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Exhibit 10.27    
    

CONFORMED COPY  

 
 

MRS. FIELDS®
  FRANCHISE AGREEMENT    
    
    BETWEEN    
    
    MRS. FIELDS FRANCHISING, LLC
  2855 East Cottonwood Parkway
  Suite 400
  Salt Lake City, Utah 84121
  (801) 736-5600
  
    
    AND    
    
    MRS. FIELDS' ORIGINAL COOKIES, INC.
  2855 East Cottonwood Parkway
  Suite 400
  Salt Lake City, Utah 84121    

Licensed Store:  

See Schedule A  

Date of Franchise Agreement  

March 16, 2004  

  

  
 

    MRS. FIELDS®
  FRANCHISE AGREEMENT    
    

 
 

TABLE OF CONTENTS    
    

	
ARTICLE 1—DEFINITIONS; PREAMBLES; AND ACKNOWLEDGMENTS	
 	

1
	1.1	 	Date of Agreement	 	1
	1.2	 	Definitions	 	1
	1.3	 	Preambles	 	3
	
ARTICLE 2—GRANT OF FRANCHISE	
 	

3
	2.1	 	Franchise	 	3
	2.2	 	Reservation of Certain Rights	 	4
	
ARTICLE 3—INITIAL TERM AND RENEWAL	
 	

4
	3.1	 	Initial Term of the Franchise Agreement	 	4
	3.2	 	Renewal	 	4
	
ARTICLE 4—SITE SELECTION, LEASE OF PREMISES AND DEVELOPMENT OF YOUR STORE	
 	

5
	4.1	 	Site Selection	 	5
	4.2	 	Acquisition of the Premises	 	5
	4.3	 	Licensed Store Development	 	6
	4.4	 	Fixtures, Furnishings, Equipment, Signs and Computer Systems	 	7
	4.5	 	Licensed Store Opening	 	7
	4.6	 	Grand Opening Promotion	 	8
	4.7	 	Relocation	 	8
	
ARTICLE 5—TRAINING AND GUIDANCE	
 	

9
	5.1	 	Training	 	9
	5.2	 	Operations Manuals	 	9
	5.3	 	Guidance and Operating Assistance	 	9
	
ARTICLE 6—FEES	
 	

10
	6.1	 	Initial Franchise Fee	 	10
	6.2	 	Continuing Fees	 	10
	6.3	 	Date and Term of Payment	 	10
	6.4	 	Payment by Pre-Authorized Bank Transfer	 	10
	6.5	 	Late Charge; Interest on Late Payments	 	10
	6.6	 	Application of Payments	 	11
	6.7	 	No Right of Offset	 	11
	
ARTICLE 7—OBLIGATIONS RELATING TO OPERATIONS	
 	

11
	7.1	 	System Standards	 	11
	7.2	 	Performance of Duties and Obligations	 	11
	7.3	 	Restrictions on Operations	 	11
	7.4	 	Internet Use	 	11
	7.5	 	Our Right to Inspect Your Store	 	11
	7.6	 	Surveys	 	12
	7.7	 	Entity Owners	 	12
	7.8	 	Guaranties by Entity Owners	 	12
	7.9	 	Insurance	 	12

 

	
ARTICLE 8—REPORTS AND RECORD KEEPING	
 	

13
	8.1	 	Accounting, Reports and Financial Statements	 	13
	8.2	 	Retention of Records	 	13
	8.3	 	Our Right to Audit	 	14
	
ARTICLE 9—MARKETING AND PROMOTION	
 	

14
	9.1	 	Marketing Fees	 	14
	9.2	 	Advertising and Promotional Activities by You	 	15
	9.3	 	Our Advertising Materials	 	15
	
ARTICLE 10—USE OF THE MARKS AND CONFIDENTIAL INFORMATION	
 	

16
	10.1	 	Ownership and Goodwill of Marks	 	16
	10.2	 	Limitations on Your Use of Marks	 	16
	10.3	 	Discontinuance of Use of Marks	 	16
	10.4	 	Notification of Infringements and Claims	 	16
	10.5	 	Our Indemnification of You	 	17
	10.6	 	Copyrights	 	17
	10.7	 	Concepts Developed by You	 	17
	10.8	 	Confidential Information	 	17
	
ARTICLE 11—COVENANTS NOT TO COMPETE	
 	

17
	11.1	 	In Term Non-Compete	 	17
	11.2	 	Post Term Non-Compete	 	18
	11.3	 	Shareholder Exception	 	18
	11.4	 	Enforcement of Non-Competes	 	18
	
ARTICLE 12—TRANSFERS	
 	

18
	12.1	 	Transfers by Us	 	18
	12.2	 	Restrictions on Transfers by You	 	18
	12.3	 	Conditions for Approval of Transfers by You	 	19
	12.4	 	Transfer to a Wholly-owned Corporation	 	20
	12.5	 	Our Right of First Refusal	 	20
	12.6	 	Death or Permanent Disability	 	21
	12.7	 	Effect of Consent to Transfer	 	21
	12.8	 	Preparation of a Financial Report by You	 	21
	
ARTICLE 13—DEFAULT AND TERMINATION	
 	

22
	13.1	 	Your Defaults	 	22
	13.2	 	Our Right to Terminate if You Default	 	23
	13.3	 	Our Right to Terminate in Certain Other Circumstances	 	24
	13.4	 	Your Right to Terminate if We Default	 	24
	13.5	 	Assumption of Management	 	24
	
ARTICLE 14—POST TERM OBLIGATIONS	
 	

24
	14.1	 	Reversion of Rights	 	24
	14.2	 	Payment of Amounts Owed to Us and Others following Termination or Expiration	 	25
	14.3	 	Discontinuance of the Use of the Marks following Termination or Expiration	 	25
	14.4	 	Discontinuance of Use of Confidential Information following Termination or Expiration	 	25
	14.5	 	Our Option to Purchase Licensed Stores	 	26
	14.6	 	Your Opportunity to Acquire a Successor Franchise Agreement	 	27
	14.7	 	Continuing Obligations	 	28
	
ARTICLE 15—RELATIONSHIP OF THE PARTIES/INDEMNIFICATION	
 	

28
	15.1	 	Independent Contractors	 	28

 

	15.2	 	No Liability for the Act of Other Party	 	28
	15.3	 	Your Control	 	28
	15.4	 	Our Approval and Enforcement	 	29
	15.5	 	Taxes	 	29
	15.6	 	Indemnification	 	29
	15.7	 	Waiver of Claims	 	29
	
ARTICLE 16—SECURITY AGREEMENT	
 	

29
	16.1	 	Security Interest	 	29
	16.2	 	Requirements	 	30
	
ARTICLE 17—DISPUTE RESOLUTION	
 	

30
	17.1	 	Injunctive Relief	 	30
	17.2	 	Rights of Parties Are Cumulative	 	30
	17.3	 	Costs and Attorneys' Fees	 	30
	17.4	 	Arbitration	 	31
	17.5	 	Governing Law	 	31
	17.6	 	Consent to Jurisdiction	 	32
	17.7	 	Waiver of Punitive Damages and Jury Trial	 	32
	17.8	 	Limitation of Claims	 	32
	
ARTICLE 18—GENERAL PROVISIONS	
 	

32
	18.1	 	Severability	 	32
	18.2	 	Rights Provided by Law	 	32
	18.3	 	Waivers by Either of Us	 	33
	18.4	 	Certain Acts Not to Constitute Waivers	 	33
	18.5	 	Excusable Non-Performance	 	33
	18.6	 	Interpretation of Rights and Obligations	 	33
	18.7	 	Notice of Potential Profit to Us	 	34
	18.8	 	Binding Effect	 	34
	18.9	 	No Third Party Beneficiaries	 	34
	18.10	 	Approvals	 	34
	18.11	 	Headings	 	34
	18.12	 	Joint and Several Liability	 	34
	18.13	 	Counterparts	 	34
	18.14	 	Notices and Payments	 	34
	18.15	 	Entire Agreement	 	34
	

OWNERSHIP ADDENDUM TO MRS. FIELDS® FRANCHISE AGREEMENT	
 	

37
	

APPENDIX A—AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS (DIRECT DEBITS	
)	

38

 
 

MRS. FIELDS® FRANCHISE AGREEMENT    
    

        THIS FRANCHISE AGREEMENT (the "Agreement") is between MRS. FIELDS FRANCHISING, LLC, a Delaware limited liability
company, with its principal business address at 2855 East Cottonwood Parkway, Suite 400, Salt Lake City, Utah 84121 (referred to in this Agreement as "we" and like terms), and  MRS. FIELDS' ORIGINAL COOKIES,
 INC., a Delaware corporation, whose principal business address is 2855 East Cottonwood Parkway, Suite 400, Salt
Lake City, Utah 84121 (referred to in this Agreement as "you" and like terms). 

        OUR AGREEMENT WITH YOU:    By signing this Agreement, you and we agree to all of the terms and provisions in this Agreement and
in any exhibits, addenda and appendices to this Agreement. By signing this Agreement, you are also affirming that you understand and accept the Preambles in Article 1 of this Agreement.
Finally, by signing the Acknowledgment Addendum attached hereto, you are affirming that you understand and accept all of the acknowledgments and representations contained therein. 

 
 

ARTICLE 1
  
    DEFINITIONS; PREAMBLES; AND ACKNOWLEDGMENTS    
    

        1.1   Date of Agreement. The date of this Agreement is March 16, 2004. 

        1.2   Definitions. 

        (a)   "Affiliate," as used in relation to us, means any person or entity that directly or indirectly owns or controls us, is
directly or indirectly owned or controlled by us or is under common control with us. 

        (b)   "Competitive Business" means any business operating, or granting franchises or licenses to others to operate, a cookie,
bakery, snack food or dessert restaurant or retail outlet or any similar food service business, except for an existing cookie, bakery, snack food or dessert restaurant or retail outlet or similar food
service business owned and operated by you, which has been disclosed to us in writing prior to execution of this Agreement. 

        (c)   "Confidential Information" means any information relating to the Mrs. Fields Products or the development or
operation of Mrs. Fields Cookie Stores, including site selection criteria; recipes and methods for the preparation of Mrs. Fields Products; methods, techniques, formats, specifications,
systems, procedures, sales and marketing techniques and knowledge of and experience in the development and operation of Mrs. Fields Cookie Stores; marketing programs for Mrs. Fields
Cookie Stores; knowledge of specifications for and suppliers of certain Mrs. Fields Products, materials, supplies, equipment, furnishings and fixtures. 

        (d)   "Controlling Interest" means an interest, the ownership of which empowers the holder to exercise a controlling influence
over the management, policies or personnel of an Entity. Ownership of 10% or more of the equity or voting securities of a corporation, limited liability company or limited liability partnership or
ownership of any general partnership interest in a general or limited partnership will be deemed conclusively to constitute a Controlling Interest in the corporation, limited liability company, or
partnership, as the case may be. 

        (e)   "Entity" means a corporation, general partnership, joint venture, limited partnership, limited liability partnership,
limited liability company, trust, estate or other business entity. 

        (f)    "Entity Owner" means, with respect to an Entity, any shareholder owning directly or beneficially 10% or more of any class
of securities of the Entity; any general partner or co-venturer in the Entity; any partner in a limited liability partnership or member in a limited liability company owning directly or
beneficially 10% or more of the ownership interests in the limited liability partnership or limited liability company; the trustees or administrators of any trust or estate; and any beneficiary of a
trust or estate owning, directly or beneficially, 10% or more of the interests in the trust or estate. If any Entity Owner within the scope of this definition is itself an Entity (including an Entity
Owner that is an Entity Owner because of this sentence), the term

 
"Entity Owner" also includes Entity Owners (as defined in the preceding sentence) in the Entity. It is the intent of this definition to "trace back" and include within the definition of Entity Owner
all natural persons owning the requisite interests to qualify as Entity Owners. 

        (g)   "Gross Revenues" means the aggregate amount of all sales of Mrs. Fields Products, other items, and services made
and rendered in connection with the operation of the Licensed Store (as defined in Section 2.1(a)), including sales made at or away from the Premises of your Store, whether for cash or
credit, but excluding all federal, state or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority. 

        (h)   "Marks" means the trademarks, trade names, service marks, logos and other commercial symbols which we authorize
franchisees to use to identify the Mrs. Fields products and/or services offered by Mrs. Fields Retail Outlets, including the trademarks and service marks MRS. FIELDS® and
MRS. FIELDS COOKIES® and the Trade Dress (as defined in Section 1.2(o)) and the goodwill associated therewith; provided that we have the right to modify and/or discontinue the use
of such trademarks, trade names, service marks, logos and other commercial symbols and the Trade Dress, and establish, in the future, additional or substitute trademarks, trade names, service marks,
logos, commercial symbols or Trade Dress. 

        (i)    "Mrs. Fields Cookie Store" means a retail snack, dessert, and beverage outlet selling any Mrs. Fields
Products and other products for off-premises consumption and services specified by us. The term "Mrs. Fields Cookie Store" includes carts and kiosks selling the Mrs. Fields
Products. We have the right to approve all carts and kiosks. Mrs. Fields Cookie Stores that are offering an expanded product line may also be designated as  "Mrs. Fields Bakery Stores".

        (j)    "Mrs. Fields Retail Outlet" means any store or outlet, such as a Mrs. Fields Cookie Store, a
Mrs. Fields Bakery Store, a mail order outlet, or an in-store bakery outlet located in a retail grocery, fast food, convenience or other retail store, which sells any of the
Mrs. Fields Products under the Marks or other trademarks or service marks. A Mrs. Fields Retail Outlet may be owned or operated by us or our Affiliates or by franchisees or licensees of
us or our Affiliates. 

        (k)   "Mrs. Fields Products" means products approved or required by us or our Affiliates from time to time for sale at
or from Mrs. Fields Retail Outlets, including specialty snacks and other bakery items, desserts, and beverages (such as cookies, brownies, cakes, muffins, bagels, croissants, cinnamon rolls,
sticky buns, and coffee) and other products approved by us or our Affiliates; provided that we have the right to modify and/or discontinue the use of the foregoing products from time to time and
include additional or substitute products. 

        (l)    "Mrs. Fields System" means our business formats, signs, equipment, methods, procedures, designs, layouts, and
specifications, including the use of the Marks and the Trade Dress, which we have the right to modify in the future. 

        (m)  "Restricted Person" means you; each of your Entity Owners, if you are an Entity; and the spouses, natural and adopted
children, and siblings of any of you and your Entity Owners. 

        (n)   "System Standards" means the operating procedures, standards, requirements and specifications, whether contained in the
Operations Manuals or elsewhere, which we have the right to improve,
further develop or modify from time to time and which are mandatory in nature so as to comprise the requirements to be followed with respect to Mrs. Fields Cookie Stores and the use of the
Marks in connection therewith. 

        (o)   "Trade Dress" means the designs, color schemes, decor and images which we authorize and require our franchisees to use in
connection with the operation of Mrs. Fields Cookie Stores, which we or our Affiliates have the right to revise and further develop from time to time.

 

        (p)   "Transfer" means the voluntary or involuntary, direct or indirect transfer, assignment, sale, gift, pledge, mortgage,
hypothecation or other disposition (including those occurring by operation of law and a series of transfers that in the aggregate constitute a Transfer) of any of your interest in this Agreement or of
a Controlling Interest in you. 

        1.3   Preambles. Mrs. Fields Cookie Stores operate under distinctive business formats, systems, methods, procedures,
designs, layouts and specifications, all of which we have the right to improve, further develop or modify in the future. We have expended a considerable amount of time and effort in developing and
refining the recipes for and the methods of preparation of Mrs. Fields Products to obtain high product quality. We have the right to modify these recipes and methods of preparation, and these
modifications may require you to prepare cookies and other Mrs. Fields Products from scratch mixes and to purchase prepared cookie dough or other prepared food products from us or other
approved suppliers. We or our Affiliates currently own and operate Mrs. Fields Retail Outlets, and we or our Affiliates may continue to own and operate Mrs. Fields Retail Outlets in the
future. We or our Affiliates own the Marks. We have franchised and licensed and, in the future, have the right to continue to franchise and license others to operate Mrs. Fields Retail Outlets. 

 
 

ARTICLE 2
  
    GRANT OF FRANCHISE    
    

        2.1   Franchise. 

        (a)   Grant of Franchise. You have applied for a franchise to own and operate a Mrs. Fields Cookie Store (each a
"Licensed Store or "Store") at and only at those locations set forth on the Store Location Schedule
attached hereto as Schedule A (each such location, the "Premises"). Subject to the terms and
conditions of this Agreement, we grant you a NON-EXCLUSIVE franchise (the "Franchise") to
operate your Store at the Premises and to use the Mrs. Fields System in the operation of your Store. You hereby accept the Franchise and undertake the obligation to operate your Store using the
Mrs. Fields System in accordance with the System Standards. The Franchise granted herein is limited to the right to operate the one Licensed Store at the Premises, and does not include an
exclusive area or protected territory within which we or certain of our Affiliates agree not to issue franchises or operate competing businesses. We and certain of our Affiliates have the right to
issue franchises or operate competing businesses for or at locations, as determined by us or our Affiliates, near the Premises. You have no right to construct or operate any additional, expanded or
modified facilities on the Premises, nor any right to construct or operate a Mrs. Fields Store at any location other than at each of the Premises. In addition, you have no right to sublicense
pursuant to this Agreement. 

        (b)   Mrs. Fields Products. In operating your Store, you may offer for sale only those Mrs. Fields Products that
we approve from time to time for you to sell at the Premises. The Mrs. Fields Products that you initially are authorized to offer at your Store are explained in the Operations Manuals referred
to in Section 5.2. In the future, we have the right to change or add to the Mrs. Fields Products that you are authorized to offer at the Premises and notify you of such changes or
additions, as we determine, through references to the Operations Manuals, bulletins and other written materials, electronic computer messages, telephonic conversations, and/or consultations at our
offices or at your Store. We typically base our determination on whether you will be allowed to offer an expanded line of Mrs. Fields Products on our evaluation of your compliance, over time,
with the System Standards described in Section 7.1, particularly those related to quality. We do not base our determinations on sales or marketing quotas, volumes or results. Although the
Mrs. Fields Products sold at Mrs. Fields Cookie Stores may vary from Store to Store, you may only sell those Mrs. Fields Products that we authorize you to sell from your Store.

 

        2.2   Reservation of Certain Rights. We and certain of our Affiliates have the right to: (1) establish
Mrs. Fields Retail Outlets, including Mrs. Fields Cookie Store franchises, licenses or businesses owned by us or our Affiliates, at any locations we deem appropriate;
(2) distribute Mrs. Fields Products and any other products or services through alternative channels of distribution using the Marks; and (3) establish businesses which are
franchised, licensed or owned by us or our Affiliates at any locations we deem appropriate or distribute products or services through alternative channels of distribution (as described in
Section 7.3) which are similar to the Mrs. Fields Products under trade names, trademarks, service marks, trade dress or other commercial symbols other than the Marks. Although you may be
considered an Affiliate of ours as such term is defined in this Agreement, this reservation of rights set forth herein does not apply to you or extend or supplement your rights as expressly granted in
this Agreement to own or operate Mrs. Fields Retail Outlets, distribute Mrs. Fields Products or establish Competitive Businesses except for Competitive Businesses that you operate
pursuant to a franchise or other agreements between you and us or between you and one of our other Affiliates. 

 
 

ARTICLE 3
  
    INITIAL TERM AND RENEWAL    
    

        3.1   Initial Term of the Franchise Agreement. The initial term of this Agreement will be 7 years, commencing on the
date of this Agreement. This Agreement may be renewed as provided in Section 3.2. This Agreement may be terminated prior to expiration of its term if: (i) the lease of the Premises is
terminated as provided in Section 4.2(c) and 13.1(f); (ii) the lease of the Premises expires and you are unable to obtain a replacement lease, as provided in Sections 4.2(c) and 13.1(f);
or (iii) this Agreement is otherwise terminated in accordance with Article 13. References in this Agreement to the term of this Agreement mean the initial term and any renewal term.
Following the expiration of the initial term and any renewal term, you may have the opportunity to obtain a successor Franchise Agreement in accordance with the provisions of Section 14.6. 

        3.2   Renewal. If you are not in default at the time of exercise of a renewal option and at the time the prior term expires,
you shall have the right to renew this Agreement for one additional 7-year term, provided that: 

        (a)   You
give us written notice of your intention to renew at least 180 days prior to expiration of the then current term; 

        (b)   You
sign our then current form of Franchise Agreement, which may include different continuing fees and marketing fees, other fees and charges, and changes in performance
criteria and in other terms and conditions, and our then current Renewal Addendum to such Franchise Agreement, which shall, among other things, establish that the Franchise Agreement is for a renewal
term with no additional renewal rights, and contain a general release of any and all claims against us or our Affiliates and our and their respective officers, directors, attorneys, shareholders and
employees; 

        (c)   At
our request, you refurbish, remodel, redecorate, and renovate each of your Stores at the commencement of the renewal term to meet our then current System Standards
for Mrs. Fields Cookie Stores, including designs and service systems, and Trade Dress; 

        (d)   You
have complied with all of the terms and conditions of this Agreement or any other agreement between you and us during the initial term; 

        (e)   All
monetary obligations owed by you to us, our Affiliates or your suppliers or creditors, whether pursuant to this Agreement or otherwise, have been satisfied prior to
renewal, and have been paid in a timely manner throughout the initial term; and 

        (f)    You
have the right to maintain the Premises for the duration of the renewal term.

 

        We
will not charge any renewal fee in connection with any renewal under this Section 3.2. Following receipt of your election to renew, we will provide you with an execution copy
of the form of Franchise Agreement to be entered into for the renewal term. If you do not execute and return the renewal Franchise Agreement to us within 30 days of receipt, then you will be
deemed to have withdrawn your notice of renewal, and this Agreement will terminate at the end of the current term. 

