Document:

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                                                                    EXHIBIT 10.3

                                SAMMUTT AGREEMENT

                              CONSULTING AGREEMENT

         This Agreement is made effective as of July 25, 1997, by and between
Chicken Kitchen Corporation, of 5415 Collins Avenue, Suite 305, Miami Beach,
Florida 33140, and Sammut & Associates, Ltd., of 15 C County Road, Stafford ST
16 2 PU, United Kingdom.

         In this Agreement, the party who is contracting to receive services
shall be referred to as ""CKC"", and the party who will be providing the
services shall be referred to as ""S & A"".

         "S & A" has an extensive background in Restaurant Management, and
particularly in the grilled chicken segment, and is willing to provide services
to "CKC" based on this background.

         "CKC" desires to have services provided by "S & A".

         Therefore, the parties agree as follows:

         1. DESCRIPTION OF SERVICES. Beginning on July 01, 1997, "S & A" will
provide the following services (collectively, the "Services"): General
Restaurant Consulting Services, particularly in the Operations, Human Resources
& Training, Franchising, Real Estate, Construction & Design aspects.

         2. PAYMENT. "CKC" will pay a fee to "S & A" for the Services based on
$1,500.00 to $2,00.00 per week. This fee shall be payable weekly, no later than
7 days after the end of each applicable week during which Services were
performed. Upon termination of this Agreement, payments under this paragraph
shall cease; provided, however, that "S & A" shall be entitled to payments for
periods or partial periods that occurred prior to the date of termination and
for which "S & A" has not yet been paid.

         Additionally, within the next twelve months, "S& A" will be paid a lump
sum of $1,000,000.00 (one hundred thousand dollars) together wit 200,000 of
restricted common shares of "CKC" that were already issued by the Company's
treasury.

         3. TERM/TERMINATION. This Agreement may be terminated by either party
upon 90 days written notice to the other party.

<PAGE>   2

         4. RELATIONSHIP OF PARTIES. It is understood by the parties that "S & A
is an independent contractor with respect to "CKC", and not an employee of
"CKC". "CKC" will not provide fringe benefits, including health insurance
benefits, paid vacation, or any other employee benefit, for the benefit of
"S & A".

         5. ASSIGNMENT. "S & A"'s obligations under this Agreement may not be
assigned or transferred to any other person, firm, or corporation without the
prior written consent of "CKC".

         6. INTELLECTUAL PROPERTY. The following provisions shall apply with
respect to copyrightable works, ideas, discoveries, inventions, applications for
patents, and patents (collectively, "Intellectual Property"):

         7. CONFIDENTIALITY: "S & A" recognizes that "CKC" has and will have the
following information:

              -  products
              -  future plans
              -  business affairs
              -  trade secrets
              -  Manual Of Operations (M.O.P.)

and other proprietary information (collectively, "Information") which are
valuable, special and unique assets of "CKC" and need to be protected from
improper disclosure. In consideration for the disclosure of the Information,
"S & A" agrees that "S & A" will not at any time or in any manner, either
directly or indirectly, use any Information for "S & A"'s own benefit, or
divulge, disclose, or communicate in any manner Information to any third party
without the prior written consent of "CKC. "S & A" will protect the Information
and treat it as strictly confidential. A violation of this paragraph shall be a
material violation of this Agreement.

         8. CONFIDENTIALITY AFTER TERMINATION. The confidentiality provisions of
this Agreement shall remain in full force and effect after the termination of
this Agreement.

         9. NON-COMPETE AGREEMENT. Recognizing that the various items of
Information are special and unique assets of "CKC" that need to be protected
from disclosure, and in consideration of the disclosure of the Information,
"S & A" agrees and covenants that for a period of 24 months following the
termination of this Agreement, whether such termination is voluntary or
involuntary, "S & A" will not directly or indirectly engage in any business
competitive with "CKC". This covenant shall apply to the geographical area that
includes all of the States of the United States of America and the United
Kingdom. Directly or indirectly engaging in any competitive business includes,
but is not limited to, (i) engaging in a business as owner, partner, or agent,
(ii) becoming an employee of any third party that is engaged in such business,
or (iii) becoming interested directly or indirectly in any such business, or
(iv) soliciting any customer of

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         "CKC" for the benefit of a third party that is engaged in such
business. "S & A" agrees that this non-compete provision will not adversely
affect the livelihood of "S & A".

         10. RETURN OF RECORDS. Upon termination of this Agreement, "S & A"
shall deliver all records, notes, memoranda, models, and equipment of any nature
that are in "S & A"'s possession or under "S & A's control and that are "CKC's
property or relate to "CKC"'s business.

         11. NOTICES. All notices required or permitted under this Agreement
shall be in writing and shall be deemed delivered when delivered in person or
deposited in the United States mail, postage prepaid, addressed as follows:

               IF for "CKC":

                         Chicken Kitchen Corporation
                         Mr. Christian de Berdouare
                         President & C.E.O.
                         5415 Collins Avenue, Suite 305
                         Miami Beach, Florida 33140

               IF for "S & A":

                         Sammut & Associates, Ltd.
                         Mr. Lawrence G. Sammut
                         Managing Director
                         15 C County Road
                         Stafford ST 16 2 PU, United Kingdom

Such address may be changed form time to time by either party by providing
written notice to the other in the manner set forth above.

         12. ENTIRE AGREEMENT. This Agreement contains the entire agreement of
the parties and there are no other promises or conditions in any other agreement
whether oral or written. This Agreement supersedes any prior written or oral
agreements between the parties.

         13. AMENDMENT. This Agreement may be modified or amended if the
amendment is made in writing and is signed by both parties.

         14. SEVERABILITY. If any provision of this Agreement shall be held to
be invalid or unenforceable for an reason, the remaining provisions shall
continue to be valid and enforceable. If a court finds that any provision of
this Agreement is invalid or unenforceable, but that by limiting such provision
it would become valid and enforceable, then such provision shall be deemed to be
written, construed, and enforced as so limited.

         15. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce
any provision of this Agreement shall not be construed as

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a waiver or limitation of that party's right to subsequently enforce and compel
strict compliance with every provision of this Agreement.

         16. APPLICABLE LAW. This Agreement shall be governed by the laws of the
State of Florida.

Party receiving services:
Chicken Kitchen Corporation

By:
   Chicken Kitchen Corporation

Party providing services:

By:
   Sammut & Associates, Ltd.
   Managing Director<PAGE>   1

                                                                    EXHIBIT 10.4

                                 CHICKEN KITCHEN

                               FRANCHISE AGREEMENT

----------------------------------------
FRANCHISEE

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<TABLE>
<S>                                                                                                                <C>
TABLE OF CONTENTS
         INTRODUCTION
         1.     GRANT..........................................................................................    1
         II.    TERMS AND RENEWAL..............................................................................    2
         II.    DUTEES OF FRANCHISOR...........................................................................    3
         IV.    FEES...........................................................................................    3
         V.     CONSTRUCTION OF RESTAURANT.....................................................................    4
         VI.    TRAINING.......................................................................................    6
         VII.   DUTIES OF FRANCHISEE...........................................................................    7
         VIII.  PROPRIETARY MARKS..............................................................................   11
         IX.    CONFIDENTIAL MANUAL OF OPERATING PROCEDURES ("MOP")............................................   12
         X.     CONFIDENTIAL INFORMATION.......................................................................   13
         XI.    ACCOUNTING AND RECORDS.........................................................................   13
         XII.   ADVERTISING....................................................................................   14
         XIII.  INSURANCE......................................................................................   16
         XIV.   TRANSFER OF INTEREST...........................................................................   16
         XV.    DEFAULT AND TERMINATION........................................................................   19
         XVI.   OBLIGATIONS UPON TERMINATION OR EXPIRATION.....................................................   21
         XVII.  COVENANTS......................................................................................   23
         XVIII. TAXES, PERMITS, AND INDEBTEDNESS...............................................................   24
         XIX.   INDEPENDENT CONTRACTOR AND INDEMNIFICATION.....................................................   25
         XX.    APPROVALS AND WAIVERS..........................................................................   25
         XXI.   NOTICES........................................................................................   26
         XXII.  ENTIRE AGREEMENT...............................................................................   26
         XXIII. SEVERABILITY AND CONSTRUCTION..................................................................   26
         XXIV.  APPLICABLE LAW.................................................................................   27
         XXV.   ACKNOWLEDGMENTS................................................................................   28

                                           RIDER A - SITE SELECTION ADDENDUM

</TABLE>

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                                 CHICKEN KITCHEN

                               FRANCHISE AGREEMENT

         D. This Agreement is entered into as of the ________ day of ________
1999, by and between Chicken Kitchen Corporation, a Florida corporation
(Franchisor), and __________________________ (Franchisee).

                                  INTRODUCTION

         A. Franchisor has the right to establish, operate and to license others
to operate restaurants which feature marinated grilled chicken and complimentary
menu items including fresh salads, rice, baked potatoes, beans, corn, fruit
salad, soups, sauces, desserts and beverages, and which offer delivery service
(the Chicken Kitchen System).

         B. The Chicken Kitchen System includes certain trade names, service
marks, trademarks, logos, emblems, and indicia of origin, including the mark
CHICKEN KITCHEN(R), the chicken logo and other trade names, service marks, and
trademarks as are now, or in the future may be, designated by Franchisor for use
in connection with the Chicken Kitchen System (the "Proprietary Marks"), quality
food products, distinctive design, decor, color scheme and interior layout for
the restaurants, specifications for equipment and menu items, operating
procedures, and business practices and policies.

         C. Franchisor continues to develop, use, and control the use of the
Proprietary Marks so that the public will recognize the Chicken Kitchen System
as the source of services and products having high standards of quality,
appearance, and service.

         E. Franchisee wishes to acquire the right to use the Chicken Kitchen
System at the location specified in this Agreement.

         F. Franchisee understands and acknowledges the importance of the high
standards of quality, cleanliness, appearance and service of the Chicken Kitchen
System, and the necessity of operating the franchise business in conformity with
the standards and specifications specified by Franchisor.

         NOW, THEREFORE, the parties, in consideration of the undertakings and
commitments set forth in this Agreement, agree as follows:

         I. GRANT

         Franchisor grants to Franchisee a non-exclusive license and franchise
         to open and operate a Chicken Kitchen Restaurant at
         _________________________________________________________________ (the
         "Franchise Business"). Franchisee agrees to operate the Franchise
         Business throughout the term of this Agreement in conformity with the
         terms of this Agreement.

         This license is for the designated location only. Franchisee may not
         relocate the Franchise Business without the prior written consent of
         Franchisor. If, at the time of execution of this Agreement, the
         location of the Franchise Business is not known, Franchisee shall lease
         or acquire a location, subject to Franchisor's approval as provided in
         the Site Selection Addendum, attached as Rider A- Provided Franchisee
         is not in default under this Agreement, Franchisor agrees not to open
         or grant a license to anyone other than Franchisee to open a restaurant
         utilizing the Chicken Kitchen System within 2 miles of

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         the Franchise Business if the Franchise Business is located in a
         suburban area or within 1/2 mile of the Franchise Business if the
         Franchise Business is located in a downtown or densely populated area
         (the "Protected Area").

         Franchisor may use, and license others to use, the Chicken Kitchen
         System for the operation of restaurants at any location outside the
         Protected Area on such terms and conditions as Franchisor deems
         appropriate. Also, Franchisor may market products bearing the
         Proprietary Marks which are the same as or similar to products sold or
         used in the Franchise Business through retail outlets other than
         restaurants that may be located in and outside of the Protected Area.
         In addition, Franchisor may acquire chicken restaurants or companies
         which own or franchise chicken restaurants which are located within or
         outside the Protected Area and may use, or license the use of, other
         marks at any location within or outside the Protected Area for the
         operation of restaurants which may be similar to the Franchise
         Business, without offering Franchisee the right to open the
         restaurant(s).

         II. TERMS AND RENEWAL

         A. The term of this Agreement shall expire on the 20th anniversary of
the date the Franchise Business opens for business.

         B. Franchisee may renew this Agreement for 1 additional term of 20
years, provided:

               1.   FRANCHISEE GIVES FRANCHISOR WRITTEN NOTICE OF FRANCHISEE'S
                    ELECTION TO RENEW NOT LESS THAN 12 MONTHS, NOR MORE THAN 15
                    MONTHS, PRIOR TO THE END OF THE INITIAL TERM.

               2.   FRANCHISEE RENOVATES AND MODERNIZES THE FRANCHISE BUSINESS
                    PREMISES, INCLUDING EQUIPMENT, SIGNS, DECOR AND FURNISHINGS,
                    TO REFLECT THE THEN CURRENT STANDARDS AND IMAGE OF THE
                    CHICKEN KITCHEN SYSTEM.

               3.   FRANCHISEE IS NOT, AT THE TIME OF NOTICE AND AT THE TIME OF
                    RENEWAL, IN DEFAULT OF ANY PROVISION OF THIS AGREEMENT, OR
                    ANY OTHER AGREEMENT BETWEEN FRANCHISEE AND FRANCHISOR OR ANY
                    SUBSIDIARY OR AFFILIATE OF FRANCHISOR, AND FRANCHISEE HAS
                    PERFORMED ITS OBLIGATIONS THROUGHOUT THE TERMS OF THE
                    AGREEMENTS.

               4.   FRANCHISEE HAS SATISFIED ALL MONETARY OBLIGATIONS OWED BY
                    FRANCHISEE TO FRANCHISOR AND FRANCHISOR'S SUBSIDIARIES AND
                    AFFILIATES, AND HAS TIMELY MET THOSE OBLIGATIONS THROUGHOUT
                    THE TERM OF THIS AGREEMENT.

