Franchisor, Franchisor's officer, directors, and employees, and Franchisee's
permitted and Franchisor's respective successors and assigns, any rights or
remedies under or by reason of this Agreement.

         21.03.   All captions in the Agreement are intended solely for the
convenience of the parties, and none shall be deemed to affect the meaning or
construction of any provision hereof.

         21.04.   All references herein to the masculine, neuter or singular
shall be construed to include the masculine, feminine, neuter or plural, where
applicable, and all acknowledgments, promises, covenants, agreements and
obligations herein made or undertaken by Franchisee shall be deemed jointly and
severally undertaken by all the parties hereto on behalf of Franchisee.

         21.05.   This Agreement may be executed in counterparts, and each copy
so executed shall be deemed an original.

XXII.             ENTIRE AGREEMENT:  SURVIVAL

         22.01.   This Agreement, the documents referred to herein, the
Development Agreement, if any, and the exhibits hereto, constitute the entire,
full and complete agreement between Franchisor and Franchisee concerning the
subject matter hereof and supersede any and all prior agreements. Except for
those permitted to be made unilaterally by Franchisor hereunder, no amendment,
change, modification or variance of this Agreement shall be binding on either
party unless in writing and executed by Franchisor and Franchisee.
Representations by either party, whether oral, in writing, electronic or
otherwise, that are not set forth in this Agreement shall not be binding upon
the party alleged to have made such representations and shall be of no force or
effect.

                           I have read this Section 22.01 and agree
                           that I have not been induced by and am not
                           relying upon any representation not
                           contained in this Agreement.

                           _____________________________,  Franchisee

         22.02.   Notwithstanding anything herein to the contrary, upon the
termination of this Agreement for any reason whatsoever (including the execution
of a subsequent Franchise Agreement pursuant to the provisions of Sections
2.02.B and 14.03.F), or upon the expiration of the Term hereof, any provisions
of this Agreement which, by their nature, extend beyond the expiration or
termination of this Agreement, shall survive termination or expiration and be
fully binding and enforceable as though such termination or expiration had not
occurred.

XXIII.            ACKNOWLEDGMENTS

         23.01.   Franchisee acknowledges that Franchisee has conducted an
independent investigation of the SEATTLE'S BEST COFFEE franchise and recognized
that the business venture contemplated by this Agreement involves business risks
and Franchisee's success will be largely dependent upon the ability of the
Franchisee as an independent business entity.

                                                                              33
<PAGE>

_______________________
Franchisee must initial

FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF, AND FRANCHISEE ACKNOWLEDGES THAT
FRANCHISEE HAS NOT RECEIVED, ANY WARRANTY OR GUARANTY, EXPRESSED OR IMPLIED, AS
TO THE POTENTIAL VOLUME, PROFITS OR SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED
BY THIS AGREEMENT.

_______________________
Franchisee must initial

23.02. FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS RECEIVED A COMPLETED COPY OF
THIS AGREEMENT, THE EXHIBITS HERETO, IF ANY, AND THE AGREEMENTS RELATING
THERETO, IF ANY, AT LEAST FIVE (5) BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS
AGREEMENT WAS EXECUTED. FRANCHISEE FURTHER ACKNOWLEDGES THAT FRANCHISEE HAS
RECEIVED THE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE
FEDERAL TRADE COMMISSION ENTITLED "DISCLOSURE REQUIREMENTS AND PROHIBITIONS
CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST TEN (10)
BUSINESS DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED.

_______________________
Franchisee must initial

23.03. FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS READ AND UNDERSTOOD THIS
AGREEMENT, THE EXHIBITS HERETO, IF ANY, AND AGREEMENTS RELATING THERETO, IF ANY,
AND THAT FRANCHISOR HAS ACCORDED FRANCHISEE AMPLE TIME AND OPPORTUNITY AND HAS
ENCOURAGED FRANCHISEE TO CONSULT WITH ADVISORS OF FRANCHISEE'S OWN CHOOSING
ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT.

_______________________
Franchisee must initial

23.04. FRANCHISEE RECOGNIZES AND UNDERSTANDS THAT IT MAY INCUR OTHER EXPENSES
AND/OR OBLIGATIONS AS PART OF THE INITIAL INVESTMENT IN THE FRANCHISED BUSINESS
WHICH THE TERMS OF THIS AGREEMENT MAY NOT ADDRESS, AND WHICH INCLUDE WITHOUT
LIMITATION: OPENING ADVERTISING, EQUIPMENT, FIXTURES, OTHER FIXED ASSETS,
CONSTRUCTION, LEASEHOLD IMPROVEMENTS AND DECORATING COSTS AS WELL AS WORKING
CAPITAL NECESSARY TO COMMENCE OPERATIONS.

XXIV.             APPLICABLE LAW:  VENUE

         24.01.   Applicable Law. This Agreement takes effect upon its
acceptance and execution by Franchisor and shall be interpreted and construed
under the laws of the State of GEORGIA which laws shall prevail in the event of
any conflict of law (without regard to, and without giving effect to, the
application of GEORGIA choice of law or conflict of law rules) except to the
extent governed by the U. S. Trademark Act of 1946, 15 U.S.C. Section 1051,
et seq. (the " Lanham Act") as amended; provided, however, that if the covenants
in Article XIII of this Agreement would not be enforceable under the laws of
GEORGIA, and the Franchised Unit is located outside of GEORGIA, then such
covenants shall be interpreted and construed under the laws of the state in
which the Franchised Unit is located. Nothing in this Section XXIV is intended
by the parties to subject this Agreement to any franchise or similar law, rule,
or regulation of the State of Georgia to which this Agreement would not
otherwise be subject.

         24.02.   The parties agree that any action brought by Franchisee
against Franchisor in any court, whether federal or state, shall be brought
within a court of competent jurisdiction in Atlanta, Georgia. Any action brought
by Franchisor against Franchisee in any court, whether federal or state, may be
brought within any court in the State of Georgia, or in the jurisdiction where
Franchisee resides or does business or where the Franchised Unit is or was
located or where the claim arose. Franchisee hereby consents to personal
jurisdiction and venue in the state and judicial district in which Franchisor
has its principal place of business.

                                                                              34
<PAGE>

         24.03.   No right or remedy herein conferred upon or reserved to
Franchisor is exclusive of any other right or remedy herein, or by law or equity
provided or permitted; but each shall be cumulative of any other right or remedy
provided in this Agreement

         24.04.   Nothing herein contained shall bar Franchisor's right to
obtain injunctive relief against threatened conduct that will cause it loss or
damages, under the usual equity rules, including the applicable rules for
obtaining restraining orders and preliminary injunctions.

         24.05.   Any and all claims and actions arising out of or relating to
this Agreement (including, but not limited to, the offer and sale of this
franchise), the relationship of Franchisee and Franchisor, or Franchisee's
operation of the Franchised Unit, brought by Franchisee shall be commenced
within eighteen (18) months from the occurrence of the facts giving rise to such
claim or action, or such claim or action shall be barred.

         24.06.   Franchisor and Franchisee hereby waive to the fullest extent
permitted by law any right to or claim of any consequential, punitive, or
exemplary damages against the other, and agree that in the event of a dispute
between them each shall be limited to the recovery of any actual damages
sustained by it.

XXV.              CORPORATE FRANCHISEE

         In the event the Franchisee named herein is a corporation at the time
of execution of this Agreement, it is warranted, covenanted and represented to
Franchisor that:

         25.01.   All of the issued and outstanding stock of Franchisee is
owned, legally and beneficially, by the person or persons listed on Exhibit "B"
attached hereto.

         25.02.   The above-named person or persons has (have) individually, and
jointly and severally, executed this Agreement, and such person, or one of such
persons, is and shall be the chief executive officer of the Franchisee
corporation, holding such corporate office or offices as may be necessary to
maintain and exercise the actual power and authority actively to direct the
affairs of the Franchisee.

         25.03.   Franchisee is validly incorporated and duly existing under the
laws of the State of, is duly qualified to conduct business therein, and has
its principal place of business at. Franchisee shall promptly notify Franchisor
in writing of any change thereto during the term of this Agreement.

                         (SIGNATURES ON FOLLOWING PAGE)

                                                                              35
<PAGE>

         IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have duly executed, sealed, and delivered this Agreement in triplicate
on the day and year first above-written.

WITNESSES:                          CINNABON, INC., SUCCESSOR IN INTEREST TO
                                    SEATTLE'S BEST COFFEE, LLC

___________________________         By:_____________________________________

___________________________         Title:__________________________________

                                    DEVELOPER:

___________________________         By:_____________________________________

___________________________         Title:__________________________________

                     {SIGNATURE PAGE TO FRANCHISE AGREEMENT}

                                                                              36
<PAGE>

                                   EXHIBIT "A"

                              SEATTLE'S BEST COFFEE
                               FRANCHISE AGREEMENT

                           NOTICE OF COMMENCEMENT DATE

Name of Franchisee: ___________________________________________________

Franchise Agreement Dated: ____________________________________________

Franchise Premises Address: ___________________________________________

_______________________________________________________________________

_______________________________________________________________________

Store Number: _________________________________________________________

         NOTICE is hereby given to the abovementioned Franchisee pursuant to
Section 2.01 of the Franchise Agreement that the Term of the abovementioned
Franchise Agreement commenced on ________________, 200___, and that the Term
shall expire on ________________, _____, unless the Franchise Agreement is
terminated earlier, pursuant to its terms and conditions.

                                      SEATTLE'S BEST COFFEE, LLC.

                                      By:  __________________________________
                                      Title:  _______________________________
                                      Date of Notice:  ______________________

                                                                              37
<PAGE>

                                   EXHIBIT "B"

                           SHAREHOLDERS OF FRANCHISEE

                           (For Corporate Franchisees)

<TABLE>
<CAPTION>
  Name of                  Number of            % Ownership
Shareholders                Shares             of Franchisee          Title
------------               ---------           -------------          -----
<S>                        <C>                 <C>                    <C>
</TABLE>

                                                                              38<PAGE>

                                                                   EXHIBIT 10.89

                                  "SBC COFFEE"
                              DEVELOPMENT AGREEMENT
                                     BETWEEN

                    CINNABON, INC., SUCCESSOR IN INTEREST TO
                           SEATTLE'S BEST COFFEE, LLC

                                       AND

                           __________________________

                                       FOR

                           __________________________

                                           Contract No:_________________________
                                           No. of Options:______________________
                                           Date:________________________________
<PAGE>

                                  "SBC COFFEE"
                              DEVELOPMENT AGREEMENT
                                 (INTERNATIONAL)

         THIS AGREEMENT (the "Agreement") is made this ____ day of __________,
20__ , by and between CINNABON, INC., SUCCESSOR IN INTEREST TO SEATTLE'S BEST
COFFEE, LLC, a Washington corporation, with offices at Six Concourse Parkway,
Suite 1700, Atlanta, Georgia, 30328-5352 U.S.A. ("Franchisor" or "SBC") and
________, having its principal address at ________________ ("Developer").