 
 

ARTICLE 4
  
    SITE SELECTION, LEASE OF PREMISES
  AND DEVELOPMENT OF YOUR STORE    
    

        4.1   Site Selection. The parties hereby acknowledge that this Section 4.1 shall not apply to any Store identified on
Schedule A as having been opened prior to the date of this Agreement. You must obtain our written approval of the Premises before you sign a lease for or begin construction of the Premises. Our
approval of the Premises is based and made in reliance upon information you furnish and representations you make to us (all of which we assume you have carefully and fully considered in proposing the
Premises to us) with respect to the size, appearance and other physical characteristics of the Premises, photographs of the Premises, and demographic characteristics, traffic patterns, competition
from other businesses in the area (including other Mrs. Fields Retail Outlets) and other commercial characteristics (including the purchase price, rental obligations, and other lease terms).
Our approval of the Premises and any information communicated to you regarding the Premises do not constitute an express or implied representation or warranty of any kind as to the suitability of the
Premises for a Mrs. Fields Cookie Store or for any other purpose. Our approval of the Premises indicates only that we believe that the Premises falls within our criteria as of the time period
encompassing the evaluation. Both you and we acknowledge that application of criteria that have been effective with respect to other sites and premises may not predict the potential results for a
specific site and that, subsequent to our approval of a site and Premises, demographic and/or economic factors, including competition from other cookie, bakery, snack food and dessert restaurants and
retail outlets and similar food service businesses, included in or excluded from our criteria, could change, thereby altering the potential of a site. The uncertainty and instability of the factors
included in the criteria are beyond our control and we will not be responsible to you for the failure of the Premises to meet expectations as to potential revenue or operational criteria. Your
acceptance of a Franchise for the operation of a Mrs. Fields Cookie Store at the Premises is based on your own independent investigation of the suitability of the Premises. 

        4.2   Acquisition of the Premises. 

        (a)   Your Obligation to Obtain Lease Unless you own the Premises, you agree to obtain and maintain any necessary lease or
sublease for the Premises. In any event, you agree to obtain our approval of the terms of the lease or sublease for the Premises prior to your execution of the lease or sublease. You agree not to
execute a lease or sublease which we have disapproved, and you must deliver a copy of the signed, approved lease to us within 15 days after its execution. Any lease or sublease must be in a
form satisfactory to us and must: 

        (i)    Provide
for notice to us of any default by you under the lease or sublease and provide us with a right (but no obligation) to cure the default. If we cure any default,
the total amount of all costs and payments incurred by us in curing the default will be immediately due and owing to us by you; 

        (ii)   Provide
that you have the right to assign your interest under the lease or sublease to us without the lessor's or sublessor's consent; 

        (iii)  Authorize
and require the lessor or sublessor to disclose to us, upon our request, sales and other information that you furnish to the lessor or sublessor; and

 

        (iv)  Provide
that we, one of our Affiliates or, in the case that clause (4) below is applicable, our assignee has the right to assume the lease or sublease: 

        (1)   Upon
expiration or termination of this Agreement (unless a successor Franchise Agreement is granted to you as provided in Section 14.6), or 

        (2)   If
you fail to exercise any options to renew or extend the lease or sublease, or 

        (3)   If
you commit a default that gives the lessor or sublessor the right to terminate the lease or sublease, or 

        (4)   If
we or one of our Affiliates or our assignee purchases your Store as permitted by Section 14.5. 

        (b)   Use of Premises Currently Under Lease to Us. [Intentionally Omitted] 

        (c)   Expiration or Termination of Lease. If a current lease or sublease will expire prior to expiration of this Agreement, you
may attempt to obtain a replacement lease or sublease. We will have the right to approve any proposed replacement lease or sublease as otherwise provided in this Article. If you are unable to obtain a
replacement lease or sublease that meets our approval prior to the expiration of the current lease or sublease, (i) you have the right to terminate this Agreement, subject to your observation
of all notice provisions and post-term obligations set forth in this Agreement, including the continuing obligations described in Section 14.7, or (ii) we have the right to
terminate this Agreement in accordance with Section 13.1(f). In addition, if the current lease or sublease is terminated for any reason prior to its expiration, we have the right to terminate
this Agreement in accordance with Section 13.1(f). 

        (d)   Effect of our Approval of Lease. Our approval of a lease or sublease for the Premises or the granting by us or one of our
Affiliates of a sublease or lease assignment for the Premises does not constitute an express or implied warranty by us of the successful operation or profitability of a Mrs. Fields Cookie Store
operated at the Premises. The approval indicates only that we believe the Premises and the terms
of the lease fall within the acceptable criteria established by us as of the time period encompassing the evaluation. 

        4.3   Licensed Store Development. The parties hereby acknowledge that your obligations under this Section 4.3 shall be
deemed to have been satisfied as to any Store identified on Schedule A as having been opened prior to the date of this Agreement. 

        (a)   Plans and Specifications. You are responsible for constructing and developing your Store. We will furnish you
prototypical plans and specifications for a Mrs. Fields Cookie Store, including requirements for exterior and interior materials and finishes, dimensions, design, image, interior layout, decor,
fixtures, equipment, signs, furnishings and color scheme. You must comply with these plans and specifications. You agree to have prepared all required construction plans and specifications to suit the
shape and dimensions of the Premises and to ensure that the plans and specifications comply with applicable ordinances, building codes and permit requirements and with lease requirements and
restrictions. You acknowledge that construction plans must be based on the prototypical plans and specifications. You agree to submit construction plans and specifications to us for our approval
before construction of your Store is commenced, and you agree to submit all revised plans and specifications to us for our approval during the course of construction. Upon completion of construction,
you also agree to provide us with a set of "as built" plans and specifications. Further, you acknowledge and agree that you assume all risk relating to the construction and development of your Store,
and our approval of your construction plans and specifications does not constitute an express or implied representation or warranty of any kind as to the quality of such construction or development or
the success of your Store.

 

        (b)   Development Obligations. You agree to do each of the following: 

        (i)    Secure
all financing required to develop and operate your Store; 

        (ii)   Obtain
all required building, utility, sign, health, sanitation, business, environmental and other permits and licenses required for construction and operation of your
Store; 

        (iii)  Construct
all required improvements to the Premises and decorate your Store in compliance with plans and specifications that we approve; 

        (iv)  Purchase
and install all fixtures, furnishings, equipment and signs required for your Store in accordance with Section 4.4; and 

        (v)   Purchase
an opening inventory of Mrs. Fields Products, materials and supplies. 

        4.4   Fixtures, Furnishings, Equipment, Signs and Computer Systems. In developing and operating your Store, you agree to do
each of the following: 

        (a)   Use
only the fixtures, furnishings, equipment and signs that we require and have approved for Mrs. Fields Cookie Stores as meeting our System Standards; 

        (b)   Place
or display at the Premises (interior and exterior) only the signs, emblems, lettering, logos and display materials that we approve in writing. However, we have the
right to install all required signs at the Premises at your sole expense; and 

        (c)   Use
the computer equipment and operating software ("Computer System") that we specify from time to time. We have the right to require you to obtain specified computer
hardware and/or software and modify specifications for and components of the Computer System from time to time. Our modification of specifications for the Computer System's components may require you
to incur costs to purchase, lease and/or license new or modified computer hardware and/or software and to obtain service and support for the Computer System during the term of this Agreement. You
agree to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions or modifications). Within 60 days after you receive notice from us, you
agree to obtain the components of the Computer System that we designate. We have the right to independently access the information and data you collect and gather using any Computer System or other
data collection equipment (such as an electronic cash register) we require for your Store. 

        You
agree that all fixtures, furnishings, equipment, signs and computer systems used in connection with the operation of your Store will be free and clear of all liens, claims and
encumbrances, except for liens, claims or encumbrances asserted by us and except for third party purchase money security interests. 

        4.5   Licensed Store Opening. The parties hereby acknowledge that your obligations under this Section 4.5 shall be
deemed to have been satisfied as to any Store identified on Schedule A as having been opened prior to the date of this Agreement. You will not open any Store for business until: 

        (a)   We
approve your Store for opening; 

        (b)   Pre-opening
training of you and Licensed Store personnel has been completed to our satisfaction; 

        (c)   The
initial franchise fee and all other amounts then due to us have been paid in full; 

        (d)   The
lease documentation has been executed and all other documentation has been completed in connection with the development of your Store; and 

        (e)   We
have been furnished with copies of all insurance policies required by this Agreement and evidence of payment of premiums.

 

Subject
to your compliance with the conditions set forth in this Section 4.5, you agree to open your Store for business within 180 days after this Agreement is signed or on or before the
date specified in any lease or sublease for the Premises, whichever is earlier. 

        4.6   Grand Opening Promotion. The parties hereby acknowledge that your obligations under this Section 4.6 shall be
deemed to have been satisfied as to any Store identified on Schedule A as having been opened prior to the date of this Agreement. You agree to conduct a grand opening advertising and promotion
program for a newly developed Licensed Store for a period of at least 7 days, commencing within 30 days after the opening of such Store. You agree to spend no less than $5,000 to promote
the grand opening. The advertising and promotion will utilize the standard marketing and public relations programs and media and advertising materials that we have developed for grand opening
programs. You must purchase these materials from us, and we will make them available to you upon written request, in advance of the opening of your Licensed Store. Payments for these materials are
non-refundable. You may also incur expenses from other vendors and suppliers in connection with your grand opening promotion. 

        4.7   Relocation. Should it become necessary, on account of the condemnation of the Premises or the exercise of a relocation
right by your landlord or for some other reason approved by us in writing to relocate the Store, we may in our sole discretion consent to such relocation at a site acceptable to us provided that: 

        (a)   You
are in full compliance with this Agreement; 

        (b)   You
give us written notice of your desire to relocate at least 30 days prior to the date your Store will close for relocation; 

        (c)   You
find and obtain our written approval of the relocated Premises within 60 days after the date your Store will be closed for relocation and before you sign a
lease or sublease or begin construction of the relocated Premises, and you open the relocated Store at the relocated Premises within 180 days after the date your Store will be close for
relocation; 

        (d)   You
construct and develop the relocated Store in accordance with all of our then current System Standards for Mrs. Fields Cookie Stores, including designs and
service systems, and Trade Dress; 

        (e)   You
pay to us our then current relocation fee; and 

        (f)    At
our request, you execute a general release, in a form satisfactory to us, of any and all claims against us or our Affiliates and our and their respective officers,
directors, attorneys, shareholders and employees, and any other ancillary agreements we are then using for relocations. 

        In
the event we consent to a relocation of your Store, you must, upon the closure of your former Store and at your expense: (i) promptly remove from the former Store Premises any
and all signs, fixtures, furniture, posters, furnishings, equipment, menus, advertising materials, stationery supplies, forms and other articles which display any of the Marks or any distinctive
features or designs associated with the System and either use them in your relocated Store or dispose of them as directed by us, and (ii) immediately make such modifications or alterations as
we deem necessary to distinguish the former Store Premises from other Mrs. Fields Cookie Stores so as to prevent any possibility of confusion by the public. If after consenting to a relocation
of your Store you fail to comply with any of the conditions set forth in this Section 4.7, we have the right to revoke our consent to such relocation and hold you in default of this Agreement
for abandonment. In addition, while your former Store is closed for relocation, you may not Transfer your interest in this Agreement, and any such transfer will constitute a breach of this Agreement
and will be void and of no effect.

 

 
 

ARTICLE 5
  
    TRAINING AND GUIDANCE    
    

        5.1   Training. 

        (a)   Training for You and your Store Manager. Prior to your Store's opening, we will furnish an initial training program on
the operation of Mrs. Fields Cookie Stores to you (or one of your Entity Owners, if you are an Entity) and the initial store manager (if the store manager is different from you). The training
program will be furnished at our designated training facility, a Mrs. Fields Cookie Store owned and operated by us, or any other location designated by us. You (or one of your Entity Owners)
and the manager of your Store (if different from you) agree to complete all phases of the training program to our satisfaction and to participate in all other activities required to open your Store.
Subsequent managers will also be required to satisfactorily complete all phases of our training program. Under no circumstances shall you permit management of the Store by a person who has not
completed all phases of our training program to our satisfaction. We will furnish the initial training program to you (or one of your Entity Owners, if you are an Entity) and to the initial store
manager (if different from you) free of charge if it is conducted at our training facility or a corporate-owned Mrs. Fields Cookie Store; however, if we agree to provide the training at any
other location, we may charge a reasonable fee to cover our costs, including living expenses during the training for our employees or agents who provide the training. We have the right to charge a fee
for the training for subsequent managers, which you will be required to pay at least 10 days prior to beginning of training. 

        (b)   Refresher Training. We have the right to require you and/or previously trained and experienced managers to attend
periodic refresher courses at the times and locations that we designate. We have the right to charge fees for refresher training courses. 

        5.2   Operations Manuals. We will loan to you during the term of this Agreement one copy of our store operating standards
manual and one copy of our products procedures manual (collectively, the "Operations Manuals"). We have the right, at our option, to furnish or make
available to you the Operations Manuals in the form of paper copies, electronic copies on computer diskette or CD Rom, or electronic copies accessed through the Internet or other communication
systems. The Operations Manuals contain mandatory and suggested specifications, standards and operating procedures, including System Standards that we prescribe for Mrs. Fields Cookie Stores
and contain information relating to your other obligations under this Agreement. We have the right to modify the Operations Manuals in the future to reflect changes in the image, specifications,
standards, procedures, Mrs. Fields Products, Mrs. Fields System, and System Standards. You may not at any time copy any part of the Operations Manuals, either physically or
electronically. If your copy of the Operations Manuals is lost, destroyed or significantly damaged, you will be obligated to obtain from us, at our then applicable charge, a replacement copy of the
Operations Manuals. 

        5.3   Guidance and Operating Assistance. Although we do not have an obligation to do so, we may advise you from time to time of
operating problems of your Store which come to our attention. At your request, we will furnish to you guidance and operating assistance in connection with: 

        (a)   Methods,
standards, specifications and operating procedures utilized by Mrs. Fields Cookie Stores; 

        (b)   Purchasing
required fixtures, furnishings, equipment, signs, Mrs. Fields Products, materials and supplies; and 

        (c)   Advertising
and promotional programs. 

  

        Any guidance and assistance we furnish or make available to you will be, at our option, in the form of references to the Operations Manuals, bulletins and other written materials,
electronic computer messages, telephonic conversations and/or consultations at our offices or at your Store. You agree that we will not be liable to you or any other person, and you waive all claims
for liability or damages of any type (whether direct, indirect, incidental, consequential, or exemplary), on account of any guidance or operating assistance offered by us in accordance with this
Section 5.3, except to the extent caused by our gross negligence or intentional misconduct. We will make no separate charge to you for such operating assistance and guidance as we customarily
provide to our franchisees generally. Occasionally, we may make special assistance programs available to you, however, for which you will be required to pay the daily fees and charges that we
establish. 

 
 

ARTICLE 6
  
    FEES    
    

        6.1   Initial Franchise Fee. You will not be required to pay any initial franchise fee to us in connection with any Store
opened and operating prior to the date we execute this Agreement. For Stores that you may open subsequent to the date of this Agreement, you agree to pay us a nonrecurring initial franchise fee in the
amount of $30,000 at the time such new Stores are added to the Store Location Schedule set forth on Schedule A. This initial franchise fee will be fully earned by us when paid and is not
refundable, except as provided in Section 13.3(a). 

        6.2   Continuing Fees. In addition to the initial franchise fee, you agree, for the entire term of this Agreement, to pay us a
weekly continuing fee of 6% of your Store's Gross Revenues. 

        6.3   Date and Term of Payment. You agree to pay the weekly continuing fees pursuant to Section 6.2, and the marketing
fees pursuant to Section 9.1, to us on or before the close of business on Wednesday of each week for the preceding week by pre-authorized electronic bank transfer from your account
to our account or as otherwise directed by us. 

        6.4   Payment By Pre-Authorized Bank Transfer. You agree to execute and complete the form Authorization Agreement
attached as Appendix A to this Agreement, and/or such other documents as we may require from time to time, to authorize and direct your bank or financial institution to pay and deposit directly
to our account, and to charge to your account, the amount of the continuing fees, marketing fees, and other amounts due and payable by you pursuant to this Agreement. Your authorizations will permit
us to initiate debit entries and/or credit correction entries to your account for the amount of the continuing fees, marketing fees and other amounts then payable to us from you. You agree to
maintain, at all times during the term of this Agreement, a balance in your account at your bank or financial institution sufficient to allow the appropriate amount to be debited from your account for
payment of the continuing fees, marketing fees and other amounts payable by you for deposit in our account. The continuing fee and marketing fee amount actually transferred from your account each week
shall be based on the Gross Revenue Report you provide to us for such week, as required in Section 8.1(a). If you do not provide us with a Gross Revenue Report for any given week, we have the
right to debit your account in an amount equal to the continuing fees and marketing fees transferred from your account for the last reporting period for which we received a Gross Revenue Report from
you. You are responsible for any penalties, fines or other similar expenses associated with the pre-authorized bank transfers described in this Section 6.4. 

        6.5   Late Charge; Interest on Late Payments. To compensate us for the increased administrative expense of handling late
payments, we have the right to charge a $100 late charge for each delinquent payment, due upon making the delinquent payment. All continuing fees, amounts due for purchases by you from us or our
Affiliates and other amounts which you owe to us or our Affiliates will bear interest from their due date until paid at a rate equal to the lesser of the highest applicable legal rate for open account
business credit, or 1.5% per month, payable when the corresponding delinquent payment is

 
made. You agree that this Section does not constitute our or our Affiliates' agreement to accept payments after they are due or a commitment by us or our Affiliates to extend credit to you or
otherwise to finance the operation of your Store. 

        6.6   Application of Payments. Regardless of any designation by you, we have the right to apply any payments by you to any of
your past due indebtedness for continuing fees, marketing fees, purchases from us, interest or any other indebtedness or amounts owed to us. 

        6.7   No Right of Offset. You have no right of "offset" and will not withhold payment, for any reason, of any continuing fees,
marketing fees or any other payment due to us under this Agreement or any other agreement. 

 
 

ARTICLE 7
  
    OBLIGATIONS RELATING TO OPERATIONS    
    

        7.1   System Standards. You acknowledge and agree that the operation of your Store in accordance with the System Standards is
the essence of this Agreement and is essential to preserve the goodwill of the Marks and all Mrs. Fields Cookie Stores. Therefore, you agree that, at all times during the term of this
Agreement, you will maintain and operate your Store in accordance with each of the System Standards. You agree that we have the right to modify the System Standards from time to time and acknowledge
that the modifications may obligate you to invest additional capital in your Store and to incur higher operating costs. We agree not to obligate you to invest additional capital at a time when the
investment cannot in our reasonable judgment be amortized during the remaining term of this Agreement, unless required by the lease or sublease for the Premises or applicable law. 

        7.2   Performance of Duties and Obligations. You will at all times faithfully, honestly and diligently perform your obligations
under this Agreement and you will continuously exert your best efforts to promote and enhance the business of your Store. You will not engage in any other business or activity that may conflict with
your obligations under this Agreement. 

        7.3   Restrictions on Operations. You may not operate your Store at any site other than the Premises without our prior written
consent. In addition, you may only offer and sell finished Mrs. Fields Products that have been approved for sale, as provided in Section 2.1(b), over the counter to retail customers from
your Store, and may not sell approved Mrs. Fields Products or any materials, supplies, or inventory bearing the Marks at any other location or through any alternative channel of distribution
without our prior written consent. Alternative channels of distribution shall include the operation of a food cart or kiosk, sales through the Internet (or any other form of electronic commerce), mail
order and telephone sales. Notwithstanding the above restrictions, you may offer and sell approved Mrs. Fields Products as part of off-site catering events and offer samples of
approved Mrs. Fields Products at or directly in front of your Store. You may not sell to anyone any materials, supplies, or inventory used in the preparation of any Mrs. Fields Products.
Further, you may not sell any Mrs. Fields Products to any person or entity purchasing the Mrs. Fields Products for resale. 

        7.4   Internet Use. You acknowledge that the Internet is a powerful and expanding medium through which business is conducted.
You may not, however, advertise your Store or the Mrs. Fields Products over the Internet (or any other form of electronic commerce) or establish a related World Wide Web Site without our prior
written consent. In addition, your general conduct on the Internet (or any other form of electronic commerce) and specifically your use of the Marks is subject to the provisions of this Agreement.
Further, you acknowledge that we have the right to require you to submit reports, including Gross Revenue Reports, to us over the Internet in accordance with System Standards. 

        7.5   Our Right to Inspect Your Store. To determine whether you are complying with this Agreement and with all System Standards
and whether your Store is in compliance with the terms of this

 
Agreement, we and our designated agents have the right to, at any reasonable time and without prior notice to you: 

        (a)   Inspect
the Premises; 

        (b)   Observe,
photograph and video tape your Store's operations for such consecutive or intermittent periods as we deem necessary; 

        (c)   Remove
samples of any Mrs. Fields Products, materials or supplies for testing and analysis; 

        (d)   Interview
personnel of your Store; 

        (e)   Interview
customers of your Store; and 

        (f)    Inspect
and copy any books, records and documents relating to the operation of your Store. 

        You
agree to cooperate fully with us in connection with any of our inspections, observations, photographing, videotaping, product removal and interviews. 

        7.6   Surveys. You will present to your customers such evaluation forms as we periodically require and will participate in and
request your customers to participate in any surveys performed by or on our behalf. 

        7.7   Entity Owners. You agree, for the entire term of this Agreement, to identify your Entity Owners, if any, on the Ownership
Addendum attached to this Agreement. 

        7.8   Guaranties by Entity Owners. If you are an Entity, you represent and warrant to us that you are duly organized or formed
and validly existing in good standing under the laws of the state of your incorporation or formation, are qualified to do business in all states in which you are required to qualify and have the
authority to execute, deliver and carry out all of the terms of this Agreement. If you are an Entity, each of your Entity Owners must execute our then current form of guaranty prior to or upon the
date of this Agreement. Any person or Entity that at any time after the date of this Agreement becomes an Entity Owner pursuant to Article 12 or otherwise must, as a condition of becoming an
Entity Owner, execute our then current form of guaranty. 

        7.9   Insurance. 

        (a)   Casualty Insurance. You agree, at your sole cost and expense, at all times during the term of this Agreement, to keep all
of your goods, fixtures, furniture, equipment, and other personal property located on your Store Premises insured to the extent of 100% of the full replacement cost against loss or damage from fire
and other risks normally insured against in extended risk coverage. 

        (b)   Liability Insurance. You agree, at your sole cost and expense, at all times during the term of this Agreement, to
maintain in force an insurance policy or policies which will name both us and our Affiliates and you as insureds, insuring against all liability resulting from damage, injury, or death occurring to
persons or property in or about your Store Premises (including products liability insurance), the liability under such insurance to be not less than $1,000,000 for one person injured, $1,000,000 for
any one accident, and $1,000,000 for property damage. The original of such policy or policies shall remain in your possession. However you agree to give us a copy of the policy upon our request. 