               5.   FRANCHISEE HAS THE RIGHT TO REMAIN IN POSSESSION OF THE
                    DESIGNATED LOCATION FOR THE DURATION OF THE RENEWAL TERM.

               6.   FRANCHISEE EXECUTES FRANCHISOR'S THEN CURRENT FORM OF
                    RENEWAL FRANCHISE AGREEMENT, WHICH AGREEMENT SHALL SUPERSEDE
                    AND REPLACE THIS AGREEMENT, AND PAYS A RENEWAL FEE EQUAL TO
                    50% OF THE THEN CURRENT INITIAL FRANCHISE FEE FOR NEW
                    FRANCHISES OR, IF FRANCHISOR IS NOT GRANTING NEW FRANCHISES
                    AT THE TIME,THE RENEWAL FEE SHALL BE $25,000.00. THE TERMS
                    AND CONDITIONS OF THE RENEWAL FRANCHISE AGREEMENT MAY DIFFER
                    MATERIALLY FROM THE PROVISIONS OF THIS AGREEMENT, INCLUDING
                    HIGHER FEES AND ADVERTISING CONTRIBUTION.

               7.   TO THE FULLEST EXTENT PERMITTED BY LAW, FRANCHISEE EXECUTES
                    A GENERAL RELEASE OF ALL CLAIMS AGAINST FRANCHISOR AND ITS
                    SUBSIDIARIES AND AFFILIATES, AND THEIR RESPECTIVE OFFICERS,
                    DIRECTORS, AGENTS AND EMPLOYEES.

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<PAGE>   5

         III. DUTEES OF FRANCHISOR

         A. Franchisor shall make available to Franchisee standard plans and
specifications for the layout of a Chicken Kitchen Restaurant. These plans and
specifications may be used only in the preparation of final plans and
specifications for the Franchise Business. An architect and/or engineer must be
employed by Franchisee to prepare final architectural and mechanical plans and
specifications, which plans must be approved by Franchisor.

         B. Franchisor will, upon request, provide guidelines for evaluating
proposed sites for the Franchise Business.

         C. Franchisor will make available an initial training program prior to
the opening of the Franchise Business for Franchisee, the initial General
Manager and a manager trainee, and the Head Cook, and shall make available such
other training programs for Franchisee and Franchisee's employees as Franchisor
deems appropriate.

         D. Franchisor shall provide up to 7 days of pre-opening and opening
guidance and assistance at the Franchise Business.

         E. Franchisor shall provide continuing advisory assistance to
Franchisee in the operation, advertising and promotion of the Franchise Business
as Franchisor deems advisable. The advisory assistance may be provided in person
or by telephone, E-mail or written communication.

         F. Franchisor shall make available, from time to time, advertising and
promotional materials for local advertising as described in Section XIII.B.
Franchisee must pay, within 30 days of invoicing, the charge for all materials
ordered by Franchisee.

         G. Franchisor shall provide Franchisee with bookkeeping guidelines and
procedures for maintaining internal financial controls.

         H. Franchisor shall loan to Franchisee 1 numbered copy of the Manual of
Operating Procedures (the "MOP") as more fully described in Section IX. If the
MOP is lost or damaged, Franchisor will furnish Franchisee with a replacement
MOP for $500.

         I. Upon request of Franchisee, provided Franchisor has personnel
available, Franchisor shall provide additional consulting services. Franchisee
shall pay Franchisor for additional consulting services requested by Franchisee
the sum of $300.00, as adjusted each January to reflect changes in the Consumer
Price Index - All Items (CPI-W) with the base year being January 1998, per day
(up to a maximum of 8 hours) per person plus all travel, lodging, meals and
other expenses incurred by Franchisor's personnel who provide the requested
consulting services.

         IV. FEES

         A. Franchisee agrees to pay to Franchisor an initial franchise fee of
$25,000,00, payable (i) $10,000.00 upon execution of this Agreement and (ii)
$15,000.00 on the date the site for the Franchise Business is leased or
purchased. If Franchisee controls the site when this Agreement is signed, the
entire initial franchise fee must be paid upon execution. Franchisor may
terminate this Agreement if Franchisee fails to identify a site acceptable to
Franchisor within 120 days from the date of this Agreement by refunding, without
interest, Franchisee's payment less $5,000. Once an acceptable site is
identified, the initial franchise fee will be fully earned and non-refundable.

         B. During the initial term of this Agreement, Franchisee shall pay to
Franchisor a continuing weekly royalty fee in an amount equal to 4% of Gross
Sales for the preceding week, as defined in Section IV.E.

         C. Recognizing the value of marketing, advertising and sales promotion
to the goodwill and public image of the Chicken Kitchen System, Franchisee shall
pay to Franchisor on a weekly basis, for inclusion in an Advertising Fund, the
amount specified by Franchisor, which amount will not exceed 4% of Gross Sales.
If there are less than 5 Chicken Kitchen Restaurants in the television area of
dominant influence (A.D.I.) in which the

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Franchise Restaurant is located, Franchisee shall pay 2% of Gross Sales into the
Advertising Fund and shall spend not less than 2% of Gross Sales locally.
Franchisee's obligation to make payments to the Advertising Fund is in addition
to Franchisee's obligation to advertise locally, as set forth in Section XII.A;
however, in no event will the required advertising expenditures exceed 4% of
Gross Sales. The Advertising Fund, if any, shall be maintained and administered
by Franchisor as provided in Section XII.F. Franchisor agrees that during the
first 2 years of the term of this Agreement the maximum amount, in addition to
any sums paid because of a deficiency in Franchisee's local advertising
expenditures, Franchisee will be required to pay to Franchisor for inclusion in
the Advertising Fund is 2% of Gross Sales. Franchisee must furnish Franchisor
with evidence of the local advertising and sales promotion expenditures within
30 days after the end of each 3 month period.

         D. All weekly payments required by this Section IV and by Section XII,
together with the reports or statements required by Section XI, must be received
by Franchisor by the Friday following the end of the week for which the payment
and reports relate. Any payment or report not received by Franchisor on or
before the due date shall be deemed overdue. Franchisee shall pay Franchisor
interest on any past-due amount from the date it was due until paid at the rate
of 1.5% per month, or the maximum rate permitted by law, whichever is less.
Entitlement to interest shall be in addition to any other remedies Franchisor
may have.

         E. As used in this Agreement, "Gross Sales" includes all revenue from
the sale of food, merchandise and services by the Franchise Business, including
all delivered items, whether for cash or credit, and regardless of collection in
the case of a credit sale, and shall include all payments to Franchisee under
any business interruption insurance or similar insurance policy, and income of
every kind and nature related to the Franchise Business including sales away
from the premises through mobile units or temporary facilities at special events
if Franchisor permits such sales. Gross Sales shall not include revenues from
any sales taxes or other taxes collected from customers by Franchisee for
transmittal to the appropriate taxing authority.

         V. CONSTRUCTION OF RESTAURANT

         A. Before commencing construction of the Franchise Business premises,
     Franchisee, at Franchisee's expense, shall comply with all of the following
     requirements:

               1.   FRANCHISEE MUST OBTAIN ALL ZONING CLASSIFICATIONS, APPROVALS
                    AND PERMITS REQUIRED BY STATE AND LOCAL LAW FOR THE
                    CONSTRUCTION AND OPERATION OF THE FRANCHISE BUSINESS.
                    FRANCHISEE SHALL CERTIFY IN WRITING TO FRANCHISOR THAT ALL
                    SUCH PERMITS AND APPROVALS HAVE BEEN OBTAINED.

               2.   FRANCHISEE SHALL EMPLOY A QUALIFIED ARCHITECT OR ENGINEER TO
                    PREPARE FINAL PLANS AND SPECIFICATIONS FOR THE CONSTRUCTION
                    OF FRANCHISE BUSINESS PREMISES BASED UPON THE STANDARD PLANS
                    AND SPECIFICATIONS FAMISHED BY FRANCHISOR. THE PLANS MUST BE
                    APPROVED BY FRANCHISOR IN WRITING BEFORE THE COMMENCEMENT OF
                    CONSTRUCTION, AND ONCE APPROVED BY FRANCHISOR, THE PLANS MAY
                    NOT BE CHANGED WITHOUT THE PRIOR WRITTEN CONSENT OF
                    FRANCHISOR.

                                       4
<PAGE>   7

               3.   FRANCHISEE SHALL EMPLOY A QUALIFIED, LICENSED GENERAL
                    CONTRACTOR TO CONSTRUCT THE FRANCHISE BUSINESS PREMISES.
                    FRANCHISEE SHALL OBTAIN AND MAINTAIN IN FORCE, DURING THE
                    ENTIRE PERIOD OF CONSTRUCTION, THE INSURANCE REQUIRED UNDER
                    SECTION XIII.

         B. During the period of construction, Franchisor and its agents shall
have the right to inspect the construction site at all reasonable times.

         C. Franchisee shall complete construction (including all exterior and
interior carpentry, electrical, plumbing, painting and finishing work, and
installation of all furniture, fixtures, equipment, and signs) in accordance
with the approved final plans, at Franchisee's expense, within 6 months after
the Franchise Business premises are leased or purchased (exclusive of time lost
by reason of strikes, lockouts, fire, and other casualties and acts of God).
Upon request, which shall not be unreasonably withheld, Franchisor will grant
reasonable additional time to the Franchisee to complete construction.

         D. Franchisee shall notify Franchisor when the construction is
completed, and within a reasonable time after notice, Franchisor shall inspect
the Franchise Business premises. Franchisee may not open the Franchise Business
without written authorization from Franchisor, and Franchisor's authorization to
open may be conditioned upon Franchisee's compliance with the specifications of
the approved final plans and with the standards of the Chicken Kitchen System.

         E. Franchisee shall open the Franchise Business within 10 days after
receipt of Franchisor's written authorization to open. The parties agree that
time is of the essence in the construction and opening of the Franchise
Business.

                                       5
<PAGE>   8

         VI. TRAINING

         A. Prior to the opening of the Franchise Business, Franchisee (or, if
Franchisee is a corporation, a principal of the corporation designated to
supervise the operation of the Franchise Business approved by Franchisor) and
the General Manager, shall attend and successfully complete, to Franchisor's
satisfaction, the management training program offered by Franchisor. The
management training program shall be conducted at locations and at times and for
periods specified by Franchisor. Any persons subsequently employed by Franchisee
in the position of General Manager must complete Franchisor's management
training program. Franchisee agrees that the Franchise Business will at no time
be managed on a regular basis by someone who has not successfully completed the
management training program.

         B. Prior to the opening of the Franchise Business, Franchisee's Head
Cook shall attend and successfully complete Franchisor's training program for
Head Cooks. Any persons subsequently employed by Franchisee as the Head Cook
shall also attend and successfully complete Franchisor's Head Cook training
program.

         C. Franchisee agrees to participate in continuing training programs,
which may be offered by Franchisor to implement new operational and
merchandising standards. Franchisee shall offer a training program for employees
of the Franchise Business and agrees to staff the Franchise Business at all
times with a staff of trained employees sufficient to operate the Franchise
Business in accordance with this Agreement and the MOP.

         D. There will be no charge for attending the initial management and
Head Cook training program; however, Franchisor may impose a fee for attendance
at subsequent management and Head Cook training programs, for continuing
training programs and for training materials. Franchisee shall pay all travel
and living expenses, compensation, workers' compensation and other expenses
incurred by Franchisee and Franchisee's employees when attending the training
programs.

                                       6
<PAGE>   9

         VII. DUTIES OF FRANCHISEE

         A. Franchisee understands and acknowledges that compliance with every
detail of the Chicken Kitchen System in the operation of the Franchise Business
is important to Franchisee, Franchisor and other franchisees in order to develop
and maintain high operating standards, to increase the demand for the services
and products sold by all restaurants which are part of the Chicken Kitchen
System, and to protect Franchisor's reputation and the goodwill of the Chicken
Kitchen System.

         B. A corporate Franchisee must comply with the following requirements
throughout the term of this Agreement:

               1.   Franchisee shall furnish Franchisor with its Articles of
                    Incorporation, Bylaws, other governing documents and any
                    other documents Franchisor may reasonably request, and any
                    amendments.

               2.   Franchisee shall limit Franchisee's activities, and its
                    Articles of Incorporation and Bylaws shall at all times
                    provide that Franchisee's only business activities shall be
                    operating the Franchise Business and other businesses
                    operated under franchises granted by Franchisor.

               3.   Franchisee shall maintain stop transfer instructions against
                    the transfer of any equity securities; and shall issue no
                    securities which do not contain the following printed
                    legend:

                             THE TRANSFER OF THIS STOCK IS SUBJECT TO THE TERMS
                             AND CONDITIONS OF A FRANCHISE AGREEMENT WITH
                             CHICKEN KITCHEN CORPORATION. REFERENCE IS MADE TO
                             THE PROVISIONS OF THE FRANCHISE AGREEMENT AND TO
                             THE ARTICLES OF INCORPORATION AND BYLAWS OF THIS
                             CORPORATION.

               4.   There shall be no transfer or issuance of Franchisee's stock
                    without the prior written approval of Franchisor.

               5.   All shareholders of Franchisee must agree to be bound by the
                    terms and conditions of this Agreement.

               6.   Franchisee shall maintain a current list of all owners of
                    record and all beneficial owners of any class of voting
                    stock of Franchisee and shall furnish the list to Franchisor
                    upon request.

         C. A Franchisee which is a partnership must comply with the following
requirements throughout the term of this Agreement:

               1.   Franchisee shall furnish Franchisor with a copy of the
                    partnership agreement and such other documents as Franchisor
                    may reasonably request and all amendments.

               2.   Franchisee shall prepare and furnish to Franchisor, upon
                    request, a current list of all general and limited partners
                    in Franchisee.