                                   WITNESSETH:

         WHEREAS, Seattle's Best Coffee, LLC has developed, in the United
States, and owns a unique system for opening and retail operating cafes, kiosks
and custom mobile carts specializing in the preparation and sale of proprietary,
specialty coffee, beverages, coffee-based products and other menu items
developed and owned by Franchisor (the "SBC COFFEE System", "SBC System" or
"System");

         WHEREAS, the distinguishing characteristics of Franchisor's SBC COFFEE
System, in the United States, include, without limitation, the names "SBC", "SBC
COFFEE" and "SEATTLE'S BEST COFFEE"; specially designed buildings, distinctive
interior and exterior layouts, decor, color schemes, and furnishings;
confidential formulas and recipes used in the preparation of SBC Coffee
products; specialized menus; standards and specifications for equipment; and
equipment layouts, products, operating procedures, and management programs, all
of which may be changed, improved, and further developed by Franchisor from time
to time;

         WHEREAS, Franchisor identifies the SBC COFFEE System by means of
certain trade names, service marks, trademarks, logos, emblems, and indicia of
origin, including, but not limited to, the marks "SBC", "SBC COFFEE", "SEATTLE'S
BEST COFFEE" and such other trade names, service marks, trademarks, and trade
dress as are now, or may hereafter, be designated by Franchisor for use in
connection with the SBC COFFEE System ("Proprietary Marks");

         WHEREAS, pursuant to a Master License Agreement and First Amendment
thereto, both dated July 13, 2003, by and between Cinnabon Inc., SBC and Seattle
Coffee Company, SBC granted a license to CBI for the use of the SBC System and
proprietary marks in performing its obligations under this Agreement;

         WHEREAS, Franchisor continues to develop, use, and control the use of
such Proprietary Marks in order to identify for the public the source of
services and products marketed thereunder in the SBC COFFEE System and to
represent the SBC COFFEE System's high standards of quality, appearance, and
service;

<PAGE>

         WHEREAS, Developer wishes to obtain the development rights as described
herein for the area described on Exhibit A attached hereto and made a part
hereof (the "Territory"), in order to enter into franchise agreements with
Franchisor to open and operate retail cafes, kiosks and custom mobile carts
using the SBC System and the Proprietary Marks ("Franchised Units" or "SBC
Retail Units") in the Territory;

         WHEREAS, Franchisor has applied for registration of, or may have
registered, certain of the Proprietary Marks in the Territory; and

         WHEREAS, Developer understands the importance of the SBC COFFEE System
and Franchisor's high and uniform standards of quality, cleanliness, appearance,
and service, and the necessity of opening and operating SBC Retail Units in
conformity with the SBC COFFEE System.

         NOW, THEREFORE, the parties hereto agree as follows:

I.       DEFINITIONS

         1.01     For the purposes of this Agreement, the following terms shall
be deemed to have the definitions set forth below:

                  A.       "SBC Cafe" shall mean a free standing or in-line SBC
                           Retail Unit incorporating the full SBC Cafe design
                           and trade-dress and offering the full SBC Cafe menu;.

                  B.       "SBC Kiosk"" shall mean a self contained SBC Retail
                           Unit, incorporating less than the full SBC Cafe
                           design and trade-dress, with no dedicated seating for
                           customers (ie food court, kiosk, etc)

                  C.       "SBC Mobile Cart" shall mean a self-contained, mobile
                           cart, occupying a space of less than 20 square
                           meters, offering a limited number of proprietary SBC
                           coffee products under the Proprietary Marks and the
                           SBC System.

II.      GRANT

         2.01     Franchisor hereby grants the rights to Developer, and
Developer accepts the obligations, pursuant to the terms and conditions of this
Development Agreement and as long as Developer shall not be in a default of this
Agreement or any other development agreement, franchise agreement, or other
agreement between Developer (or any parent, subsidiary or affiliate of
Developer) and Franchisor, (or any parent, subsidiary or affiliate of
Franchisor) to establish and operate an aggregate of ________Franchised Units,
and to use the SBC System and

<PAGE>

Proprietary Marks solely in connection therewith, at specific locations to be
designated in and in accordance with the terms and conditions set forth in
separate franchise agreements ("Franchise Agreements") executed as provided in
Section 3.03 hereof, and pursuant to the schedule set forth in Exhibit B to this
Agreement ("Development Schedule"). Each Franchised Unit established pursuant
hereto shall be located within the Territory at locations approved by Franchisor
in accordance with this Agreement. No more than ___ Franchised Units developed
hereunder may be Kiosks and no more than ___ Franchised Units may be SBC Carts.
Developer must develop a minimum of ___ SBC Cafes hereunder prior to developing
any Kiosks and/or SBC Carts.

         2.02     Subject to the terms and conditions hereof, Franchisor shall
neither open and operate, nor license anyone other than Developer to open and
operate an SBC Retail Unit in the Territory prior to the last date specified in
the Development Schedule attached hereto as Exhibit B, without Developer's prior
written consent.

         2.03.    This Agreement is not a franchise agreement, and does not
grant Developer any right to use the Proprietary Marks, but merely sets forth
the terms and conditions under which Developer will be entitled to obtain a
franchise agreement.

         2.04.    Developer shall have no right under this Agreement to license
others to use the Proprietary Marks or the SBC COFFEE System.

         2.05     Franchisor reserves and retains the development rights to
establish and operate, and to license others to establish and operate, SBC
COFFEE Retail Units in the Territory at United States military bases or other
non-U.S. military facilities, which are now, or may at any time hereafter, be
located within the Territory; hospitals; schools; mass transportation vehicles,
including, without limitation, airplanes, trains, buses, and ferries and ships;
travel facilities, including, without limitation, airports, train stations, bus
terminals, highway travel plazas, and port facilities; sports facilities and
entertainment facilities, and related events, including, without limitation,
stadia, arenas, amphitheaters, theme parks, amusement parks, zoos, concert
venues, and drive-ins and theaters; governmental cooperatives; institutional
facilities and government facilities, including, without limitation, those
related to education, health care, the military, and any facility owned by,
operated by, or under contract with any government agency.

         2.06.    Franchisor represents that it has applied for or is applying
for the Proprietary Marks described in Exhibit C hereto. Developer acknowledges
that Franchisor has applied for, but may have not received as of the date of
this Agreement, registration in the Territory of certain of the Proprietary
Marks described in Exhibit C attached hereto; that Franchisor may be unable to
obtain registration of some or all of the Proprietary Marks for which
application has been made; and that Franchisor shall incur no liability to
Developer for any failure to obtain such registration. Developer acknowledges
Franchisor's right to require such modification, amendment, discontinuance, and
substitution of proprietary marks as described in Section V of the Franchise
Agreement.

<PAGE>

         2.07.    Developer agrees to:

         A.       cooperate with Franchisor, to the extent reasonably requested
         by Franchisor, in the registration and maintenance of its trademarks,
         service marks and trade names in the Territory. Developer shall
         promptly advise Franchisor, in writing, of any potentially infringing
         uses or claims made by others within the Territory of which Developer
         has knowledge, and Franchisor shall take such actions with respect
         thereto which it, in its sole discretion, deems advisable; and

         B.       execute and record any documents that are deemed necessary by
         Franchisor to obtain protection for the Proprietary Marks or to
         maintain their continued validity and enforceability by Franchisor in
         the Territory. However, Developer agrees not to make any application
         for registration in the Territory, or in any other country of the
         Proprietary Marks, or any trademarks or service marks confusingly
         similar thereto, or used by Franchisor in any country unless Franchisor
         directs, in writing, Developer to do so.

         2.08     Provided Developer is not otherwise in default under this
Development Agreement any Franchise Agreement issued hereunder and/or any other
agreement between Developer (or any parent, subsidiary or affiliate of
Developer), and Franchisor (or any parent, subsidiary or affiliate of
Franchisor), and except as otherwise set forth herein, Franchisor shall not,
directly or indirectly sell any SBC coffee or coffee products to any retail
account located within the Territory whose sale of coffee beverages by the cup
constitutes greater than 50% of such account's total coffee sales (a "Wet Coffee
Account") until the date upon which Developer has open and in operation at least
ten percent (10%) of the total number of Franchised Units required to be
developed hereunder in accordance with the Development Schedule attached hereto.
Notwithstanding the foregoing, Franchisor shall have the right, from time to
time, to grant third parties the right to distribute SBC coffee and coffee
products to Wet Coffee Accounts within the Territory (hereinafter, "Wet Venue
Distribution Rights"), in the event Franchisor determines, in its sole
discretion, that a significant business opportunity has presented itself which
would be in the interest of the SBC brand in the Territory, provided, however,
Developer shall have the right to "apply" for such Wet Venue Distribution Rights
within thirty (30) days of notice from Franchisor of its intention to grant such
rights within the Territory ("Developer's Application Period"). Developer's
Application Period shall be extended by sixty (60) days, in the event Franchisor
receives Developer's application, in satisfactory form, within such thirty (30)
day period. Franchisor shall not grant Wet Venue Distribution Rights in the
Territory to any third party prior to the expiration of Developer's Application
Period (as it may be extended), unless Franchisor receives a written waiver from
Developer or disapproves Developer's application prior to the expiration of such
Period. Franchisor shall have the right, in its sole discretion, to grant or not
grant the Wet Venue Distribution Rights to Developer. In the event Developer
fails to apply for the Wet Venue Distribution Rights within the initial thirty
(30) day period of the Developer's Application Period, or if Franchisor has
failed to approve Developer's application within the Developer's Application
Period (as extended), Franchisor shall then be free to grant

<PAGE>

the Wet Venue Distribution Right to any third party. For the purposes of this
Section 2.08, the term "Wet Coffee Account" shall not include any such account
located in (i) any premises owned or controlled by any governmental or
quasi-governmental authority, or (ii) any venue described in Section 2.05
hereof.

         2.09     Except as otherwise specifically set forth in Section 2.08
above, nothing herein shall be deemed, in any way, to limit Franchisor's right
to sell SBC coffee and related coffee products anywhere in the Territory,
including, but not limited to, sales on the Internet, by mail order, or through
wholesale distribution channels, including, but not limited to department
stores, food marts, and grocery stores, during and after the term of this
Agreement.

III.              FEES

         3.01     In consideration of the rights granted herein, Developer has
paid to Franchisor, upon execution of this Agreement, receipt of which is hereby
acknowledged, a territorial fee of _____________________________________ U.S.
dollars, in United States currency, which territorial fee has been fully earned
by Franchisor for administrative and other expenses incurred by Franchisor and
for the development opportunities lost or deferred as a result of the rights
granted Developer herein. The territorial fees shall be non-refundable.

         3.02     In consideration of the establishment of each SBC Cafe to be
developed hereunder and the assistance and services which will be received by
Developer under the franchise agreements, Developer shall pay to Franchisor a
non-refundable, franchise fee of Twenty Thousand U.S. Dollars (U.S. $20,000) per
SBC Cafe, payable _____________ U.S. Dollars (U.S. ________) per SBC Cafe upon
execution of this Agreement, and ____________ U.S. Dollars (U.S.___________) per
SBC Cafe, payable no later than execution of each franchise agreement for an SBC
Cafe, as described in Section IV hereof.

         In consideration of the establishment of each SBC Kiosk to be developed
hereunder and the assistance and services which will be received by Developer
under the franchise agreements, Developer shall pay to Franchisor a
non-refundable, franchise fee of Fifteen Thousand U.S. Dollars (U.S. $15,000)
per SBC Kiosk, payable _______________ U.S. Dollars (U.S. ________) per SBC
Kiosk upon execution of this Agreement, and ____________ U.S. Dollars (U.S.
_________) per SBC Kiosk payable no later than execution of each franchise
agreement for an SBC Kiosk, as described in Section IV hereof. The franchise
fees shall be non-refundable.

         In consideration of the establishment of each SBC Cart to be developed
hereunder and the assistance and services which will be received by Developer
under the franchise agreements, Developer shall pay to Franchisor a
non-refundable, franchise fee of Seven Thousand Five Hundred U.S. Dollars (U.S.
$7,500) per SBC Cart, payable _________________ U.S. Dollars (U.S. ________) per
SBC Cart upon execution of this Agreement, and _____________U.S. Dollars

<PAGE>

(U.S.________ ) per SBC Cart payable no later than execution of each franchise
agreement for an SBC Cart, as described in Section IV hereof.

         The total franchise fees payable upon execution of this Development
Agreement shall be ___________ Dollars ($__________) in United States currency.
The franchise fees shall be non-refundable.

IV.               DEVELOPMENT SCHEDULE

         4.01 Except as otherwise provided herein, this Agreement shall expire
on the earlier of (i) _____________________, or (ii) the opening of the last
Franchised Unit required to be developed under the Development Schedule (as
defined below).

         4.02 Developer shall have open and in operation the cumulative number
of SBC Retail Units in the Territory in accordance with the Development Schedule
set forth in Exhibit B hereto.

         4.03 Each SBC Retail Unit in the Territory shall be established and
operated pursuant to a franchise agreement in substantially the form of the
franchise agreement attached hereto as Exhibit D; provided, however, that
Franchisor reserves the right, in its sole discretion, to require that each SBC
Retail Unit be established and operated pursuant to Franchisor's then-current
standard international franchise agreement, except that the initial franchise
fee, royalty fee, and required advertising fees and expenditures shall remain
the same as in the Franchise Agreement attached hereto. Any franchise agreement
executed pursuant hereto shall be modified for use by Franchisor, with the
advice of Developer, to conform to the laws and customs of the Territory, as
appropriate.