        (c)   Workers' Compensation Insurance. You also agree to maintain and keep in force all workers' compensation insurance on your
employees, if any, required under the applicable workers' compensation laws of the state in which your Store is located.

 

        (d)   Other Insurance Policies. At your sole cost, you agree, at all times during the term of this Agreement, to maintain in
force such other and additional insurance policies as a prudent franchisee in your position would maintain or as we reasonably require. 

        (e)   Policy Requirements. All insurance policies required under this Section 7.9 will contain provisions to the effect
that the insurance will not be canceled or modified without at least 30 days prior written notice to us and that no modification will be effective unless approved in writing by us. All such
policies will be issued by a company or companies, rated "A-XII" or better by Best's Insurance Guide, responsible and authorized to do business in the state in which your Store is located,
as you may determine, and will be approved by us, which approval will not be unreasonably withheld. We have the right to obtain any insurance policies required under this Section 7.9 for your
Store at your expense if you fail to obtain such policies. 

        (f)    Release of Insured Claims. You release and relieve us and our Affiliates, and all of our and their officers, directors,
shareholders, employees, agents, successors, assigns, contractors, and invitees and waive your entire right of recovery against us and our Affiliates and all of our officers, directors, shareholders,
employees, agents, successors, assigns, contractors, and invitees for loss or damage arising out of or incident to the perils required to be insured against under this Section 7.9, which perils
occur in, on or about your Store Premises or relate to your business on the Premises, whether due to the negligence of us or our Affiliates or you or any of our or your related parties. 

 
 

ARTICLE 8
  
    REPORTS AND RECORD KEEPING    
    

        8.1   Accounting, Reports and Financial Statements. You agree to establish and maintain a bookkeeping, accounting, record
keeping and data processing system conforming to the requirements and formats that we prescribe. You agree to furnish to us reports relating to your Store by the delivery method and in such form and
content as we have the right to prescribe from time to time. These reports include, but are not limited to, the following: 

        (a)   Gross Revenue Reports. On or before noon on Wednesday of each week, a report of your Store's Gross Revenues for the
previous week; 

        (b)   Monthly Financial Reports. Within 15 days after the end of calendar month, a profit and loss statement for your
Store for the previous month and a year-to-date statement of financial condition as of the end of the previous month; 

        (c)   Semi-Annual Reports. Within 15 days after the end of each 6-calendar month period, a
balance sheet for your Store as of the end of that semi-annual period; and 

        (d)   Tax Returns. Within 10 days after the returns are filed, exact copies of federal and state income, sales and any
other tax returns and the other forms, records, books and other information as we have the right to periodically require. 

Each
report and financial statement will be signed and verified by you in the manner we specify. We have the right to disclose data derived from the sales reports to other franchisees and licensees.
We also have the right to require you to have audited or reviewed financial statements prepared on an annual basis. 

        8.2   Retention of Records. You agree to keep full, complete and proper books, records and accounts of Gross Revenues and of
your operations at your Store. All the books, records and accounts will be kept in the English language and will be retained for a period of at least 3 years following the end of each fiscal
year. The books and records will include daily cash reports; cash receipts journal and general ledger; cash disbursements journal and weekly payroll register; monthly bank statements and

 
daily deposit slips and canceled checks; tax returns (sales and income); supplier invoices; dated cash register tapes (detail and summary); semi-annual balance sheets and monthly profit
and loss statements; daily production, leftover and donations records and weekly inventories; records of promotions and coupon redemptions; records of all corporate accounts; and such other records as
we request. 

        8.3   Our Right to Audit. At any time during business hours and without prior notice to you, we and our representative have the
right to inspect and audit the business records, bookkeeping and accounting records, sales and income tax records and returns and other records of your Store as well as your books and records. You
agree to fully cooperate with representatives and independent accountants hired by us to conduct any inspection or audit. If an inspection or audit discloses an understatement of your Store's Gross
Revenues, you will pay to us, within 15 days after receipt of the inspection or audit report, the continuing fees due on the amount of the understatement, plus interest (at the rate and on the
terms provided in Section 6.5) from the date originally due until the date of payment. Further, if inspection or audit is made necessary by your failure to furnish reports, supporting records
or other information as required by this Agreement, or to furnish the reports, records or information on a timely basis, or if an understatement of Gross Revenues for the period of any audit is
determined by the audit or inspection to be greater than 2%, then within 15 days after receipt of the inspection or audit report, you will reimburse us for the cost of the audit or inspection,
including the charges of attorneys and any independent accountants and the travel expenses, room and board and compensation of our employees. These remedies are in addition to our other remedies and
rights under this Agreement or applicable law, and our right to audit will continue for 2 years following termination of this Agreement. 

 
 

ARTICLE 9
  
    MARKETING AND PROMOTION    
    

        9.1   Marketing Fees. 

        (a)   Collection of Marketing Fees. You agree, for the entire term of this Agreement, to pay to us a weekly marketing fee of 1%
to 3% of your Store's Gross Revenues. We will notify you annually of the exact percentage you must pay as a marketing fee, except for any year in which the percentage is to remain unchanged from the
preceding year. We establish the percentage of Gross Revenues you must pay as a marketing fee annually, although you will not be required to pay a higher percentage than other franchisees in your
market area. Marketing fees will be payable weekly by pre-authorized bank transfers, together with the continuing fees, in accordance with Sections 6.3 and 6.4. Mrs. Fields Cookie
Stores owned by us and our Affiliates in the same market area as you will contribute marketing fees on the same basis as you. 

        (b)   Right to Direct Operation of the Marketing Fees Collected. Marketing fees pay for marketing programs. We will direct all
marketing programs financed by the marketing fees we collect, and have the right to determine the creative concepts, materials and endorsements used and the geographic, market and media placement and
allocation. You agree that we have the right to use the marketing fees we collect to pay the costs of preparing and producing video, audio and advertising materials; administering regional and
multi-regional marketing programs, including purchasing direct mail and other media marketing and employing advertising, promotion and marketing agencies to assist with advertising; and supporting
public relations, market research and other advertising, promotion and marketing activities. We have the right, at our option, to use marketing fees to prepare, furnish and/or offer for sale to you
advertising, marketing and promotional formats and materials as described in Section 9.3. 

        (c)   Accounting for the Marketing Fees Collected. The marketing fees we collect will be accounted for separately from our
other funds, although we are not required to establish a separate marketing fund or bank account for such fees. We have the right to use the marketing fees we collect to defray the salaries,
administrative costs and overhead we may incur in activities

 
related to our marketing programs, including conducting market research, preparing advertising, promotion and marketing materials and collecting and accounting for the marketing fees we collect. Upon
your prior written request made within the first quarter of any calendar year, we will make available to you no later than 120 days after the end of the calendar year, an annual statement of
moneys collected and costs incurred for our marketing programs. We and our Affiliates have no fiduciary obligation to Mrs. Fields franchisees with respect to the collection and expenditure of
marketing fees. We have the right to create a marketing fund in the future to be operated by us or through an entity separate from us. 

        (d)   Benefits to Individual Stores. You understand and agree that our collection expenditure of marketing fees is intended to
maximize recognition of the Marks and patronage of Mrs. Fields Cookie Stores. Although we will endeavor to utilize the marketing fees we collect to develop advertising and marketing materials
and programs and to place advertising that will benefit all Mrs. Fields Cookie Stores, we cannot ensure you that our expenditure of marketing fees in or affecting any geographic
area will be proportionate or equivalent to the marketing fee contributions by Mrs. Fields Cookie Stores operating in that geographic area or that any Mrs. Fields Cookie Store will
benefit directly or in proportion to the marketing fees it pays to us from the development of advertising and marketing materials or the placement of advertising. 

        9.2   Advertising and Promotional Activities by You. In addition to marketing fees, you agree that you will spend on marketing
and related programs any amount that is required under your lease or sublease. Those amounts cannot be applied against the weekly marketing fees you are required to pay us. In addition, those amounts
typically vary from lease to lease, and therefore, all Mrs. Fields Cookie Store franchisees will not be obligated to spend the same amount on local advertising and marketing. You agree that all
advertising, promotion and marketing by you will comply with the requirements of Article 10, will be completely clear and factual and not misleading, and will conform to the highest standards
of ethical marketing and promotion policies which we have the right to prescribe. Prior to use, all press releases and policy statements and samples of all local advertising, marketing and related
materials not prepared or previously approved by us will be submitted to us for approval. Our approval will not be unreasonably withheld. Pamphlets, brochures, cards or other promotional materials
offering free Products may only be used if prepared by us, unless otherwise approved in advance by us. However, we will give favorable consideration to your use of free product cards developed by you,
if the cards clearly state that they may only be redeemed at Mrs. Fields Cookie Stores owned by you. If we do not give you written approval of any advertising or other promotional materials
within 15 days from the date of receipt by us of the materials, we will be deemed to have disapproved the submission. You agree not to use any advertising, marketing or related materials that
we have disapproved. You also agree to list your Store in the principal telephone directories distributed in your metropolitan area. 

        9.3   Our Advertising Materials. From time to time, we will provide you with copies of advertising, marketing and promotional
formats and materials for use in your Store, which we have prepared using marketing fees we have collected from Mrs. Fields Cookie Stores. You are only required to pay shipping and handling
costs for these items or, if you want additional or replacement copies, our direct cost of producing such items together with any related shipping, handling and storage charges. In addition to these
items, we may offer you the option of purchasing other advertising, marketing and promotional formats and materials that we have prepared and that are suitable for use at local Mrs. Fields
Cookie Stores. We may provide samples, copies or information explaining these items to you from time to time. If you elect to purchase any such items from us or our Affiliates, we will provide them to
you at our direct cost of producing them, including any related shipping, handling and storage charges. You acknowledge and agree that all payments to us or our Affiliates for the items described in
this Section 9.3 are nonrefundable and cannot be applied against the weekly marketing fee you are required to pay to us.

 

 
 

ARTICLE 10
  
    USE OF THE MARKS AND CONFIDENTIAL INFORMATION    
    

        10.1 Ownership and Goodwill of Marks. You acknowledge that we or certain of our Affiliates are the exclusive owners of the
Marks and that your right to use the Marks is derived solely from this Agreement and is limited to the conduct of business in compliance with this Agreement and all applicable System Standards,
specifications and operating procedures that we require. Although you may be our Affiliate, you do not claim any ownership interest in the Marks. Any unauthorized use of the Marks by you will
constitute a breach of this Agreement and an infringement of our rights in the Marks. You agree that your usage of the Marks and any goodwill established by that use will be for our exclusive benefit.
This Agreement does not confer any past, present or future goodwill or other interests in the Marks upon you, other than the right to operate a Mrs. Fields Cookie Store in compliance with this
Agreement. All provisions of this Agreement applicable to the Marks will apply to any additional proprietary trade and service marks and commercial symbols we authorize for your use in the future. 

        10.2 Limitations on Your Use of Marks. You agree to use the Marks as the sole identification of your Store. You will not use
any Mark as part of any corporate or trade name or with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos licensed to you under this Agreement), or in any
modified form, nor may you use any Mark in connection with the performance or sale of any unauthorized services or products or in any other manner not expressly authorized in writing by us. You agree
to display the Marks prominently at your Store, on supplies or materials designated by us and in connection with packaging materials, forms, labels and advertising and marketing materials. All Marks
will be displayed in the manner we require. You agree to use the registration symbol "[nc_cad,176]" in connection with your use of the Marks that are registered. You agree to refrain from
any business or marketing practice which may be injurious to our business and the goodwill associated with the Marks and other Mrs. Fields Cookie Stores. You agree to give such notices of trade
and service mark registrations as we specify and to obtain such fictitious or assumed name registrations as may be required under applicable law. You may not use any Mark as part of an electronic mail
address or on any sites on the Internet or World Wide Web. You may not use or register the Marks as an Internet domain name. 

        10.3 Discontinuance of Use of Marks. We have the right to require you to modify or discontinue use of any Marks or use one or
more additional or substitute trade or service marks if we determine it becomes advisable to do so at any time. In such case, you agree to comply with our directions to modify or discontinue the use
of the Mark or use one or more additional or substitute trade or service marks within a reasonable time after notice from us. We will reimburse you for your reasonable direct expenses in modifying or
discontinuing the use of a Mark and substituting a different trademark or service mark. However, we will not be obligated to reimburse you for any loss of goodwill associated with any modified or
discontinued Mark or for any expenditures made by you to promote a modified or substitute trademark or service mark. 

        10.4 Notification of Infringements and Claims. You agree to immediately notify us of any apparent infringement of or
challenge to your use of any Mark or claim by any person of any rights in any Mark, and you will not communicate with any person other than us or our counsel in connection with the infringement,
challenge or claim. We will have the right to take the action we deem appropriate and control exclusively any litigation, U.S. Patent and Trademark Office proceeding or any other administrative or
court proceeding arising out of any such infringement, challenge or claim or otherwise relating to any Mark. You agree to execute any instruments and documents, render such assistance and do those
things as, in the opinion of our legal counsel, may be necessary or advisable to protect and maintain our interests in any litigation or U.S. Patent and Trademark Office or other proceeding or
otherwise to protect and maintain our interests in the Marks.

 

        10.5 Our Indemnification of You. We agree to indemnify you against and to reimburse you for all damages for which you are
held liable in any proceeding arising out of your authorized use of any Mark in compliance with this Agreement, provided that you have timely notified us of the claim or proceeding and have otherwise
complied with this Agreement. We and our Affiliates shall control the defense of any proceeding arising out of your authorized use of any Mark. 

        10.6 Copyrights. We or certain of our Affiliates claim copyrights in the Confidential Information, the Operations Manuals,
our construction plans, specifications and materials, printed advertising and promotional materials and in related items used in operating the Franchise. Although you may be our Affiliate, you do not
claim any ownership interest in any of the foregoing. You may use the Operations Manuals and other materials during the term of the Franchise Agreement. The provisions of Sections 10.1, 10.3, 10.4 and
10.5 relating to Marks also apply to copyrights owned by us, as if copyrights were included within the definition of Marks. 

        10.7 Concepts Developed by You. We will have the perpetual right to own and use and authorize other Mrs. Fields Cookie
Stores to use, and you will fully and promptly disclose to us, all ideas, concepts, formulas, recipes, methods and techniques relating to the development or operation of a cookie, bakery, snack food
or dessert restaurant or retail outlet or any similar food service business conceived or developed by you or your employees during the term of this Agreement. You may not test, offer, or sell any new
products without our prior written consent. 

        10.8 Confidential Information. We may disclose certain Confidential Information to you in training, the Operations Manuals
and in guidance furnished to you during the term of the Franchise. You are not acquiring any interest in Confidential Information, other than the right to utilize Confidential Information disclosed to
you in the operation of your Store during the term of this Agreement. Your use or duplication of any Confidential Information in any other business will constitute an unfair method of competition and
a violation of this Agreement. The Confidential Information is proprietary, includes our trade secrets and is disclosed to you solely on the condition that you agree: 

        (a)   Not
to use Confidential Information in any other business or capacity; 

        (b)   To
maintain the absolute confidentiality of Confidential Information during and after the term of this Agreement; 

        (c)   Not
to make unauthorized copies of any portion of Confidential Information disclosed in written or other tangible form; and 

        (d)   To
adopt and implement all reasonable procedures that we prescribe to prevent unauthorized use or disclosure of Confidential Information, including restrictions on
disclosure of Confidential Information to your employees and compliance with the requirement that certain key employees execute confidentiality agreements as a condition of employment. 

 
 

ARTICLE 11
  
    COVENANTS NOT TO COMPETE    
    

        11.1 In Term Non-Compete. You agree and acknowledge that we would be unable to protect the Confidential
Information against unauthorized use or disclosure and would be unable to encourage a free exchange of ideas and information among Mrs. Fields Cookie Stores if franchised owners of
Mrs. Fields Cookie Stores or the manager of your Store were permitted to hold interests in or perform services for a Competitive Business. You also acknowledge and agree that we have granted
the

 
Franchise to you in consideration of and reliance upon your agreement to deal exclusively with us. Therefore, during the term of this Agreement, no Restricted Person and no manager of your Store will: 

        (a)   Have
any direct or indirect interest in a Competitive Business, except for your ownership interests in us and our Affiliates, or other Mrs. Fields Cookie Stores
or other stores operated by you under franchise agreements or license agreements with us or any of our Affiliates; or 

        (b)   Perform
services as a director, officer, manager, employee, consultant, representative, agent or otherwise for a Competitive Business, except for your services as
manager of our parent entity, and except other Mrs. Fields Cookie Stores or other stores operated by you under franchise or license agreements with us or any of our Affiliates; or 

        (c)   Recruit
or hire any employee who, within the immediately preceding 6-month period, was employed by us or any Mrs. Fields Cookie Stores operated by us,
our Affiliates or another franchisee or licensee of us, without obtaining the prior written permission of us or the franchisee or licensee. Neither the Management Agreement entered into between you
and our parent, Mrs. Fields Famous Brands, LLC, concurrent with the execution of this Agreement (the "Management Agreement"), nor the services performed by its agents, employees, directors,
officers, managers, or representatives thereunder, shall be deemed to violate this covenant. 

        11.2 Post Term Non-Compete. Upon termination of this Agreement for any reason other than as a result of our
default, you agree that, for a period of 1 year (or 3 years if we purchase your Store as provided in Section 14.5) commencing on the effective date of termination, no Restricted
Person will have any direct or indirect interest as an owner, investor, partner, director, officer, employee, consultant, representative or agent or in any other capacity in any Competitive Business
located or operating within (a) 1 mile of your Store, or (b) 1 mile of any Mrs. Fields Retail Outlets, except Mrs. Fields Cookie Stores or other stores that you operate
under agreements with us or our Affiliates. You expressly acknowledge that you and the other Restricted Persons possess skills and abilities of a general nature and have other opportunities for
exploiting those skills. Consequently, enforcement of the covenants made in this Section will not deprive you or any of the other Restricted Persons of their personal goodwill or ability to earn a
living. 

        11.3 Shareholder Exception. The restrictions of Sections 11.1 and 11.2 do not apply to the ownership of shares of a class of
securities listed on a stock exchange or traded on the over-the-counter market that represent 2% or less of the number of shares of that class of securities issued and
outstanding. 

        11.4 Enforcement of Non-Competes. If any covenant in this Agreement which restricts competitive activity is
deemed unenforceable by virtue of its scope in terms of area, business activity prohibited and/or length of time, but would be enforceable by reducing any part or all of the covenant, you and we agree
that the covenant will be enforced to the fullest extent permissible under the laws and public policies applied in the jurisdiction in which enforcement is sought. 

 
 

ARTICLE 12
  
    TRANSFERS    
    

        12.1 Transfers by Us. This Agreement is fully transferable by us and will inure to the benefit of any transferee or other
legal successor to our interest in this Agreement. 

        12.2 Restrictions on Transfers by You. Your rights and duties created by this Agreement are personal to you, and we have
granted this Agreement to you in reliance upon our perceptions of the individual or collective character, skill, aptitude, attitude, business ability and financial capacity of you and, if you are not
an individual, your Entity Owners. Accordingly, no Transfer will be made without our prior written approval. Any Transfer without our approval will constitute a breach of this Agreement and will be
void and of no effect. 

  

        12.3 Conditions for Approval of Transfers by You. If you are in full compliance with this Agreement, we will not unreasonably
withhold our approval of a Transfer of all or any of the Stores operated hereunder that meets all of the following requirements: 

        (a)   Character. The proposed transferee and the individuals ultimately owning the transferee, if the transferee is an Entity,
must be individuals of good moral character and otherwise meet our then applicable standards for owners of Mrs. Fields Cookie Stores; 

        (b)   Business Experience. The transferee and, if the transferee is an Entity, its Entity Owners must have sufficient business
experience, aptitude and financial resources to operate its business and comply with this Agreement; 

        (c)   Training. The transferee and/or its senior management personnel have agreed to complete our training program to our
satisfaction; 

        (d)   Satisfaction of Obligations. You have paid all amounts owed for purchases by you from us and our Affiliates and all other
amounts owed to us or our Affiliates and third-party creditors; 

        (e)   Execution of New Agreement or Assumption of Agreement. At our option, the transferee either has executed our then current
form of Franchise Agreement for a new term, and if the transferee is an Entity, each Entity Owner of the transferee has executed our then current form of guaranty, or has agreed to be bound by and
expressly assume all of the terms and conditions of this Agreement for the remainder of its term, and if the transferee is an Entity, each Entity Owner of the transferee has executed our then current
form of guaranty; 

        (f)    Payment of Transfer Fees. You or the transferee has paid our then current transfer fee for a Franchise Agreement; 

        (g)   Execution of Termination Agreement and/or Release. At our option, you and your transferring Entity Owners, if you are an
Entity, have executed our then current form of termination agreement and/or general release (which shall release us and our Affiliates and our and their respective officers, directors, employees and
agents from any and all claims); 

        (h)   Approval of Terms of Transfer. We have approved the material terms and conditions of the Transfer, including, without
limitation, the price and terms of payment. However, our approval of a Transfer does not ensure the transferee's success as a Mrs. Fields Cookie Store franchisee nor should the transferee rely
upon our approval of the Transfer in determining whether to acquire your Store; 

        (i)    Subordination. If you (or your Entity Owners) finance any part of the sale price of the transferred interest, you and the
Entity Owners have agreed that all obligations of the transferee under any promissory notes, agreements or security interests reserved by you (or your Entity Owners) will be subordinate to the
transferee's obligations to us and our Affiliates; 

        (j)    Non-Competition Agreement. Each Restricted Person has executed a non-competition agreement in our
favor and in favor of the transferee agreeing that, for a period of 3 years commencing on the effective date of the transfer, no Restricted Person will acquire or hold any direct or indirect
interest as an owner, investor, partner, director, officer, manager, employee, consultant, representative or agent, or in any other capacity, in a Competitive Business located within (i) 1 mile
of your Store, or (ii) 1 mile of any Mrs. Fields Retail Outlet, except Mrs. Fields Cookie Stores that you operate under agreements with us or our Affiliates. The restrictions of
this Section 12.3(j) will not apply to the ownership of shares of a class of securities listed on a stock exchange or traded on the over-the-counter market that
represent 2% or less of the number of shares of that class of securities issued and outstanding;

 

        (k)   Landlord Consent. If consent is required, the lessor of the Premises consents to the assignment or sublease of the
Premises to the transferee; 

        (l)    Non-Use of Marks. You and your Entity Owners have agreed that you and they will not directly or indirectly at
any time or in any manner (except with respect to Mrs. Fields Cookie Stores owned and operated by you or them) identify yourself or themselves or any of their businesses as a current or former
Mrs. Fields Cookie Store, or as a franchisee, licensee or dealer of us or our Affiliates, use any Mark, any colorable imitation of any of the Marks or other indicia of a Mrs. Fields
Cookie Store in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a connection or association with us
or our Affiliates; 

        (m)  Refurbishment. You or the transferee has agreed to any refurbishment of the Store required by us to bring the Store in
compliance with the then current System Standards and Trade Dress; and 

        (n)   Other Conditions. You and your transferring Entity Owners, if you are an Entity, have complied with any other conditions
that we reasonably require from time to time as part of our transfer policies. 