         A Franchisee who operates the Franchise Business as a sole proprietor
must, unless otherwise approved in writing by Franchisor, devote his full time
and best efforts to the day-to-day operation of the Franchise Business with no
other operational or management commitments in other businesses (other than
restaurants operated under franchises granted by Franchisor).

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<PAGE>   10

         A Franchisee which is a limited liability company must comply with the
following requirements throughout the term of this Agreement:

               1.   FRANCHISEE SHALL FURNISH FRANCHISOR WITH ITS ARTICLES OF
                    ORGANIZATION, REGULATIONS AND OPERATING AGREEMENT, OTHER
                    GOVERNING DOCUMENTS AND ANY OTHER DOCUMENTS FRANCHISOR MAY
                    REASONABLY REQUEST, AND ANY AMENDMENTS.

               2.   FRANCHISEE SHALL LIMIT FRANCHISEE'S ACTIVITIES, AND ITS
                    ARTICLES OF ORGANIZATION AND REGULATIONS AND OPERATING
                    AGREEMENT SHALL AT ALL TIMES PROVIDE THAT FRANCHISEE'S ONLY
                    BUSINESS ACTIVITIES SHALL BE OPERATING THE FRANCHISE
                    BUSINESS AND OTHER BUSINESSES OPERATED UNDER FRANCHISES
                    GRANTED BY FRANCHISOR.

               3.   FRANCHISEE SHALL PREPARE AND FURNISH TO FRANCHISOR, UPON
                    REQUEST, A CURRENT LIST OF ALL MEMBERS OF FRANCHISEE.

                    FRANCHISEE SHALL USE THE FRANCHISE BUSINESS PREMISES SOLELY
                    FOR THE OPERATION OF A CHICKEN KITCHEN RESTAURANT. THE
                    FRANCHISE BUSINESS SHALL BE OPEN DURING SUCH HOURS AND DAYS
                    AS FRANCHISOR MAY FROM TIME TO TIME SPECIFY IN THE MOP OR AS
                    FRANCHISOR MAY OTHERWISE APPROVE IN WRITING.

                    FRANCHISEE AGREES THAT THE FRANCHISE BUSINESS SHALL AT ALL
                    TIMES BE UNDER THE DIRECT, ON PREMISES SUPERVISION OF
                    FRANCHISEE OR A TRAINED GENERAL MANAGER. FRANCHISEE AGREES
                    TO MAINTAIN A COMPETENT, CONSCIENTIOUS, TRAINED STAFF, AND
                    TO TAKE SUCH STEPS AS ARE NECESSARY TO ENSURE THAT ALL
                    EMPLOYEES OF THE FRANCHISE BUSINESS KEEP. A NEAT AND CLEAN
                    PERSONAL APPEARANCE, PRESERVE GOOD CUSTOMER RELATIONS AND
                    COMPLY WITH THE DRESS CODES PRESCRIBED BY FRANCHISOR.

                    FRANCHISEE SHALL MEET AND MAINTAIN THE HIGHEST HEALTH
                    STANDARDS AND RATINGS APPLICABLE TO THE OPERATION OF THE
                    FRANCHISE BUSINESS. FRANCHISEE SHALL FURNISH TO FRANCHISOR,
                    WITHIN 5 DAYS AFTER RECEIPT, A COPY OF ANY VIOLATION OR
                    CITATION, WHICH INDICATES FRANCHISEE'S FAILURE TO MAINTAIN
                    LOCAL HEALTH OR SAFETY STANDARDS IN THE OPERATION OF THE
                    FRANCHISE BUSINESS.

                    TO INSURE THAT THE HIGHEST DEGREE OF QUALITY AND SERVICE IS
                    MAINTAINED, FRANCHISEE SHALL OPERATE THE FRANCHISE BUSINESS
                    IN STRICT CONFORMITY WITH SUCH METHODS, STANDARDS AND
                    SPECIFICATIONS AS FRANCHISOR MAY FROM TIME TO TIME PRESCRIBE
                    IN THE MOP OR OTHERWISE IN WRITING. FRANCHISEE AGREES:

               1.   TO MAINTAIN IN SUFFICIENT SUPPLY AND TO USE AT ALL TIMES,
                    ONLY SUCH FIXTURES, FURNISHINGS, EQUIPMENT, SIGNS, MENU
                    ITEMS, INGREDIENTS, PRODUCTS, MATERIALS, SUPPLIES AND PAPER
                    GOODS AS CONFORM TO THE STANDARDS AND SPECIFICATIONS
                    PRESCRIBED OR APPROVED BY FRANCHISOR.

               2.   TO USE IN THE FRANCHISE BUSINESS ONLY MENUS AND PROMOTIONAL
                    MATERIALS, WHICH COMPLY WITH FRANCHISOR'S PRESCRIBED
                    SPECIFICATIONS.

               3.   TO SELL OR OFFER FOR SALE ONLY MENU ITEMS, PRODUCTS AND
                    SERVICES APPROVED IN WRITING BY FRANCHISOR; TO SELL OR OFFER
                    FOR SALE ALL MENU ITEMS, PRODUCTS AND SERVICES SPECIFIED BY
                    FRANCHISOR; TO REFRAIN FROM ANY DEVIATION FROM FRANCHISOR'S
                    STANDARDS AND SPECIFICATIONS WITHOUT FRANCHISOR'S PRIOR
                    WRITTEN CONSENT; AND TO DISCONTINUE SELLING AND OFFERING FOR
                    SALE ANY MENU ITEMS, PRODUCTS OR SERVICES WHICH FRANCHISOR
                    MAY, IN ITS DISCRETION, DISAPPROVE IN WRITING AT ANY TIME.
                    WITH RESPECT TO THE OFFER AND SALE OF ALL MENU ITEMS,

                                       8
<PAGE>   11

                    PRODUCTS AND SERVICES, FRANCHISEE SHALL HAVE SOLE DISCRETION
                    AS TO THE PRICES TO BE CHARGED TO CUSTOMERS.

               4.   TO PURCHASE AND INSTALL, AT FRANCHISEE'S EXPENSE, ALL
                    FIXTURES, FURNISHINGS, EQUIPMENT, AND SIGNS WHICH FRANCHISOR
                    MAY REASONABLY SPECIFY IN THE MOP OR OTHERWISE IN WRITING,
                    AND TO REFRAIN FROM INSTALLING OR PERMITTING TO BE INSTALLED
                    ON OR ABOUT THE FRANCHISE BUSINESS PREMISES, WITHOUT
                    FRANCHISOR'S PRIOR WRITTEN CONSENT, ANY FIXTURES,
                    FURNISHINGS, EQUIPMENT, PUBLIC TELEPHONES, SIGNS, VENDING
                    AND AMUSEMENT MACHINES OR OTHER ITEMS NOT PREVIOUSLY
                    APPROVED AS MEETING FRANCHISOR'S STANDARDS AND
                    SPECIFICATIONS.

     THE AVAILABILITY OF DELIVERY SERVICE AND ON AND OFF PREMISES CATERING ARE
     IMPORTANT ELEMENTS OF THE CHICKEN KITCHEN SYSTEM. FRANCHISEE AGREES TO
     PROVIDE DELIVERY AND CATERING SERVICES WITHIN A 3 MILE RADIUS OF THE
     FRANCHISE BUSINESS, EXCEPT THAT THE REQUIRED DELIVERY AREA SHALL BE 10
     BLOCKS IF THE FRANCHISE BUSINESS IS LOCATED IN A DOWNTOWN OR DENSELY
     POPULATED AREA (THE "DELIVERY AREA") AND MAY PROVIDE THESE SERVICES OUTSIDE
     THE DELIVERY AREA AS LONG AS THE DELIVERY OR CATERING ADDRESS IS NOT WITHIN
     THE DELIVERY AREA OF ANOTHER RESTAURANT WHICH IS A PART OF THE CHICKEN
     KITCHEN SYSTEM. FRANCHISOR SHALL ARBITRATE ANY CONFLICT BETWEEN FRANCHISEE
     AND ANOTHER FRANCHISEE AS TO THE BOUNDARY OF THE DELIVERY AREA, AND THE
     DECISION OF FRANCHISOR SHALL BE FINAL AND BINDING. FRANCHISEE ACKNOWLEDGES
     THAT ANOTHER FRANCHISEE'S DELIVERY AREA MAY EXTEND INTO FRANCHISEE'S
     DELIVERY AREA SO THAT CERTAIN ADDRESSES IN THE DELIVERY AREA MAY BE ABLE TO
     OBTAIN DELIVERY SERVICES FROM THE FRANCHISE BUSINESS AND A RESTAURANT
     OPERATED BY ANOTHER FRANCHISEE. FRANCHISEE AGREES NOT TO CHARGE A SEPARATE
     FEE FOR DELIVERY SERVICE NOR TO CHARGE MENU PRICES FOR DELIVERY SERVICE
     WHICH ARE DIFFERENT THAN THOSE CHARGED FOR PURCHASES MADE IN THE FRANCHISE
     BUSINESS. DELIVERY AND CATERING SERVICES SHALL BE CONDUCTED IN ACCORDANCE
     WITH DIRECTIVES OF FRANCHISOR SET OUT IN THE MOP OR OTHERWISE IN WRITING.

     FRANCHISEE SHALL PURCHASE ALL FOOD ITEMS, INGREDIENTS, SUPPLIES, MATERIALS
     AND OTHER PRODUCTS USED OR OFFERED FOR SALE IN THE FRANCHISE BUSINESS, AND
     ALL FIXTURES, FURNISHINGS, EQUIPMENT (INCLUDING CASH REGISTERS AND ANY
     COMPUTER HARDWARE AND/OR SOFTWARE) AND SIGNS FROM SUPPLIERS (INCLUDING
     MANUFACTURERS, DISTRIBUTORS AND OTHER SOURCES) WHO DEMONSTRATE, TO THE
     CONTINUING REASONABLE SATISFACTION OF FRANCHISOR, THE ABILITY TO MEET
     FRANCHISOR'S THEN CURRENT STANDARDS AND SPECIFICATIONS FOR SUCH ITEMS, WHO
     POSSESS ADEQUATE QUALITY CONTROLS AND CAPACITY TO PROMPTLY AND RELIABLY
     DELIVER PRODUCTS, AND WHO ARE APPROVED IN WRITING BY FRANCHISOR. FRANCHISEE
     SHALL ONLY UTILIZE POINT OF SALE PROGRAMMABLE CASH REGISTERS OR COMPUTER
     TERMINALS, WHICH ARE FULLY COMPATIBLE WITH ANY INFORMATION MANAGEMENT
     SYSTEM FRANCHISOR, IN ITS DISCRETION, MAY EMPLOY, EVEN IF THE INFORMATION
     MANAGEMENT SYSTEM IS NOT FULLY OPERATIONAL. ALL SALES SHALL BE RECORDED ON
     SUCH CASH REGISTERS OR COMPUTER TERMINALS. FRANCHISOR MAY REQUIRE THAT
     FRANCHISEE'S CASH REGISTERS OR COMPUTER TERMINALS BE ON-LINE WITH
     FRANCHISOR'S COMPUTER SO THAT FRANCHISOR CAN PULL SALES DATA DAILY. THE
     COST OF ALL EQUIPMENT REQUIRED TO PUT FRANCHISEE'S CASH REGISTERS OR
     COMPUTER TERMINALS ON-LINE WITH FRANCHISOR'S COMPUTER, INCLUDING WITHOUT
     LIMITATION A MODEM AND DEDICATED TELEPHONE LINE, SHALL BE PAID FOR BY
     FRANCHISEE. IF FRANCHISEE DESIRES TO PURCHASE ANY PRODUCTS FORM AN
     UNAPPROVED SUPPLIER, FRANCHISEE OR THE SUPPLIER SHALL SUBMIT TO FRANCHISOR
     A WRITTEN REQUEST FOR APPROVAL. FRANCHISEE MAY NOT PURCHASE FROM ANY
     SUPPLIER UNTIL THE SUPPLIER HAS BEEN APPROVED IN WRITING BY FRANCHISOR.
     FRANCHISOR HAS THE RIGHT TO REQUIRE THAT ITS REPRESENTATIVES BE PERMITTED
     TO INSPECT THE SUPPLIER'S FACILITIES, AND THAT SAMPLES FROM THE SUPPLIER BE
     DELIVERED EITHER TO FRANCHISOR OR TO AN INDEPENDENT LABORATORY DESIGNATED
     BY FRANCHISOR FOR

                                       9
<PAGE>   12

     TESTING. A CHARGE NOT TO EXCEED THE REASONABLE COST OF THE INSPECTION AND
     THE ACTUAL COST OF THE TEST SHALL BE PAID BY FRANCHISEE OR THE SUPPLIER.
     FRANCHISOR RESERVES THE RIGHT, AT ITS OPTION, TO RE-INSPECT FROM TIME TO
     TIME THE FACILITIES AND PRODUCTS OF ANY APPROVED SUPPLIER AND TO REVOKE ITS
     APPROVAL UPON THE SUPPLIER'S FAILURE TO CONTINUE TO MEET ANY OF
     FRANCHISOR'S THEN CURRENT CRITERIA.