         4.04 Developer shall have no right to establish an SBC Retail Unit in
the Territory after the last date specified in the Development Schedule.

         4.05. Recognizing that time is of the essence in this Agreement,
Developer agrees to exercise the development rights granted hereunder in the
manner specified in Section IV hereof and to satisfy the Development Schedule.
Failure by Developer to adhere to the Development Schedule shall constitute a
default under this Agreement, as provided in Section 9.03. hereof.

V.                FRANCHISED UNIT OPENINGS

         5.01. Before the commencement of construction, Developer shall submit a
description of each proposed site, accompanied by the proposed final and
complete plans and specifications for the construction (or renovation) and
decoration, for each Franchised Unit for approval by Franchisor. Franchisor
reserves the right to require Developer to transmit such information by modem or
such other electronic means as Franchisor designates from time to time. No site
package shall be reviewed or approved by Franchisor until Developer's
satisfactory completion of the New Franchisee Orientation Program described in
Section VII hereof. Franchisor shall evaluate each site package proposed and
shall promptly, but not more than thirty (30) days after

<PAGE>

receipt of Developer's complete proposal package, send to Developer (1) written
notice of approval or disapproval of the site and (2) a Franchise Agreement for
each approved site for execution by Developer. Franchisor shall not unreasonably
withhold site approval. Such site approval shall be valid for thirty (30) days
after notice of Franchisor's site approval and shall automatically expire,
without notice to Developer, if Franchisor does not receive from Developer,
within such thirty-day period, the items described in Section 5.02 hereof. If
Franchisor does not approve a site package within thirty (30) days, such site
package shall be deemed disapproved.

         5.02. Within thirty (30) days after notice of Franchisor's site
         approval, Developer shall execute the Franchise Agreement, and send to
         Franchisor the executed Franchise Agreement and payment of all fees
         required thereunder.

         A.       If Developer is a partnership, each general partner shall, and
         if Developer is a corporation, each stockholder holding a beneficial
         interest of five percent (5%) or more of the securities with voting
         rights of Developer or any corporation directly or indirectly
         controlling Developer shall, and if Developer is a limited liability
         company, each member shall guarantee the performance of the Franchise
         Agreement by executing the Franchisor's Franchise Agreement Guaranty
         and Indemnification Agreement attached as Exhibit E thereto.

         B.       If Developer fails to send the executed Franchise Agreement or
         payment of all fees required thereunder within such time period,
         Franchisor shall have the right, at its option, (1) to rescind the site
         approval granted in Section 5.01. hereof or (2) treat such failure as a
         material default under this Agreement, for which Franchisor shall have
         the right to any of the remedies described in Section 9.04. hereof.

         5.03.    Within ninety (90) days after notice of Franchisor's site
approval, Developer shall:

         A.       Submit, in writing to Franchisor, satisfactory proof to
         Franchisor that Developer:

                  (i)      owns the approved site;

                  (ii)     has leased the approved site for a term which, with
                  renewal options, is not less than the initial term of the
                  Franchise Agreement; or

                  (iii)    has entered into a written agreement to purchase or
                  to lease the approved site on terms provided herein, subject
                  only to obtaining necessary governmental permits. If Developer
                  leases the accepted site, the lease must provide: (a) that, in
                  the event Developer defaults under the lease, notice of the
                  default shall

<PAGE>

                  immediately be forwarded to Franchisor; and (b) that
                  Franchisor shall have the right, upon default under the lease
                  or other cessation of operation at the accepted site, to make
                  the modifications and alterations to the Franchised Unit set
                  forth in Section XVI of the Franchise Agreement.

         B.       Submit to Franchisor, and obtain Franchisor's written approval
         of, the final and complete plans and specifications for the
         construction (or renovation) and decoration of the Franchised Unit,
         which must be in conformity with Franchisor's standards and
         specifications for Franchised Units, as set out in the current
         Confidential Operating Standards Manual (as defined in Section VI
         hereof) or otherwise in writing (hereinafter, the "Construction
         Plans"). The final Construction Plans shall include, but are not
         limited to, floor plans, equipment layouts, decor, and interior and
         exterior elevations. Franchisor shall not approve the final
         Construction Plans until Developer submits the executed Franchise
         Agreement to Franchisor and all fees have been paid by Developer.

         5.04.    Developer shall procure the insurance coverage provided for in
Section XI of the Franchise Agreement, prior to commencement of construction of
a Franchised Unit, and shall maintain such insurance coverage throughout the
term of the Franchise Agreement.

         5.05.    No more than thirty (30) days after the Franchisor approves
Developer's Construction Plans, Developer shall commence construction or
renovation of the Franchised Unit. If commencement of construction or renovation
is delayed by a cause beyond the reasonable control of Developer, the date upon
which commencement of construction or renovation is to begin may be extended by
obtaining written approval of Franchisor.

         5.06.    Upon commencement of construction or renovation of the
Franchised Unit, Developer shall promptly notify Franchisor.

         5.07.    Developer shall have completed construction or renovation and
commenced operation of the Franchised Unit within one-hundred eighty (180) days
from the date of Franchisor's site approval described in Section 5.01. hereof.

         5.08.    At least thirty (30) days prior to the proposed commencement
of operation of each Franchised Unit, Developer shall notify Franchisor of such
proposed opening. Franchisor shall provide a representative to be present at the
opening of the first Franchised Unit for up to ten (10) working days. The
Franchised Unit shall not be opened unless such representative is present.
Should commencement of operation of the Franchised Unit be delayed by the
failure of Franchisor to provide such a representative, the date upon which
commencement of operation of the Franchised Unit is required pursuant to Exhibit
B of this Agreement, shall be extended until such time as such assistance is
provided by Franchisor. Upon Franchisor's request, Developer
<PAGE>

shall provide to Franchisor prompt assistance for, and such information, for
obtaining visas for such of Franchisor's employees to enter the Territory.

VI.               CONFIDENTIAL OPERATING STANDARDS MANUAL

         6.01.    Franchisor will loan one (1) copy of the Confidential
Operating Standards Manual ("Manual"), in the English language, to Developer ,
upon satisfactory completion of the NFOP training described in Section 7.01
hereof, for the duration of this Agreement, which Manual contains the standards,
specifications, procedures, and techniques of the SBC COFFEE System for the
operation of an SBC Retail Unit. The Manual may consist of one or more volumes.
Within ninety (90) days after completion of NFOP, Developer shall provide to
Franchisor, a proposed translation of the Manual into the principal local
language in the Territory and any adaptations to the Manual to the laws,
customs, and market characteristics of the Territory. No changes may be made to
the Manual without Franchisor's prior written approval. Upon completion of
translation of the Manual, the translator of the Manual shall certify to
Franchisor that its translation of the Manual is accurate and correct. Developer
shall bear all the cost and expense of Developer's proposed translation of the
Manual. Franchisor shall use its best efforts to review any proposed translation
and adaptation of the Manual within thirty (30) days of Developer's submission
to Franchisor of such translated and/or adapted Manual. If Franchisor does not
approve any translation and/or adaptation proposed by Developer within thirty
(30) days of Franchisor's receipt, such proposed translation and/or adaptation
shall be deemed disapproved. Franchisor may, in its sole discretion, correct the
proposed translation or adaptation of the Manual, and, in such event, Developer
shall bear all costs and expenses of such corrections. Upon request, Developer
shall provide to Franchisor a complete copy of the translated Manual.

         6.02.    Developer shall at all times treat the Manual, any other
manuals created for or approved for use in the operation of the Franchised
Units, and the information contained therein, as confidential; and shall use all
reasonable efforts to maintain such information secret and confidential in
accordance with Section XI hereof. Developer shall not, at any time, without
Franchisor's prior written consent, copy, duplicate, record, or otherwise make
the Manual available to any unauthorized person or source. All requirements
related to the Manual herein shall apply to the English-language version and the
foreign-language version of the Manual.

         6.03.    In order that Developer may benefit from new knowledge gained
by Franchisor as to improved techniques in the operation of the System,
Franchisor may from time-to-time revise the Manual.

         6.04.    The official text of the Manual shall be an English language
text. Developer shall at all times insure that its copy of the Manual is kept
current and up-to-date, and in the event of any dispute as to the contents of
Developer's Manual, the terms of the master copy of the Manual, in the English
language, maintained by Franchisor at Franchisor's home office, shall be
controlling.

<PAGE>

VII.              TRAINING AND SUPERVISION

         7.01.    Developer, or a partner of Developer if Developer is a
partnership, or a principal shareholder of Developer if Developer is a
corporation, or a principal member of Developer if Developer is a limited
liability company, must complete, to Franchisor's satisfaction, the New
Franchisee Orientation Program ("NFOP") within thirty (30) days of execution of
the Development Agreement. NFOP shall consist of up to forty (40) hours of
workshops and seminars conducted at a training facility in the United States
designated by Franchisor.

         7.02.    In addition to completing the NFOP, Developer or a partner,
principal shareholder, or member of Developer, and up to a minimum of four (4)
designated management employees of Developer, must attend and complete, to
Franchisor's satisfaction, the SBC Cafe Management Training program ("CMT"),
thirty (30) days prior to opening each Franchised Unit. The exact number of
Developer's management employees required to attend and complete CMT shall be
determined by Franchisor in its sole discretion, but in no event shall the
number be less than four (4). CMT shall consist of a minimum of [six (6) weeks]
of in-store cafe operations training at a facility designated by Franchisor (a
"Certified Training Facility") and certain classroom and/or self-directed study
programs. A management employee of Developer that successfully completes CMT
shall be certified by Franchisor as a "CMT Certified Manager".

         7.03.    The cost of conducting the NFOP and CMT programs (instruction
and required materials) shall be borne by Franchisor. All other expenses during
NFOP and CMT, including meals and lodging, wages and travel, shall be borne by
Developer. Franchisor may provide Developer's employees, from time to time, such
additional training programs as Franchisor may, in its sole discretion, choose
to conduct. Attendance at such training programs may be mandatory. All of
Developer's SBC Retail Unit managers and supervisory personnel attending any of
Franchisor's training programs shall be fluent in the English language.
Franchisor shall have the right to appoint an interpreter, at Developer's
expense, and for which Developer shall promptly reimburse Franchisor, if
Franchisor determines any trainee is not fluent in English.

         7.04.    Any employee of Developer replacing a person who has
previously received training under Sections 7.01 or 7.02 hereof shall attend
such training program within thirty (30) days of employment. Failure to attend
any training program required hereunder for any reason (including, without
limitation, failure to obtain a visa) shall constitute a default hereunder. Upon
Developer's request, Franchisor shall provide reasonable assistance to
Developer's employees in obtaining visas to enter the United States to attend
NFOP and any other training program.

         7.05.    Developer shall maintain a competent, conscientious, trained
staff, including a fully trained manager for each Franchised Unit, as provided
in the Franchise Agreement.

<PAGE>

         7.06.    Developer shall employ at least one supervisor, who shall meet
such standards as may reasonably be imposed by Franchisor in the Manual or
otherwise in writing, for every seven (7) Franchised Units operated by
Developer, to supervise and coordinate the operation of the Franchised Units.
Such supervisor shall be employed upon the commencement of operation of every
seventh (7th) Franchised Unit or multiple thereof.

         7.07.    Developer shall provide adequate Worker's Compensation or
comparable insurance applicable in the United States for all of Developer's
employees prior to such employees' commencement of any training program offered
by Franchisor and shall provide to Franchisor written certification or a copy of
such policy.