        In
connection with any assignment permitted under this Section 12.3, you will provide us with all documents to be executed by you and the proposed transferee at least
30 days prior to execution. 

        12.4 Transfer to a Wholly-Owned Corporation—[Intentionally Omitted] 

        12.5 Our Right of First Refusal. 

        (a)   Submission of Offers to Us. If you or one or more of your Entity Owners desires to make a Transfer, you or the Entity
Owner will obtain a bona fide, executed written offer and an earnest money deposit (in the amount of 5% or more of the offering price) from a responsible and fully disclosed purchaser and will
immediately submit to us a true and complete copy of such offer, which will include details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed
purchase price and a list of the owners of record and beneficially of any offeror that is an Entity and the individuals ultimately owning or controlling the offeror. If the offeror or an owner of the
offeror is a publicly-held Entity, you will also submit to us copies of the most current annual and quarterly reports of the publicly-held Entity. To be a valid, bona fide
offer, the proposed purchase price will be denominated in a dollar amount. The offer must apply only to an interest in this Agreement or a Controlling Interest in you and may not include an offer to
purchase any other property or rights of you or your Entity Owners. However, if the offeror proposes to buy any other property or rights from you or your Entity Owners under a separate,
contemporaneous offer, the price and terms of purchase offered to you or your Entity owners for the interest in this Agreement or the Controlling Interest in you will reflect the bona fide price
offered for that interest and will not reflect any value for any other property or rights. 

        (b)   Our Right to Purchase. We will have the right, exercisable by written notice delivered to you or your Entity Owners
within 30 days from the date of delivery of an exact copy of the offer to us, to purchase the interest in this Agreement or such Controlling Interest in you for the price and on the terms and
conditions contained in the offer. However we have the right to substitute cash for any form of payment proposed in the offer, our credit will be deemed equal to the credit of any proposed purchaser,
and we will have not less than 60 days to close the purchase. Without regard to the representations and warranties demanded by the proposed purchaser, if any, we will have the right to purchase
the interest, receiving from you all customary representations and warranties given by the seller of the assets of a business or equity interest in an Entity, as applicable, including representations
and warranties as to ownership, condition of and title to

 
assets, absence of liens and encumbrances relating to the ownership interest and assets, and validity of contracts and liabilities affecting the assets being purchased, contingent or otherwise. 

        (c)   Non-Competition Restriction. If we exercise our right of first refusal, you and each other Restricted Person
agree that, for a period of 3 years commencing on the date of the closing, no Restricted Person will acquire or hold any direct or indirect interest as an owner, investor, partner, director,
officer, manager, employee, consultant, representative or agent, or in any other capacity, in a Competitive Business located within (i) within 1 mile from your Store, or (ii) 1 mile of
any other Mrs. Fields Retail Outlet, except Mrs. Fields Cookie Stores that you operate under agreements with us or our Affiliates. The restrictions of this Section will not be applicable
to the ownership of shares of a class of securities listed on a stock exchange or traded on the over-the-counter market that represent 2% or less of the number of shares of
that class of securities issued and outstanding. If we exercise our right of first refusal, you and your Entity Owners further agree that you will abide by the restrictions of Section 12.3(l). 

        (d)   Non-Exercise by Us of Our Right of First Refusal. If we do not exercise our right of first refusal, you (or
your Entity Owners) may complete the sale to such purchaser pursuant to and on the terms of such offer, subject to our approval as provided in Sections 12.2 and 12.3. However, if the sale to the
purchaser is not completed within 120 days after delivery of the offer to us, or if there is a material change in the terms of the sale, our right of first refusal will be extended for
30 days after the expiration of the 120-day period or after the material change in the terms of the sale. 

        12.6 Death or Permanent Disability. If you are an individual, upon your death or permanent disability or, if you are an
Entity, upon the death or permanent disability of an individual owner of a Controlling Interest in you, the executor, administrator, conservator or other personal representative of that person will
transfer his interest in this Agreement or his Controlling Interest in you within a reasonable time, not to exceed 6 months from the date of death or permanent disability, to a third party
approved by us. A transfer under this Section, including, without limitation, transfer by devise or inheritance, will be subject to all of the terms and conditions for Transfers contained in Sections
12.2 and 12.3, and unless transferred by gift, devise or inheritance, subject to the terms of Section 12.5. Failure to dispose of such interest within the specified period of time will
constitute a breach of this Agreement. For purposes of this Agreement, the term "permanent disability" will mean a mental or physical disability,
impairment or condition that is reasonably expected to prevent or actually does prevent you or an owner of a Controlling Interest in you from supervising the operation of your Store for a period of
6 months from the onset of such disability, impairment or condition. 

        12.7 Effect of Consent to Transfer. Our consent to a Transfer will not constitute a waiver of any claims we may have against
the transferor nor be deemed a waiver of our right to demand full compliance by the transferee with the terms or conditions of this Agreement. 

        12.8 Preparation of a Financial Report by You. We have the right to require you to prepare and furnish to a prospective
transferee and/or us such financial reports and other data relating to your Store and its operations as we deem necessary or appropriate for the prospective transferee and/or us to evaluate the Store
and the proposed transfer. You agree that we have the right to confer with prospective transferees and furnish them with information concerning your Store and proposed transfer without being held
liable to you, except for intentional misstatements made to any such transferee. Any such information furnished by us to prospective transferees is for the sole purpose of permitting the transferees
to evaluate your Store and the proposed transfer and shall not be construed in any manner or form whatsoever as earnings claims or claims of success or failure.

 

ARTICLE 13  

 DEFAULT AND TERMINATION  

        13.1 Your Defaults. You will be in default under the terms of this Agreement if any of the following occur: 

        (a)   Insolvency. You file a petition in bankruptcy or for reorganization or for an arrangement pursuant to any federal
or state bankruptcy law or any similar federal or state law, or are adjudicated a bankrupt or make an assignment for the benefit of creditors or admit in writing your inability to pay your debts
generally as they become due, or if a petition or answer proposing the adjudication of you as a bankrupt or your reorganization pursuant to any federal or state bankruptcy law or any similar federal
or state law is filed in any court and you consent to or acquiesce in the filing thereof or such petition or answer is not discharged or denied within 60 days after the occurrence of any of the
foregoing, or if a receiver, trustee or liquidator of you or of all or substantially all of your assets or your interest in this Agreement is appointed in any proceeding brought by you, or if any such
receiver, trustee or liquidator is appointed in any proceeding brought against you and is not discharged within 60 days after the occurrence thereof, or if you consent to or acquiesce in such
appointment (any such event described in this Section 13.1(a) being referred to as an "Insolvency Event"); 

        (b)   Unauthorized Transfer. A Transfer occurs in violation of the provisions of Article 12; 

        (c)   Misstatements and other Adverse Developments. You (or, if you are an Entity, any Entity Owner of you) have made any
material misrepresentation or omission in your application for the rights conferred by this Agreement, are convicted by a trial court of or plead no contest to a felony or to any other crime or
offense that may adversely affect the goodwill associated with the Marks, or if you engage in any conduct which may adversely affect the reputation of any Mrs. Fields Cookie Store or the
goodwill associated with the Marks; 

        (d)   Unauthorized Use of Marks or Confidential Information. You or an Entity Owner of you make any unauthorized use of the
Marks or any unauthorized use or disclosure of Confidential Information; 

        (e)   Abandonment. You abandon or fail actively to operate your Store for 3 consecutive days unless your Store has been closed
for a purpose approved in advance by us in writing or because of fire, flood or other casualty or government order; 

        (f)    Breach of Lease; Loss of Right of Possession. You are in breach of any of your obligations under your lease or sublease
of the Premises or you lose the right to possession of the Premises; 

        (g)   Failure to Comply with Certain System Standards and Health Requirements. You fail or refuse to comply with System
Standards relating to the cleanliness or sanitation of your Store or violate any health, safety or sanitation law, ordinance or regulation; 

        (h)   Understatements of Gross Revenues. You understate your Store's Gross Revenues in any report or financial statement by an
amount greater than 2%; 

        (i)    Failure to Make Payments. You or any of your Affiliates fail to make payments, when due, of any amounts due to us or our
Affiliates under this Agreement or any other agreement with us or our Affiliates; 

        (j)    Failure to Pay Taxes. You fail to pay any federal or state income, sales or other taxes due with respect to your Store's
operations unless you are in good faith contesting your liability for the taxes;

 

        (k)   Other Breaches. You fail to comply with any other provision of this Agreement or any System Standard; 

        (l)    Repeated Breaches. You fail on 2 or more separate occasions within any period of 12 consecutive months or on 3 occasions
during the term of this Agreement to submit when due reports or other data, information or supporting records or to pay when due the continuing fees or other payments due to us or our Affiliates or
otherwise fails to comply with this Agreement, whether or not the failures to comply are corrected after notice thereof is delivered to you; 

        (m)  Financing Defaults. You default with respect to any of your obligations to us or any other lender under any financing
provided to you in connection with this Franchise Agreement or a purchase of Licensed Store assets; or 

        (n)   Default of any Other Agreement. You default in the performance or observance of any of your obligations under any other
agreement with us or our Affiliates. 

        13.2 Our Right to Terminate if You Default. We have the right to terminate this Agreement in accordance with the following
provisions: 

        (a)   Immediate Termination With No Opportunity to Cure. You will have no right or opportunity to cure any of the defaults
described in Sections 13.1(a), 13.1(b), 13.1(c), 13.1(d), 13.1(e), 13.1(f), 13.1(j), 13.1(l) or 13.1(m) and, upon the occurrence of one of these defaults, this Agreement will terminate effective
immediately on our issuance of written notice of termination. 

        (b)   Immediate Termination After 48 Hours to Cure. You will have 48 hours after written notice of default to cure a
default relating to your failure to comply with certain System Standards and health requirements, as described in Section 13.1(g). If you fail to cure or only partially cure such a default
within the 48-hour cure period, we will have good cause to terminate this Agreement and such termination will be effective immediately upon on our issuance of written notice of
termination. 

        (c)   Immediate Termination After 10 Days to Cure. You will have 10 days from the date of written notice of default to
cure a default relating to your failure to make payments, as described in Section 13.1(i). If you fail to cure or only partially cure such a default within the 10-day cure period,
we will have good cause to terminate this Agreement and such termination will be effective immediately upon on our issuance of written notice of termination. 

        (d)   Termination After Opportunity to Cure. Except as otherwise provided in Sections 13.2(a), 13.2(b) and 13.2(c):
(i) you will have 30 days from the date of written notice of default to cure any default under this Agreement or, if the default cannot reasonably be cured within 30 days from the
date of written notice of default, provide proof acceptable to us of efforts which are reasonably calculated to correct the default within a reasonable time, which will in no event be more than
30 days from the date of written notice of default; (ii) your failure to fully cure a default within the applicable cure period will provide us with good cause to terminate this
Agreement; (iii) the termination will be accomplished by mailing or delivering to you written notice of termination that will identify the grounds for the termination; and (iv) the
termination will be effective 30 days after the date of written notice of termination. 

        (e)   Other Rights and Remedies. If you cure any default after the applicable cure period has expired, we still have the right
to terminate this Agreement. In any event, our right to terminate this Agreement is in addition to whatever other rights and remedies are available to us. 

        (f)    Effect of Other Laws. The provisions of any valid, applicable law or regulation prescribing permissible grounds, cure
rights or minimum periods of notice for termination of this Franchise will supersede any provision of this Agreement that is less favorable to you than such law or regulation.

 

        13.3 Our Right to Terminate in Certain Other Circumstances. 

        (a)   Failure to Complete Training. If you or your initial store manager fails to complete all phases of the initial training
program to our satisfaction, we will have the right to terminate this Agreement effective upon delivery of notice of termination to you. If we terminate the Agreement as permitted by this provision,
we will refund to you the initial franchise fee less all reasonable expenses incurred by us in connection with (i) the preparation of this Agreement and all related agreements, (ii) the
grant of the
Franchise, (iii) approval of the Premises, (iv) selection of the Premises, and (v) any other services performed by us in connection with the establishment and development of your
Store. However, in no event will the refund exceed 50% of the initial franchise fee. The refund will be delivered to you upon execution of all releases, waivers and other agreements necessary to
terminate the relationship between you and us. 

        (b)   Failure to Open Your Store for Business. If you fail to open your Store for business in compliance with
Section 4.5, we will also have the right to terminate this Agreement effective upon delivery of notice of termination to you. No refund of the initial franchise fee will be made in these
circumstances. 

        13.4 Your Right to Terminate if We Default. We will be in default under this Agreement if we materially breach a provision
contained herein. Our failure to either cure such a default within 30 days from the date of a written notice of default delivered to us or, if such default cannot reasonably cured within
30 days, to provide proof to you of efforts which are reasonably calculated to cure such default within a reasonable time (which will in no event be more than 60 days after notice), will
give you good cause to terminate this Agreement; provided you are in compliance with this Agreement. Termination will be accomplished by delivering to us written notice of termination, which notice
will state the grounds for the termination and will be effective 10 days after delivery to us. Your right to terminate this Agreement is in addition to whatever other rights and remedies are
available to you. 

        13.5 Assumption of Management. If you are in default of this Agreement for abandonment (as described in
Section 13.1(e)), we have the right, at our option, to enter the Premises and assume the management of your Store for any period of time we deem appropriate. If we assume management of your
Store, we will appoint a manager who will maintain Store operations. All funds from the operation of your Store during the period of management by our appointed manager will be kept in a separate
fund, and all expenses of your Store, including compensation, other costs, and travel and living expenses of our appointed manager, will be charged to such fund. As compensation for such management
services, we will charge such fund 10% of the Gross Revenues of your Store during the period of our management. Operation of your Store during any such period will be on your behalf, provided that we
will have a duty only to utilize our good faith effort and will not be liable to you for any debts or obligations incurred by your Store or to any of your creditors for any merchandise, materials,
supplies or services purchased by your Store during any period in which your Store is managed by our appointed manager. You will maintain in force for your Store all insurance policies required by
this Agreement. Our right to assume management of your Store pursuant to this Section 13.5 is in addition to and does not affect our right to terminate this Agreement under Section 13.2. 

ARTICLE 14  

 POST TERM OBLIGATIONS  

        14.1 Reversion of Rights. You agree that upon termination or expiration of this Agreement, all of your rights to use the
Marks and all other rights and licenses granted herein and the right and license to conduct business under the Marks at your Store and on the Premises shall revert to us without further act or deed of
any party. All right, title and interest of you in, to and under this Agreement shall become our property.

 

        14.2 Payment of Amounts Owed to Us and Others following Termination or Expiration. You agree to pay us within 15 days
after the date of termination or expiration of this Agreement, or such later date as the amounts due to us are determined, the continuing fees, marketing fees, amounts owed for purchases by you from
us or our Affiliates, interest due on any of the foregoing and all other amounts owed to us or our Affiliates which are then unpaid. 

        14.3 Discontinuance of the Use of the Marks following Termination or Expiration. You agree that, upon termination or
expiration of this Agreement, you will: 

        (a)   Not
directly or indirectly at any time or in any manner (except with respect to other Mrs. Fields Cookie Stores owned and operated by you) identify yourself or
any business as a current or former Mrs. Fields Cookie Store, or as a franchisee, licensee or dealer of us or our Affiliates, use any Mark, any colorable imitation of a Mark or other indicia of
a Mrs. Fields Cookie Store in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a connection
or association with us or our Affiliates; 

        (b)   Deliver
to us all signs, sign-faces, sign-cabinets, marketing materials, forms, invoices and other materials containing any Mark or otherwise
identifying or relating to a Mrs. Fields Cookie Store and allow us, without liability, to remove all such items from your Store; 

        (c)   Take
such action as may be required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark; 

        (d)   If
we do not purchase your Store as provided in Section 14.5, make the changes to the exterior and interior appearance of your Store to distinguish the Trade
Dress as are reasonably required by us; 

        (e)   Deliver
all materials and supplies identified by the Marks in full cases or packages to us for credit and dispose of all other materials and supplies identified by the
Marks within 30 days after the effective date of termination of this Agreement; 

        (f)    Notify
the telephone company and all telephone directory publishers of the termination of your right to use any telephone and telecopy numbers and any regular,
classified or other telephone directory listings associated with any Mark and to authorize transfer of those rights to us, or at our direction, our designee. You agree that, as between you and us, we
have the right to and interest in all telephone and telecopy numbers and directory listings associated with any Mark. You authorize us and appoint us and any of our officers as your attorney in fact,
to direct the telephone company and all telephone directory publishers to transfer any telephone and telecopy numbers and directory listings relating to your Store to us, or our designee, should you
fail or refuse to do so, and the telephone company and all telephone directory publishers may accept such direction or this Agreement as conclusive of our exclusive rights in the telephone and
telecopy numbers and directory listings and our authority to direct their transfer; and 

        (g)   Furnish
us, within 30 days after the effective date of termination, with evidence satisfactory to us of your compliance with the obligations in this
Section 14.3. 

        You
agree that if you fail to fulfill any of the obligations contained in this Section 14.3 upon termination or expiration of this Agreement, we have the right, at our option, to
perform such obligations at your expense. 

        14.4 Discontinuance of Use of Confidential Information following Termination or Expiration. You agree that, upon termination
or expiration of this Agreement, you will immediately cease to use any Confidential Information disclosed to you pursuant to this Agreement in any business or otherwise and you will return to us all
copies of the Operations Manuals and any other confidential materials which we have loaned to you.

 

        14.5 Our Option to Purchase Licensed Stores. 

        (a)   Option to Purchase. Upon termination or expiration of this Agreement other than as a result of our default and if no
successor franchise agreement has been executed, we or our assignee will have the right, at our option, exercisable by giving written notice thereof within 60 days from the date of such
termination or expiration, to acquire from you the inventory of Mrs. Fields Products, materials, and supplies that are in good and saleable condition and not obsolete or discontinued (the
"Inventory") and the equipment, furnishings, signs, and the other tangible assets of your Stores (collectively, with the Inventory, the
"Assets"). We will have the right to assign this option to purchase and our rights under this Section 14.5. We will be entitled to all customary
warranties and representations in connection with our purchase, including, without limitation, representations and warranties as to ownership, condition of and title to the Assets, no liens and
encumbrances on the Assets, and validity of contracts and agreements and liabilities benefiting us or affecting the Assets, contingent or otherwise. 

        (b)   Purchase Price. The purchase price for the Assets will be equal to the greater of: 

        (i)    The
sum of the book value of your Store's Assets, other than Inventory, amortized on a straight-line basis over a 7 year period, plus the lesser of
cost and the then-current wholesale market value of the Inventory, or 

        (ii)   The
product of your Store's average cash flow for the 2 most recently completed fiscal years, multiplied by 2. "Cash
flow" means your Store's Gross Revenues less all Licensed Store-related costs (i.e., cost of goods sold, labor, occupancy and other Licensed Store expenses) as well as annual
administrative costs of $15,000, continuing fees and marketing fees, but not including interest and depreciation. 

        We
will have the right to set off against and reduce the purchase price by any and all amounts owed by you to us or our Affiliates. We have the right to exclude from the Assets purchased
any equipment, furnishings, signs, and usable inventory of Mrs. Fields Products, materials, or supplies of your Stores that we have not approved as meeting our standards for Mrs. Fields
Cookie Stores, and the purchase price will be reduced by the replacement cost of such excluded items which are required in the operation of your Stores being purchased. 

        (c)   Payment of Purchase Price. The purchase price will be paid in cash at the closing of the purchase, which will take place
no later than 90 days after your receipt of our notice of exercise of this option to purchase your Stores, at which time you will deliver instruments transferring to us good and merchantable
title to the Assets purchased, free and clear of all liens and encumbrances and with all sales and other transfer taxes paid by you, and with all licenses or permits of your Stores which may be
assigned or transferred. If the closing of the purchase does not occur within the 90-day period because you fail to act diligently in connection with the purchase, the purchase price will
be reduced by 10%. The purchase price will be further reduced by 10% per month for each subsequent month you fail to act diligently to consummate the purchase. Prior to closing, you and we will comply
with the applicable Bulk Sales provisions of the Uniform Commercial Code as enacted in the state where your Store is located. 

        (d)   Lease of Premises. In connection with the purchase of the Assets of a Licensed Store, you will also deliver to us an
assignment of the lease for your Store premises (or, if assignment is prohibited, subleases for the full remaining term and on the same terms and conditions as your lease). If you own the Premises of
your Store, you agree to lease the Premises to us pursuant to the terms of our standard lease, for a term of 5 years with two successive 5-year renewal options at fair market rental
during the initial and renewal terms. 

        (e)   Interim Management. If we exercise the option to purchase your Store, pending the closing of such purchase, we have the
right to appoint a manager to maintain the operation of your Store

 
or, at our option, require you to close your Store during such time period without removing any assets. If we appoint a manager to maintain the operation of your Store pending closing of such
purchase, all funds from the operation of your Store during the period of management by our appointed manager will be kept in a separate fund, and all expenses of your Store, including compensation,
other costs, and travel and living expenses of our appointed manager, will be charged to such fund. As compensation for such management services, we will charge such fund 10% of the Gross Revenues of
your Store during the period of our management. Operation of your Store during any such period will be on your behalf, provided that we will have a duty only to utilize our good faith effort and will
not be liable to you for any debts or obligations incurred by your Store or to any of your creditors for any merchandise, materials, supplies or services purchased by your Store during any period in
which your Store is managed by our appointed manager. You will maintain in force for your Store all insurance policies required by this Agreement until the date of closing. 