     FRANCHISEE ACKNOWLEDGES AND AGREES THAT FRANCHISOR MAY DEVELOP FOR USE IN
     THE CHICKEN KITCHEN SYSTEM PRODUCTS MADE FROM CONFIDENTIAL SECRET RECIPES
     AND FORMULAE THAT ARE TRADE SECRETS OF FRANCHISOR. FRANCHISEE AGREES THAT,
     IF ANY PROPRIETARY PRODUCTS ARE OR BECOME A PART OF THE CHICKEN KITCHEN
     SYSTEM, FRANCHISEE WILL USE ONLY FRANCHISOR'S SECRET RECIPE PRODUCTS AND
     SHALL PURCHASE FROM FRANCHISOR OR FROM A SOURCE DESIGNATED BY FRANCHISOR
     ALL OF FRANCHISEE'S REQUIREMENTS OF THE PRODUCTS. CURRENTLY, THE ONLY
     PROPRIETY PRODUCT IS THE MARINADE MIX FOR THE CHICKEN. FRANCHISEE AGREES
     NOT TO, NOR TO PERMIT ANYONE TO, ANALYZE OR IN ANY WAY REPRODUCE OR SELL
     THE MARINADE MIX, AND FURTHER AGREES TO USE THE MARINADE MIX ONLY IN THE
     FRANCHISE BUSINESS AND IN THE MANNER PRESCRIBED BY FRANCHISOR.

     FRANCHISEE SHALL MAINTAIN THE FRANCHISE BUSINESS IN THE HIGHEST DEGREE OF
     SANITATION AND REPAIR, AND WILL MAKE ANY ADDITIONS, ALTERATIONS, REPAIRS
     AND REPLACEMENTS (BUT NO OTHERS WITHOUT FRANCHISEE'S PRIOR WRITTEN
     CONSENT) AS MAY BE REQUIRED FOR THAT PURPOSE, INCLUDING, WITHOUT
     LIMITATION, PERIODIC REPAIRS TO OR REPAINTING OR REPLACEMENT OF OBSOLETE
     SIGNS, FURNISHINGS, EQUIPMENT, AND DECOR AS FRANCHISOR MAY REASONABLY
     DIRECT.

     AT FRANCHISOR'S REQUEST, WHICH SHALL NOT BE MORE OFTEN THAN ONCE EVERY 5
     YEARS, FRANCHISEE AGREES TO REFURBISH THE FRANCHISE BUSINESS AT
     FRANCHISEE'S EXPENSE TO CONFORM TO THE BUILDING DESIGN, TRADE DRESS, COLOR
     SCHEMES AND PRESENTATION OF TRADEMARKS AND SERVICE MARKS THEN SPECIFIED BY
     FRANCHISOR AS THE CURRENT IMAGE OF RESTAURANTS UNDER THE CHICKEN KITCHEN
     SYSTEM. REFURBISHING MAY INCLUDE, WITHOUT LIMITATION, STRUCTURAL CHANGES,
     REPLACEMENT OF WORN OUT OR OBSOLETE FIXTURES, EQUIPMENT AND SIGNS, THE
     SUBSTITUTION OF ADDITION OF NEW OR IMPROVED FIXTURES, EQUIPMENT AND SIGNS,
     REDECORATING, ALTERATION OF THE STORE FRONT AND MODIFICATION OF THE DESIGN
     AND LAYOUT. REFURBISHING WILL BE COMMENCED AND COMPLETED WITHIN THE
     REASONABLE TIME SPECIFIED BY FRANCHISOR.

     FRANCHISOR AND ITS REPRESENTATIVE SHALL HAVE THE UNRESTRICTED RIGHT TO
     ENTER THE FRANCHISE BUSINESS AND CONDUCT SUCH INSPECTIONS AS IT DEEMS
     NECESSARY TO ASCERTAIN IF FRANCHISEE IS COMPLYING WITH THIS AGREEMENT AND
     THE STANDARDS, SPECIFICATIONS AND PROCEDURES PRESCRIBED BY FRANCHISOR. THE
     INSPECTIONS MAY BE CONDUCTED WITHOUT NOTICE AT ANY TIME WHEN FRANCHISEE OR
     AN EMPLOYEE OF FRANCHISEE IS AT THE FRANCHISE BUSINESS. FRANCHISOR AGREES
     TO PERFORM THE INSPECTIONS IN A MANNER THAT MINIMIZES INTERFERENCE WITH THE
     OPERATION OF THE FRANCHISE BUSINESS. FRANCHISEE AGREES TO COOPERATE WITH
     FRANCHISOR AND ITS REPRESENTATIVES IN THE INSPECTIONS BY RENDERING ANY
     ASSISTANCE REASONABLY REQUESTED. UPON WRITTEN NOTICE FROM FRANCHISOR OR ITS
     REPRESENTATIVES, AND WITHOUT LIMITING FRANCHISOR'S OTHER RIGHTS UNDER THIS
     AGREEMENT, FRANCHISEE SHALL CORRECT SUCH DEFICIENCIES DETECTED DURING ANY
     SUCH INSPECTION WITHIN 30 DAYS, INCLUDING, WITHOUT LIRNITATION,
     DISCONTINUING FURTHER USE OF ANY EQUIPMENT, ADVERTISING MATERIALS,
     PRODUCTS, INGREDIENTS, SUPPLIES OR OTHER ITEMS THAT DO NOT CONFORM TO
     FRANCHISOR'S THEN CURRENT SPECIFICATIONS, STANDARDS OR REQUIREMENTS.
     FRANCHISEE ACKNOWLEDGES THAT THE DEVELOPMENT AND SALE OF NEW OR MODIFIED
     PRODUCTS FOR USE IN THE CHICKEN KITCHEN SYSTEM SHALL BE CONTROLLED BY
     FRANCHISOR, IN ITS SOLE DISCRETION, DURING THE RESEARCH, MARKET TESTING AND
     ROLL-OUT STAGES OF DEVELOPMENT. FRANCHISEE SHALL BE AUTHORIZED TO SELL NEW
     OR MODIFIED PRODUCTS ONLY AFTER THE PRODUCTS HAVE BEEN APPROVED BY
     FRANCHISOR FOR GENERAL USE IN THE CHICKEN KITCHEN SYSTEM.

                                       10
<PAGE>   13

     FRANCHISEE SHALL COMPLY WITH ALL OTHER REQUIREMENTS SET FORTH IN THIS
     AGREEMENT AND THE MOP.

         VIII. PROPRIETARY MARKS

         A. FRANCHISOR REPRESENTS WITH RESPECT TO THE PROPRIETARY MARKS THAT
FRANCHISOR HAS THE RIGHT TO ESTABLISH AND OPERATE, AND THE RIGHT TO LICENSE
OTHERS TO ESTABLISH AND OPERATE, RESTAURANTS USING THE CHICKEN KITCHEN SYSTEM
AND PROPRIETARY MARKS.

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

               1.   Franchisee shall use only the Proprietary Marks designated
                    by Franchisor, and shall use them only in the manner
                    specified by Franchisor.

               2.   Franchisee shall use the Proprietary Marks only for the
                    operation of the Franchise Business.

               3.   Unless otherwise authorized or required by Franchisor,
                    Franchisee shall operate and advertise the Franchise
                    Business only under the name CHICKEN KITCHEN, without any
                    prefix or suffix. Franchisee may not use the Proprietary
                    Marks as part of any corporate or other legal name.

               4.   During the term of this Agreement and any renewal,
                    Franchisee will indicate, in the manner specified by
                    Franchisor, that the Franchise Business is independently
                    owned and operated under a franchise in a notice posted in
                    the Franchise Business and on invoices, order forms,
                    receipts, checks and contracts.

               5.   Franchisee's may use the Proprietary Marks only for the
                    purposes and in the manner authorized in this Agreement. Any
                    other use of the Proprietary Marks shall constitute an
                    infringement of Franchisor's rights.

               6.   Franchisee shall not use the Proprietary Marks to incur any
                    obligation or indebtedness on behalf of Franchisor.

               7.   Franchisee shall comply with Franchisor's instructions in
                    filing and maintaining any requisite trade name or
                    fictitious name registrations, and shall execute any
                    documents deemed necessary by Franchisor or its counsel to
                    obtain protection for the Proprietary Marks or to maintain
                    their continued validity and enforceability.

               8.   Franchisee agrees not to do anything which could adversely
                    affect Franchisor's ownership of the Proprietary Marks, and
                    to immediately notify Franchisor of any infringement or
                    imitations and any challenges to Franchisee's use of any of
                    the Proprietary Marks. Franchisor has sole discretion as to
                    what action, if any, should be taken. Franchisee agrees to
                    cooperate with Franchisor in preventing the infringement,
                    imitation, or misuse of any of the Proprietary Marks and
                    agrees to be named as a party in any legal action if
                    requested by Franchisor. The legal expenses incident to
                    Franchisee's participation in a proceeding at Franchisor's
                    request shall be paid by Franchisor.

         C. Franchisee understands and acknowledges that:

               1.   Franchisor is the owner of all right, title and interest in
                    and to the Proprietary Marks and the goodwill associated
                    with and symbolized by them.

               2.   The Proprietary Marks are valid and serve to identify the
                    Chicken Kitchen System and those who are authorized to
                    operate under the Chicken Kitchen System.

               3.   Franchisee shall not directly or indirectly contest the
                    validity or Franchisor's ownership of the Proprietary Marks.

                                       11
<PAGE>   14

               4.   Franchisee's use of the Proprietary Marks pursuant to this
                    Agreement does not give Franchisee any ownership interest or
                    other interest in or to the Proprietary Marks, except the
                    license to use the marks granted by this Agreement.

               5.   All goodwill arising from Franchisee's use of the
                    Proprietary Marks shall inure solely and exclusively to
                    Franchisor's benefit; and, upon expiration or termination of
                    this Agreement and the license granted, the goodwill
                    associated with Franchisee's use of the Chicken Kitchen
                    System and the Proprietary Marks will have no monetary
                    value.

               6.   The right and license of the Proprietary Marks granted to
                    Franchisee is non-exclusive, and Franchisor has and retains
                    the right to:

                         a. Use the Proprietary Marks itself in connection with
                    selling products and services.

                         b. Grant other licenses to third parties giving them
                    the right to use the Proprietary Mark.

                         c. Develop and establish other systems using the
                    Proprietary Marks or similar marks, or any other proprietary
                    marks, and to grant licenses to use the marks without any
                    obligation to offer a license to Franchisee.

         7. Franchisor has the right to substitute different propriety marks for
use in identifying restaurants operating under the Chicken Kitchen System if any
of the Proprietary Marks can no longer be used or if, in the sole discretion of
Franchisor, it becomes advisable at any time to modify or discontinue the use of
any of the Proprietary Marks, including CHICKEN KITCHEN, and/or use one or more
additional or substitute names or marks. Upon notification from Franchisor,
Franchisee shall promptly discontinue the use of any Proprietary Mark, and
Franchisor's liability to Franchisee shall be limited to reimbursing Franchisee
for the unamortized cost or book value of any signs and printed materials which
must be discarded.

         8. Franchisor has the sole right to and interest in all telephone
numbers and listings associated with the Proprietary Marks, and Franchisor is
authorized to direct the telephone company to transfer the telephone numbers and
listings relating to the Franchise Business to Franchisor or its designee should
Franchisee fail or refuse to do so upon termination or expiration of this
Agreement.

         IX. CONFIDENTIAL MANUAL OF OPERATING PROCEDURES ("MOP")

         A. To protect the reputation, integrity and goodwill of the Chicken
Kitchen System and to maintain uniform standards of operation, Franchisee agrees
to operate the Franchise Business strictly in accordance with the provisions in
the MOP. Any failure by Franchisee to comply with the MOP shall be a breach of
this Agreement. Franchisee agrees to restrict access to the MOP to employees of
the Franchise Business and then only to the extent necessary for the operation
of the Franchise Business. Upon expiration or termination of this Agreement,
Franchisee will return the MOP, together with all copies, to Franchisor.

         B. Franchisee agrees to treat the MOP, any other written materials
created for or approved for use in the operation of the Franchise Business, and
the information contained therein, as confidential, and shall use all reasonable
efforts to maintain such information as secret and confidential. Franchisee
shall not at any time copy, duplicate, record, or otherwise reproduce these
confidential materials, in whole or in part, nor otherwise make any of the
materials or the information contained therein available to any unauthorized
person.

         C. The MOP shall remain the property of Franchisor and will at all
times be kept in a secure place in the Franchise Business.

                                       12
<PAGE>   15

         D. Franchisee agrees that changes in the standards, specifications, and
procedures will be necessary from time to time because of changing markets and
competition, new laws and regulations, new products and technological
developments, changing demographic factors and other conditions beyond
Franchisor's control, and agrees to accept and comply with modifications which
Franchisor in good faith believes to be necessary or desirable. Changes to the
Chicken Kitchen System may include, without limitation, the adoption and use of
new or modified trade names, trademarks, service marks or copyrighted materials,
new products and/or deletion of products, new management practices, new
equipment, new colors, decorations, uniforms, signs or trade fixtures, and/or
new operating or production procedures.

         E. Franchisee shall keep the loaned copy of the MOP up to date. In the
event of a dispute as to the contents of the MOP, the terms of the master copy
of the MOP maintained by Franchisor shall be controlling.

         X. CONFIDENTIAL INFORMATION

         A. Franchisee agrees not to, 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 methods of operation of the Franchise
Business which may be communicated to Franchisee, or of which Franchisee may be
apprized, by virtue of this Agreement. Franchisee shall divulge confidential
information only to those employees who must have access to it in order to
operate the Franchise Business. All information, knowledge, know-how and
techniques which Franchisor designates as confidential shall be deemed
confidential for purposes of this Agreement, except information which Franchisee
can demonstrate came to his attention prior to its disclosure by Franchisor or
which at or after the time of disclosure by Franchisor to Franchisee becomes a
part of the public domain, through publication or communication by others.

         B. Franchisee acknowledges that any failure to comply with the
requirements of this Section X will cause Franchisor irreparable injury, and
Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred
by Franchisor in obtaining specific performance of, or an injunction against
violation of, the requirements of this Section X.