VIII.             OBLIGATIONS OF CORPORATE, PARTNERSHIP, OR LIMITED LIABILITY
                  COMPANY DEVELOPER

         8.01.    If Developer, or any successor to or assignee of Developer, is
a corporation or limited liability company:

         A.       Developer shall furnish to Franchisor, upon execution or any
                  subsequent transfer of this Agreement, a copy of the
                  Developer's Articles of Incorporation, Certificate of
                  Incorporation, Bylaws, operating agreement, and other
                  organizational documents, and shall thereafter promptly
                  furnish Franchisor with a copy of any and all amendments or
                  modifications thereto;

         B.       Developer shall promptly furnish Franchisor, on a regular
                  basis, with certified copies of such corporate records or
                  limited liability company records material to Developer's
                  business as Franchisor may require from time to time in the
                  Confidential Operating Standards Manual or otherwise in
                  writing; and

         C.       Developer shall maintain stop-transfer instructions against
                  the transfer, on its records, of any securities with voting
                  rights, subject to the restrictions of this Agreement, and
                  each stock certificate of the corporate Developer representing
                  each share of stock, shall have conspicuously endorsed upon it
                  the following legend:

                  "THE TRANSFER OF THIS STOCK IS SUBJECT TO THE TERMS AND
                  CONDITIONS OF AN SBC COFFEE DEVELOPMENT AGREEMENT
                  (INTERNATIONAL) WITH SEATTLE'S BEST COFFEE, LLC DATED_______.
                  REFERENCE IS MADE TO THE PROVISIONS OF SAID FRANCHISE
                  AGREEMENT AND TO THE ARTICLES AND BY-LAWS OF THIS
                  CORPORATION."

<PAGE>

         8.02.    If the Developer or any successor to or assignee of Developer,
is a partnership, limited partnership or limited liability partnership,
Developer shall furnish to Franchisor, upon execution or any subsequent transfer
of this Agreement, a copy of Developer's Articles of Partnership, if any, and
Partnership Agreement, and shall thereafter promptly furnish Franchisor with a
copy of any and all amendments or modifications thereto.

         8.03.    Developer shall, upon execution of this Agreement, furnish to
Franchisor a completed Statement of Legal Composition attached as Exhibit F
hereto as to all the parties with an ownership interest in Developer, the amount
of such ownership interests, the jurisdiction in which Developer is legally
incorporated or organized, and other information specified. Developer shall
thereafter furnish to Franchisor an updated Statement of Legal Composition
promptly when requested by Franchisor. Developer shall promptly advise
Franchisor of any change in such information. Developer warrants, represents,
and covenants to Franchisor that all of the information furnished in the
completed Statement of Legal Composition is true and correct as of the date of
this Agreement, and when subsequently furnished to Franchisor.

IX.               DEFAULT AND TERMINATION

         9.01.    The rights granted to Developer in this Agreement have been
granted based upon Developer's representations and assurances, among others,
that the obligations set forth in Sections III and IV of this Agreement will be
met by Developer in a timely manner.

         9.02.    Developer shall be deemed to be in default under this
Agreement, and all rights granted herein shall automatically terminate without
notice to Developer, if Developer shall become insolvent or make a general
assignment for the benefit of creditors; if a petition in bankruptcy is filed by
Developer or such a petition is filed against Developer and not opposed by
Developer; or if Developer is adjudicated bankrupt or insolvent; or if a
receiver or other custodian (permanent or temporary) of Developer's assets or
property, or any part thereof, is appointed by any court of competent
jurisdiction; or if proceedings for a composition with creditors under the
applicable law of any jurisdiction should be instituted by or against Developer;
or if a final judgment remains unsatisfied or of record for thirty (30) days or
longer (unless a supersede as bond is filed or other steps taken to effectively
stay enforcement of such judgment in the relevant jurisdiction); or if Developer
is dissolved; or if execution is levied against a material portion of
Developer's property or business; or if suit to foreclose any lien or mortgage
against the premises or equipment of any SBC Retail Unit developed hereunder is
instituted against the Developer and not dismissed within thirty (30) days; or
if the real or personal property of any SBC Retail Unit developed hereunder
shall be sold after levy thereupon by any sheriff, Marshall, constable or other
equivalent governmental authority.

         9.03.    In the event any of the following failures by Developer
occurs, such failure shall constitute a default under this Agreement for which
Franchisor shall have the remedies described in Section 9.04. hereof:

<PAGE>

         A.       If Developer fails to comply with any material terms of this
         Agreement (including, without limitation, the Development Schedule); or

         B.       If Developer or any affiliate of Developer fails to obtain
         Franchisor's approval of a site or construction plans and
         specifications prior to commencement of construction; or

         C.       If Developer or any affiliate of Developer fails to comply
         with any material term or condition of any franchise agreement covering
         an SBC Retail Unit developed hereunder or any other agreement between
         (i) Developer or an affiliate of Developer and (ii) Franchisor or any
         affiliate of Franchisor; or

         D.       If Developer or any affiliate of Developer fails to cure any
         default of such agreement after having been provided with a notice to
         cure (in the event of such a failure in Section 8.02.C or D hereof,
         that Franchisor would be entitled, under such agreement's terms, to
         terminate such agreement for default).

         9.04.    Upon each such default described in Section 9.03. hereof,
Franchisor, in its discretion, may do any one or more of the following,
effective immediately upon delivery of notice of default by Franchisor to
Developer pursuant to Section XII hereof:

         A.       Terminate this Agreement and all rights granted hereunder
         without affording the Developer any opportunity to cure the default;

         B.       Reduce the number of Franchised Units which Developer is
         required to establish pursuant to Section I of this Agreement;

         C.       Terminate the territorial exclusivity granted Developer in
         Section I hereof or reduce the area of territorial exclusivity granted
         Developer hereunder;

         D.       Reduce the size of the Territory granted Developer hereunder;

         E.       Withhold evaluation or approval of site proposal packages and
         refuse, pending satisfactory cure of any such default, the opening of
         any Franchised Unit then under construction or not otherwise ready to
         commence operations; and

         F.       Accelerate the Development Schedule set forth in Exhibit B
         hereto.

In addition to the foregoing, Franchisor shall be entitled to pursue any other
remedies available hereunder or at law or in equity.

         9.05.    A default in the Development Schedule under this Development
Agreement shall not constitute a default under any existing Franchise Agreement
between the parties hereto.

<PAGE>

         9.06. Upon termination or expiration of this Agreement, all rights
granted herein shall forthwith terminate, and:

         A.       Developer shall immediately cease to operate as an SBC COFFEE
         Developer, and Developer shall have no right to establish or operate
         any SBC Retail Unit for which a Franchise Agreement has not been
         executed by the parties thereto at the time of termination. Upon
         termination of this Agreement, Franchisor shall be entitled to
         establish, and to license others to establish, SBC Retail Units in the
         Territory, except as may be otherwise provided under any franchise
         agreement which has been executed between Franchisor and Developer, and
         which has not been terminated;

         B.       Developer shall immediately pay all sums owing to Franchisor
         and its subsidiaries and affiliates; and

         C.       If no Franchise Agreement has been executed pursuant hereto,
         Developer shall immediately return to Franchisor all copies of the
         Manual. If one or more Franchise Agreements have been executed pursuant
         hereto, the use of such copies of the Manual shall be governed by the
         terms of such Franchise Agreements.

X.                TRANSFERABILITY OF INTEREST

         10.01.   Transfer by Franchisor. This Agreement shall inure to the
benefit of the successors and assigns of Franchisor. Franchisor shall have the
right, without Developer's prior consent, to transfer or assign its interest in
this Agreement to any person, persons, partnership, association, or corporation,
and Developer agrees promptly to execute any documents requested by Franchisor
in connection therewith. If Franchisor's assignee assumes all the obligations of
Franchisor hereunder and sends written notice of the assignment so attesting,
Developer agrees promptly to execute a general release of Franchisor, and any
affiliates of Franchisor, from claims or liabilities of Franchisor under this
Agreement.

         10.02.   Transfer by Developer. Developer understands and acknowledges
that the rights and duties set forth in this Agreement are unique to Developer,
and that Franchisor has granted this Agreement in reliance on Developer's
business skill and financial capacity. Accordingly, neither (i) Developer nor
(ii) any immediate or remote successor to Developer, nor (iii) any individual,
partnership, corporation or other legal entity which directly or indirectly owns
any interest in Developer, or in this Development Agreement, shall sell, assign,
transfer, convey, donate, pledge, mortgage, or otherwise encumber any rights or
obligations under this Agreement, any direct or indirect interest in this
Agreement, or in Developer without the prior written consent of Franchisor. Any
purported assignment or transfer, by operation of law or otherwise, not having
the prior written consent of Franchisor, shall be null and void, and shall
constitute a

<PAGE>

material breach of this Agreement, for which Franchisor may then terminate
without opportunity to cure pursuant to Section 9.03 of this Agreement.

         10.03.   Conditions for Consent. Franchisor shall not unreasonably
withhold its consent to any transfer referred to in this Section hereof for the
remainder of the term hereof, when requested; provided, however, that prior to
the time of transfer:

         A.       All of Developer's accrued monetary obligations to Franchisor,
         its subsidiaries and affiliates shall have been satisfied;

         B.       Developer shall have agreed to remain obligated under the
         covenants contained in Section XI and XII hereof as if this Agreement
         had been terminated on the date of the transfer;

         C.       The transferee must be of good moral character and reputation,
         in the sole judgment of the Franchisor;

         D.       The transferee shall have demonstrated to Franchisor's
         satisfaction, by meeting with the Franchisor or otherwise at
         Franchisor's option, that the transferee's qualifications meet the
         Franchisor's then-current criteria for a new developer;

         E.       The parties must execute a written assignment, in a form
         satisfactory to Franchisor, pursuant to which the transferee shall
         assume all of the obligations of the individual or entity which is the
         transferor under this Agreement and pursuant to which Developer shall
         generally release any and all claims it might have against Franchisor
         as of the date of the assignment;

         F.       The parties must, at Franchisor's option, provide Franchisor
         with a copy of the purchase and sale agreement and such other documents
         as Franchisor may reasonably request in connection therewith;

         G.       Developer must make, in conjunction with the transfer of
         Developer's rights and obligations under this Agreement, a simultaneous
         transfer to the same transferee of all comparable interests held by
         Developer in all Franchise Agreements executed pursuant hereto and, in
         conjunction with such transfer, shall execute and require all
         Franchisees under Franchise Agreements executed pursuant hereto to
         execute all documents reasonably required to effect such transfer;

         H.       The transferee must, at Franchisor's option, execute
         Franchisor's then-current standard international form of SBC COFFEE
         Development Agreement and such other then-current ancillary agreements
         as Franchisor may reasonably require. The then-current form of standard
         international SBC COFFEE

<PAGE>

         Development Agreement may have significantly different provisions from
         the provisions herein; provided, however, the terms and conditions in
         Exhibits A and B hereto shall be Exhibits A and B to such development
         agreement;

         I.       If the transferee is a partnership or a limited liability
         company, the partnership agreement or limited liability company
         organizational documents shall provide that further assignments or
         transfers of any interest in the partnership or limited liability
         company, respectively, are subject to all restrictions imposed upon
         assignments and transfers in this Agreement;

         J.       Developer shall, at Franchisor's option and request, execute a
         written guarantee of the transferee's obligations under the Agreement,
         which such guarantee shall not exceed a period of one (1) year from the
         date of transfer, and all principals of the transferee shall also
         guarantee Developer's obligations hereunder; and

         K.       The Developer or the transferee shall have paid to Franchisor
         a transfer fee of Five Thousand U.S. Dollars (U.S. $5,000), and any out
         of pocket expenses associated with reviewing the application to
         transfer, including, without limitation, legal and accounting fees to
         cover Franchisor's administrative expenses in connection with the
         transfer, and a training fee of Five Thousand U.S. Dollars (U.S.
         $5,000), but no territorial fees shall be charged by Franchisor for a
         transfer.

         10.04.   Grant of Security Interest. Developer shall grant no security
interest in this Agreement unless the secured party agrees that, in the event of
any default by Developer under any documents related to the security interest,
(i) Franchisor shall be provided with notice of default in the English language
and be given a reasonable time within which to cure said default, (ii)
Franchisor shall have the right and option to be substituted as obligor to the
secured party and to cure any default of Developer or to purchase the rights of
the secured party upon payment of all sums then due to such secured party,
except such amounts which may have become due as a result of any acceleration of
the payment dates based upon the Developer's default, and (iii) such other
requirements as Franchisor, in its sole discretion, deems reasonable and
necessary to protect the integrity of the Proprietary Marks and the System.