        (f)    Termination of Franchise Agreement. Upon the closing of the purchase of the Assets and satisfaction by you of all of your
obligations under this Agreement accruing through the closing, this Agreement will terminate. 

        14.6 Your Opportunity to Acquire a Successor Franchise Agreement. 

        (a)   Conditions to Issuance of a Successor Franchise. Upon expiration of the renewal term of this Agreement, you will have the
right to acquire a successor franchise for your Store, provided we are still offering Mrs. Fields Cookie Store franchises, on the terms and conditions of our then current form of Franchise
Agreement for Mrs. Fields Cookie Stores if: 

        (i)    You
have substantially complied with this Agreement during its term and are not in default of this Agreement; 

        (ii)   You
agree either: 

        (1)   To
maintain possession of and remodel and/or expand the Premises, add or replace leasehold improvements, equipment, fixtures, furnishings and signs and otherwise modify
your Store to bring it into compliance with then applicable System Standards for Mrs. Fields Cookie Stores, or 

        (2)   If
in our judgment your Store should be relocated, to secure substitute premises approved by us and construct and develop the substitute premises in compliance with
specifications and standards then applicable for Mrs. Fields Cookie Stores; 

        (iii)  You
agree to correct any deficiencies in your Store or the Premises, or in your operation of your Store, as identified in the notice from us to you described in
Section 14.6(b), within the time period specified in the notice; and 

        (iv)  You
comply with the provisions of Section 14.6(c) on or before expiration of this Agreement. 

        (b)   Grant of a Successor Franchise. You must give us a written notice of your desire and election to acquire a successor
franchise during the year preceding the last year of the term of this Agreement; otherwise, you will have no right to acquire a successor franchise. We agree to give you written notice, not more than
180 days after receipt of your notice, of our requirements under Section 14.6(a)(iii) and the time period for satisfying those requirements, as well as a list of any deficiencies
in your Store or the Premises, or in your operation of your Store that must be corrected, stating the actions you must take to correct the deficiencies and specifying the time period in which the
deficiencies must be corrected. If, but only if, you have satisfied all of the conditions set forth in Section 14.6 by the date of expiration of this Agreement, we will issue the successor
franchise. We agree, however, that if any of the time periods specified by us for

 
compliance with the provisions of Section 14.6(a)(ii) or Section 14.6(a)(iii) extend beyond the expiration of this Agreement, the new franchise will be issued
conditionally, subject to compliance with those requirements within the applicable time periods. 

        (c)   Agreements and Releases to be Executed. If you are entitled to a successor franchise, you (and your Entity Owners, if you
are an Entity) will be required to execute our then current form of franchise agreement, guaranties and any ancillary agreements we are customarily using in granting franchises for the operation of
Mrs. Fields Cookie Stores at the time of expiration of this Agreement. You will also be required to pay the fees and charges then being charged under the version of franchise agreement and our
franchising policies in effect upon expiration of this Agreement. These requirements may include payment of a new initial franchise fee (which will not exceed 50% of the initial franchise fee then
being charged to new franchisees) and other fees and charges at the times and in the amounts provided for in the form of successor franchise agreement then in use by us. These fees and charges may be
different from those in this Agreement. You (and your Entity Owners, if you are an Entity) will also be required to execute general releases, in a form satisfactory to us, of any and all claims
against us and our Affiliates and our and their respective officers, directors, employees, agents, successors and assigns arising under this Agreement. Copies of all the agreements and releases will
be delivered to you at least 60 days prior to expiration of this Agreement and must be executed by you (and your Equity Owners, if you are an Entity) prior to expiration of this Agreement. 

        14.7 Continuing Obligations. All obligations of us and you which expressly or by their nature survive the termination of this
Agreement will continue in full force and effect subsequent to and notwithstanding termination and until they are satisfied in full or by their nature expire. Included in the obligations that will
continue following termination of this Agreement are the provisions of Sections 6.3, 7.9, 8.2, 8.3, 10.5, 10.8, 12.3(l), 14.1, 14.2, 14.3, 14.4, 14.5, 14.7, 15.6, 15.7, 16.1, and the provisions of
Articles 17 and 18. 

ARTICLE 15  

 RELATIONSHIP OF THE PARTIES/INDEMNIFICATION  

        15.1 Independent Contractors. This Agreement alone does not create a fiduciary relationship between the parties. Nothing in
this Agreement is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose. You will conspicuously identify yourself in all dealings
as the owner of your Store under a franchise granted by us and will place such other notices of independent ownership on the forms, business cards, stationery, marketing and other materials as we have
the right to require from time to time. 

        15.2 No Liability for the Act of Other Party. You will not employ any of the Marks in signing any contract or applying for
any license or permit or in a manner that may result in our liability for any indebtedness or obligations of you, nor may you use the Marks in any way not expressly authorized by us. Neither we nor
you will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other or be obligated by or have any liability under any
agreements or representations made by the other. We will not be obligated for any damages to any person or property directly or indirectly arising out of the operation of your business authorized by
or conducted pursuant to this Agreement. 

        15.3 Your Control. You have the sole right and responsibility for the manner and means by which the
day-to-day operation of your Store is determined and conducted and for achieving your business objectives. Subject to any approval, inspection and enforcement rights reserved
to us under this Agreement or the Management Agreement, this right and responsibility includes the employment, supervision, setting the conditions of employment and discharge for your employees at
your Store, daily maintenance, safety concerns, and the achievement of conformity with the System Standards.

 

        15.4 Our Approval and Enforcement. Our retention and exercise of the right to approve certain matters, to inspect your Store
and its operation and to enforce our rights, exists only to the extent necessary to protect our interest in the Mrs. Fields System and the Marks for the benefit of us and the Mrs. Fields
System. Neither the retention nor the exercise is for the purpose of establishing any control, or the duty to take control, over those matters which are clearly reserved to you, nor shall they be
construed to do so. 

        15.5 Taxes. We will have no liability for any sales, use, service, occupation, excise, gross receipts, income, property or
other taxes, whether levied upon you or your assets or upon us, arising in connection with your sales or the business conducted by you pursuant to this Agreement, except for taxes that we are required
by law to collect from you with respect to purchases from us and except for our own income taxes. Payment of all such taxes will be your responsibility. 

        15.6 Indemnification. You agree to indemnify, defend and hold harmless us, our parent company, subsidiaries and Affiliates
and each of our respective shareholders, directors, officers, employees, agents, successors and assigns (the "Indemnified Parties") against and to
reimburse the Indemnified Parties for any claims, liabilities, lawsuits, demands, actions, damages and expenses arising from or out of (a) any breach of your agreements, covenants,
representations, or warranties contained in this Agreement, (b) any damages or injury to any person, including, but not limited to, your employees, our employees and agents, your customers, and
members of the public, suffered or incurred on or about any Licensed Store owned or operated by you, (c) product liabilities claims or defective manufacturing of Mrs. Fields Products by
you, or (d) the activities under this Agreement of you or any of your officers, owners, directors, employees, agents or contractors. For purposes of this indemnification, claims will mean and
include all obligations, actual, consequential, and incidental damages and costs reasonably incurred in the defense of any claim against the Indemnified Parties, including reasonable accountants',
arbitrators', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses. We will have the right to defend any
such claim against us. This indemnity will continue in full force and effect subsequent to and notwithstanding the termination of this Agreement. 

        15.7 Waiver of Claims. You agree to waive all claims against us for damages to property or injuries to persons arising out of
the operation of your Store. 

 
 

ARTICLE 16
  
    SECURITY AGREEMENT    
    

        16.1 Security Interest. In order to secure full and prompt payment of the fees and other charges to be paid by you to us, and
to secure performance of your other obligations and covenants under this Agreement, you hereby grant us a security interest in, lien upon, and right of set off against all of your interest in the
improvements, fixtures, inventory, goods, appliances and equipment now or hereafter owned and located at your Store (whether annexed to the Premises or not) or used in connection with the business
conducted at the Premises, including all raw materials, work in process and finished goods, and all replacements thereof, attachments, additions, and accessions thereto, and products and proceeds
thereof in any form, including but not limited to insurance proceeds and any claims against third parties for loss or damage to or destruction of any or all of the foregoing (collectively, the
"Collateral").

  

        16.2 Requirements. Without our prior written consent, you agree that no lien upon or security interest in the Collateral or
any item thereof will be created or suffered to be created and that no lease will be entered into with respect to any item of Collateral. Without our prior written consent, you will not sell or
otherwise dispose of any item of Collateral, or remove any Collateral from the Premises, unless the same is replaced by a similar item of equal or greater value, and except for the sales of inventory
in the ordinary course of business. You agree to give to us advance notice in writing of any proposed change in your name, identity, or structure and not to make any change without our prior written
consent and compliance with the provisions of this Agreement, including Article 12. You agree to execute for filing the financing statements and continuation statements as we have the right to
require from time to time. You agree to pay all filing fees, including fees for filing continuation statements in connection with the financing statements, and to reimburse us for all costs and
expenses of any kind incurred in connection therewith. If you default under this Agreement, we will have all the remedies and rights available as a "secured party" with respect to the Collateral under
the Uniform Commercial Code as in effect from time to time in the state where the Premises are located. The grant of the security interest by you pursuant to Section 16.1 will not be construed
to derogate from or impair any other rights which we may have under this Agreement or otherwise at law or equity. The provisions of this Section shall survive the termination of this Agreement. 

 
 

ARTICLE 17
  
    DISPUTE RESOLUTION    
    

        17.1 Injunctive Relief. Notwithstanding anything to the contrary contained in Section 17.4, we and you will each have
the right in a proper case to obtain specific performance, eviction from the Premises, temporary restraining orders and temporary or preliminary injunctive relief from a court of competent
jurisdiction. However, the parties will contemporaneously submit their dispute for arbitration on the merits. You agree that we may have temporary or preliminary injunctive relief without bond, but
upon due notice, and your sole remedy in the event of the entry of such injunctive relief will be the dissolution of the injunctive relief, if warranted, upon hearing duly had (all claims for damages
by reason of the wrongful issuance of any the injunction being expressly waived). In addition, notwithstanding anything to the contrary contained in Section 17.4, we and our Affiliates have the
right to commence a civil action against you or take other appropriate action for the following reasons: (i) to collect sums of money due to us or our Affiliates; (ii) to compel your
compliance with trademark standards and requirements to protect the goodwill of the Marks; (iii) to compel you to compile and submit required reports to us or our Affiliates; or (iv) to
permit evaluations or audits authorized by this Agreement. 

        17.2 Rights of Parties Are Cumulative. Our and your rights under this Agreement are cumulative and the exercise or
enforcement of any right or remedy under this Agreement will not preclude the exercise or enforcement by a party of any other right or remedy under this Agreement which it is entitled by law or this
Agreement to exercise or enforce. 

        17.3 Costs and Attorneys' Fees. If a claim for amounts owed by you to us or our Affiliates is asserted in judicial proceeding
or appeal, or if we or you are required to enforce this Agreement in an arbitration or proceeding or appeal, the party prevailing in such proceeding will be entitled to reimbursement of its costs and
expenses, including reasonable arbitrators', accounting and legal fees, whether incurred prior to, in preparation for or in contemplation of the filing of any written demand, claim, action, hearing or
proceeding to enforce the obligations of this Agreement. If we incur expenses in connection with your failure to pay when due amounts owing to us, to submit when due any reports, information or
supporting records or otherwise to comply with this Agreement, including, but not limited to legal, arbitrators' and accounting fees, you will reimburse us for any such costs and expenses which we
incur.

 

        17.4 Arbitration. 

        (a)   All Disputes Subject to Arbitration. EXCEPT AS DESCRIBED IN SECTION 17.1, ALL CONTROVERSIES, DISPUTES OR CLAIMS BETWEEN
US (AND OUR SUBSIDIARIES AND AFFILIATES, AND EACH OF OUR AND THEIR RESPECTIVE SHAREHOLDERS, OFFICERS, DIRECTORS, AGENTS, EMPLOYEES AND ATTORNEYS) AND YOU (AND YOUR ENTITY OWNERS, GUARANTORS AND
EMPLOYEES, OFFICERS, DIRECTORS, AGENTS, AND ATTORNEYS) ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER AGREEMENT BETWEEN YOU AND US WILL BE SUBMITTED FOR ARBITRATION TO THE SALT LAKE CITY,
UTAH OFFICE OF THE AMERICAN ARBITRATION ASSOCIATION ON DEMAND OF EITHER YOU OR US. SUCH ARBITRATION PROCEEDINGS WILL BE CONDUCTED IN SALT LAKE CITY, UTAH AND WILL BE HEARD BY ONE ARBITRATOR IN
ACCORDANCE WITH THE THEN CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. SUCH ARBITRATOR WILL BE A LAWYER OF RECOGNIZED STANDING AND EXPERTISE IN THE AREA OF BUSINESS
LAW. 

        (b)   Awards. THE ARBITRATOR WILL HAVE THE RIGHT TO AWARD ANY RELIEF WHICH THE ARBITRATOR DEEMS PROPER IN THE CIRCUMSTANCES,
INCLUDING MONEY DAMAGES (WITH INTEREST ON UNPAID AMOUNTS FROM THE DATE DUE), SPECIFIC PERFORMANCE, INJUNCTIVE RELIEF AND ATTORNEYS' FEES AND COSTS, IN ACCORDANCE WITH SECTION 17.3, EXCEPT THAT THE
ARBITRATOR WILL NOT HAVE THE AUTHORITY TO AWARD EXEMPLARY OR PUNITIVE DAMAGES. THE AWARD AND DECISION OF THE ARBITRATOR WILL BE CONCLUSIVE AND BINDING UPON ALL PARTIES AND JUDGMENT UPON THE AWARD MAY
BE ENTERED IN ANY COURT OF COMPETENT JURISDICTION. EACH PARTY WAIVES ANY RIGHT TO CONTEST THE
VALIDITY OR ENFORCEABILITY OF SUCH AWARD. THE PARTIES AGREE TO BE BOUND BY THE PROVISIONS OF ANY LIMITATION ON THE PERIOD OF TIME BY WHICH CLAIMS MUST BE BROUGHT. THE PARTIES AGREE THAT, IN CONNECTION
WITH ANY SUCH ARBITRATION PROCEEDING, EACH WILL SUBMIT OR FILE ANY CLAIM WHICH WOULD CONSTITUTE A COMPULSORY COUNTER-CLAIM (AS DEFINED BY RULE 13 OF THE FEDERAL RULES OF CIVIL PROCEDURE) WITHIN THE
SAME PROCEEDINGS AS THE CLAIM TO WHICH IT RELATES. ANY SUCH CLAIM WHICH IS NOT SUBMITTED OR FILED IN SUCH PROCEEDING WILL BE BARRED. 

        (c)   Permissible Parties. YOU AND WE AGREE THAT ARBITRATION WILL BE CONDUCTED ON AN INDIVIDUAL BASIS, AND NOT A
CLASS-WIDE BASIS, AND THAT ANY ARBITRATION PROCEEDING BETWEEN YOU AND US WILL NOT BE CONSOLIDATED WITH ANY OTHER ARBITRATION PROCEEDING INVOLVING US AND ANY OTHER PERSON OR ENTITY. 

        (d)   Survival. THE PROVISIONS OF THIS SECTION 17.4 WILL CONTINUE IN FULL FORCE AND EFFECT SUBSEQUENT TO AND NOTWITHSTANDING
THE EXPIRATION OR TERMINATION OF THIS AGREEMENT. 

        17.5 Governing Law. ALL MATTERS RELATING TO ARBITRATION AND WITHIN THE SCOPE OF THE FEDERAL ARBITRATION ACT (9 U.S.C.
§§ 1 ET SEQ.) WILL BE GOVERNED BY SUCH ACT. EXCEPT TO THE EXTENT GOVERNED BY THE FEDERAL ARBITRATION ACT, THE UNITED STATES
TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET SEQ.) OR OTHER FEDERAL LAW, THIS AGREEMENT AND THE RELATIONSHIP BETWEEN YOU AND US WILL BE
GOVERNED BY THE LAWS OF THE STATE OF UTAH, EXCEPT THAT THE UTAH BUSINESS OPPORTUNITY DISCLOSURE ACT AND ANY OTHER STATE LAW RELATING TO (1) THE OFFER AND SALE OF FRANCHISES (2) FRANCHISE

 
RELATIONSHIPS, OR (3) BUSINESS OPPORTUNITIES, WILL NOT APPLY UNLESS THE APPLICABLE JURISDICTIONAL REQUIREMENTS ARE MET INDEPENDENTLY WITHOUT REFERENCE TO THIS PARAGRAPH. 

        17.6 Consent to Jurisdiction. WE MAY INSTITUTE ANY ACTION AGAINST YOU (WHICH IS NOT REQUIRED TO BE ARBITRATED HEREUNDER) IN
ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF UTAH, AND YOU IRREVOCABLY SUBMIT TO THE JURISDICTION OF SUCH COURTS AND WAIVE ANY OBJECTION YOU MAY HAVE TO EITHER THE JURISDICTION
OF OR VENUE IN SUCH COURTS. 

        17.7 Waiver of Punitive Damages and Jury Trial. THE PARTIES WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR
CLAIM FOR ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN THEM, THE PARTY MAKING A CLAIM WILL BE LIMITED TO RECOVERY OF ANY ACTUAL DAMAGES IT
SUSTAINS. IN ADDITION, THE PARTIES IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER PARTY. 

        17.8 Limitation of Claims. Any and all claims arising out of or relating to this Agreement or the relationship among the
parties to this Agreement will be barred unless an action or proceeding is commenced within one year from the date you or we knew or should have known of the facts giving rise to such claim. 

 
 

ARTICLE 18
  
    GENERAL PROVISIONS    
    

        18.1 Severability. Each article, section, paragraph, term and provision of this Agreement will be considered severable and
if, for any reason, any provision of this Agreement is held to be invalid, contrary to or in conflict with any applicable present or future law or regulation in a final, unappealable ruling issued by
any court, agency or tribunal with competent jurisdiction in a proceeding to which we are a party, that ruling will not impair the operation of, or have any other effect upon, such other portions of
this Agreement as may remain otherwise intelligible, and such other portions will continue to be given full force and effect and bind the parties, although any portion held to be invalid will be
deemed not to be a part of this Agreement from the date the time for appeal expires, if you are a party thereto, otherwise upon your receipt of a notice of non-enforcement thereof from us. 

        18.2 Rights Provided by Law. If any applicable and binding law or rule of any jurisdiction requires a greater prior notice of
the termination or non-renewal of this Agreement than is required under this Agreement, or the taking of some other action not required under this Agreement, or if, under any applicable
and binding law or rule of any jurisdiction, any provision of this Agreement is invalid or unenforceable, the prior notice and/or other action required by such law or rule will be substituted for the
comparable provisions of this Agreement, and we will have the right to modify the invalid or unenforceable provision to the extent required to be valid and enforceable. You agree to be bound by any
promise or covenant imposing the maximum duty permitted by law which is subsumed within the terms of any provision of this Agreement, as though it were separately articulated in and made a part of
this Agreement, that may result from striking from any of the provisions of this Agreement any portion or portions which a court or arbitrator may hold to be unenforceable in a final decision to which
we are a party, or from reducing the scope of any promise or covenant to the extent required to comply with such a court order or arbitration award. Such modifications to this Agreement will be
effective only in such jurisdiction, unless we elect to give them greater applicability, and will be enforced as originally made and entered into in all other jurisdictions.

 

        18.3 Waivers by Either of Us. Either we or you may by written instrument unilaterally waive or reduce any obligation of or
restriction upon the other under this Agreement, effective upon delivery of written notice of waiver to the other or such other effective date stated in the notice of waiver. Any waiver granted by us
will be without prejudice to any other rights we may have, will be subject to our continuing review and may be revoked by us at any time and for any reason, effective upon delivery to you of
10 days' prior written notice. 

        18.4 Certain Acts Not to Constitute Waivers. Neither we nor you will be deemed to have waived or impaired any right, power or
option reserved by this Agreement (including, without limitation, the right to demand exact compliance with every term, condition and covenant in this Agreement or to declare any breach to be a
default and to terminate this Agreement prior to the expiration of its term) by virtue of (i) any custom or practice of the parties at variance with the terms of this Agreement; (ii) any
failure, refusal or neglect of us or you to exercise any right under this Agreement or to insist upon exact compliance by the other with its obligations under this Agreement, including any waiver,
forbearance, delay, failure or omission by us to exercise any right, power or option, whether of the same, similar or different nature, with respect to other Mrs. Fields Cookie Stores or
franchise agreements; or (iii) our acceptance of any payments due from you after any breach of this Agreement. 

        18.5 Excusable Non-Performance. Neither we nor you will be liable for loss or damage or deemed to be in breach of
this Agreement if the failure to perform obligations results from transportation shortages; inadequate supplies of equipment, merchandise, supplies, labor, material or energy or the voluntary
suspension of the right to acquire or use any of those items in order to accommodate or comply with the orders, requests, regulations, recommendations or instructions of any federal, state or
municipal government or any governmental department or agency; compliance with any law, ruling, order, regulation, requirement or instruction of any federal, state or municipal government or any
governmental department or agency; acts of God; fires, strikes, embargoes, war or riot; or any other similar event or cause beyond the reasonable control of the party. Any delay resulting from any of
those causes will extend performance accordingly or excuse performance, in whole or in part, as may be reasonable. 

        18.6 Interpretation of Rights and Obligations. The following provisions will apply to and govern the interpretation of this
Agreement, the parties' rights under this Agreement, and the relationship between the parties: 

        (a)   Our Rights. Whenever this Agreement provides that we have a certain right, that right is absolute and the parties intend
that our exercise of that right will not be subject to any limitation or review. We have the right to operate, administrate, develop, and change the Mrs. Fields System in any manner that is not
specifically precluded by the provisions of this Agreement. 