         XI. ACCOUNTING AND RECORDS

         A. Franchisee agrees to maintain during the term of this Agreement, and
shall preserve for at least 3 years from the end of the year to which they
relate, complete and accurate books, records and accounts in accordance with
generally accepted accounting principles and in the form and manner prescribed
by Franchisor in the MOP or otherwise in writing. These records shall include,
without limitation, accounting records and books, customer files, sales and
purchase records, sales tax records, deposit tickets, bank statements, canceled
checks and business tax returns.

         B. No later than the 20th day of each month, Franchisee shall submit to
Franchisor, in a format specified by Franchisor, a monthly (for previous month)
and fiscal year to date profit and loss statement. Within 30 days after the end
of each calendar quarter, Franchisee shall furnish Franchisor with a quarterly
balance sheet for the Franchise Business. Franchisee shall submit to Franchisor
copies of all state and local sales tax returns for the Franchise Business at
the same time as the originals are filed with the taxing authority.

         C. Franchisee shall also submit to Franchisor such other forms,
reports, records, information, cash register "Z" tapes, daily management reports
and any other data specified in the MOP or requested by Franchisor.

                                       13
<PAGE>   16

         D. Franchisor or its representatives shall have the right at all
reasonable times to examine and copy, at Franchisor's expense, the books,
records and tax returns of the Franchise Business. Franchisor shall also have
the right, at any time, to have an independent audit made of the books of the
Franchise Business. If an inspection discloses that sales have been understated
in any report to Franchisor, Franchisee shall immediately pay to Franchisor the
Royalty and Advertising Fund payment deficiency plus interest from the date such
payments were due until paid, at the rate of 1.5% per month, or the maximum
permitted by law, whichever is less. If a discrepancy is found between reported
sales and actual sales in excess of 2% of reported sales, Franchisee must
reimburse Franchisor for all costs of the inspection including travel, living
expenses, wages and reasonable accounting and legal costs. The foregoing
remedies shall be in addition to any other remedies Franchisor may have.

         XII. ADVERTISING

         Recognizing the value of advertising and the importance of the
standardization of advertising programs to the furtherance of the goodwill and
public image of the Chicken Kitchen System, the parties agree as follows:

         A. Every 3 months during the term of this Agreement, Franchisee shall
spend on local advertising not less than an amount to be determined by
Franchisor, which requirement shall not exceed 4% of Gross Sales. In no event
will Franchisee's required advertising expenditures, in the aggregate (including
local advertising expenditures and payments to the Advertising Fund) exceed 4%
of Gross Sales. The amount Franchisee may spend on local advertising is not
limited by this Agreement. Franchisee may voluntarily spend on local advertising
in excess of the required amount. Franchisee shall provide Franchisor with
receipts for all local advertising expenditures not later than the 30th day
following the end of each calendar quarter for advertising expenditures incurred
in that quarter. If the submitted receipts do not document that Franchisee made
the required local advertising expenditures in any calendar quarter, Franchisee
shall pay to Franchisor an amount equal to the deficiency for inclusion in the
Advertising Fund.

         B. Franchisor may from time to time offer to Franchisee, for a charge,
local advertising and promotional plans and materials.

         C. All advertising and promotion by Franchisee shall be conducted in a
dignified manner and shall conforrn to the standards and requirements specified
by Franchisor. Franchisee shall submit to Franchisor, for its prior approval
(except with respect to prices to be charged), samples of all advertising and
promotional plans and materials that Franchisee desires to use and which have
not been furnished by or previously approved by Franchisor. If written
disapproval is not received by Franchisee within 15 days after the date of
receipt by Franchisor of the samples and request for approval, Franchisee may
use the proposed advertising and promotional materials. Franchisor may at any
time disapprove advertising and promotional materials, and following
disapproval, Franchisee shall not use the materials.

         D. The Franchise Business shall be listed in the Yellow Pages of the
local telephone directory under the headings "Restaurants" and "Catering
Services", and if requested by Franchisor, the Franchise Business shall be
included in a joint listing with other restaurants in the Chicken Kitchen
System. The cost of the listing shall be paid by Franchisee, or on a pro rata
basis by all participating restaurants in the case of a joint listing. The
format, size and content of the listing must conform to the standards
established by Franchisor. Franchisor shall not specify an unreasonably
expensive listing. The cost of the listing shall not qualify as an advertising
expenditure for purposes of satisfying Franchisee's local advertising
expenditure requirement.

         E. Franchisee may sell products at prices Franchisee may determine, and
shall in no way be bound by any price which may be recommended or suggested by
Franchisor.

                                       14
<PAGE>   17

         F. All reasonable costs incurred by Franchisor or charged to Franchisor
by third parties for the production and dissemination of advertising and
promotion materials may be charged to the Advertising Fund.

               1.   Franchisor, upon request, will provide Franchisee with an
                    annual accounting of receipts and disbursements of the
                    Advertising Fund.

               2.   Selection of media and locale for media placement shall be
                    at the sole discretion of Franchisor.

               3.   The Advertising Fund shall be used exclusively to meet the
                    costs of maintaining, administering, directing and preparing
                    advertising and/or promotional and public relations and
                    market research activities. Franchisee shall contribute to
                    the Advertising Fund by separate check made payable to the
                    Advertising Fund. All sums paid by Franchisee to the
                    Advertising Fund shall be maintained in a separate account
                    and shall not be used to defray any of Franchisor's
                    expenses, except those costs reasonably related to the
                    administration of the Advertising Fund and advertising
                    programs for franchisees and the Chicken Kitchen System.

               4.   It is anticipated that contributions to the Advertising Fund
                    will be expended for advertising and promotional purposes
                    during the fiscal year within which the contributions are
                    made; however, if any funds are not spent in the year
                    received, they will be spent in the following year.

               5.   The Advertising Fund is not, and shall not be deemed, an
                    asset of Franchisor. Although the Advertising Fund is
                    intended to be of perpetual duration, Franchisor has the
                    right to terminate or suspend the Advertising Fund or reduce
                    Franchisee's obligation to make payments into the
                    Advertising Fund and instead direct Franchisee to spend the
                    payment on approved local advertising. Franchisor may revoke
                    such direction at any time and upon revocation Franchisee
                    shall resume making payments into the Advertising Fund. The
                    Advertising Fund shall not be terminated until all monies in
                    the Advertising Fund have been expended for advertising or
                    promotional purposes.

               6.   Franchisee acknowledges that the Advertising Fund is
                    intended to increase the public's awareness of the Chicken
                    Kitchen System and Proprietary Marks and increase patronage
                    of Chicken Kitchen Restaurants. Although Franchisor will
                    endeavor to utilize the Advertising Fund to develop
                    advertising and marketing materials and programs, and to
                    place advertising that will benefit all Chicken Kitchen
                    Restaurants, Franchisor has no obligation in administering
                    the Advertising Fund to ensure that expenditures by the
                    Advertising Fund in or affecting any geographic area are
                    proportionate or equivalent to the contributions to the
                    Advertising Fund by Chicken Kitchen Restaurants open in that
                    geographic area or than Franchisee will receive a direct
                    benefit which is equivalent or proportionate to the amount
                    paid into the Advertising Fund by Franchisee.

         C. IN THE EVENT THAT EITHER A REGIONAL ADVERTISING FUND OR REGIONAL
ADVERTISING COOPERATIVE, APPROVED BY FRANCHISOR, IS ESTABLISHED FOR THE
FRANCHISE BUSINESS' MARKET, FRANCHISEE SHALL BECOME A MEMBER OF AND MAKE PAYMENT
TO THE ADVERTISING COOPERATIVE IN THE AMOUNT DETERMINED BY A MAJORITY OF THE
MEMBERS. PAYMENTS TO A LOCAL OR REGIONAL ADVERTISING COOPERATIVE MAY BE USED TO
SATISFY FRANCHISEE'S REQUIRED LOCAL ADVERTISING OBLIGATION, BUT WILL NOT AFFECT
FRANCHISEE'S OBLIGATION TO CONTRIBUTE TO THE ADVERTISING FUND.

                                       15
<PAGE>   18

         XIII. INSURANCE

         A. Throughout the term of this Agreement, including during
construction, Franchisee shall maintain in full force, at Franchisee's expense,
an insurance policy or policies protecting Franchisee and Franchisor against any
demand or claim with respect to personal injury, death or property damage, or
any loss, liability or expense arising or occurring upon or in connection with
the Franchise Business, including all vehicles used in the business, whether
owned by Franchisee, an employee of Franchisee or an independent contractor used
by Franchisee to provide delivery services.

         B. The policy or policies shall be written by an insurance company
licensed in the state where the Franchise Business is located and be acceptable
to Franchisor, and shall include, at a minimum (except as additional coverage
and higher policy limits may reasonably be specified for all franchisees by
Franchisor from time to time) the following:

               1.   COMPREHENSIVE OR COMMERCIAL GENERAL LIABILITY INSURANCE,
                    INCLUDING PERSONAL INJURY, COMPLETED OPERATIONS, CONTRACTUAL
                    LIABILITY, PROPERTY DAMAGE, PRODUCTS LIABILITY, LIQUOR
                    LIABILITY AND FIRE DAMAGE COVERAGE, AS WELL AS COMPREHENSIVE
                    AUTOMOBILE LIABILITY COVERAGE FOR BOTH OWNED AND NON-OWNED
                    VEHICLES, IN THE AMOUNT OF NOT LESS THAN $ 1, 000, 000. 00
                    PER OCCURRENCE FOR BODILY INJURY AND NOT LESS THAN $500,000
                    FOR PROPERTY DAMAGE.

               2.   ALL RISK PROPERTY INSURANCE IN AN AMOUNT SUFFICIENT TO COVER
                    THE COST OF REPLACEMENT (WITHOUT DEDUCTION FOR DEPRECIATION)
                    COVERING THE FRANCHISE BUSINESS PREMISES AND ITS FURNITURE,
                    FIXTURES AND EQUIPMENT.

               3.   COMPREHENSIVE AND COLLISION INSURANCE COVERING DAMAGE TO
                    EVERY VEHICLE USED IN THE BUSINESS IN THE AMOUNT OF THE
                    ACTUAL CASH VALUE OF THE VEHICLE. PERSONAL INJURY PROTECTION
                    FOR THE DRIVERS AND PASSENGERS IN VEHICLES USED IN THE
                    BUSINESS.

               4.   BUSINESS INTERRUPTION INSURANCE.

               5.   EMPLOYER'S LIABILITY, WORKERS' COMPENSATION AND SUCH OTHER
                    INSURANCE REQUIRED BY LAW WHERE THE FRANCHISE BUSINESS IS
                    LOCATED.

         C. Franchisor may require additional coverage and/or higher policy
limits as may be reasonably required by good business practices.

         D. Franchisee's obligation to obtain and maintain the foregoing
insurance 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 Franchisee of liability under the indemnity provisions set
forth in Section XXIX.C.

         E. Prior to commencing construction and prior to the opening of the
Franchise Business and at least 10 days prior to the expiration of any policy,
Franchisee shall deliver to Franchisor a certificate of insurance reflecting
that the insurance coverage is in effect, and upon request, a copy of the
policy(ices). Each policy shall provide that the policy cannot be canceled or
materially modified without 30 days prior written notice to Franchisor.

         XIV. TRANSFER OF INTEREST

         A. TRANSFER BY FRANCHISOR

         Franchisor may transfer or assign all or any part of its rights or
     obligations under this Agreement to any person or legal entity.

                                       16
<PAGE>   19

         B. TRANSFER BY FRANCHISEE

               1.   FRANCHISEE UNDERSTANDS AND ACKNOWLEDGES THAT THE RIGHTS AND
                    DUTIES SET FORTH IN THIS AGREEMENT ARE PERSONAL TO
                    FRANCHISEE, AND ARE GRANTED IN RELIANCE ON FRANCHISEE'S
                    BUSINESS SKILL, FINANCIAL CAPACITY AND PERSONAL CHARACTER.
                    ACCORDINGLY, NEITHER FRANCHISEE NOR ANY IMMEDIATE OR REMOTE
                    SUCCESSOR TO ANY PART OF FRANCHISEE'S INTEREST IN THIS
                    AGREEMENT, NOR ANY INDIVIDUAL, PARTNERSHIP, CORPORATION OR
                    OTHER LEGAL ENTITY WHICH DIRECTLY OR INDIRECTLY OWNS ANY
                    INTEREST IN THIS AGREEMENT OR IN FRANCHISEE, SHALL SELL,
                    ASSIGN, TRANSFER, CONVEY, GIVE AWAY, PLEDGE, MORTGAGE OR
                    OTHERWISE ENCUMBER ANY DIRECT OR INDIRECT INTEREST IN
                    FRANCHISEE, THIS AGREEMENT, THE FRANCHISE BUSINESS, OR THE
                    ASSETS OF THE FRANCHISE BUSINESS WITHOUT THE PRIOR WRITTEN
                    CONSENT OF FRANCHISOR, WHICH CONSENT MAY BE WITHHELD FOR ANY
                    REASON AT FRANCHISOR'S SOLE DISCRETION; PROVIDED, HOWEVER,
                    SUBJECT TO THE SECURED PARTY COMPLYING WITH THE PROVISIONS
                    OF SECTION XIV.B.3, FRANCHISOR'S PRIOR WRITTEN CONSENT SHALL
                    NOT BE REQUIRED FOR THE GRANTING OF A SECURITY INTEREST IN
                    THE FURNITURE, FIXTURES AND EQUIPMENT USED IN THE FRANCHISE
                    BUSINESS TO A FINANCIAL INSTITUTION PROVIDING FINANCING FOR
                    THE INITIAL PURCHASE OF THESE ASSETS. ANY PURPORTED
                    ASSIGNMENT OR TRANSFER, BY OPERATION OF LAW OR OTHERWISE,
                    NOT HAVING THE WRITTEN CONSENT OF FRANCHISOR REQUIRED BY
                    THIS SECTION XIV.B.1 SHALL BE NULL AND VOID AND SHALL
                    CONSTITUTE A MATERIAL BREACH OF THIS AGREEMENT, FOR WHICH
                    FRANCHISOR MAY TERMINATE THIS AGREEMENT WITHOUT ANY
                    OPPORTUNITY TO CURE PURSUANT TO SECTION XV.B.4.