         10.05.   Death or Mental Incapacity. Upon the death or mental
incapacity of any person with an interest in this Agreement or in Developer, the
executor, administrator, or personal representative of such person shall
transfer his interest to a third party approved by Franchisor within twelve (12)
months after such death or mental incapacity. Such transfer, including, without
limitation, transfer by devise or inheritance, shall be subject to the same
conditions as any inter vivos transfer. However, in the case of transfer by
devise or inheritance, if the heirs or beneficiaries of any such person are
unable to meet the conditions in this Section X, the personal representative of
the deceased party shall have a reasonable time, but no more than eighteen (18)
months after the death of such person, to dispose of the deceased's interest in
this Agreement and

<PAGE>

the business conducted pursuant hereto, which disposition shall be subject to
all the terms and conditions for assignments and transfers contained in this
Agreement. If the interest is not disposed of within twelve (12) or eighteen
(18) months, whichever is applicable, Franchisor may terminate this Agreement,
pursuant to Section 9.03 hereof.

         10.06.   Right of First Refusal. Any party holding any interest in this
Agreement or in Developer, and who desires to accept any bona fide offer from a
third party to purchase such interest, shall notify Franchisor in English in
writing of such offer within ten (10) days of receipt of such offer, and shall
provide such information and documentation relating to the offer as Franchisor
may require. Franchisor shall have the right and option, exercisable within
thirty (30) days after receipt of such written notification, to send written
notice to the seller that Franchisor intends to purchase the seller's interest
on the same terms and conditions offered by the third party. In the event that
Franchisor elects to purchase the seller's interest, closing on such purchase
must occur within sixty (60) days from the date of notice to the seller of the
election to purchase by Franchisor. Any material change in the terms of any
offer prior to closing shall constitute a new offer subject to the same rights
of first refusal by Franchisor as in the case of an initial offer. Failure of
Franchisor to exercise the option afforded by this Section 10.06 shall not
constitute a waiver of any other provisions of this Agreement, including all of
the requirements of this Section X, with respect to a proposed transfer.

         In the event the consideration, terms, and/or conditions offered by a
third party are such that Franchisor may not reasonably be required to furnish
the same consideration, terms, and/or conditions, then Franchisor may purchase
the interest in this Agreement, Developer, or Developer's business proposed to
be sold for the reasonable equivalent in cash. If the parties cannot agree
within a reasonable time as to the reasonable equivalent in cash of the
consideration, terms, and/or conditions offered by the third party, an
independent appraiser shall be designated by Franchisor, and his determination
shall be binding upon the parties.

         10.07.   Offerings by Developer. Securities or partnership interests in
Developer may be offered to the public, by private offering or otherwise, only
with the prior written consent of Franchisor, which consent shall not be
unreasonably withheld. All materials required for such offering by applicable
law shall be submitted to Franchisor for review prior to their being filed with
any governmental agency; and any materials to be used in any exempt offering
shall be submitted to Franchisor for review prior to their use. No offering of
such securities shall imply (by use of the Proprietary Marks or otherwise) that
Franchisor is participating in the underwriting, issuance, or offering of
securities by Developer or Franchisor; and Franchisor's review of any offering
shall be limited solely to the subject of the relationship between Developer and
Franchisor. Developer and the other participants in the offering must fully
indemnify Franchisor in connection with the offering. For each proposed
offering, Developer shall pay to Franchisor a non-refundable fee of Five
Thousand U.S. Dollars (U.S. $5,000), or such greater amount as is necessary to
reimburse Franchisor for its reasonable costs and expenses associated with
reviewing the proposed offering, including, without limitation, legal and
accounting fees.

<PAGE>

Developer shall give Franchisor written notice at least thirty (30) days prior
to the date of commencement of any offering or other transaction covered by this
Section 10.07.

         10.08.   Shareholder's Covenant Not to Transfer. If Developer is a
corporation, Developer shall require each shareholder holding an interest in
Developer to execute a covenant agreeing not to transfer any shares in
Developer, except in accordance with the terms and conditions of this Agreement,
and shall promptly deliver such covenant to Franchisor upon request.

XI.               CONFIDENTIAL INFORMATION

         11.01.   Developer shall not, during the term of this Agreement or
thereafter, communicate, divulge, or use for the benefit of any other person,
persons, partnership, association, or corporation, any confidential information,
knowledge, or know-how concerning the construction and methods of operation of
any Franchised Unit which may be communicated to Developer, or of which
Developer may be apprised, by virtue of Developer's operation under the terms of
this Agreement. Developer shall divulge such confidential information only to
such employees of Developer as must have access to it in order to fulfill the
development obligations hereunder and to establish and operate the Franchised
Units pursuant to the Franchise Agreement and as Developer may be required by
law, provided, Developer shall give Franchisor prior written notice of any such
required disclosure immediately upon receipt of notice by Developer in order for
Franchisor to have the opportunity to seek a protective order or take such other
actions as it deems appropriate under the circumstances.

         11.02.   Any and all information, knowledge, and know-how, including,
without limitation, drawings, materials, equipment, recipes, prepared mixtures
or blends of spices or other food products, and other data, which Franchisor
designates as confidential, and any information, knowledge, or know-how which
may be derived by analysis thereof, shall be deemed confidential for purposes of
this Agreement.

         11.03.   Developer shall require all of Developer's employees and
general partners, and all members, officers, directors, and holders of direct or
indirect beneficial ownership interests of five percent (5%) or more in
Developer as a condition of their employment or ownership, to execute a
confidentiality and non-competition agreement, in the form attached as Exhibit G
hereto (or such other form as Franchisor reasonably directs, from time to time)
in English and the local language in the Territory, prohibiting them during the
term of their employment by, or ownership in, Developer, or thereafter, from
communicating, divulging, or using for the benefit of any person, persons,
partnership, corporation, association, or any other entity, any confidential
information, knowledge, or know-how concerning the methods of operation under
the System which may be acquired during the term of their association with
Developer and containing covenants similar to those in Section XII hereof. Every
agreement required by this Section 11.03 shall identify Franchisor as a
third-party beneficiary of such agreements with the independent right to enforce
them, or shall make a Franchisor a party to such agreements, as directed by
Franchisor.

<PAGE>

XII.              COVENANTS

         12.01.   Developer specifically acknowledges that, pursuant to this
Agreement, Developer will receive valuable specialized training and confidential
information, including, without limitation, information regarding the
operational, sales, promotional, and marketing methods and techniques of
Franchisor and the System. Developer covenants that, during the term of this
Agreement, except as otherwise approved in writing by Franchisor, Developer
(who, unless otherwise specified, shall include, for purposes of this Section
XII, collectively and individually, (1) all officers, directors and holders of a
beneficial interest of five percent (5%) or more of the securities with voting
rights of Developer and of any corporation, directly or indirectly controlling
Developer, if Developer is a corporation, and (2) the general partner and any
limited partners, including any corporation, and the officers, directors and
holders of a beneficial interest of five percent (5%) or more of securities with
voting rights of a corporation which controls, directly or indirectly, any
general or limited partner, if Developer is a partnership, and (3) any members
and managers and holders of a beneficial interest of five percent (5%) or more
of securities with voting rights of any corporation which controls directly or
indirectly, any limited liability company) shall not, either directly or
indirectly, for Developer or through or on behalf of, or in conjunction with,
any person, persons, partnership, corporation, or other entity:

         A.       Divert or attempt to divert any business or customer of the
         SBC Retail Units to any competitor by direct or indirect inducements or
         otherwise, or to do or perform, directly or indirectly, any other act
         injurious or prejudicial to the goodwill associated with Franchisor's
         Proprietary Marks and the System;

         B.       Employ or seek to employ any person who is at that time
         employed by Franchisor or by any other SBC COFFEE franchisee, or
         developer, or otherwise directly or indirectly induce such person to
         leave his or her employment; or

         C.       Own, maintain, operate, engage in, or have an interest in any
         business that offers, sells and/or distributes specialty coffee
         products and/or any product or service which is the same as or similar
         to a product or service offered by SBC Retail Units under the System (a
         "Coffee Business"); provided, however, that the term "Coffee Business"
         shall not apply to (i) any business operated by Developer or an
         affiliate of Developer under an agreement with Franchisor or an
         affiliate of Franchisor and/or (ii) any business in which the sale of
         coffee and/or coffee products constitutes less than ten percent (10%)
         of annual gross sales.

         12.02.   Developer covenants that, except as otherwise approved in
writing by Franchisor, Developer shall not, regardless of the cause for
termination, either directly or indirectly, for Developer, or through, on behalf
of, or in conjunction with any person, persons, partnership, corporation, or
other entity:

<PAGE>

         A.       For a period of two (2) years following the termination or
         expiration of this Agreement, own, maintain, engage in, or have an
         interest in any Coffee Business which is located within a radius of ten
         (10) miles of the location of any SBC Retail Unit under the SBC System,
         whether owned by Franchisor or any other SBC COFFEE franchisee, which
         is in existence as of the date of expiration or termination of this
         Development Agreement; and

         B.       For one (1) year following termination or expiration of this
         Agreement, employ or seek to employ any person who is at that time
         employed by Franchisor or by any other SBC COFFEE franchisee or
         developer, or otherwise directly or indirectly induce such person to
         leave his or her employment.

         12.03.   The parties agree that each of the foregoing covenants shall
be construed as independent of any other covenant or provision of this
Agreement. If all or any portion of a covenant in this Section XII, is held
unreasonable or unenforceable by a court or agency having jurisdiction in a
final decision, Developer expressly agrees to be bound by any lesser covenant
subsumed within the terms of such covenant that imposes the maximum duty
permitted by law, as if the resulting covenant was separately stated in and made
a part of this Section XII.

         A.       Developer understands and acknowledges that Franchisor shall
         have the right, in its sole discretion, to reduce the scope of any
         covenant set forth in Sections 12.02. and 12.03. of this Agreement, or
         any portion thereof, without Developer's consent, effective immediately
         upon receipt by Developer of written notice thereof, and Developer
         agrees that it shall comply with any covenant as so modified, which
         shall be fully enforceable notwithstanding the provisions of Section XX
         hereof.

         B.       The parties acknowledge that any violation by Developer of any
         provisions of Section XI or any of the covenants in this Section XII
         will cause irreparable harm to Franchisor. Accordingly, Developer
         agrees that upon proof of the existence of a violation of any of said
         provisions or covenants, Franchisor will be entitled to injunctive
         relief against Developer in any court of competent jurisdiction having
         authority to grant such relief, together with all costs and reasonable
         attorney's fees incurred by Franchisor in bringing such action.

                  12.04    Developer agrees not to make any application for
                  registration of the Proprietary Marks in any Country, during
or after the term of this Development Agreement and/or the Franchise Agreement
issued hereunder, without the specific, written request and/or approval of
Franchisor.

<PAGE>

XIII.             NOTICES

         Any and all notices required or permitted under this Agreement shall be
in writing, in the English language, and shall be delivered by any means which
will provide evidence of the date received to the respective parties at the
following addresses or telefax numbers unless and until a different address or
telefax number has been designated by written notice to the other party:

Notices to Franchisor:              SBC Legal Department
                                    c/o AFC Enterprises, Inc.
                                    Six Concourse Parkway
                                    Suite 1700
                                    Atlanta, Georgia  30328-5352
                                    U.S.A.
                                    Telefax Number: (770) 353-3060

with copies to:                     President, International Division
                                    AFC Enterprises, Inc.
                                    Six Concourse Parkway
                                    Suite 1700
                                    Atlanta, Georgia  30328-5352
                                    U.S.A.
                                    Telefax Number: (770) 353-3312

Notices to Developer:               _______________________________
                                    _______________________________
                                    _______________________________
                                    _______________________________
                                    Telefax Number:________________

         All written notices and reports permitted or required to be delivered
by the provisions of this Agreement shall be addressed to the party to be
notified at its most current principal business address or telefax number of
which the notifying party has been notified under the provisions of this Section
XIII and shall be deemed so delivered (i) at the time delivered by hand; (ii)
one (1) business day after sending by telegraph, telefax or comparable
electronic system; provided, however, any notice by telegraph, telefax, or
comparable electronic system must have evidence of delivery; or (iii) if sent by
registered or certified mail or by other means which affords the sender evidence
of delivery, on the date and time of receipt or attempted delivery, if delivery
has been refused or rendered impossible by the party being notified.