        (b)   Our Reasonable Business Judgment. Whenever we reserve or are deemed to have reserved discretion in a particular area or
where we agree or are deemed to be required to exercise our rights reasonably or in good faith, we will satisfy our obligations whenever we exercise Reasonable Business Judgment in making our decision
or exercising our rights. A decision or action by us will be deemed to be the result of Reasonable Business Judgment, even if other reasonable or even arguably preferable alternatives are available,
if our decision or action is intended, in whole or significant part, to promote or benefit the Mrs. Fields system generally even if the decision or action also promotes a financial or other
individual interest of us. Examples of items that will promote or benefit the Mrs. Fields system include, without limitation, enhancing the value of the Marks, improving customer service and
satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization, and improving the competitive position of the Mrs. Fields system. By establishing the
Reasonable Business Judgment standard, we and you recognize that it is in the best interest of the Mrs. Fields system that our exercise of discretion in making decisions concerning or that
affect the Mrs. Fields system, be given the same latitude that

 
corporate boards of directors are given in regard to decisions concerning the direction of their companies. Neither you nor any third party (including, without limitation, a trier of fact), shall
substitute its judgment for our Reasonable Business Judgment. 

        18.7 Notice of Potential Profit to Us. We hereby advise you that we and/or our Affiliates have the right from time to time to
make available to you goods, products and/or services for use in your Store on the sale of which we and/or our Affiliates may make a profit. We further advise you that we and/or our Affiliates have
the right from time to time to receive consideration from suppliers and/or manufacturers related (directly or indirectly) to sales of goods, products or services to you, the promotion of goods,
products or services by the Mrs. Fields System or in consideration of services rendered or rights licensed to such persons. You agree that we and/or our Affiliates shall be entitled to said
profits and/or consideration. 

        18.8 Binding Effect. Subject to the restrictions on Transfers contained in this Agreement, this Agreement is binding upon the
parties hereto and their respective executors, administrators, heirs, assigns and successors in interest and will not be modified except by written agreement signed by both you and us. 

        18.9 No Third Party Beneficiaries. Nothing in this Agreement is intended, nor will be deemed, to confer any rights or
remedies upon any person or legal entity not a party to this Agreement. 

        18.10 Approvals. Except where this Agreement expressly obligates us reasonably to approve or not unreasonably to withhold our
approval of any action or request by you, we have the right to refuse any request by you or to withhold our approval of any action by you that requires our approval. 

        18.11 Headings. The headings of the several sections and paragraphs of this Agreement are for convenience only and do not
define, limit or construe the contents of such sections or paragraphs. 

        18.12 Joint and Several Liability. If you consist of 2 or more persons or Entities, whether or not as partners, joint
venturers, or co-owners, the obligations and liabilities of each person and Entity to us are joint and several. 

        18.13 Counterparts. This Agreement may be executed in multiple copies, each of which will be deemed an original. 

        18.14 Notices and Payments. All written notices and reports permitted or required to be delivered by the provisions of this
Agreement will be deemed so delivered at the time delivered by hand; 1 business day after transmission by telegraph, facsimile, or other electronic system; 1 business day after being placed in the
hands of a commercial courier service for next business day delivery; or 3 business days after placement in the United States Mail by registered or certified mail, return receipt requested, postage
prepaid, and will be addressed to the parties at the addresses set forth on the first page of this Agreement or to such other address as a party may specify in a written notice to the other party. Any
required payment or report not actually received by us during regular business hours on the date due (or postmarked by postal authorities at least 2 days prior thereto) will be deemed
delinquent. 

        18.15 Entire Agreement. The Preambles and any exhibits, addenda and appendices attached hereto are a part of this Agreement.
This Agreement constitutes the entire agreement of the parties except as provided below in this Section, and there are no other oral or written understandings or agreements between us and you relating
to the subject matter of this Agreement, except that you acknowledge that we justifiably have relied on your representations made prior to the execution of this Agreement.

 

        IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the day and year first above written. This Agreement is not
valid until signed by our authorized officer. 

	MRS. FIELDS FRANCHISING, LLC,
 a Delaware corporation	 	MRS. FIELDS' ORIGINALCOOKIES, INC.,a Delaware limited liability company
	

/s/ Sandra Buffa
 By: Sandra Buffa

Title: Sr. Vice President	
 	

/s/ Michael Ward
 By: Michael Ward

Title: Sr. Vice President

  

 
 

SCHEDULE A
  STORE LOCATION SCHEDULE    
    

Franchise Agreement—Store Location dated March 16, 2004  

	Company
 
	 	Store #
	 	Concept
	 	Name
	 	Address
	 	City
	 	State
	 	Zip
	 	Phone
	 	Open Date

	91	 	55	 	MFC	 	Ala Moana	 	1450 Ala Moana Blvd #CCS-1180-14	 	Honolulu	 	HI	 	96914	 	(808) 943-1475	 	6/21/1980
	91	 	66	 	MFC	 	Crossroads Mall	 	Space G2 60 S. Main Street	 	Salt Lake City	 	UT	 	84144	 	(801) 521-9459	 	8/9/1980
	91	 	218	 	MFC	 	Vancouver Mall	 	5001 NE Thurston Way Space 241	 	Vancouver	 	WA	 	98662	 	(360) 255-7222	 	2/4/1997
	91	 	222	 	MFC	 	Park Meadows	 	8505 Park Meadows	 	Littleton	 	CO	 	80124	 	(303) 768-0642	 	12/22/1995
	91	 	229	 	MFC	 	Oak Brook	 	Oakbrook Shop Center 22nd Street #G7	 	Oakbrook	 	IL	 	60521	 	(630) 571-4311	 	6/13/1983
	91	 	245	 	MFC	 	Hawthorn Center	 	Colonnade Cafe F-11A	 	Vernon Hills	 	IL	 	00001	 	(047) 362-2333	 	7/31/1983
	91	 	275	 	MFC	 	Yorktown Center	 	121 Yorktown	 	Lombard	 	IL	 	60149	 	(630) 627-9070	 	3/13/1985
	91	 	338	 	MFC	 	Short Hills	 	51286 Mall At Hort Hl B128	 	Short Hills	 	NJ	 	07079	 	(973) 376-4433	 	10/8/1983
	91	 	344	 	MFC	 	Fair Oaks Mall	 	11750 Fair Oaks Mall	 	Fairfax	 	VA	 	23033	 	(203) 385-3795	 	11/1/1989
	91	 	345	 	MFC	 	Lakeforest Mall	 	701 Russell Ave	 	Gaithersburg	 	MD	 	20877	 	(301) 417-0970	 	10/14/1983
	91	 	415	 	MFC	 	Valley Fair Mall	 	2855 Stevens Cr Blvd J1096	 	Santa Clara	 	CA	 	95050	 	(408) 249-2489	 	10/16/1985
	91	 	538	 	MFC	 	O'Hara-American	 	AMF O'Hare Terminal #3	 	Chicago	 	IL	 	60666	 	(773) 686-7710	 	4/2/1987
	91	 	541	 	MFC	 	Randolph & Wabash	 	32 East Randolph	 	Chicago	 	IL	 	60602	 	(312) 629-1001	 	11/14/1991
	91	 	622	 	MFC	 	One Herald Center	 	1 Harold Sq. Center	 	New York	 	NY	 	10001	 	(212) 967-1716	 	10/6/1987
	91	 	880	 	MFC	 	Owings Mills	 	10000 Mills Run Ct Space #2089	 	Owings Mills	 	MD	 	21117	 	(410) 363-6082	 	8/1/1985
	91	 	886	 	MFC	 	Pheasant Lane Mall	 	310 Dan Webster Hwy #145	 	Nashua	 	NH	 	03063	 	(603) 891-1413	 	12/31/1986
	91	 	703	 	MFC	 	Great Lakes Mall	 	7850 Mentor Avenue	 	Mentor	 	OH	 	44060	 	(404) 256-6400	 	2/5/1983
	91	 	707	 	MFC	 	Monroeville Mall	 	Route 22 & Mall Drive	 	Monroeville	 	PA	 	16146	 	(412) 372-6227	 	11/2/1994
	91	 	708	 	MFC	 	Century III Mall	 	3075 Clairton Road	 	West Mifflin	 	PA	 	16123	 	(412) 880-1771	 	8/17/1979
	91	 	709	 	MFC	 	Gallery @ Mrkt East	 	9th & Market Street	 	Philadelphia	 	PA	 	19107	 	(215) 627-2443	 	8/17/1977
	91	 	711	 	MFC	 	The Pines	 	2901 Pines Mall Road	 	Pine Bluff	 	AR	 	71601	 	(870) 534-2638	 	7/30/1986
	91	 	712	 	MFC	 	Regency Mall	 	5638 Durand Avenue	 	Racine	 	WI	 	53406	 	(262) 554-8080	 	8/5/1981
	91	 	714	 	MFC	 	Coronado Center	 	6600 Menual NE	 	Albuquerque	 	NM	 	87110	 	(505) 888-6978	 	10/28/1989
	91	 	717	 	MFC	 	Old Hickory Mall	 	2021 N. Highland St.	 	Jackson	 	TN	 	30005	 	(731) 660-6852	 	12/15/1906
	91	 	724	 	MFC	 	Meridian Mall	 	1982 East Grand Rive	 	Okemos	 	MI	 	48864	 	(517) 349-3532	 	11/28/1978
	91	 	725	 	MFC	 	Sikes Center Mall	 	3111 Midwestern Park	 	Wichita Falls	 	TX	 	76908	 	(940) 696-3111	 	11/24/1984
	91	 	728	 	MFC	 	Coliseum Mall	 	1800 W. Mercury Blvd	 	Hampton	 	VA	 	23668	 	(757) 838-2055	 	10/15/1998
	91	 	729	 	MFC	 	Bay Park Square	 	2481 South Oneida St.	 	Green Bay	 	WI	 	54304	 	(920) 496-2805	 	8/20/1988
	91	 	736	 	MFC	 	Janesville Mall	 	2500 Milton Ave	 	Janesville	 	WI	 	53545	 	(608) 754-2042	 	11/13/1987
	91	 	737	 	MFC	 	Rotterdam Square	 	93 West Campbell Road	 	Schenectedy	 	NY	 	12306	 	(516) 374-7338	 	10/14/1998
	91	 	741	 	MFC	 	Great Northern Mall	 	4081 Route 31 PO Box 2032	 	Clay	 	NY	 	13041	 	(315) 622-0307	 	3/1/1999
	91	 	744	 	MFC	 	Ford City Center (4280)	 	7801 South Cicero	 	Cicago	 	IL	 	60652	 	(773) 284-1032	 	7/23/1989
	91	 	745	 	MFC	 	Charlotteville Fashion	 	Charlotteville Fashion 1591 East Rio Road	 	Charlottesville	 	VA	 	22001	 	(434) 978-4640	 	11/18/2000
	91	 	988	 	MFC	 	Mac Arthur Center	 	300 Monticello Ave #199	 	Norfolk	 	VA	 	23510	 	(757) 625-1177	 	3/12/1988
	91	 	997	 	MFC	 	Flat Iron Crossing	 	1 West Hat Iron Circle	 	Broomfield	 	CO	 	80020	 	(720) 887-3387	 	8/11/2000
	91	 	998	 	MFC	 	University of Michigan	 	530 South State Street Michigan Union	 	Ann Arbor	 	MI	 	48103-1349	 	(734) 222-5280	 	10/12/2000
	91	 	2165	 	MFC	 	Maine Mall	 	713 Maine Mall #2165	 	South Portland	 	ME	 	04106	 	(207) 775-3738	 	8/4/1983
	91	 	2228	 	MFC	 	Cross Country Mall	 	Cross Cnty Shpng Ctr 11K Mall Walk	 	Yonkers	 	NY	 	10704	 	(914) 378-4648	 	6/23/1996
	91	 	2060	 	MFC	 	Arundel Mills	 	7000 Arundal Mills Cr	 	Hanover	 	MO	 	21076	 	(410) 799-7835	 	11/17/2000
	91	 	2367	 	MFC	 	The Crossroads	 	6660 South Westridge	 	Portage	 	MI	 	49024	 	(260) 327-3610	 	8/12/2001
	91	 	2368	 	MFC	 	Emerald Square	 	999 South Washington	 	North Attleboro	 	MA	 	02760	 	(508) 634-0084	 	10/2/2001
	91	 	2369	 	MFC	 	St. Charles Town Center	 	1110 Mall Circle	 	Waldorf	 	MD	 	20603	 	(301) 638-7174	 	6/14/2002
	91	 	2376	 	MFC	 	Mayfair Mall Kiosk	 	2500 N Mayfair Road Kiosk Space #201	 	Wauwatoso	 	WI	 	53226	 	(414) 047-0010	 	12/2/2003
	91	 	2377	 	MFC	 	Orland Square	 	Orland Square Mall 848 Orland Park Dr H13A	 	Orland Park	 	IL	 	80462	 	(708) 745-5270	 	11/24/2003
	91	 	4001	 	MFC	 	Southern Park Mall	 	7401 Market Street	 	Youngstown	 	OH	 	44512	 	(330) 768-9245	 	12/8/1975
	91	 	4003	 	MFC	 	Midway Mall	 	3331 Midway Mall	 	Elyria	 	OH	 	44035	 	(440) 324-7814	 	6/8/1990
	91	 	4042	 	MFC	 	Southridge Mall	 	5300 S 76th Street	 	Greendale	 	WI	 	53129	 	(414) 421-8849	 	6/26/1979
	91	 	4048	 	MFC	 	Holyoke Mall	 	50 Holyoke Street	 	Holyoke	 	MA	 	01040	 	(413) 534-1454	 	7/28/1979
	91	 	4075	 	MFC	 	South Plains Mall	 	6002 Slide Road P.O. Box 60231	 	Lubbock	 	TX	 	79414	 	(806) 792-9308	 	2/12/1982
	91	 	4081	 	MFC	 	Cheltenham Square	 	2085 W. Cheltenham & Rm 327	 	Philadelphia	 	PA	 	19150	 	(215) 807-1250	 	4/13/1982
	91	 	4103	 	MFC	 	South Hills	 	South Hills Village #FC-06	 	Pittsburgh	 	PA	 	15241	 	(412) 835-6160	 	3/26/1983
	91	 	4157	 	MFC	 	Northwoods Mall	 	4501 War Memorial Dr.	 	Peoria	 	IL	 	61613	 	(309) 882-4901	 	11/2/1985
	91	 	4261	 	MFC	 	Walden Gallaria	 	2000 Walden Avenue	 	Buffalo	 	NY	 	14225	 	(716) 683-2192	 	5/11/1989
	91	 	4274	 	MFC	 	St. Clair Square	 	#252 St. Clair Squar	 	Fairview Heights	 	IL	 	62208	 	(618) 624-6330	 	11/20/1988
	91	 	4287	 	MFC	 	Chesapeake Square	 	4200 Portsmouth Blvd.	 	Chesapeake	 	VA	 	23321	 	(757) 465-5299	 	10/11/1989
	91	 	4316	 	MFC	 	Shoppingtown mall	 	Kinney Road & Erie B	 	Dewitt	 	NY	 	13214	 	(315) 449-4103	 	8/6/1991
	91	 	10415	 	MFC	 	Valley Fair Mall - Kiosk	 	2855 Stevens Ct Blvd	 	Santa Clara	 	CA	 	95050-0709	 	 	 	8/22/2001

 

 
 

OWNERSHIP ADDENDUM TO MRS. FIELDS®
  FRANCHISE AGREEMENT    
    

        1.     Entity Owners. You represent and warrant to us that your Entity Owners are as follows: 

	NAME
 
	 	ADDRESS
	 	PERCENTAGE

OF INTEREST

	Mrs. Fields Holding Company, Inc.	 	2855 E. Cottonwood Parkway, #400

Salt Lake City, Utah 84121	 	100%
	

	
 	

	
 	

	

	
 	

	
 	

	

	
 	

	
 	

	

	
 	

	
 	

	

	
 	

	
 	

	

	
 	

	
 	

	

	
 	

	
 	

	

	
 	

	
 	

        2.     Change. You agree to immediately notify us in writing of any change in the information contained in this Addendum and, at
our request, prepare and sign a new Addendum containing the correct information. 

        3.     Date of Addendum. The date of this Addendum is                        ,
20    . 

	

 Your Initials	
 	

 Our Initials

 

 
 

APPENDIX A TO MRS. FIELDS® FRANCHISE AGREEMENT    
    
    AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS
  (DIRECT DEBITS)    
    

[Important Instructions for Completing this Form: Before we can process your Franchise Agreement, you must sign and
return this authorization. If, at the time you sign your Franchise Agreement, you do not have your account set up, or if you do not yet know your account information, please show that you agree to the
terms of this authorization by signing this form, leaving the account information blank, and returning the signed form with your Franchise Agreement. You can give us your account information when you
receive it, but we must have the information before you open your store. If you have any questions about what this form means, you should get advice from your lawyer, your accountant or your
bank.] 

	Your Name (or name of legal entity on Franchise Agreement):	 
	 	

	Your Social Security Number (or legal entity Federal Tax ID Number):	 
	 	

	Name on Bank Account (if different than above):	 
	 	

The
undersigned ("ACCOUNT HOLDER") hereby authorizes Mrs. Fields' Original Cookies, Inc. ("COMPANY") to initiate debit entries and/or credit correction entries to ACCOUNT HOLDER's
checking and/or savings account(s) listed below at the bank, credit union or other depository listed below ("BANK") and to debit such account per COMPANY's instructions for any and all amounts due to
COMPANY. The ACCOUNT HOLDER understands that all amounts debited from the account below will be credited to COMPANY's account. INSTEAD OF COMPLETING THE INFORMATION REQUIRED ON
THE FOLLOWING FOUR LINES, YOU MAY ATTACH A CANCELLED OR VOIDED CHECK TO THIS AUTHORIZATION, BECAUSE A VOIDED CHECK INCLUDES ALL OF THIS INFORMATION.

	    
 NAME OF BANK                Branch	 	    
    
	

    
 City	
 	

    
 State	
 	

    
 Zip Code
	

    
 Telephone Number of Bank	
 	

    
 Contact Person at Bank
	

    
 Bank Transit/ABA Number	
 	

    
 Account Number

 

This
authority is to remain in effect until BANK has received joint written notice from COMPANY and ACCOUNT HOLDER of the ACCOUNT HOLDER's termination. Any termination notice must be given in a way as
to give BANK a reasonable opportunity to act on it. If a debit entry is initiated to ACCOUNT HOLDER's account in error, ACCOUNT HOLDER shall have the right to have the amount of the error credited to
the account by BANK, if (a) within fifteen (15) calendar days following the date on which BANKsent to ACCOUNT HOLDER a statement of account or a written notice regarding such entry or
(b) forty-five (45) days after posting, whichever occurs first, ACCOUNT HOLDER shall have sent to BANK a written notice identifying such entry, stating that such entry was in
error and requesting BANK to credit the amount thereof to such account. These rights are in addition to any rights ACCOUNT HOLDER may have under federal and state banking laws. 

	/s/ MICHAEL WARD
 ACCOUNT HOLDER	 	 
	By:	 	Michael Ward	 	 
	Title:	 	Sr. Vice President	 	 
	Date:	 	March 16, 2004	 	 

QuickLinks

Exhibit 10.27

MRS. FIELDS® FRANCHISE AGREEMENT BETWEEN MRS. FIELDS FRANCHISING, LLC 2855 East Cottonwood Parkway Suite 400 Salt Lake City, Utah 84121 (801) 736-5600 AND MRS. FIELDS' ORIGINAL COOKIES, INC. 2855 East
Cottonwood Parkway Suite 400 Salt Lake City, Utah 84121

MRS. FIELDS® FRANCHISE AGREEMENT

TABLE OF CONTENTS

MRS. FIELDS® FRANCHISE AGREEMENT

ARTICLE 1 DEFINITIONS; PREAMBLES; AND ACKNOWLEDGMENTS

ARTICLE 2 GRANT OF FRANCHISE

ARTICLE 3 INITIAL TERM AND RENEWAL

ARTICLE 4 SITE SELECTION, LEASE OF PREMISES AND DEVELOPMENT OF YOUR STORE

ARTICLE 5 TRAINING AND GUIDANCE

ARTICLE 6 FEES

ARTICLE 7 OBLIGATIONS RELATING TO OPERATIONS

ARTICLE 8 REPORTS AND RECORD KEEPING

ARTICLE 9 MARKETING AND PROMOTION

ARTICLE 10 USE OF THE MARKS AND CONFIDENTIAL INFORMATION

ARTICLE 11 COVENANTS NOT TO COMPETE

ARTICLE 12 TRANSFERS

ARTICLE 16 SECURITY AGREEMENT

ARTICLE 17 DISPUTE RESOLUTION

ARTICLE 18 GENERAL PROVISIONS

SCHEDULE A STORE LOCATION SCHEDULE

OWNERSHIP ADDENDUM TO MRS. FIELDS® FRANCHISE AGREEMENT

APPENDIX A TO MRS. FIELDS® FRANCHISE AGREEMENT AUTHORIZATION AGREEMENT FOR PREARRANGED PAYMENTS (DIRECT DEBITS)QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.28    
    

        CONFORMED COPY  

  
 

    GREAT AMERICAN COOKIE COMPANY FRANCHISING, LLC
  LICENSE AGREEMENT    
    

  

  

  

	 	 	Mrs. Fields' Original Cookies, Inc.
 LICENSEE
	

 	
 	

March 16, 2004
 DATE OF AGREEMENT
	

 	
 	

See Store Location Schedule
 ADDRESS OF FACILITY

 
 