               2.   IF A TRANSFER, ALONE OR TOGETHER WITH OTHER PREVIOUS,
                    SIMULTANEOUS OR PROPOSED TRANSFERS, WOULD RESULT IN A CHANGE
                    OR POTENTIAL CHANGE OF CONTROL OF FRANCHISEE, OR THE
                    OWNERSHIP OF THIS AGREEMENT, THE FRANCHISE BUSINESS OR
                    SUBSTANTIALLY ALL OF THE ASSETS OF THE FRANCHISE BUSINESS,
                    FRANCHISOR MAY REQUIRE, IN ITS SOLE DISCRETION, ANY OR ALL
                    OF THE FOLLOWING AS CONDITIONS OF ITS APPROVAL:

                         a. All of Franchisee's accrued monetary obligations to
                    Franchisor and any subsidiary or affiliate of Franchisor
                    have been satisfied.

                         b. Franchisee is not in default of any provision of
                    this Agreement or any other agreement between Franchisee and
                    Franchisor or an affiliate or subsidiary.

                         c. The transferor executes a general release, in a form
                    satisfactory to Franchisor, of all claims, to the maximum
                    extent allowed by law, against Franchisor and its 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 regulations.

                         d. The transferee (and, if transferee is not an
                    individual, such owners of a beneficial interest in the
                    transferee as Franchisor may request) enter into a written
                    assignment, in a form satisfactory to Franchisor, assuming
                    and agreeing to discharge all of Franchisee's obligations
                    under this Agreement.

                         e. The transferee demonstrates to Franchisor that
                    transferee meets Franchisor's managerial and business
                    standards, is of good moral character, has a good business
                    reputation and credit rating, has satisfactory business
                    experience, has adequate financial resources and capital,
                    and successfully completes Franchisor's management training
                    program.

                                       17
<PAGE>   20

                         f. At Franchisor's option, the transferee (and if
                    transferee is not an individual, such owners of a beneficial
                    interest in transferee as Franchisor may request) execute
                    for a term ending on the expiration date of this Agreement,
                    Franchisor's then current standard form of Franchise
                    Agreement, which agreement shall supersede this Agreement in
                    all respects and the terms of which agreement may differ
                    from the terms of this Agreement.

                         g. Transferor shall remain liable for all obligations
                    of Franchisee under this Agreement until such time as
                    transferee has paid in full all debt incurred by transferee
                    in connection with the assignment or transfer and shall
                    execute all instruments reasonably requested by Franchisor
                    to evidence this continuing liability.

                         h. Except in the case of a transfer to a corporation
                    formed for the convenience of ownership, a transfer fee in
                    the amount of $5,000, or such greater amount as is necessary
                    to reimburse Franchisor for its reasonable costs and
                    expenses associated with reviewing and processing the
                    transfer request and providing training to the transferee.

               3.   FRANCHISEE SHALL NOT GRANT A SECURITY INTEREST IN ANY OF THE
                    ASSETS OF THE FRANCHISE BUSINESS UNLESS THE SECURED PARTY
                    AGREES THAT, IN THE EVENT OF A DEFAULT BY FRANCHISEE UNDER
                    ANY DOCUMENTS RELATED TO THE SECURITY INTEREST, FRANCHISOR
                    SHALL HAVE THE RIGHT AND OPTION TO PURCHASE THE RIGHTS OF
                    THE SECURED PARTY UPON PAYMENT OF ALL SUMS THEN DUE TO THE
                    SECURED PARTY DIRECTLY RELATED TO THE FRANCHISE BUSINESS.

               4.   FRANCHISEE ACKNOWLEDGES AND AGREES THAT EACH CONDITION WHICH
                    MUST BE MET BY A TRANSFEREE IS REASONABLE AND NECESSARY TO
                    PROTECT THE INTEGRITY OF THE CHICKEN KITCHEN SYSTEM.

         C. 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 (whether or not Franchisor's consent is required under Section
XIV.B.), which consent shall not be unreasonably withheld. All materials
required for any offering of securities of Franchisee by federal or state law
shall be submitted to Franchisor for review prior to their being filed with any
government 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 securities
shall imply (by use of any 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 must fully
indemnify Franchisor in connection with the offering, and must prior to the
offering execute all documents requested by Franchisor to evidence this
indemnification. For each proposed offering, Franchisee shall pay to Franchisor
a non-refundable fee of $10,000.00, 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, together with
a copy of all documentation pertaining to the proposed offering, at least 30
days prior to the date of commencement of any offering or other transaction
covered by this Section XIV.C.

         D. RIGHT OF REFUSAL

               1.   ANY PARTY HOLDING AN INTEREST IN FRANCHISEE, THIS AGREEMENT
                    OR THE ASSETS OF THE FRANCHISE BUSINESS, WHO DESIRES TO
                    ACCEPT A BONA FIDE OFFER FROM A THIRD PARTY TO PURCHASE SUCH
                    INTEREST, SHALL NOTIFY FRANCHISOR IN WRITING OF EACH OFFER,
                    AND SHALL PROVIDE SUCH INFORMATION AND DOCUMENTATION
                    RELATING TO THE OFFER AS FRANCHISOR

                                       18
<PAGE>   21

                    MAY REQUEST. FRANCHISOR OR ITS DESIGNEE SHALL HAVE THE RIGHT
                    AND OPTION, EXERCISABLE WITHIN 60 DAYS AFTER RECEIPT OF THE
                    WRITTEN NOTIFICATION AND REQUESTED DOCUMENTATION, TO SEND
                    WRITTEN NOTICE TO THE SELLER THAT FRANCHISOR OR ITS DESIGNEE
                    INTENDS TO PURCHASE THE SEFLER'S INTEREST ON THE SAME TERMS
                    AND CONDITIONS OFFERED BY THE THIRD PARTY. ANY MATERIAL
                    CHANGE IN THE TERMS OF ANY OFFER PRIOR TO CLOSING SHALL
                    CONSTITUTE A NEW OFFER SUBJECT TO THE SAME RIGHT OF FIRST
                    REFUSAL BY FRANCHISOR OR ITS DESIGNEE AS IN THE CASE OF THE
                    INITIAL OFFER. FAILURE BY FRANCHISOR TO EXERCISE THE OPTION
                    AFFORDED BY THIS SECTION XIV.D. SHALL NOT CONSTITUTE A
                    WAIVER OF ANY OTHER PROVISION OF THIS AGREEMENT, INCLUDING
                    ALL OF THE REQUIREMENTS OF SECTION XIV WITH RESPECT TO A
                    PROPOSED TRANSFER BY FRANCHISEE. IF FRANCHISOR DOES NOT
                    EXERCISE ITS FIRST RIGHT TO PURCHASE, THE SELLER MAY
                    CONCLUDE THE SALE TO THE PERSON WHO MADE THE OFFER ON THE
                    EXACT TERMS AND CONDITIONS SPECIFIED IN THE NOTICE TO
                    FRANCHISOR FOR A PERIOD OF 60 DAYS AFTER RECEIPT OF
                    FRANCHISOR'S CONSENT TO THE ASSIGNMENT.

               2.   IF THE CONSIDERATION, TERMS, AND/OR CONDITIONS OFFERED BY
                    THE THIRD PARTY ARE SUCH THAT FRANCHISOR OR ITS DESIGNEE MAY
                    NOT REASONABLY BE REQUIRED TO FURNISH THE SAME
                    CONSIDERATION, TERMS, AND/OR CONDITIONS, THEN FRANCHISOR OR
                    ITS DESIGNEE MAY PURCHASE THE INTEREST PROPOSED TO BE SOLD
                    FOR THE REASONABLE EQUIVALENT IN CASH, OR, AT THE OPTION OF
                    FRANCHISOR, IF THE STOCK OF FRANCHISOR OR ITS DESIGNEE IS
                    PUBLICLY TRADED, SECURITIES ISSUED BY FRANCHISOR OR ITS
                    DESIGNEE HAVING A MARKET VALUE EQUAL TO THE OFFERED
                    CONSIDERATION. IF THE PARTIES CANNOT AGREE WITHIN A
                    REASONABLE TIME ON THE VALUE OF THE OFFER, AN INDEPENDENT
                    APPRAISER SHALL BE DESIGNATED BY FRANCHISOR AND THE
                    APPRAISER'S DETERMINATION SHALL BE BINDING.

         E. Transfer Upon Death or Mental Incapacity

         Upon the death or mental incapacity of any person with an interest in
this Agreement, the Franchise Business or Franchisee, the executor,
administrator or personal representative of such person shall transfer, within 6
months after such death or mental incapacity, the interest of the person to a
third party approved by Franchisor. Such transfer shall be subject to the same
conditions as any inter-vivos transfer pursuant to this Section XIV. However, in
the case of transfer by devise or inheritance, if the heirs or beneficiaries of
such person are unable to meet the conditions in this Section XIV, the personal
representative of the deceased shall have a reasonable additional time to
dispose of the deceased's interest in this Agreement. If the interest is not
disposed of within a reasonable time, Franchisor may terminate this Agreement.

         F. Non-Waiver of Claims

         Franchisor's consent to a transfer of an interest in this Agreement
shall not constitute a waiver of any claims Franchisor may have against the
transferring party, nor shall it be deemed a waiver of Franchisor's right to
demand exact compliance with the terms of this Agreement by the transferee.

         XV. DEFAULT AND TERMINATION

         A. Franchisee shall be deemed in default under this Agreement, and all
rights granted in this Agreement shall automatically terminate without notice to
Franchisee, if Franchisee becomes insolvent or makes an assignment for the
benefit of creditors; if Franchisee files a petition or application seeking any
type of relief under the U.S. Bankruptcy Code or any state insolvency or similar
law, or someone files a petition or application seeking to have Franchisee
adjudicated a

                                       19
<PAGE>   22

bankrupt, or seeking other relief against Franchisee under the U.S. Bankruptcy
Code or any state insolvency or similar law and the petition or application is
not dismissed within 60 days; if Franchisee is adjudicated as bankrupt or
insolvent; if a receiver or other custodian (permanent or temporary) of
Franchisee's assets, or any part thereof, is appointed by any court of competent
jurisdiction; if proceedings for a composition with creditors under any state or
federal law are instituted by or against Franchisee; if a final judgment remains
unsatisfied or of record for 30 days or longer (unless bonded); if Franchisee is
dissolved; if execution is levied against a material portion of Franchisee's
business or property; or if the real or personal property of the Franchise
Business is sold after levy.

         B. Franchisee shall be deemed to be in default and Franchisor may, at
its option, terminate this Agreement and all rights granted under the Agreement,
without affording Franchisee any opportunity to cure the default, effective
immediately upon receipt of notice by Franchisee, upon the occurrence of any of
the following events:

               1.   IF FRANCHISEE FAILS TO CONSTRUCT AND OPEN THE FRANCHISE
                    BUSINESS IN ACCORDANCE WITH SECTION V AND/OR THE SITE
                    SELECTION ADDENDUM OF THIS AGREEMENT.

               2.   IF FRANCHISEE AT ANY TIME CEASES TO OPERATE OR OTHERWISE
                    ABANDONS THE FRANCHISE BUSINESS, OR LOSES THE RIGHT TO
                    POSSESSION OF THE PREMISES OF THE FRANCHISE BUSINESS, OR
                    OTHERWISE FORFEITS THE RIGHT TO DO OR TRANSACT BUSINESS IN
                    THE JURISDICTION WHERE THE FRANCHISE BUSINESS IS LOCATED;
                    PROVIDED, HOWEVER, THAT IF ANY LOSS OF POSSESSION RESULTS
                    FROM THE GOVERNMENTAL EXERCISE OF THE POWER OF EMINENT
                    DOMAIN OR IF, THROUGH NO FAULT OF FRANCHISEE, THE PREMISES
                    ARE DAMAGED OR DESTROYED, THEN FRANCHISEE SHALL HAVE 30 DAYS
                    AFTER SUCH EVENT IN WHICH TO APPLY FOR FRANCHISOR'S APPROVAL
                    TO RELOCATE OR RECONSTRUCT THE PREMISES, WHICH APPROVAL
                    SHALL NOT BE UNREASONABLY WITHHELD.

               3.   IF FRANCHISEE, OR ANY OFFICER, DIRECTOR, CONTROLLING
                    SHAREHOLDER, PARTNER OR PARENT OF FRANCHISEE, IS CONVICTED
                    OF A FELONY, A CRIME INVOLVING MORAL TURPITUDE OR ANY OTHER
                    CRIME THAT FRANCHISOR BELIEVES IS REASONABLY LIKELY TO HAVE
                    AN ADVERSE EFFECT ON THE CHICKEN KITCHEN SYSTEM, THE
                    PROPRIETARY MARKS OR THE GOODWILL ASSOCIATED WITH THE
                    CHICKEN KITCHEN SYSTEM OR THE PROPRIETARY MARKS.

               4.   IF FRANCHISEE OR ANY PARTNER OR SHAREHOLDER IN FRANCHISEE
                    TRANSFERS, OR ATTEMPTS 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 OF
                    THIS AGREEMENT.

               5.   IF FRANCHISEE FAILS TO COMPLY WITH THE COVENANTS IN SECTIONS
                    XVII.B. OR XVII.C., OR FAILS TO OBTAIN EXECUTION OF THE
                    COVENANTS REQUIRED UNDER SECTION XVII.J.