XIV.              NON-WAIVER

         14.01.   No failure of Franchisor to exercise any power reserved to it
in this Agreement, or to insist upon compliance by Developer with any obligation
or condition in this Agreement, and

<PAGE>

no custom or practice of the parties at variance with the terms hereof, shall
constitute a waiver of Franchisor's right to demand exact compliance with the
terms of this Agreement. Waiver by Franchisor of any particular default shall
not affect or impair Franchisor's right with respect to any subsequent default
of the same or of a different nature, nor shall any delay, forbearance, or
omission of Franchisor to exercise any power or rights arising out of any breach
or default by Developer of any of the terms, provisions, or covenants of this
Agreement, affect or impair Franchisor's rights, nor shall such constitute a
waiver by Franchisor of any rights hereunder or right to declare any subsequent
breach or default. Subsequent acceptance by Franchisor of any payments due to it
shall not be deemed to be a waiver by Franchisor of any preceding breach by
Developer of any terms, covenants, or conditions of this Agreement.

         14.02.   Except as otherwise provided herein, neither Franchisor nor
Developer shall be liable for loss or damage or deemed to be in breach of this
Agreement if its failure to perform its obligations results from (l) acts of
God; (2) fires, strikes, embargoes, war or riot; (3) typhoons or earthquakes;
(4) governmental restrictions (including delay in, or rejection of, the issuance
of permits or approvals); or (5) any other similar event or cause.
Notwithstanding the foregoing, the non-performing party must immediately notify
the other of its inability to perform, and shall expeditiously resume
performance upon cessation of the impairment. Any such delay which results in
the inability to perform for at least sixty (60) consecutive days shall extend
performance for a time equal to the delay caused directly thereby or shall
excuse performance, in whole or in part, as may be reasonably determined by
Franchisor.

         14.03.   Developer acknowledges and agrees that Franchisor's
performance of its obligations under this Agreement are subject to the laws of
the United States and foreign countries, and that Franchisor shall not be liable
to Developer for any failure by Franchisor to perform any obligations hereunder
due to Franchisor's compliance with any such laws.

XV.               INDEPENDENT CONTRACTOR AND INDEMNIFICATION

         15.01.   It is understood and agreed by the parties hereto that this
Agreement does not create a fiduciary relationship between them, that Developer
is an independent contractor, and that nothing in this Agreement is intended to
constitute either party an agent, legal representative, subsidiary, joint
venturer, partner, employee, or servant of the other for any purpose whatsoever.

         15.02.   Developer shall hold itself out to the public to be an
independent contractor operating pursuant to this Agreement. Developer agrees to
take such actions as shall be necessary to that end.

         15.03.   Developer understands and agrees that nothing in this
Agreement authorizes the Developer to make any contract, agreement, warranty, or
representation on Franchisor's behalf, or to incur any debt or any other
obligation in Franchisor's name, and that Franchisor shall in no event assume
liability for, or be deemed liable hereunder as a result of, any such action or
by reason of any act or omission of Developer, or any claim or judgement arising
therefrom.

<PAGE>

         15.04.   Developer shall indemnify and hold Franchisor and Franchisor's
officers, directors, shareholders, and employees harmless (1) against any and
all claims arising directly or indirectly from, as a result of, or in connection
with, Developer's activities, as well as the cost of defending against such
claims, (2) for all costs, expenses, or losses incurred by Franchisor in
enforcing the provisions hereof or in upholding the propriety of any action or
determination by Franchisor pursuant to this Agreement, or (3) arising in any
manner from Developer's breach of or failure to perform any covenant or
obligation hereunder, including, without limitation, reasonable attorney's fees
incurred by Franchisor in connection with any litigation relating to any aspect
of this Agreement, unless Developer shall be found, after due legal proceedings,
to have complied with all of the terms, provisions, conditions and covenants
hereof.

XVI.              TAXES, PERMITS, AND INDEBTEDNESS

         16.01.   Developer shall promptly pay when due all duties, taxes,
contract registration charges, together with any interest and penalties, and all
accounts and other indebtedness of every kind incurred by Developer in the
conduct of Developer's business under this Agreement.

         16.02.   Developer shall comply with all applicable laws and
regulations, and shall timely obtain any and all permits, certificates, or
licenses necessary for the full and proper conduct of the businesses operated
under this Agreement, including, without limitation, licenses to do business,
trade name registrations, sales tax permits and fire clearances. Developer
represents and warrants that Developer can legally do business in the Territory,
and that the ownership interests in Developer of Developer's principals do not
violate any laws or regulations in the Territory.

         16.03.   Any and all governmental charges arising out of or relating to
this Agreement, or any amendment hereto, in the form of registration fees,
surtax, stamp duties, income tax or other governmental rates, taxes or charges
of any nature whatsoever, shall be paid (l) by Developer when such charges are
assessed against Developer and are due under any national or local law in effect
in the country in which Developer's principal place of business is located, and
(2) by Franchisor when such charges are assessed against Franchisor and are due
under the laws of the Territory or the United States of America; provided,
however, Developer shall be responsible for withholding and timely paying over
to the appropriate authorities in the Territory any and all withholding taxes
which are assessed on or against any amounts owed to Franchisor under this
Agreement. Developer shall provide proof to the Franchisor of its withholding
and timely payment of any such taxes. Developer shall indemnify Franchisor for
any assessments that might be made against Franchisor under the terms of this
Agreement by any governmental authority having jurisdiction within the country
in which the Retail Unit is located for Developer's failure to withhold or
timely pay over any such withholding taxes.

         16.04.   Developer shall notify Franchisor in writing within five (5)
days of the commencement of any action, suit or proceeding, and of the issuance
of any order, writ,

<PAGE>

injunction, award or decree of any court, agency, or other governmental
instrumentality, which may adversely affect, in a material manner, the operation
or the financial condition of Developer.

XVII.             APPROVALS

         17.01.   Whenever this Agreement requires the prior approval of
Franchisor, Developer shall make a timely written request to Franchisor
therefor, and, except as may otherwise be expressly provided herein, any
approval or consent granted shall be in writing.

         17.02.   Franchisor makes no warranties or guaranties upon which
Developer may rely, and assumes no liability or obligation to Developer or any
third party to which Franchisor would not otherwise be subject, by providing any
waiver, approval, advice, consent, or services to Developer in connection with
this Agreement, or by reason of any neglect, delay, or denial of any request
therefor.

XVIII.            ACKNOWLEDGMENTS AND DISCLAIMERS

         18.01.   Developer acknowledges that the success of the business
venture contemplated by this Agreement involves substantial business risks and
will be largely dependent upon the ability of Developer's principals as
independent businesspeople. Franchisor expressly disclaims the making of, and
Developer acknowledges not having received, any warranty or guaranty, expressed
or implied, as to the potential volume, profits, or success of the business
venture contemplated by this Agreement.

         18.02.   Developer acknowledges that Developer has received, read, and
understood this Agreement, the exhibits hereto, and agreements relating hereto,
if any; and the Franchisor has accorded Developer ample time and opportunity to
consult with advisors of Developer's own choosing about the potential benefits
and risks of entering into this Agreement.

         18.03.   Both Franchisor and Developer further acknowledge and agree
that Franchisor has operated no Coffee SBC Retail Unit under the System in the
Territory; that Franchisor has made no representations or guarantees to
Developer as to the viability, marketability, or adaptability in the Territory
of the Franchisor's System, SBC Retail Units, or the products or services sold
therefrom; that, prior to execution of this Agreement, Developer has performed
its own independent research and investigation as to the viability,
marketability, and adaptability in the Territory of the System, SBC Retail
Units, and the products and services sold therefrom; has determined the
availability of adequate food and non-food suppliers in the Territory and
assumes all of the business risks associated therewith. Developer acknowledges
and agrees that (1) the Development Schedule constitutes only an agreement by
Franchisor and Developer as to the number of SBC Retail Units to be developed
hereunder and is not a warranty or representation by Franchisor that Developer
can or will achieve such development or that such number of SBC Retail Units can
be successfully operated within the Territory; and (2) Franchisor is relying on
Developer's business knowledge and expertise in the Territory and the business
customs therein,

<PAGE>

as to various aspects of the Developer's business hereunder, including, without
limitation, Developer's selection of sites for SBC Retail Units, advertising for
the SBC Retail Units in the Territory, and the availability of adequate food and
non-food suppliers.

         18.04.   Developer hereby acknowledges and agrees that Franchisor's
approval of a site for any SBC Retail Unit does not constitute an assurance,
representation or warranty of any kind, express or implied, as to the
suitability of any site for such SBC Retail Unit or for any other purpose.
Franchisor's approval of a site indicates only that Franchisor believes the site
complies with acceptable minimum criteria established by Franchisor solely for
its purposes as of the time of the evaluation. Both Developer and Franchisor
acknowledge that application of criteria that have been effective with respect
to other sites and premises and in other territories and countries may not be
predictive of the potential for success for such sites in the Territory. Both
Developer and Franchisor further acknowledge that, subsequent to Franchisor's
approval of a site, demographic and/or economic factors, such as competition
from other similar businesses, included in or excluded from Franchisor's
criteria could change, thereby altering the potential of a site. Such factors
are unpredictable and are beyond Franchisor's control. Franchisor shall not be
responsible for the failure of a site that has been approved by Franchisor to
meet Developer's expectations as to revenue or operational criteria. Developer
further acknowledges and agrees that its acceptance of a franchise for the
operation of an SBC Retail Unit at an approved location is based on Developer's
own independent investigation of the suitability of such site.

XIX.              SEVERABILITY AND CONSTRUCTION

         19.01.   The official text of this Agreement shall be the English
language text. The Agreement shall be executed in the original English text and,
in case of discrepancy between the English text and any translation thereof, the
English text shall be deemed controlling. All written reports, correspondence,
and communications between the parties hereto shall be in the English language.

         19.02.   Except as expressly provided to the contrary herein, each
portion, section, part, term, and/or provision of this Agreement shall be
considered severable; and if, for any reason, any section, part, term, and/or
provision herein is determined to be invalid and contrary to, or in conflict
with, any existing or future law or regulation by a court or agency having valid
jurisdiction, such shall not impair the operation, or have any other effect
upon, such other portions, sections, parts, terms, and/or provisions of this
Agreement as may remain otherwise intelligible, and the latter shall continue to
be given full force and effect to bind the parties; and said invalid portions,
sections, parts, terms, and/or provisions shall be deemed not to be part of this
Agreement.

         19.03.   Except as has been expressly provided to the contrary herein,
nothing in this Agreement is intended, nor shall be deemed, to confer upon any
person or legal entity other than Developer, Franchisor, Franchisor's officers,
directors, and employees, and such of Developer's

<PAGE>

and Franchisor's permitted and Franchisor's respective successors and assigns,
any rights or remedies under or by reason of this Agreement.

         19.04.   Developer expressly agrees to be bound by any covenant or
promise imposing the maximum duty permitted by law which is subsumed within the
terms of any provision hereof, as though it were separately articulated in and
made a part of this Agreement, that may result from striking from any of the
provisions hereof any portion or portions which a court will hold to be
unreasonable and unenforceable in a final decision to which Franchisor is a
party, or from reducing the scope of any promise or covenant to the extent
required to comply with such court order.

         19.05.   All references herein to the masculine, neuter or singular
shall be construed to include the masculine, feminine, neuter or plural, where
applicable, and all acknowledgments, promises, covenants, agreements and
obligations herein made or undertaken by Developer shall be deemed jointly and
severally undertaken by all the parties hereto on behalf of Developer.

         19.06.   This Agreement may be executed in multiple originals, and each
copy so executed deemed an original.

XX.               ENTIRE AGREEMENT; APPLICABLE LAW; SURVIVAL

         20.01.   This Agreement, the documents referred to herein, and the
exhibits hereto, constitute the entire, full, and complete agreement between
Franchisor and Developer concerning the subject matter hereof and supersede any
and all prior agreements regarding such subject matter. Except for those
permitted to be made unilaterally by Franchisor hereunder, no amendment, change,
or variance from this Agreement shall be binding on either party unless mutually
agreed to by the parties and executed by their authorized officers or agents in
writing.

         20.02.   This Agreement takes effect upon its acceptance and execution
by Franchisor and shall be interpreted and construed under the laws of the State
of Georgia which laws shall prevail in the event of any conflict of law (without
regard to, and without giving effect to, the application of Georgia choice of
law or conflict of law rules); provided, however, that if the covenants in
Section XII of this Agreement would not be enforceable under the laws of
Georgia, then such covenants shall be interpreted and construed under applicable
law in the Territory.