TABLE OF CONTENTS    
    

	Section
 
	 	Page

	1.	PREAMBLES, ACKNOWLEDGMENTS AND GRANT OF LICENSE	 	1
	 	A.	PREAMBLES	 	1
	 	B.	ACKNOWLEDGMENTS	 	1
	 	C.	CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP	 	2
	 	D.	GRANT OF LICENSE	 	2
	 	E.	RIGHTS WE RESERVE	 	2
	2.	SITE SELECTION, LEASE OF PREMISES AND DEVELOPMENT AND OPENING OF FACILITY	 	3
	 	A.	SITE SELECTION	 	3
	 	B.	LEASE OF PREMISES	 	4
	 	C.	FACILITY DEVELOPMENT	 	4
	 	D.	OPERATING ASSETS	 	5
	 	E.	COMPUTER SYSTEM	 	5
	 	F.	FACILITY OPENING	 	5
	3.	FEES	 	5
	 	A.	INITIAL LICENSE FEE	 	5
	 	B.	ROYALTY	 	6
	 	C.	DEFINITION OF "GROSS SALES	 	6
	 	9.2 Advertising and Promotional Activities by You	 	7
	 	9.3 Our Advertising Materials	 	8
	 	C.	DEFINITION OF "GROSS SALES	 	8
	 	D.	INTEREST ON LATE PAYMENTS	 	8
	 	E.	APPLICATION OF PAYMENTS	 	8
	4.	TRAINING AND ASSISTANCE	 	8
	 	A.	TRAINING	 	8
	 	B.	GENERAL GUIDANCE	 	9
	 	C.	OPERATIONS MANUAL	 	9
	5.	MARKS	 	10
	 	A.	OWNERSHIP AND GOODWILL OF MARKS	 	10
	 	B.	LIMITATIONS ON YOUR USE OF MARKS	 	10
	 	C.	NOTIFICATION OF INFRINGEMENTS AND CLAIMS	 	10
	 	D.	DISCONTINUANCE OF USE OF MARKS	 	10
	 	E.	INDEMNIFICATION FOR USE OF MARKS	 	10
	6.	CONFIDENTIAL INFORMATION	 	11
	7.	EXCLUSIVE RELATIONSHIP	 	12
	8.	SYSTEM STANDARDS	 	12
	 	A.	COMPLIANCE WITH SYSTEM STANDARDS	 	12
	 	B.	MODIFICATION OF SYSTEM STANDARDS	 	14
	9.	RECORDS, REPORTS AND FINANCIAL STATEMENTS	 	14
	10.	INSPECTIONS AND AUDITS	 	15
	 	A.	OUR RIGHT TO INSPECT THE FACILITY	 	15
	 	B.	OUR RIGHT TO AUDIT	 	15
	11.	TRANSFER	 	15
	 	A.	BY US	 	15
	 	B.	BY YOU	 	15
	 	C.	CONDITIONS FOR APPROVAL OF TRANSFER	 	16
	 	D.	TRANSFER TO A WHOLLY-OWNED CORPORATION OR LIMITED LIABILITY COMPANY	 	17
	 	E.	YOUR DEATH OR DISABILITY	 	17
	 	F.	EFFECT OF CONSENT TO TRANSFER	 	18

	 	G.	OUR RIGHT OF FIRST REFUSAL	 	18
	12.	EXPIRATION OF THIS AGREEMENT	 	19
	 	A.	YOUR RIGHT TO ACQUIRE A SUCCESSOR LICENSE	 	19
	 	B.	GRANT OF A SUCCESSOR LICENSE	 	20
	 	C.	AGREEMENTS/RELEASES	 	21
	13.	TERMINATION OF AGREEMENT	 	21
	 	A.	BY YOU	 	21
	 	B.	BY US	 	21
	 	C.	ASSUMPTION OF MANAGEMENT	 	23
	 	D.	REMEDIES	 	23
	14.	OUR AND YOUR RIGHTS AND OBLIGATIONS UPON TERMINATION OR EXPIRATION OF THIS AGREEMENT	 	23
	 	A.	PAYMENT OF AMOUNTS OWED TO US	 	23
	 	B.	MARKS	 	23
	 	C.	CONFIDENTIAL INFORMATION	 	24
	 	D.	COVENANT NOT TO COMPETE	 	24
	 	E.	OUR RIGHT TO PURCHASE FACILITY AND/OR LEASE PREMISES	 	25
	 	F.	LIQUIDATED DAMAGES	 	26
	 	G.	CONTINUING OBLIGATIONS	 	26
	15.	RELATIONSHIP OF THE PARTIES/INDEMNIFICATION	 	27
	 	A.	INDEPENDENT CONTRACTORS	 	27
	 	B.	NO LIABILITY FOR ACTS OF OTHER PARTY	 	27
	 	C.	TAXES	 	27
	 	D.	INDEMNIFICATION	 	27
	16.	ENFORCEMENT	 	28
	 	A.	SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS	 	28
	 	B.	WAIVER OF OBLIGATIONS	 	28
	 	C.	COSTS AND ATTORNEYS' FEES	 	29
	 	D.	YOU MAY NOT WITHHOLD PAYMENTS DUE TO US	 	29
	 	E.	RIGHTS OF PARTIES ARE CUMULATIVE	 	29
	 	F.	INTERPRETATION OF RIGHTS AND OBLIGATIONS	 	29
	 	G.	GOVERNING LAW	 	30
	 	H.	CONSENT TO JURISDICTION	 	30
	 	I.	WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL	 	31
	 	J.	BINDING EFFECT	 	31
	 	K.	LIMITATIONS OF CLAIMS	 	31
	 	L.	CONSTRUCTION	 	31
	17.	NOTICES AND PAYMENTS	 	32

APPENDICES  

APPENDIX
A     -        LISTING OF OWNERSHIP INTERESTS

APPENDIX B     -        REPRESENTATIONS OF PREVIOUS EXPERIENCE AND PERMITTED ACTIVITIES

 
 

GREAT AMERICAN COOKIE COMPANY FRANCHISING, LLC
  LICENSE AGREEMENT    
    

        THIS LICENSE AGREEMENT (the "Agreement") is made and entered into this 16th day of March, 2004, by and between  GREAT AMERICAN COOKIE COMPANY FRANCHISING, LLC, a Delaware limited liability company, with its principal business address at 2855 East Cottonwood
Parkway, Suite 400, Salt Lake City, Utah 84121 (referred to as "we," "us" or "our"), and Mrs. Fields' Original Cookies, Inc., a Delaware corporation whose principal business address is
2855 East Cottonwood Parkway, Suite 400, Salt Lake City, Utah 84121 (referred to as "you" or "your"). 

1.    PREAMBLES, ACKNOWLEDGMENTS AND GRANT OF LICENSE.    

        A.    PREAMBLES.    

        We
and our affiliates and predecessors have expended considerable time and effort in developing and operating a system which manufactures and sells cookies and other products at retail
stores. These stores ("Cookie System Facilities") operate under distinctive business formats, methods, procedures, designs, layouts, standards and specifications, all of which we may improve, further
develop or otherwise modify from time to time. We use, promote and license certain trademarks, service marks and other commercial symbols in operating Cookie System Facilities, which have gained and
continue to gain public acceptance and goodwill, and may create, use and license additional trademarks, service marks and commercial symbols in operating Cookie System Facilities (collectively, the
"Marks"). We grant to persons who meet our qualifications and are willing to undertake the investment and effort a license to own and operate a Cookie System Facility offering the products and
services we authorize and approve and utilizing our business formats, methods, procedures, signs, designs, layouts, equipment, standards, specifications and Marks (the "System"). The System is based
in part on providing customers with cookies and other items of uniform quality, emphasizing prompt and courteous over-the-counter service in a clean, wholesome atmosphere which
is intended to be attractive to children and families. You have applied for a license to own and operate a Cookie System Facility at each of the locations set forth from time to time on the Store
Location Schedule attached hereto (the "Store Location Schedule"). 

        B.    ACKNOWLEDGMENTS.    

        You
acknowledge that you received a copy of the Agreement at least 5 business days prior to the date on which this Agreement was executed. You further acknowledge that you have received
our Offering Circular at least 10 business days prior to the date on which this Agreement was executed. You
acknowledge that you have read this Agreement and our Franchise Offering Circular and understand and accept the terms, conditions and covenants contained in this Agreement as being reasonably
necessary to maintain our high standards of quality and service and the uniformity of those standards at each Cookie System Facility and thereby to protect and preserve the goodwill of the Marks. You
acknowledge that you have conducted an independent investigation of the business venture contemplated by this Agreement and recognize that, like any other business, the nature of the business
conducted by a Cookie System Facility may evolve and change over time, that an investment in a Cookie System Facility involves business risks and that your business abilities and efforts are vital to
the venture's success. Any information you acquire from other Cookie System Facility licensees relating to their sales, profits or cash flows does not constitute information obtained from us, and we
make no representation about this information's accuracy. Except for the earnings claim included as Exhibit N in our Offering Circular, we expressly disclaim the making of, and you acknowledge
that you have not received or relied on, any express or implied warranty or guarantee as to the revenues, profits or success of the business venture contemplated in this Agreement. You acknowledge
that, in all of their dealings with you, our officers, directors, employees and agents act only in a representative, and not in an individual, capacity. All business dealings between you and these
persons as a result of this Agreement are only between you and us. 

        You
represent to us, as an inducement to our entry into this Agreement, that all statements you have made and all materials you have submitted to us in purchasing the license are
accurate and

 
complete and that you have made no misrepresentations or material omissions in obtaining the license. We have chosen you based on tangible and intangible qualities which you and your owners have led
us to believe you have. Who you and your owners are is important to us and, together with all of your representations, influenced our decision to grant you this license. 

        C.    CORPORATION, LIMITED LIABILITY COMPANY OR PARTNERSHIP.    

        If
you are at any time a corporation, limited liability company or partnership, you agree and represent that: 

        (1)   You
will have the authority to execute, deliver and perform your obligations under this Agreement, having obtained all required board of directors or other consents, and
are duly organized or formed and validly existing in good standing under the laws of the state of your incorporation or formation; 

        (2)   Your
organizational documents, operating agreement or partnership agreement will recite that the issuance and transfer of any ownership interests in you are restricted
by the terms of this Agreement, and all certificates and other documents representing ownership interests in you will bear a legend referring to the restrictions of this Agreement; 

        (3)   Appendix A
to this Agreement will completely and accurately describe all of your owners and their interests in you; 

        (4)   Each
of your owners at any time during the term of this Agreement, including after an approved transfer under Section 11, will execute an agreement in the form
that we prescribe undertaking to be bound jointly and severally by all provisions of this Agreement and any ancillary agreements between you and us. You and your owners agree to execute and deliver to
us any revised Appendices A that may be necessary to reflect any changes in the information that Appendix A now contains and to furnish any other information about your organization or
formation that we may request. 

        D.    GRANT OF LICENSE.    

        You
have applied for a license to own and operate a Cookie System Facility at each of the locations set forth from time to time on the Store Location Schedule (each such location, the
"Premises"). Subject to the terms of this Agreement, we grant you a license (the "License") to operate a Cookie System Facility (the "FACILITY") at the Premises, and to use the System in its
operation, for a term commencing on the date of this Agreement and expiring at the end of the current term of the lease or sublease for the Premises (the "Lease"), without considering any renewal
rights or options under the Lease, unless sooner terminated under Section 13. You may not operate the FACILITY from any site other than the Premises without our prior written consent. You may
sell authorized and approved products and services only over-the-counter at the Premises and may not engage in any mail order, delivery or other activities where you sell or
deliver products or services away from the Premises. 

        You
agree that you will at all times faithfully, honestly and diligently perform your obligations under this Agreement, continuously exert your best efforts to promote and enhance the
FACILITY and not engage in any other business or activity that conflicts with your obligations to operate the FACILITY in compliance with this Agreement. 

        E.    RIGHTS WE RESERVE.    

        This
Agreement grants you the right to operate the FACILITY at the Premises. This is the only right we are granting you. You are not receiving any exclusive or protected area around the
FACILITY, any other territorial rights, any options or rights of first refusal to acquire additional licenses for Cookie System Facilities (except as noted in subparagraph (1) below) or any
similar rights or

 
protection. In addition, we (and our affiliates) may engage in any other activities we deem appropriate whenever and wherever we want to, including, but not limited to: 

        (1)   establishing,
and granting to other licensees the right to establish, Cookie System Facilities at any locations and on any terms and conditions we deem appropriate,
including, but not limited to, in other spaces and at other locations within the same shopping mall or center where the FACILITY is located, provided, however, that if we decide during the term of
this Agreement to establish or grant to another licensee the right to establish a Cookie System Facility within the same shopping mall or center where the FACILITY is located, we first will notify you
in writing of our intention to do so. If you (and your owners) then are in full compliance with this Agreement, you will have a right of first refusal to acquire a license for that Cookie System
Facility on the terms of our then current license agreement. To exercise this right, you must, within thirty (30) calendar days after receiving notice of our intent to establish the Cookie
System Facility, notify us that you wish to acquire a license for that Cookie System Facility and pay us a nonrefundable Ten Thousand Dollar ($10,000.00) deposit toward the initial license fee due for
that Facility. If you do not exercise your right of first refusal as described above, or you (or your owners) are not in full compliance with this Agreement or you elect not to acquire a license for
the Cookie System Facility after notifying us of your intent to do so and paying us the nonrefundable deposit, we may establish or grant to another licensee the right to establish a Cookie System
Facility within the same shopping mall or center where the FACILITY is located on any terms and conditions we deem appropriate; and 

        (2)   selling
identical, similar or dissimilar products and services, whether identified by the Marks or other trademarks or service marks, through any distribution channels
we deem appropriate, wherever located or operating. 

Although
you may be considered an affiliate of ours as such term is used under this Agreement, this reservation of our rights does not apply to you or supplement or extend your rights as granted in
this Agreement to own or operate Cookie System Facilities, distribute Great American Cookie Company products, or use the Marks, or otherwise establish or operate competitive businesses except for
those that you operate pursuant to a franchise or license agreement between you and us or between you and one of our other affiliates. 

2.    SITE SELECTION, LEASE OF PREMISES AND DEVELOPMENT AND OPENING OF FACILITY  .    The parties acknowledge that
Sections 2.A, 2.B and 2.C and 2.F shall not apply to any Store identified on the Store Location Schedule as
having been opened prior to the date of this Agreement. 

        A.    SITE SELECTION.    

        You
acknowledge that we must accept the site for the Premises as meeting our then current site selection criteria before you may obtain or seek to obtain a binding commitment for, or
legal possession of, the site. You acknowledge and agree that our recommendation or acceptance of the Premises, and any information regarding the Premises communicated to you, do not constitute a
representation or warranty of any kind, express or implied, as to the suitability of the Premises for a Cookie System Facility or for any other purpose. Our recommendation or acceptance of the
Premises only indicates that we believe that the Premises fall within the acceptable criteria for sites and premises that we have established at the time of our recommendation or acceptance of the
Premises. Application of criteria that have appeared effective with other sites and premises may not accurately reflect the potential for all sites and premises, and, after our acceptance of a site,
demographic and/or other factors included in or excluded from our criteria could change, thereby altering the potential of a site and premises. The uncertainty and instability of these criteria are
beyond our control, and we will not be responsible for the failure of a site and premises we have recommended or accepted to meet expectations as to potential revenue or operational criteria. You
acknowledge and agree that your

 
acceptance of the License is or will be based on your own independent investigation of the suitability of the Premises. 

        B.    LEASE OF PREMISES.    

        You
acknowledge that we and you have reviewed and accepted the Lease before signing this Agreement. You represent that a copy of the signed Lease already has been delivered to us or will
be delivered to us within fifteen (15) days after it is signed. At our request, you agree that you will collaterally assign the Lease to us as security for your timely performance of all your
obligations under this Agreement and secure the lessor's or sublessor's consent to the collateral assignment. You acknowledge that our acceptance of the Lease does not constitute a guarantee or
warranty, express or implied, of the successful operation or profitability of a Cookie System Facility operated at the Premises. Our acceptance only indicates that we believe that the Premises and the
terms of the Lease fall within the acceptable criteria we have established at the time of our acceptance. 

        C.    FACILITY DEVELOPMENT.    

        Unless
the FACILITY already is open and operating, you are responsible for developing the FACILITY. We will give you mandatory and suggested specifications and layouts for a Cookie
System Facility, including requirements for dimensions, design, image, interior layout, decor, fixtures, equipment, signs, furnishings and color scheme. You must prepare all required construction
plans and specifications to suit the shape and dimensions of the Premises and insure that these plans and
specifications comply with applicable ordinances, building codes, permit requirements and Lease requirements and restrictions. You must submit construction plans and specifications to us for approval
before you begin constructing the FACILITY and all revised or "as built" plans and specifications during the course of construction. Our review is limited to ensuring that you comply with our design
requirements. You agree to employ licensed architects and general contractors whom we approve to prepare required plans, drawings and construction specifications and to develop the FACILITY. We may
inspect the Premises periodically during the FACILITY's development. 

        You
agree, at your own expense, to do the following to develop the FACILITY at the Premises: 

        (1)   secure
all financing required to develop and operate the FACILITY and have acceptable payment and performance bonds issued jointly to you and us as we periodically
require; 

        (2)   obtain
all building, utility, sign, health, sanitation, business and other permits and licenses required to construct and operate the FACILITY; 

        (3)   give
us copies of any documents that we require from time to time; 

        (4)   construct
all required improvements to the Premises and decorate the FACILITY under plans and specifications we have approved; 

        (5)   purchase
or lease and install all required fixtures, furniture, equipment, furnishings and signs ("Operating Assets") required for the FACILITY; and 

        (6)   purchase
an opening inventory of authorized and approved products, materials and supplies ("Supplies"). 

        You
agree diligently to pursue the FACILITY's construction. If you stop constructing the FACILITY for more than seven (7) consecutive or non-consecutive days without
our prior written approval, or if the FACILITY otherwise is not completed, fully equipped and operational and open for regular business on or before the date we or the landlord of the Premises
specifies, whichever is earlier, we may enter the Premises and take any action that we deem necessary or appropriate to ensure that the FACILITY is constructed, equipped and/or opened without further
delay. You must reimburse us for the costs and expenses we incur in completing the FACILITY's development. If you interfere with our efforts to complete the FACILITY's development, we may terminate
this Agreement.

 

        D.    OPERATING ASSETS.    

        You
agree to use in developing and operating the FACILITY only those Operating Assets that we have approved for Cookie System Facilities as meeting our specifications and standards for
quality, design, appearance, function and performance. You agree to place or display at the Premises (interior and exterior) only signs, emblems, lettering, logos and display materials that we approve
from time to time. You agree to purchase or lease approved brands, types or models of Operating Assets only from suppliers we have designated or approved (which may include us and/or our affiliates). 

        E.    COMPUTER SYSTEM.    

        You
agree to use in developing and operating the FACILITY the computer equipment and operating software ("Computer System") that we specify from time to time. We may require you to
obtain specified computer hardware and/or software and modify specifications for and components of the Computer System from time to time. Our modification of specifications for the Computer System's
components may require you to incur costs to purchase, lease and/or license new or modified computer hardware and/or software and to obtain service and support for the Computer System during the term
of this Agreement. You agree to incur the costs of obtaining the computer hardware and software comprising the Computer System (or additions or modifications), provided, however, that we will not
require you to pay more than Seven Thousand Five Hundred Dollars ($7,500.00) during any year, or more than Twelve Thousand Five Hundred Dollars ($12,500.000) during this Agreement's term, for the
computer hardware and software comprising the Computer System (excluding the cost of service and support). Within sixty (60) days after you receive notice from us, you agree to obtain the
components of the Computer System that we designate. We have the right to independently access the information and data you collect and gather using any Computer System or other data collection
equipment (such as an electronic cash register) we require for your FACILITY. 

        F.    FACILITY OPENING.    

        You
agree not to open the FACILITY for business until: 

        (1)   we
accept the FACILITY in writing, although our acceptance is not a representation or warranty, express or implied, that the FACILITY complies with any engineering,
licensing, environmental, labor, health, building, fire, sanitation, occupational, landlord's, insurance, safety, tax, governmental or other statutes, rules, regulations, requirements or
recommendations nor a waiver of our right to require continuing compliance with our requirements, standards or policies; 

        (2)   pre-opening
training has been completed to our satisfaction; 

        (3)   the
initial license fee and all other amounts then due to us have been paid; and 

        (4)   you
have given us copies of all insurance policies required by this Agreement or any other evidence of insurance coverage and payment of premiums that we request or
accept. 

        Subject
to your compliance with these conditions, you agree to open the FACILITY for business within three hundred sixty-five (365) days after this Agreement is signed
or on or before the date specified in the Lease, whichever is earlier. 

3.    FEES.    

        A.    INITIAL LICENSE FEE.    

        You
will not be required to pay any initial license fee to us in respect of any Cookie System Facility opened and operating prior to the date we execute this Agreement. For Cookie System
Facilities that you may open subsequent to the date of this Agreement, you agree to pay us a nonrecurring and nonrefundable initial license fee of Thirty Thousand Dollars ($30,000.00) for each

 
such Cookie System Facility at the time such new locations are added to the Store Location Schedule. We will fully earn the initial license fee when we sign this Agreement. 

        B.    ROYALTY.    

        You
agree to pay us a monthly royalty ("Royalty") equal to six percent (6%) of the FACILITY's Gross Sales (as defined in Paragraph D below). We must receive the Royalty on or
before the tenth (10th) day of each calendar month following the fiscal month for which it is due. The Royalty is due for each full or partial fiscal month during which the FACILITY generates Gross
Sales. 

        We
may require you to pay the Royalty by electronic funds transfer. If we do, we will designate the day of the week (the "Payment Day") for the Royalty payment. You agree to comply with
procedures we specify in the Operations Manual (defined in Section 4.C.) and perform any acts and sign and deliver any documents that may be necessary to accomplish payment by this method. On or
before the Payment Day, you agree to report to us by telephone or electronic means, or in written form (as we direct), the FACILITY's true and correct Gross Sales for the immediately preceding fiscal
month. You agree to give us authorization, in the form that we designate, to initiate debit entries and/or credit correction entries to the FACILITY's bank operating account (the "Account") for
payments of Royalties and other amounts due under this Agreement, including payments for products and any interest charges. You agree to make the funds available in the Account for withdrawal by
electronic transfer no later than the Payment Day. The amount actually transferred from the Account to pay Royalties will be based on the FACILITY's Gross Sales reported to us. If you have not
reported the FACILITY's Gross Sales for any reporting period, we will transfer from the Account an amount we calculate based on our reasonable estimate of your Gross Sales during that reporting
period. If at any time we determine that you have underreported Gross Sales, or underpaid Royalties or other amounts due to us under this Agreement, we may immediately initiate a transfer from the
Account in the appropriate amount using this procedure (including interest and service charges, as defined in Paragraph E below). Any overpayment will be credited to the Account through a
credit, effective as of the first reporting date after we and you determine that the credit is due. 

        C.    MARKETING AND ADVERTISING FEES.    

        1.    Marketing Fees    

        (a)    Collection of Marketing Fees.    You agree, for the entire term of this Agreement, to pay to us a Marketing Fee
of 1% of your FACILITY'S Gross Sales ("Marketing Fees"). Marketing Fees will be payable in the same manner and time as the Royalty, in accordance with Sections 3.B and 3.C.1(a)). Cookie System
Facilities owned by us and our affiliates in the same market area as you will contribute Marketing Fees on the same basis as you. 