               6.   IF, CONTRARY TO THE TERMS OF SECTION IX OR X, FRANCHISEE
                    DISCLOSES OR DIVULGES THE CONTENTS OF THE MOP OR OTHER
                    CONFIDENTIAL INFORMATION PROVIDED TO FRANCHISEE BY
                    FRANCHISOR.

               7.   IF AN APPROVED TRANSFER IS NOT EFFECTED FOLLOWING
                    FRANCHISEE'S DEATH OR MENTAL INCAPACITY WITHIN THE TIME
                    SPECIFIED IN SECTION XIV.

               8.   IF FRANCHISEE KNOWINGLY MAINTAINS FALSE BOOKS OR RECORDS, OR
                    SUBMITS A FALSE REPORT TO FRANCHISOR.

                                       20
<PAGE>   23

               9.   IF FRANCHISEE, AFTER CURING A DEFAULT PURSUANT TO SECTION
                    XV.C., COMMITS THE SAME ACT OF DEFAULT WITHIN THE NEXT 6
                    MONTHS.

               10.  IF FRANCHISEE DEFAULTS MORE THAN ONCE IN ANY 12 MONTH PERIOD
                    UNDER SECTION XV.C. FOR FAILURE TO COMPLY WITH THE
                    REQUIREMENTS IMPOSED BY THIS AGREEMENT, WHETHER OR NOR CURED
                    AFTER NOTICE.

         C. Except as provided in Sections XV.A. and XV.B., Franchisee shall
have 30 days, unless a shorter time is specified, after receipt of written
notice from Franchisor within which to remedy any default. If any default is not
cured within that time, or such longer period as applicable law may require,
this Agreement shall terminate without further notice to Franchisee effective
immediately upon expiration of the cure period. Franchisee shall be in default
under this Agreement for any failure to comply with any provision of this
Agreement or to carry out the terms of this Agreement in good faith. Such
defaults shall include, without limitation, the occurrence of any of the
following events:

               1.   If Franchisee does not pay any monies owed to Franchisor or
                    its affiliates when due, or fails to submit the sales or
                    financial reports required by Franchisor under this
                    Agreement. Franchisee shall have 10 days after receipt of
                    written notice of termination from Franchisor to cure a
                    default in the payment of monies or submission of sales or
                    financial reports.

               2.   If Franchisee fails to maintain any of the standards or
                    procedures prescribed by Franchisor in this Agreement, the
                    MOP, or otherwise in writing.

               3.   Except as provided in Section XV.B, if Franchisee fails to
                    obtain Franchisor's prior written approval or consent as
                    required under this Agreement.

               4.   If Franchisee misuses or makes any unauthorized use of the
                    Proprietary Marks or otherwise impairs the goodwill
                    associated with the Proprietary Marks.

               5.   If Franchisee engages in any business or markets any service
                    or product under a name or mark which, in Franchisor's
                    opinion, is confusingly similar to any of the Proprietary
                    Marks.

               6.   If Franchisee, by act or omission, permits a continued
                    violation in connection with the operation of the Franchise
                    Business of any law, ordinance, rule, or regulation of a
                    governmental agency, in the absence of a good faith dispute
                    over its application or legality and without promptly
                    resorting to an appropriate administrative or judicial forum
                    for relief therefrom.

               7.   If Franchisee is declared to be in default under an
                    mortgage, lease, deed of trust, or loan relating to the
                    Franchise Business.

               8.   IF A THREAT OR DANGER TO PUBLIC HEALTH OR SAFETY RESULTS
                    FROM THE CONSTRUCTION, MAINTENANCE OR OPERATION OF THE
                    FRANCHISE BUSINESS.

         XVI. OBLIGATIONS UPON TERMINATION OR EXPIRATION

         Upon termination or expiration of this Agreement, all rights granted to
Franchisee shall terminate and:

         A. Franchisee shall immediately cease to operate the Franchise
Business, and shall not thereafter, directly or indirectly, represent to the
public that the restaurant is associated with the Chicken Kitchen System or hold
himself out as a present or former franchisee of Franchisor.

         B. Franchisee shall immediately and permanently cease to use, in any
manner, any menus, recipes, confidential methods, procedures and techniques
associated with the Chicken Kitchen System and the Proprietary Marks. In
particular, Franchisee shall cease to use, without limitation, the proprietary
marinade mix, and all signs, advertising materials, displays, stationery, forms
and any other materials which display any of the Proprietary Marks; provided,
however, that this Section

                                      21
<PAGE>   24
XV.B. shall not apply to the operation by Franchisee of any other restaurant
under the Chicken Kitchen System pursuant to a franchise granted by Franchisor
to Franchisee.

         E. Franchisee shall take appropriate action to cancel any assumed or
fictitious name registration which contains any of the Proprietary Marks, and
Franchisee shall furnish Franchisor with evidence of compliance within 30 days
after termination or expiration of this Agreement.

         F. Franchisee shall, at Franchisor's option, assign to Franchisor or
its designee Franchisee's interest in any lease or sublease for the premises of
the Franchise Business. If Franchisor does not elect to exercise its option to
acquire the lease or sublease for the premises of the Franchise Business,
Franchisee shall promptly after termination or expiration of this Agreement,
make such modifications or alterations to the premises as may be necessary to
distinguish the appearance of the premises from its former appearance and that
of other restaurants operating under the Chicken Kitchen System. If Franchisee
fails or refuses to comply with the requirements of this Section XVI, Franchisor
may enter upon the premises, without being guilty of trespass or any other tort,
for the purpose of making or causing to be made the required changes, at the
expense of Franchisee, which expense Franchisee agrees to pay upon demand.

         G. Franchisee agrees, in the event it continues to operate or
subsequently begins to operate a restaurant or other business, not to use any
reproduction, counterfeit, copy, or colorable imitation of any of the
Proprietary Marks in connection with the operation of, or promotion of, such
restaurant or other business which is likely to cause confusion, mistake or
deception, or which is likely to dilute Franchisor's rights in and to the
Proprietary Marks, 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 or the Chicken Kitchen
System.

         H. Franchisee shall immediately pay all sums owing to Franchisor and
its subsidiaries and affiliates. In the event of termination because of a
default by Franchisee, these sums shall include all damages, costs and expenses,
including reasonable attorneys fees, incurred by Franchisor as a result of the
default, which obligation shall give rise to and remain, until paid in full, a
lien in favor of Franchisor against all personal property, furnishings,
equipment, signs, fixtures and inventory owned by Franchisee located on the
premises of the Franchise Business at the time of default.

         I. Franchisee shall pay to Franchisor all damages, costs and expenses,
including reasonable attorneys fees incurred by Franchisor subsequent to the
termination or expiration of this Agreement in obtaining injunctive or other
relief for the enforcement of any provision of this Section XVI.

         J. Franchisee shall immediately deliver to Franchisor the MOP and such
other records, files, instructions, correspondence and materials which are
confidential and are related to operating the Franchise Business and/or to the
Chicken Kitchen System.

         K. Franchisor shall have the option, exercisable within 30 days after
termination or expiration, to purchase from Franchisee the furnishings,
equipment, signs, fixtures, supplies, inventory and other tangible assets of the
Franchise Business at Franchisee's book value or fair market value, whichever is
less. If the parties are unable to agree on the fair market value within a
reasonable time, an independent appraiser shall be designated by Franchisor,
which appraiser's determination shall be binding. Franchisor shall receive a
credit against the purchase price for any sums which are owed to it or a
subsidiary or affiliate by Franchisee, the cost of the appraisal, if any, and
for any monies which Franchisor expends for obligations of Franchisee. Upon
payment of the purchase price, Franchisee shall deliver to Franchisor or its
designee a bill of sale conveying title to the property free and clear of all
encumbrances, and such other documents reasonably required to effect a complete
transfer of Franchisee's right, title, and interest in the assets. Franchisee
shall ensure that notice is given to all creditors pursuant to the applicable
bulk transfer laws of the state where the Franchise Business was located, and
shall hold Franchisor harmless from any and all claims of Franchisee's
creditors.

                                       22
<PAGE>   25

         L. If Franchisee occupies the premises as a fee owner, Franchisee shall
give Franchisor the option of buying or leasing the premises at its fair market
value. In the event that Franchisor chooses to lease the premises, the term of
the lease shall be for a period of 20 years.

         M. Franchisee shall comply with the covenants contained in Section
XVII.C.

         XVII. COVENANTS

         A. Franchisee covenants that during the term of this Agreement, except
as otherwise approved in writing by Franchisor, Franchisee (if Franchisee is a
partnership, corporation or limited liability company, then the Operating
Partner, who must have A minimum 51% ownership interest in Franchisee) shall
devote full time, energy and best efforts to the management and day-to-day
operation of the Franchise Business with no operational or management
commitments in any other business (except for other restaurants operated under
franchises from Franchisor).

         B. Franchisee acknowledges that, pursuant to this Agreement, Franchisee
will receive valuable specialized training and confidential information,
including, without limitation, information regarding the operation, sales,
promotional and marketing methods and techniques of Franchisor and the Chicken
Kitchen System. Franchisee covenants that during the tem of this Agreement,
except as otherwise approved in writing by Franchisor, Franchisee shall not,
either directly or indirectly, for himself, or through, on behalf of, or in
conjunction with, any person, persons or legal entity.

               1.   Divert or attempt to divert any business or customer or
                    potential customer of the Franchise Business to any
                    competitor, by direct or indirect inducement, or do or
                    perform, directly or indirectly, any other act injurious or
                    prejudicial to the goodwill associated with the Proprietary
                    Marks and the Chicken Kitchen System.

               2.   Employ or seek to employ any person who is at that time
                    employed by Franchisor or by another franchisee of
                    Franchisor, or otherwise directly or indirectly induce such
                    person to leave his or her employment, unless such
                    employment is accomplished with the written consent of the
                    person's employer.

               3.   OWN, MAINTAIN, ADVISE, HELP, INVEST IN, MAKE LOANS TO,
                    ENGAGE IN OR HAVE ANY INTEREST IN ANY FOOD SERVICE BUSINESS
                    WHICH SELLS OR DISTRIBUTES CHICKEN.

         C. FRANCHISEE COVENANTS THAT, EXCEPT AS OTHERWISE APPROVED IN WRITING
BY FRANCHISOR, FRANCHISEE SHALL NOT, FOR A CONTINUOUS UNINTERRUPTED PERIOD
COMMENCING UPON THE EXPIRATION OR TERMINATION OF THIS AGREEMENT, REGARDLESS OF
THE CAUSE FOR TERMINATION, OR UPON THE TRANSFER OF FRANCHISEE'S INTEREST IN THIS
AGREEMENT, AND CONTINUING FOR 2 YEARS, EITHER DIRECTLY OR INDIRECTLY, FOR
HIMSELF, OR THROUGH, ON BEHALF OF, OR IN CONJUNCTION WITH ANY PERSON, PERSONS OR
LEGAL ENTITY, OWN, MAINTAIN, OPERATE, ENGAGE IN, BE EMPLOYED BY OR HAVE ANY
INTEREST IN ANY FOOD SERVICE BUSINESS WHICH SELLS OR DISTRIBUTES CHICKEN WITHIN
5 MILES OF THE FRANCHISE BUSINESS OR ANY CHICKEN KITCHEN RESTAURANT OPEN OR
UNDER CONSTRUCTION ON THE DATE THIS AGREEMENT EXPIRES OR TERMINATES OR
FRANCHISEE'S INTEREST IN THIS AGREEMENT IS TRANSFERRED.

         D. SECTION XVII.C SHALL NOT APPLY TO THE OWNERSHIP BY FRANCHISEE OF
LESS THAT 5% BENEFICIAL INTEREST IN THE OUTSTANDING EQUITY SECURITIES OF ANY
COMPANY REGISTERED UNDER THE SECURITIES EXCHANGE ACT OF 1934.

         E. 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 XVII IS HELD UNREASONABLE OR
UNENFORCEABLE BY A

                                       23
<PAGE>   26

COURT HAVING VALID JURISDICTION IN A FINAL DECISION TO WHICH FRANCHISOR IS A
PARTY, FRANCHISEE EXPRESSLY AGREES THAT THE PROVISION SHALL BE DEEMED AMENDED SO
THAT IT IS ENFORCEABLE TO THE MAXIMUM EXTENT PERMITTED BY LAW AND PUBIC POLICY,
AS IF THE RESULTING COVENANT WERE SEPARATELY STATED IN AND MADE A PART OF THIS
SECTION XVII.

         F. 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 XVII.B AND XVII.C, WITHOUT FRANCHISEE'S CONSENT, EFFECTIVE
IMMEDIATELY UPON WRITTEN NOTICE FROM FRANCHISOR; AND FRANCHISEE AGREES TO COMPLY
WITH ANY MODIFIED COVENANT, WHICH SHALL BE FULLY ENFORCEABLE NOTWITHSTANDING THE
PROVISIONS OF SECTION XXI.

         G. Franchisee acknowledges that the Chicken Kitchen System and the
information, whether oral or written, disclosed to Franchisee by Franchisor
pursuant to this Agreement, have been developed by Franchisor at considerable
cost and expense and are disclosed to Franchisee in the strictest confidence.
Accordingly, Franchisee covenants and agrees the neither Franchisee nor any of
its directors, officers, shareholders, partners, members or key employees will,
otherwise than in accordance with the terms of this Agreement, either during the
term of this Agreement or at any time thereafter, anywhere in the world, make
use of or disclose any confidential information with respect to the Chicken
Kitchen System, nor will they, for their own purposes or any other purposes
whatsoever, disclose to anyone any confidential information or knowledge they
may acquire with respect to Franchisor's affairs. Furthermore, Franchisee
acknowledges and will require its directors, officers, shareholders, partners,
members and key employees to acknowledge that they do not have any rights or
claims of any kind or nature in or to any element of the Chicken Kitchen System
or the Proprietary Marks.