         20.03.   Notwithstanding anything herein to the contrary, upon the
termination of this Agreement for any reason whatsoever, or upon the expiration
of the term hereof, any provisions of this Agreement which, by their nature,
extend beyond the expiration or termination of this Agreement, shall survive
termination or expiration and be fully binding and enforceable as though such
termination or expiration had not occurred.

<PAGE>

XXI.              DISPUTE RESOLUTION

         21.01.   Except as otherwise provided in Section 21.02 hereof, in the
event any dispute, claim, or controversy should arise between the parties hereto
in connection with, arising from, or with respect to any provision hereof, the
relationship of the parties hereto, the validity or enforceability of this
Agreement or any provision hereof, the offer, making, or interpretation hereof,
or the arbitrability of such dispute, claim, or controversy, and such dispute,
claim, or controversy shall not be resolved within 30 days after either party
notifies the other, in writing, of such dispute, claim, or controversy, then
such dispute, claim, or controversy shall be submitted to the American
Arbitration Association for final and binding arbitration on the demand of
either party in accordance with the terms of this Section 21.01.

                  A.       Any dispute, claim, or controversy submitted for
arbitration hereunder shall be finally settled under the International
Arbitration Rules of the American Arbitration Association then in force,
including the Supplementary Procedures for International Commercial Arbitration,
by one arbitrator appointed by the American Arbitration Association in
accordance with such rules, unless Franchisor elects for the dispute to be
decided before a panel of three arbitrators. If Franchisor makes such election,
Franchisor and Developer shall each appoint one arbitrator, and the two
arbitrators so appointed shall appoint a third arbitrator to act as Chairman of
the tribunal. If a party fails to nominate an arbitrator within 30 days from the
date of the claimant's Request for Arbitration (given and effective as set forth
in the Notices Section of this Agreement), such appointment shall be made by the
American Arbitration Association. The two arbitrators thus appointed shall
attempt to agree upon the third arbitrator to act as Chairman. If said two
arbitrators fail to nominate the Chairman within 30 days from the date of the
appointment of the second arbitrator to be appointed, the Chairman shall be
appointed by the American Arbitration Association in accordance with such rules.
Any arbitrator hereunder shall be an attorney experienced generally in
international commercial matters.

                  B.       The arbitration shall be conducted in the county or
city where Franchisor has its principal place of business at the time the
arbitration proceeding is commenced. The law applicable to the arbitration
procedure shall be determined by referring to the law of the place of
arbitration. The English language shall be used throughout the arbitral
proceedings. If either party fails to appear at any properly noticed arbitration
proceeding, an award may be entered against such party notwithstanding such
failure to appear. Any arbitration shall be brought on an individual, and not a
class-wide basis. The arbitrator shall not have the authority to issue any
provisional remedy or injunctive relief relating to, or to stay, any termination
of this Agreement by Franchisor pursuant to its terms. Except to the extent
required under applicable law, the arbitration proceeding, the information
disclosed therein, and any judgement, award, or opinion rendered shall be
subject to the confidentiality requirements of Section XI of this Agreement.

                  C.       Each arbitration decision rendered hereunder shall be
in writing; shall individually address and dispose of each claim and the relief
granted related thereto; shall set forth a recital of facts and a legal analysis
regarding the disposition of each such claim and the

<PAGE>

resulting rendition of the award relating to each such claim (if any); and, in
general, shall be specific regarding the reasons underlying any and all
determinations, awards or conclusions, including all principles of law applied.

                  D.       The expenses, wages, and other compensation of any
witnesses called before the arbitrator[s] shall be borne by the party calling
the witnesses. Other expenses incurred, including wages of participants, and
preparation of briefs and data to be presented to the arbitrator[s], will be
borne separately by the respective parties. The fee for the arbitration, the
arbitrator's fees and expenses, the cost of any hearing room, and the cost of a
shorthand or similar reporter and the original transcript will be borne by
Franchisor and Developer equally.

                  E.       The decision and award of the arbitrator[s] shall be
final, conclusive, and binding upon all parties thereto regarding any claims,
counterclaims, issues, or accountings presented or pled to the arbitrator[s],
and judgment upon the award, including any partial, temporary or interim award,
may be entered in any court of competent jurisdiction. Franchisor and Developer
waive all jurisdictional defenses in connection with any arbitration hereunder
or in connection with the enforcement of an order or award rendered pursuant
thereto (assuming that the terms and conditions of this arbitration clause have
been complied with). Franchisor and Developer agree that any arbitration award
may be enforced against either or both of them in a court of competent
jurisdiction, and Franchisor and Developer each waives any right to contest, and
hereby agrees not to contest, the validity or enforceability of such award. The
parties agree that the award of the arbitrators shall be made, and shall be
promptly paid, in U.S. dollars free of any tax, deduction, or offset; and that
any costs, fees, or taxes incident to enforcing the award shall, to the maximum
extent permitted by law, be charged against the party resisting such
enforcement. The parties agree that the arbitrators may award interest from the
date of any damages incurred for breach or other violation of this Agreement,
and from the date of the reward, until paid in full, at a rate to be fixed by
the arbitrators, but in no event less than two and one-half percent (2.5%) per
annum above the [Citibank Preference Rate] quoted for the corresponding periods,
as reported in the Wall Street Journal, or the maximum rate permitted by
applicable law, whichever is less.

         21.02.   Nothing herein contained shall bar Franchisor's right to
obtain injunctive relief against threatened conduct of Developer (including,
without limitation, conduct under Sections XI and XII hereof or the unauthorized
use of the Proprietary Marks) in any court of competent jurisdiction (including,
without limitation, any court located in the Territory or the United States)
that will cause it loss or damages, under the usual equity rules, including the
applicable rules for obtaining restraining orders and preliminary injunctions.

         21.03.   The parties agree that any action brought by Developer
hereunder, in any court, for the enforcement of any arbitration award or
decision, [or for any other reason] shall be brought within such state and in
the judicial district in which Franchisor has its principal place of business.
Franchisor shall have the right to commence any action in any court within the
Territory or in any other country (1) for the enforcement of any arbitration
award or decision or

<PAGE>

(2) for any other relief permitted hereunder or under applicable law. Developer
hereby waives all questions of personal jurisdiction or venue for the purpose of
carrying out this provision.

         21.04.   Any and all claims and actions arising out of or relating to
this Agreement (including, but not limited to, the offer and sale of the rights
hereunder) the relationship of Developer and Franchisor, or Developer's
operation of its business hereunder, brought by Developer shall be commenced
within eighteen (18) months from the occurrence of the facts giving rise to such
claim or action, or such claim or action shall forever be barred.

         21.05.   No right or remedy herein conferred upon or reserved to
Franchisor is exclusive of any other right or remedy herein, or by law or equity
provided or permitted; but each shall be cumulative of any other right or remedy
provided in this Agreement.

         21.06.   Franchisor and Developer hereby waive to the fullest extent
permitted by law any right to or claim of any consequential, punitive, or
exemplary damages against the other, and agree that in the event of a dispute
between them each shall be limited to the recovery of any actual damages
sustained by it, except to the extent such right or claim is pursuant to the
right of indemnification in Section 15.04 hereof.

XXII.             GOVERNMENTAL APPROVALS; EFFECTIVE DATE

         22.01.   This Agreement and all franchise agreements contemplated
herein shall be executed subject to any and all required government approvals
described in this Section. Where required, Developer shall promptly take such
actions as may be required from time to time to obtain required government
approvals and authorizations from any government department or agency, and, if
necessary, from any other organization whose approval or authorization is
required under applicable law or regulation for this Agreement or any franchise
agreement to be effective or for the payments required under this Agreement or
any franchise agreement to be made to Franchisor as directed therein. All such
approvals or authorizations shall be obtained at Developer's expense. Franchisor
shall be entitled, at its option and expense, to participate in all phases of
the registration process and will, in any event, cooperate with Developer in all
such undertakings. Developer agrees to provide reasonable notice to Franchisor
in advance of any and all meetings with government personnel for that purpose.

         If any government or agency thereof should require, as a condition of
its approval of the initial effectiveness of this Agreement, directly or
indirectly, alteration or modification of any term or condition of this
Agreement, or of the performance of the parties hereunder, the parties agree to
use their best efforts to comply with such request. The parties further
acknowledge that (i) the ability of Developer to purchase and receive into the
Territory Franchisor's Trade Secret products (as defined in the franchise
agreements), and (ii) the ability of Developer to pay all fees required to be
paid by it to Franchisor under and as specified in the franchise agreements are
material causes for Franchisor's execution of this Agreement. If either (i) or
(ii) are rendered impossible or if, in connection with the obtaining of any
governmental or similar approvals, a

<PAGE>

change in this Agreement or in the form of franchise agreement is requested and
is material and adverse to either party, then such party may terminate this
Agreement by giving written notice to this effect to the other party hereto
within thirty (30) days of notice of such governmental requirement.

         22.02.   The effective date of this Agreement shall be the date first
above written.

XXIII.            PROPRIETARY MARKS IN THE TERRITORY; DEVELOPER'S ACKNOWLEDGMENT

23.01    Developer hereby acknowledges the following with respect to the
         Proprietary Marks.

                  A.       That Franchisor has advised Developer that as of the
                  date of execution of this Development Agreement, Franchisor
                  has not obtained registration in the Territory of any of the
                  Proprietary Marks, including but not limited to the marks:
                  "SBC", " SBC COFFEE" and/or "SEATTLE'S BEST COFFEE", in either
                  the English or the principal language of the Territory.

                  B.       That Franchisor may be unable to obtain registration
                  of some or all of the Proprietary Marks for which registration
                  has or will be made in the Territory, and that Franchisor
                  shall incur no liability to Developer for any failure of
                  Franchisor to obtain such registrations.

                  C.       That Developer acknowledges Franchisor's right to (i)
                  adopt any translation (including, but not limited to, any
                  local language translation, whether they be literal or
                  phonetic) and/or variations of the Proprietary Marks, and (ii)
                  substitute different Proprietary Marks for use in identifying
                  the SBC System in the Territory, and the Franchised Units
                  operating thereunder, and Developer hereby agrees to comply
                  with such translations, variations and/or substitutions when
                  notified by Franchisor to do so.

                  D.       That Developer shall, solely and exclusively, assume
                  the risk of developing Franchised Units in the Territory prior
                  to the registration of the Proprietary Marks by Franchisor in
                  the Territory, and shall indemnify and hold Franchisor
                  harmless from and against any and all damages, losses, or
                  claims relating to the development and operation of such
                  Franchised Units by Developer prior to the registration of
                  such Proprietary Marks, including but not limited to any and
                  all costs related to the use of the Proprietary Marks and/or
                  implementation of revised, translated or substitute Marks.

         23.02    Notwithstanding anything to the contrary set forth in this
Section XXIII, in the event Franchisor obtains registration of any of the
Proprietary Marks in the Territory, including
<PAGE>

but not limited to the marks referred to in Section XXIII.A.1 above, and
Franchisor grants any other franchisee the right to operate a Retail Unit under
the SBC System in the Territory under such Marks, Developer shall, upon written
notice from Franchisee, at its sole cost and expense, commence operating the
Franchised Units developed hereunder in the Territory under such Proprietary
Marks, provided, however, Developer shall submit copies of all proposed new
signage and/or packaging to be used at, on or within the franchised Units to
Franchisor, for its prior written approval, before the installation of any such
new signage and/or the commencement of use of such new Proprietary marks on, at
or within any Franchised Units within the Territory.

         23.03    Unless Franchisor notifies Developer otherwise in writing, the
SBC System in the Territory shall be identified exclusively under the marks
"SBC" and/or "SBC COFFEE", as set forth on Exhibit "C-1" hereto (the "Principal
Proprietary Marks"). Developer shall not have any right to use the mark
"Seattle's Best Coffee" in connection with the operation of SBC Retail Units in
the Territory unless notified, in writing, by Franchisor. Developer further
acknowledges that in view of its geographic nature, it is unlikely that either
Franchisor or Developer will acquire exclusive rights to use the word "Seattle"
in connection with the sale of coffee and/or coffee products in the Territory.
Notwithstanding this fact, any and all rights and/or interests in the mark
"Seattle's Best Coffee" acquired in the Territory shall inure exclusively to the
benefit of Franchisor.

         IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have duly executed, sealed, and delivered this Agreement in multiple
originals as of the date first above written.

WITNESSES:                        CINNABON, INC., SUCCESSOR IN INTEREST TO
                                  SEATTLE'S BEST COFFEE, LLC

_______________________           BY:______________________________

_______________________           TITLE:___________________________

                                  DEVELOPER:

_______________________           BY:______________________________

_______________________           TITLE:___________________________

<PAGE>

                                    EXHIBIT A

                                    TERRITORY

         The following area(s), as its/their respective political boundaries
exist as of the effective date of the Development Agreement:

[OPTIONAL] Each of the above ___ ( ) countries, individually, are referred to
herein as "Regional Development Areas" or "RDAs". The above ___ ( ) countries,
collectively, constitute the "Territory

                                TO BE INITIALED BY BOTH PARTIES:

                                FRANCHISOR: ___________ DEVELOPER:

<PAGE>

                                    EXHIBIT B

                              DEVELOPMENT SCHEDULE

NUMBER OF FRANCHISED               DATE OPENED            CUMULATIVE NUMBER OF
RESTAURANTS TO BE OPEN                                    FRANCHISED RESTAURANTS
AND IN OPERATION                                          TO BE OPEN AND IN
                                                          OPERATION

                                    TO BE INITIALED BY BOTH PARTIES:

                                        FRANCHISOR:_________DEVELOPER:

<PAGE>

                                 [OPTIONAL PAGE]

                          REGIONAL DEVELOPMENT SCHEDULE

         In addition to complying with the Development Schedule set forth above,
Developer shall have the following, cumulative number of SBC Retail Units open
and in operation, on or before the respective dates, in each of the specified
Regional Areas within the Territory:

NUMBER OF FRANCHISED               DATE OPENED            CUMULATIVE NUMBER OF
RESTAURANTS TO BE OPEN                                    FRANCHISED RESTAURANTS
AND IN OPERATION                                          TO BE OPEN AND IN
                                                          OPERATION

For the purpose of this Regional Development Schedule, the Regional Development
Areas shall be defined as set forth on the Development Schedule:

                                    TO BE INITIALED BY BOTH PARTIES:

                                        FRANCHISOR:________DEVELOPER:

<PAGE>

                                    EXHIBIT C

                LIST OF PENDING AND REGISTERED PROPRIETARY MARKS

Mark              Application/Registration No.                             Class

<PAGE>

                                   EXHIBIT C-1

                           PRINCIPAL PROPRIETARY MARKS

<PAGE>

                                    EXHIBIT D

                               FRANCHISE AGREEMENT

<PAGE>

                                    EXHIBIT E

                     GUARANTY AND INDEMNIFICATION AGREEMENT

         The Undersigned, for and in consideration of, and as an inducement to,
the grant by CINNABON, INC., SUCCESSOR IN INTEREST TO SEATTLE'S BEST COFFEE, LLC
("Franchisor") of development rights to________________ ("Developer") for the
development, establishment, and operation of SBC COFFEE Cafes, Kiosks and/or
Mobile Carts as described in that Development Agreement dated ______________,
between Franchisor and Developer ("Development Agreement") establishing said
rights, and other good and valuable consideration, receipt and sufficiency of
which are hereby acknowledged, hereby jointly and severally guarantee timely and
full payment of any and all indebtedness and full performance of any and all
obligations for which Developer is now or may hereafter become responsible. This
Guaranty shall include, without limitation, any sum owed by Developer under the
Development Agreement which Developer is not able to pay or remit to Franchisor
due to currency restrictions imposed by any government authority having
jurisdiction in any country in which Developer is operating under the
Development Agreement; provided, however, that Developer shall be entitled to a
credit under the Agreement for any such amount paid by the Undersigned on its
behalf.

         The undersigned hereby agree to defend, indemnify, and hold Company
harmless against any and all losses, damages, liabilities, costs, and expenses
(including, but not limited to, reasonable attorneys' fees, reasonable costs of
investigation, court costs, and arbitration fees and expenses) resulting from,
consisting of, or arising out of or in connection with any failure by Developer
to make any payment required of Developer under the Development Agreement or to
perform any obligation of Developer under the Development Agreement, including
any amendments, or any other agreement executed by Developer referred to in the
Development Agreement.

         The Undersigned hereby agree to be bound jointly and severally with the
Developer for any such indebtedness and obligations to Franchisor arising under
the Development Agreement; and the Undersigned hereby waives (a) acceptance and
notice of the acceptance of this guaranty ("Guaranty"); (b) notice of any and
all indebtedness and obligations of Developer to Franchisor, now existing or
which may hereafter exist; (c) notice of default of payment, demand and
diligence, and all other notices of any kind whatsoever; (d) any right to
require Franchisor to (1) proceed against Developer for any payment required
under the Development Agreement; (2) proceed against or exhaust any security
from Developer; or (3) pursue or exhaust any remedy, including any legal or
equitable relief, against Developer; and (e) all legal and equitable defenses to
which it may be entitled under the Development Agreement or under this Guaranty.
The Undersigned further waives notice of amendment of the Development Agreement
and agrees to be bound by any and all such amendments and changes to the
Development Agreement.

<PAGE>

         The Undersigned acknowledge that, during the effective period of this
Guaranty, Franchisor may look first to the Undersigned for any nonpayment or
unperformed obligations, without being required to first seek recourse or
exhaust all remedies against Developer. Without affecting the obligations of the
Undersigned under this Guaranty, Franchisor may, without notice to the
Undersigned, extend, modify, or release any indebtedness or obligation of
Developer, or settle, adjust, or compromise any claims against Developer.

         The Undersigned also agree that the written acknowledgment of the
Developer or the judgement of any arbitration panel or court establishing the
amount due from Developer shall be conclusive and binding on the Undersigned,
and their successors and assigns, and that any extension of time for payment
shall not affect the Undersigned's liability thereunder.

         This Guaranty shall terminate upon the termination or expiration of the
Development Agreement, except that all obligations and liabilities of the
Undersigned which arose from events which occurred on or before the effective
date of such termination shall remain in full force and effect until satisfied
or discharged by the Undersigned, and all obligations which by their terms
continue in force after the expiration or termination of the Development
Agreement shall remain in force according to their terms. Upon the death of an
individual guarantor, the estate of such guarantor shall be bound by this
Guaranty, but only for defaults and obligations hereunder existing at the time
of death; and the obligations of the other guarantors will continue in full
force and effect.

         The Undersigned agree to pay to Franchisor its reasonable attorney's
fees and all costs incurred by Franchisor in attempting to collect, or in
collecting, any sums owed by the Developer, as described in the Development
Agreement (unless attorney's fees and costs are included in the indebtedness of
Developer for which the Undersigned is liable thereunder), or owed by the
Undersigned as a result of, or in connection with, this Guaranty.

         The Undersigned hereby subordinate to the rights of Franchisor any and
all rights to repayment of loans, or any claims associated therewith, made by
the Undersigned to Developer, whether now existing or hereafter arising while
this Guaranty is in effect.

         This Guaranty is for the benefit of Franchisor, which may, without any
notice whatsoever to anyone, sell, assign, or transfer any part of the
indebtedness guaranteed herein, and in that event, each and every successive
assignee, transferee, or holder of all or any part of the indebtedness shall
have the right to enforce this Guaranty, by suit or otherwise, for the benefit
of such assignee, transferee or holder, as fully as if such assignee, transferee
or holder were herein by name given such rights, powers, and benefits; but
Franchisor shall have an unimpaired right, prior and superior to that of any
such assignee, transferee or holder, to enforce this Guaranty for its benefit as
to so much of said indebtedness that it has not sold, assigned or transferred.

         The Undersigned understand that this Guaranty is independent of any and
all other guaranties that may be made by any other parties with respect to the
indebtedness or obligations

<PAGE>

covered hereby. Notices under this Guaranty shall be furnished to the
Undersigned at the addresses and telefax numbers given below in accordance with
Section XII of the Development Agreement. This Guaranty shall be interpreted and
construed in accordance with the applicable law and dispute resolution
provisions of Sections XIX and XX of the Development Agreement. Sections XII,
XIX, and XX of the Development Agreement are hereby incorporated herein by
reference, and "Developer" shall be deemed to refer to the Undersigned in such
provisions. This Guaranty is the entire agreement affecting the Undersigned's
liability for the obligations described herein. Unless specifically stated
otherwise, the terms used in this Guaranty shall have the same meaning as in the
Development Agreement.

         EXECUTED in multiple originals this_________day of________________.

                                   GUARANTORS:

___________________________                _____________________________________
WITNESS
                                           Address:_____________________________

                                           Telefax Number:______________________

___________________________                _____________________________________
WITNESS

                                           Address:_____________________________

                                           Telefax: Number:_____________________

<PAGE>

                                    EXHIBIT F

                         STATEMENT OF LEGAL COMPOSITION

Developer represents, warrants, and covenants that the following information is
true, correct, and complete as of the date given below.

1.       As of the date of this Agreement, Developer is:

         _________an individual (complete 2, below);

         _________a corporation (complete 2 and 3, below);

         _________a partnership (complete 2 and 4, below); or

         _________a limited liability company (complete 2 and 5, below).

2. _____________________________________________________________________________
  (Name of Developer, Corporation, Partnership or Limited Liability Company)

  _____________________________________________________________________________
         (Street Address)                            (City, State, Zip Code)

  _____________________________________________________________________________
         (Country)                                   (Phone)

3.       If Developer is a corporation, Developer shall complete this Section 3.

         a.       Developer is a corporation duly organized and existing under
         the laws of ________________ .

         b.       The corporation was organized on the______________ day
                  of____________ , 19_________ .

         c.       The names, addresses and percentages of shares issued to each
                  shareholder having a direct or indirect ownership interest in
                  Developer is as follows:

                                                                PERCENTAGE OF
           NAME                       ADDRESS                   ISSUED SHARES
         _______________________________________________________________________
         _______________________________________________________________________
         _______________________________________________________________________
         _______________________________________________________________________

<PAGE>

         d.       The names and addresses of officers and directors of the
company is as follows:

               NAME                ADDRESS

         ____________________________________________________PRESIDENT

         ____________________________________________________VICE-PRESIDENT

         ____________________________________________________SEC/TREASURER

         ____________________________________________________TREASURER

         ____________________________________________________OTHER OFFICER

         ____________________________________________________DIRECTOR

         ____________________________________________________DIRECTOR

         e.       The name and address of the Managing Director is as follows:
________________________________________________________________________________

________________________________________________________________________________

4.       If Developer is a partnership, Developer shall complete this Section 4.

         a.       Developer is a partnership duly organized and existing under
         the laws of____________.

         b.       The partnership was formed on the_____________day
         of_________________, 19______

         c.       The names, addresses and ownership percentages of each partner
         having a direct or indirect ownership interest in Developer is as
         follows:

          NAME                      ADDRESS        OWNERSHIP PERCENTAGE
         _______________________________________________________________________
         _______________________________________________________________________
         _______________________________________________________________________

         d.       The name and address of the General managing Partner(s) are as
         follows:

5.       If Developer is a limited liability company, Developer shall complete
         this Section 5.

         a.       Developer is a limited liability company duly organized and
         existing under the laws of __________.

         b.       The limited liability company was organized on the__ day
         of________ , 19______ .

<PAGE>

         c.       The names, addresses and ownership percentages of each member
         having a direct or indirect ownership interest in Developer is as
         follows:

          NAME                   ADDRESS            OWNERSHIP PERCENTAGE
         _______________________________________________________________________
         _______________________________________________________________________
         _______________________________________________________________________

         d.       The name(s) and address(es) of the principal Managers are as
         follows:

IN WITNESS WHEREOF, Developer has hereunto set its hand this________ day
of__________ , 199___.

                  ______________________________________________________________
                  Name of Corporation, Partnership, or Limited Liability Company

                  BY:___________________________________________________________

                  ITS:__________________________________________________________

                  ATTEST:_______________________________________________________

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