         H. Franchisee agrees to pay all costs and expenses, including
reasonable attorneys fees, incurred by Franchisor in connection with the
enforcement of this Section XVII.

         I. Franchisee acknowledges that Franchisee's violation of the terms of
this Section XVII would result in irreparable injury to Franchisor for which no
adequate remedy at law may be available, and Franchisee accordingly consents to
the issuance of an injunction, without the posting of a bond, prohibiting any
conduct by Franchisee in violation of this Section XVII.

         J. Franchisee shall obtain covenants similar to those set forth in this
Section XVII (including covenants applicable upon the termination of a person's
relationship with Franchisee) from all managers and head cooks of Franchisee
prior to granting such employees access to any confidential aspect of the
Chicken Kitchen System or the Franchise Business, and all officers, directors
and holders of a direct or indirect beneficial ownership interest of 5% or more
in Franchisee. All covenants required by this Section XVII shall be in a form
satisfactory to Franchisor, including, without Stations specific identification
of Franchisor as a third party beneficiary of such covenants with the
independent right to enforce them. A duplicate original of each covenant shall
be sent to Franchisor upon execution. Failure by Franchisee to obtain execution
of a covenant required by this Section XVII.J shall constitute a material breach
of this Agreement.

         XVIII. TAXES, PERMITS, AND INDEBTEDNESS

         A. Franchisee shall promptly pay when due all taxes levied or assessed,
including, without limitations, sales, F.I.C.A. and unemployment taxes, and all
accounts and other indebtedness incurred by Franchisee in the ownership and
operation of the Franchise Business. Franchisee shall pay to Franchisor an
amount equal to any sales tax, gross receipts tax or similar tax (other than
income tax) imposed on Franchisor with respect to any payments to Franchisor
required under this Agreement.

                                       24
<PAGE>   27

         B. In the event of any bona fide dispute as to Franchisee's liability
for taxes assessed or other indebtedness, Franchisee may contest the validity or
the amount of the tax or indebtedness in accordance with procedures of the
taxing authority or applicable law; however, in no event shall Franchisee permit
a tax sale or seizure by levy, execution or warrant, or attachment by a
creditor, to occur against the premises of the Franchise Business, or any
improvements or personal property used in the operation of the Franchise
Business.

         C. Franchisee shall comply with all federal, state and local laws,
rules, and regulations, and shall timely obtain all permits, certificates or
licenses necessary for the operation of the Franchise Business, including,
without limitation, licenses to do business, fictitious name registrations,
sales tax permit, building, health, occupancy, fire and sanitation clearances.

         D. Franchisee shall notify Franchisor in writing within 5 days of the
commencement of any action, suit or proceeding, and of the issuance of any
order, writ, injunction, award or decree of any court, agency or other
governmental instrumentality, which may adversely affect the operation or
financial condition of the Franchise Business.

         XIX. INDEPENDENT CONTRACTOR AND INDEMNIFICATION

         A. It is understood and agreed by the parties that this Agreement does
not create a fiduciary relationship between them; that Franchisee 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, employer, joint employer, enterprise or servant of
the other for any purpose.

         B. During the term of this Agreement and any extension, Franchisee
shall hold himself out to the public as an independent contractor operating the
Franchise Business pursuant to a license from Franchisor.

         C. Franchisee has no right to make any contract, agreement, warranty or
representation on Franchisor's behalf, or to incur any debt or other obligation
in Franchisor's name; Franchisor does not assume liability for, and shall not be
deemed liable as a result of, any action by Franchisee; Franchisor is not liable
by reason of any act or omission of Franchisee in Franchisee's ownership or
operation of the Franchise Business or for any claim or judgment arising from
the operation of the Franchise Business. Franchisee agrees to indemnify and hold
Franchisor harmless against all claims arising directly or indirectly from, or
as a result of, or in connection with, Franchisee's operation of the Franchise
Business, and the costs, including attorneys fees, of defending against any
claim.

         XX. APPROVALS AND WAIVERS

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

         B. Franchisor makes no warranties or guarantees upon which Franchisee
may rely, and assumes no liability or obligation to Franchisee or any third
party to whom Franchisor would not be otherwise liable by providing any waiver,
approval, consent or suggestion or by reason of any neglect, delay or denial of
a request.

         C. 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 of this Agreement, shall constitute a waiver of
Franchisor's right to demand exact compliance with any of 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 provision; nor shall any delay,

                                       25
<PAGE>   28

forbearance or omission of Franchisor to exercise any power or right arising out
of a breach or default by Franchisee of any of the terms, provisions or
covenants of this Agreement affect or impair Franchisor's rights or constitute a
waiver by Franchisor of any rights under this Agreement or right to declare any
subsequent breach or default.

         XXI. NOTICES

         All notices required or permitted under this Agreement shall be in
writing and shall be personally delivered or sent by any means which provides a
receipt for delivery to the par-ties at the following addresses unless and until
a different address has been designated by written notice to the other party:

              Notices to Franchisor:    Chicken Kitchen Corporation
                                        Attn: Christian de Berdouare
                                        5415 Collins Avenue, Suite 305
                                        Miami Beach, Florida 33140

              Notices to Franchisee:   ________________________

                                       ________________________

                                       ________________________
                                       or the Franchise Business

         XXII. ENTIRE AGREEMENT

         THIS AGREEMENT AND THE DOCUMENTS REFERRED TO IN THIS AGREEMENT,
TOGETHER WITH THE FRANCHISE Application, financial statement and capitalization
plan submitted by Franchisee upon which Franchisor is relying in granting this
franchise, constitute the entire Agreement between Franchisor and Franchisee
concerning the subject matter of this Agreement, and supersede all prior
negotiations, commitments, representations and agreements. Except for those
permitted to be made unilaterally by Franchisor, no amendment, change, or
variance from this Agreement shall be binding on either party unless mutually
agreed to by the parties in a written document signed by the parties.

         XXIII. SEVERABILITY AND CONSTRUCTION

         A. If any provision of this Agreement may be construed in two ways, one
which would make the provision illegal or unenforceable and the other which
makes the provision valid and enforceable, the provision shall have the meaning
which makes its enforceable. This Agreement is to be read according to its fair
meaning and is not to be interpreted strictly against either party. The parties
intend that this Agreement be enforceable to fullest extent. If any court or
arbiter finds that any provision is not enforceable as written, Franchisor and
Franchisee agree that the provision be amended so that it is enforceable to the
fullest extent permissible under applicable law and public policy. The
provisions of this Agreement are severable, and the Agreement is to be
interpreted as if all invalid or unenforceable provisions were not in the
Agreement and partially valid provisions shall be enforced to the extent that
they are valid and enforceable.

         B. Franchisee expressly agrees to be bound by any promise or covenant
imposing the maximum duty permitted by law which is contained within the terms
of any provision of this Agreement, as though it were separately articulated in
and made a part of this Agreement.

         C. Any provision of this Agreement which imposes an obligation after
the termination or expiration of this Agreement shall continue to be binding on
the parties after the termination or expiration.

         D. If Franchisee consists of more than one person, each partner shall
be liable for the total performance of Franchisee regardless of their ownership
percentage.

                                       26
<PAGE>   29
         E. The Introduction is a part of this Agreement. Section captions are
used for convenience and should not be construed as a limitation of the matter
which follows. Words of any gender used in this Agreement shall include any
other gender, and words in the singular shall include the plural, where
applicable.

         XXIV. APPLICABLE LAW

         A. This Agreement takes effect upon its acceptance and execution by
Franchisor in Miami-Dade County, Florida, and shall be interpreted and construed
under the laws of the State of Florida, which laws shall prevail in the event of
any conflict of law; provided, however, that if any of the provisions of this
Agreement would not be enforceable under the laws of the State of Florida, but
would be enforceable under the laws of the state where the Franchise Business is
located, then such provision shall be interpreted and construed under the laws
of the state in which the Franchise Business is located. If the Franchise
Business is located in a state other than Florida and the laws of that state
require terms other than, or in addition to, those contained in this Agreement,
this Agreement shall be deemed modified so as to comply with the laws of that
state, but only to the extent necessary to prevent the invalidity of this
Agreement or any of its provisions, the imposition of a fine or penalty, or the
imposition of civil or criminal liability. To the extent permitted by law,
Franchisee waives any provision of law which prohibits, or makes unenforceable,
any provision of this Agreement.

         B. In the event of a dispute between the parties in connection with,
arising from or relating to this Agreement, including, without limitation, any
claim that this Agreement or any provision is invalid or void or voidable, the
parties agree to make a good faith effort to resolve the dispute through
discussion and, at the request of either party, through mediation before a
mutually agreeable mediator, in which event the parties shall execute a
confidentiality agreement and shall split the mediator's fee. The mediator, if
possible, shall be experienced in franchise related matters. If the parties are
unable to agree upon a mediator, the mediator shall be selected by the American
Arbitration Association.

         C. If the parties are unable to resolve their differences through
discussion and mediation, they agree that the United States District Court for
the Southern District of Florida and the courts of the Eleventh Judicial Circuit
of the State of Florida in and for Miami-Dade County, Florida shall be the
proper venue and forum in which to adjudicate any dispute under or in connection
with this Agreement, and agree not to contest or challenge the jurisdiction or
venue of these courts.

         D. No right or remedy conferred upon or reserved to Franchisor or
Franchisee by this Agreement is intended to be, nor shall it be deemed,
exclusive of any other right or remedy under this Agreement or by law or equity
provided or permitted, but each shall be cumulative of every other right or
remedy.

         E. Nothing contained in this Agreement 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, except any requirement
for the posting of a bond, which requirement, if any, is expressly waived by
Franchisee.

         F. Whenever this Agreement provides for the payment or reimbursement of
attorneys' fees, such fees shall include trial and appellate fees.

         G. Franchisor and Franchisee irrevocably waive trial by jury in any
action, proceeding or counterclaim, whether at law or in equity, brought by
either of them.

         H. To the fullest extent permitted by law, Franchisor and Franchisee
waive any right to, or claim for, any punitive or exemplary damages against the
other and agree that each shall be limited to the recovery of only actual
damages.

                                       27
<PAGE>   30

         I. All claims arising out of this Agreement or the relationship of
Franchisee and Franchisor in connection with Franchisee's operation of the
Franchise Business must be made within I year from the occurrence of the facts
giving rise to the claim.

         XXV. ACKNOWLEDGMENTS

         A. FRANCHISEE ACKNOWLEDGES THAT FRANCIHSEE HAS HAD AMPLE OPPORTUNITY TO
CONSULT WITH AN ATTORNEY AND OTHER PROFESSIONAL ADVISORS AND IS ENTERING INTO
THIS AGREEMENT AFTER HAVING MADE AN INDEPENDENT INVESTIGATION OF THE CHICKEN
KITCHEN SYSTEM AND THE MARKET AREA IN WHICH FRANCHISEE WILL OPERATE THE
FRANCHISE BUSINESS. FRANCHISEE RECOGNIZES THAT THE BUSINESS VENTURE CONTEMPLATED
BY THIS AGREEMENT INVOLVES A HIGH DEGREE OF FINANCIAL RISK AND THAT ITS SUCCESS
WILL BE LARGELY DEPENDENT UPON THE BUSINESS, MANAGERIAL, AND FINANCIAL
CAPABILITIES OF FRANCHISEE. FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF, AND
FRANCHISEE ACKNOWLEDGES THAT FRANCHISEE HAS NOT RECEIVED, ANY WARRANTY OR
GUARANTEE, EXPRESS OR IMPLIED, AS TO THE POTENTIAL VOLUME, PROFITS OR SUCCESS OF
THE BUSINESS VENTURE CONTEMPLATED BY THIS AGREEMENT.

         B. FRANCHISEE ACKNOWLEDGES RECEIVING A COPY OF THE COMPLETE CHICKEN
KITCHEN CORPORATION FRANCHISE AGREEMENT AT LEAST 5 BUSINESS DAYS PRIOR TO
SIGNING THIS AGREEMENT. FRANCHISEE FURTHER ACKNOWLEDGES RECEIVING THE, CHICKEN
KITCHEN OFFERING CIRCULAR/DISCLOSURE DOCUMENT AT LEAST 10 BUSINESS DAYS PRIOR
TO SIGNING THIS AGREEMENT OR MAKING ANY PAYMENT TO FRANCHISOR.

         C. FRANCHISEE ACKNOWLEDGES THAT THE TERMS AND CONDITIONS OF THIS
AGREEMENT MAY VARY SUBSTANTIALLY FROM THOSE CONTAINED IN FRANCHISEES WHICH
FRANCHISOR HAS OR MAY GRANT IN THE FUTURE.

     IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT EFFECTIVE AS
OF THE DAY and year shown on the first page.

                                      Franchisor:
                                      CHICKEN KITCHEN CORPORATION

                                      By:

                                         Christian De Berdouare, President

                                      Franchisee:

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

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

                                      28
<PAGE>   31

     RIDER A
     SITE SELECTION ADDENDUM

         THE LOCATION OF THE FRANCHISE BUSINESS IS _____________________________
________________________________________________________________________________

         Franchise acknowledges that Franchisor's approval of the location is
not a guarantee, recommendation or endorsement of the location, and that the
success of the Franchise Business to be operated at the location is dependent
upon Franchisee's abilities as an independent business person.

                                      FRANCHISOR:   CHICKEN KITCHEN CORPORATION

                                      By:
                                         ---------------------------------
                                         Christian De Berdouare, President

                                      FRANCHISEE:

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

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

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