        (b)    Right to Direct Operation of the Marketing Fees Collected.    Marketing fees pay for marketing programs. We
will direct all marketing programs financed by the Marketing Fees we collect, and have the right to determine the creative concepts, materials and endorsements used and the geographic, market and
media placement and allocation. You agree that we have the right to use the Marketing Fees we collect to pay the costs of preparing and producing video, audio and advertising materials; administering
regional and multi-regional marketing programs, including purchasing direct mail and other media marketing and employing advertising, promotion and marketing agencies to assist with advertising; and
supporting public relations, market research and other advertising, promotion and marketing activities. We have the right, at our option, to use Marketing Fees to prepare, furnish and/or offer for
sale to you advertising, marketing and promotional formats and materials as described in Section 3.C.3. 

        (c)    Accounting for the Marketing Fees Collected.    The Marketing Fees we collect will be accounted for separately
from our other funds, although we are not required to establish a separate marketing fund or bank account for such fees. We have the right to use the

 
Marketing Fees we collect to defray the salaries, administrative costs and overhead we may incur in activities related to our marketing programs, including conducting market research, preparing
advertising, promotion and marketing materials and collecting and accounting for the Marketing Fees we collect. Upon your prior written request made within the first quarter of any calendar year, we
will make available to you no later than 120 days after the end of the calendar year, an annual statement of moneys collected and costs incurred for our marketing programs. We and our
affiliates have no fiduciary obligation to Cookie System Facilities franchisees with respect to the collection and expenditure of Marketing Fees. We have the right to create a marketing fund in the
future to be operated by us or through an entity separate from us. 

        (d)    Benefits to Individual Stores.    You understand and agree that our collection expenditure of Marketing Fees is
intended to maximize recognition of the Marks and patronage of Cookie System Facilities. Although we will endeavor to utilize the Marketing Fees we collect to develop advertising and marketing
materials and programs and to place advertising that will benefit all Cookie System Facilities, we cannot ensure you that our expenditure of Marketing Fees in or affecting any geographic area will be
proportionate or equivalent to the Marketing Fee contributions by Cookie System Facilities operating in that geographic area or that any Cookie System Facility will benefit directly or in proportion
to the Marketing Fees it pays to us from the development of advertising and marketing materials or the placement of advertising. 

        2.    Advertising and Promotional Activities by You.    In addition to Marketing Fees, you agree that you will spend
on marketing and related programs any amount that is required under your lease or sublease. Those amounts cannot be applied against the Marketing Fees you are required to pay us. In addition, those
amounts typically vary from lease to lease, and therefore, all Cookie System Facility franchisees will not be obligated to spend the same amount on local advertising and marketing. You agree that all
advertising, promotion and marketing by you will comply with the requirements of Article 5, will be completely clear and factual and not misleading, and will conform to the highest standards of
ethical marketing and promotion policies which we have the right to prescribe. Prior to use, all press releases and policy statements and samples of all local advertising, marketing and related
materials not prepared or previously approved by us will be submitted to us for approval. Our approval will not be unreasonably withheld. Pamphlets, brochures, cards or other promotional materials
offering free products may only be used if prepared by us, unless otherwise approved in advance by us. However, we will give favorable consideration to your use of free product cards developed by you,
if the cards clearly state that they may only be redeemed at Cookie System Facilities owned by you. If we do not give you written approval of any advertising or other promotional materials within
15 days from the date of receipt by us of the materials, we will be deemed to have disapproved the submission. You agree not to use any advertising, marketing or related materials that we have
disapproved. You also agree to list your FACILITY in the principal telephone directories distributed in your metropolitan area.

  

        3.    Our Advertising Materials.    From time to time, we will provide you with copies of advertising, marketing and
promotional formats and materials for use in your FACILITY, which we have prepared using Marketing Fees we have collected from Cookie System Facilities. You are only required to pay shipping and
handling costs for these items or, if you want additional or replacement copies, our direct cost of producing such items together with any related shipping, handling and storage charges. In addition
to these items, we may offer you the option of purchasing other advertising, marketing and promotional formats and materials that we have prepared and that are suitable for use at local Cookie System
Facilities. We may provide samples, copies or information explaining these items to you from time to time. If you elect to purchase any such items from us or our affiliates, we will provide them to
you at our direct cost of producing them, including any related shipping, handling and storage charges. You acknowledge and agree that all payments to us or our affiliates for the items described in
this Section are nonrefundable and cannot be applied against the Marketing Fee you are required to pay to us. 

        D.    DEFINITION OF "GROSS SALES".    

        As
used in this Agreement, the term "Gross Sales" means all revenue and receipts you derive from operating the FACILITY, including, but not limited to, all amounts you receive at or away
from the Premises and the total value of any property or services you receive from operating the FACILITY, and whether from cash, check, credit and debit card, barter, trade credit or credit
transactions, but excluding (1) all federal, state or municipal sales, use or service taxes collected from customers and paid to the appropriate taxing authority and (2) customer
refunds, adjustments, credits and allowances the FACILITY actually makes. Our receipt of a Royalty and Marketing Fee on the revenue or receipts you derive from operating, without our knowledge, an
unauthorized business at the Premises does not mean that we approve of this business or are precluded from taking whatever action is available to us under this Agreement or otherwise due to your
unauthorized business activities. 

        E.    INTEREST ON LATE PAYMENTS.    

        All
amounts which you owe us, if more than seven (7) days late, will bear interest beginning after their original due date at the rate of two percent (2%) per month or the highest
contract rate of interest permitted by law, whichever is less. In addition, you agree to pay us a service charge of One Hundred Dollars ($100.00) for each Royalty and Marketing Fee payment not made on
or before its original due date. This service charge is not interest or a penalty It is only to compensate us for increased administrative and management costs due to your late payment. You
acknowledge that this paragraph is not our agreement to accept any payments after they are due or our commitment to extend credit to, or otherwise finance your operation of, the FACILITY. Your failure
to pay all amounts when due is a ground for terminating this Agreement, as provided in Section 13, despite the provisions of this Paragraph. 

        F.    APPLICATION OF PAYMENTS.    

        Notwithstanding
any designation you might make, we may apply any of your payments to any of your past due indebtedness to us. You acknowledge and agree that we may set off any amounts
you or your owners owe us against any amounts we might owe you or your owners. You may not withhold payment of any amounts owed to us due to our alleged nonperformance of any of our obligations under
this Agreement. 

4.    TRAINING AND ASSISTANCE.    

        A.    TRAINING.    

        Before
the FACILITY begins operating, we will furnish initial training on operating a Cookie System Facility to you (or, if you are a corporation, limited liability company or
partnership, your managing shareholder, partner or member ("Managing Owner")) and one (1) employee who actually

 
will manage the FACILITY on-site. Up to seven (7) working days of training for you (or your Managing Owner) and your managerial employee will be furnished at our designated training
facility and/or at an operating Cookie System Facility. You (or your Managing Owner) and your managerial employee must complete the initial training to our satisfaction and participate in all other
activities required to operate the FACILITY. Although we will furnish initial training to you (or your Managing Owner) and one (1) managerial employee at no additional fee or other charge, you
must pay all travel and living expenses which you (or your Managing Owner) and your employee incur during training. You agree to replace your managerial employee if we determine that he or she is not
qualified to serve in this capacity at the FACILITY. If we determine that you (or your Managing Owner) cannot complete initial training to our satisfaction, we may terminate this Agreement under
Section 13. 

        We
may require you (or your Managing Owner) and/or previously trained and experienced managers to attend periodic refresher training courses at the times and locations we designate, and
we may charge fees for these courses. We also may require you to pay us fees for training new managers hired after the FACILITY opens. 

        B.    GENERAL GUIDANCE.    

        We
will advise you from time to time regarding the FACILITY's operation based on reports you submit to us or inspections we make. In addition, we will guide you on: 

        (1)   standards,
specifications and operating procedures and methods utilized by Cookie System Facilities; 

        (2)   purchasing
required Operating Assets and Supplies; 

        (3)   advertising
and marketing programs; 

        (4)   employee
training; and 

        (5)   administrative,
bookkeeping and accounting procedures. 

        Any
guidance we furnish to you will be at our option, in the form of references to our operating manual ("Operations Manual"), bulletins or other written materials, during telephone
consultations and/or during consultations at our office or the FACILITY. 

        If
you request, or we require you to obtain, additional or special guidance, assistance or training, all of the expenses that we incur, including per diem charges and travel and living
expenses for our personnel, will be your responsibility. 

        C.    OPERATIONS MANUAL.    

        We
will loan you during the term of this Agreement one (1) copy of our Operations Manual, consisting of the materials (including, as applicable, audiotapes, videotapes, magnetic
media, computer software and written materials) that we generally furnish to licensees from time to time to use in operating a Cookie System Facility. The Operations Manual contains mandatory and
suggested specifications, standards, operating procedures and rules ("System Standards") that we prescribe from time to time for operating a Cookie System Facility and information concerning your
other obligations under this Agreement and related agreements. We may modify the Operations Manual from time to time to reflect changes in System Standards. You agree to keep your copy of the
Operations Manual current and in a secure location at the FACILITY. In the event of a dispute relating to its contents, the master copy of the Operations Manual that we maintain at our principal
office will be controlling. You must, at our request, return any portions of the Operations Manual that Cookie System Facilities no longer are using. You may not at any time copy, duplicate, record or
otherwise reproduce any part of the Operations Manual. If your copy of the Operations Manual is lost, destroyed or significantly damaged, you agree to obtain a replacement copy at our then applicable
charge.

 

5.    MARKS.    

        A.    OWNERSHIP AND GOODWILL OF MARKS.    

        Your
right to use the Marks is derived solely from this Agreement and limited to your operating the FACILITY under this Agreement and all System Standards we prescribe from time to time
during its term. Your unauthorized use of the Marks is a breach of this Agreement and an infringement of our rights in and to the Marks. You acknowledge and agree that your use of the Marks and any
goodwill established by that use will be exclusively for our benefit and that this Agreement does not confer any goodwill or other interests in the Marks upon you (other than the right to operate the
FACILITY under this Agreement). All provisions of this Agreement applicable to the Marks apply to any additional proprietary trade and service marks and commercial symbols we authorize you to use. 

        B.    LIMITATIONS ON YOUR USE OF MARKS.    

        You
agree to use the Marks as the Facility's sole identification, except that you agree to identify yourself as its independent owner in the manner we prescribe. You may not use any Mark
as part of any corporate or legal business name or with any prefix, suffix or other modifying words, terms, designs or symbols (other than logos we have licensed to you), or in any modified form, nor
may you use any Mark in selling any unauthorized products or services or in any other manner we have not expressly authorized in writing. You may not use any Trademark as part of an electronic mail
address or on any sites on the Internet or World Wide Web. You may not use or register the Trademarks as an Internet domain name. No Mark may be used in any advertising concerning the transfer, sale
or other disposition of the FACILITY or an ownership interest in you without our prior written consent, which
we will not unreasonably withhold. You agree to display the Marks prominently in the manner we prescribe at the FACILITY and on forms, advertising and marketing materials, supplies and other materials
we designate. You agree to give the notices of trade and service mark registrations that we specify and to obtain any fictitious or assumed name registrations required under applicable law. 

        C.    NOTIFICATION OF INFRINGEMENTS AND CLAIMS.    

        You
agree to notify us immediately of any apparent infringement or challenge to your use of any Mark, or of any claim by any person of any rights in any Mark, and not to communicate with
any person other than us and our attorneys, and your attorneys, in any infringement, challenge or claim. We may take the action we deem appropriate and control exclusively any litigation, U.S. Patent
and Trademark Office proceeding or any other administrative proceeding arising out of any infringement, challenge or claim or otherwise relating to any Mark. You agree to sign any documents and do the
things that, in the opinion of our attorneys, may be necessary or advisable to protect and maintain our interests in any litigation or Patent and Trademark Office or other proceeding or otherwise to
protect and maintain our interests in the Marks. 

        D.    DISCONTINUANCE OF USE OF MARKS.    

        We
have the right to require you to modify or discontinue using any Mark and/or use one or more additional or substitute trade or service marks, you agree to comply with our directions
within a reasonable time after receiving notice. We will reimburse you for your reasonable direct expenses of changing the FACILITY's signs. However, we need not reimburse you for any loss of revenue
attributable to any modified or discontinued Mark or for any expenditures you make to promote a modified or substitute trademark or service mark. 

        E.    INDEMNIFICATION FOR USE OF MARKS.    

        We
agree to reimburse you for all damages for which you are held liable in a proceeding contesting your authorized use of any Mark under this Agreement, and for all costs you reasonably
incur in defending any such claim brought against you or any such proceeding in which you are named as a party, if you have timely notified us of the claim or proceeding and otherwise have complied
with

 
this Agreement. At our option, we may defend and control the defense of any proceeding arising out of your use of any Mark under this Agreement. 

6.    CONFIDENTIAL INFORMATION.    

        We
possess (and will continue to develop and acquire) certain confidential information (the "Confidential Information") relating to developing and operating Cookie System Facilities,
which includes (without limitation): 

        (1)   recipes; 

        (2)   site
selection criteria; 

        (3)   methods,
formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge and experience in developing and operating Cookie System
Facilities; 

        (4)   marketing
and advertising programs for Cookie System Facilities; 

        (5)   knowledge
of specifications for and suppliers of certain Operating Assets and Supplies; and 

        (6)   knowledge
of the operating results and financial performance of Cookie System Facilities other than the FACILITY. 

        You
acknowledge and agree that you will not acquire any interest in Confidential Information, other than the right to utilize Confidential Information disclosed to you in operating the
FACILITY during the term of this Agreement, and that using or duplicating any Confidential Information in any other business is an unfair method of competition. You further acknowledge and agree that
Confidential Information is proprietary, includes our trade secrets and is disclosed to you only on the condition that you agree, and you do agree, that you: 

        (a)   will
not use Confidential Information in any other business or capacity; 

        (b)   will
maintain the absolute confidentiality of Confidential Information during and after the term of this Agreement; 

        (c)   will
not make unauthorized copies of any portion of Confidential Information disclosed via electronic medium or in written or other tangible form; and 

        (d)   will
adopt and implement all reasonable procedures that we prescribe from time to time to prevent unauthorized use or disclosure of Confidential Information, including,
without limitation, restrictions on its disclosure to FACILITY personnel and others. 

        All
ideas, concepts, techniques or materials relating to a Cookie System Facility, whether or not protectable intellectual property and whether created by or for you or your owners, must
be promptly disclosed to us and will be deemed to be our sole and exclusive property and part of the System and works made-for-hire for us. You and your owners agree to sign
whatever assignment or other documents we request to evidence our ownership or to assist us in securing intellectual property rights in these ideas, concepts, techniques or materials. 

        Despite
the foregoing, Confidential Information does not include information, knowledge or know-how which a person can prove he or she knew before becoming aware of it as a
result of anything we or another licensee provided directly or indirectly or before his or her operation of or presence at the FACILITY. If we include any matter in Confidential Information, anyone
who claims that it is not Confidential Information has the burden of proving that the exclusion provided in this paragraph is fulfilled.

 

7.    EXCLUSIVE RELATIONSHIP.    

        You
acknowledge and agree that we could not protect Confidential Information against unauthorized use or disclosure or encourage a free exchange of ideas and information among Cookie
System Facilities if licensed owners of Cookie System Facilities could hold interests in or perform services for a Competitive Business (defined below). You also acknowledge that, except as provided
in Appendix B to this Agreement, we have granted the License to you in consideration of and reliance upon your agreement to deal exclusively with us. You therefore agree that, during the term
of this Agreement and except as provided in Appendix B, neither you nor any of your owners (nor any of your or your owners' spouses or children) will: 

        (1)   have
any direct or indirect controlling interest as a disclosed or beneficial owner in a Competitive Business, wherever located or operating; 

        (2)   have
any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business located or operating within eight (8) miles of the FACILITY; 

        (3)   have
any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business located or operating within eight (8) miles of any Cookie System
Facility other than the FACILITY; 

        (4)   perform
services as a director, officer, manager, employee, consultant, representative or agent for a Competitive Business, wherever located or operating; 

        (5)   recruit
or hire any person who is our employee or the employee of any Cookie System Facility without obtaining the prior written permission of that person's employer; 

        (6)   divert
or attempt to divert any actual or potential business or customer of the FACILITY to another business; or 

        (7)   engage
in any other activity which may injure the goodwill of the Marks and System. 

        The
term "Competitive Business" as used in this Agreement means any business marketing, selling, promoting, distributing or giving away baked-goods, frozen desserts or other sweet snack
products at wholesale or retail or granting franchises or licenses to others to operate that type of business (other than a Cookie System Facility operated under a license agreement with us or under
any license agreement or franchise agreement with our affiliates). Nothing in this section shall apply to or prohibit your ownership interests in us or our affiliates. 

8.    SYSTEM STANDARDS.    

        A.    COMPLIANCE WITH SYSTEM STANDARDS.    

        You
acknowledge and agree that your operation and maintenance of the FACILITY under our System Standards are essential to preserve the goodwill of the Marks and all Cookie System
Facilities. Therefore, at all times during the term of this Agreement, you agree to operate and maintain the FACILITY under each and every System Standard, as we periodically modify and supplement
them during the term of this Agreement, even if you believe that a System Standard, as originally issued or subsequently modified or supplemented, is not in the System's or your FACILITY's best
interests. System Standards may regulate any one or more of the following for the FACILITY: 

        (1)   design,
layout, decor, appearance and lighting; periodic maintenance, cleaning and sanitation; periodic remodeling; replacement of obsolete or worn-out
Operating Assets; periodic painting; and use of interior and exterior signs, emblems, lettering and logos and their illumination; 

        (2)   types,
models and brands of required Operating Assets and Supplies;

 

        (3)   required
or authorized products and services and product and service categories; product preparation, storage, handling and packaging procedures; and product inventory
requirements; 

        (4)   designated
or approved suppliers (which may be limited to or include us) of Operating Assets and Supplies and supplier approval procedures and criteria; 

        (5)   terms
and conditions of the sale and delivery of, and terms and methods of payment for, Supplies that you obtain from us or unaffiliated suppliers; our right not to sell
any products to you, or to sell products to you only on a "cash-on-delivery" or "cash-before-delivery" basis, if you are in default under any agreement with us or
owe us money; and our right (without liability) to respond truthfully to requests from your suppliers and others with whom you deal about your credit rating and compliance with your payment
obligations to us; 

        (6)   sales,
marketing, advertising and promotional programs and materials and media used in these programs; 

        (7)   use
and display of the Marks; 

        (8)   staffing
levels for the FACILITY and managing the FACILITY; communicating to us the identities of the FACILITY's personnel; and qualifications, training, dress and
appearance of employees (although you will have sole responsibility and authority concerning the selection and promotion of your employees, the hours they work, their rates of pay and other benefits,
the work assigned to them and their working conditions); 

        (9)   days
and hours of operation of the FACILITY; 

        (10) participation
in market research and testing and product and service development programs; 

        (11) acceptance
of credit and debit cards and other payment systems; 

        (12) formats,
content and frequency of reports to us of sales, revenue, financial performance and condition and furnishing tax returns and other operating and financial
information to us; 

        (13) types,
amounts, terms and conditions of insurance coverage that the FACILITY must carry and standards for underwriters of policies providing required insurance
coverage; our protection and rights under these policies as an additional named insured; required or impermissible insurance contract provisions; assignment of policy rights to us; periodic
verification of insurance coverage that must be furnished to us; our right to obtain insurance coverage for the FACILITY at your expense if you fail to obtain required coverage; our right to defend
claims; our right to receive from your insurer, after any loss that the FACILITY incurs, a check for the loss proceeds that is made payable to you and us (but only if the check amount exceeds Five
Thousand Dollars ($5,000.00)); and similar matters relating to insured and uninsured claims; 

        (14) complying
with applicable laws; obtaining required licenses and permits; adhering to good business practices; observing high standards of honesty, integrity, fair
dealing and ethical business conduct in all dealings with customers, suppliers and us; and notifying us if any action, suit or proceeding is commenced against you or the FACILITY or if you receive any
report, citation or notice regarding the FACILITY's failure to comply with any health, cleanliness or safety standard; and 

        (15) regulation
of any other aspects of operating and maintaining the FACILITY that we determine from time to time to be useful to preserve or enhance the efficient
operation, image or goodwill of the Marks and Cookie System Facilities. 

        You
agree that System Standards we prescribe from time to time in the Operations Manual, or otherwise communicate to you in writing or other tangible form, are provisions of this
Agreement as if fully set forth within the text of this Agreement. All references to this Agreement include all System Standards as periodically modified. 

   
        B.    MODIFICATION OF SYSTEM STANDARDS.    

        We
may periodically modify System Standards, which may accommodate the regional or local variations we determine, and these modifications may obligate you to invest additional capital in
the FACILITY ("Capital Modifications") and/or incur higher operating costs. We will not require you to make any Capital Modifications during the first two (2) years of the term of this
Agreement unless required by the Lease or applicable law. We also will not require you to spend Ten Thousand Dollars ($10,000.00) or more on Capital Modifications during the last two (2) years
of this Agreement's term unless we agree at that time to grant you a successor license, as provided in Section 12.A. below, when this Agreement expires. Lastly, we will not require you to spend
Twenty-Five Thousand Dollars ($25,000.00) or more on Capital Modifications during any three (3) year period of this Agreement's term (not including the last two (2) years of
the term, during which there are no limitations on Capital Modifications, except as provided above). Subject to these limitations, we agree to give you sixty (60) days to comply with Capital
Modifications we require that will cost up to Five Thousand Dollars ($5,000.00), one hundred twenty (120) days to comply with Capital Modifications we require that will cost from Five Thousand
Dollars ($5,000.00) up to Ten Thousand Dollars ($10,000.00), and one hundred eighty (180) days to comply with Capital Modifications we require that will cost Ten Thousand Dollars ($10,000.00)
or more. You must comply with all modifications to System Standards, including Capital Modifications, within the time periods noted above or as we otherwise specify. Your failure to comply with
modifications to System Standards within the required time periods is an incurable default under this Agreement, as provided in Section 13.B. below. 

9.    RECORDS, REPORTS AND FINANCIAL STATEMENTS.    

        You
agree to establish and maintain at your own expense a bookkeeping, accounting and recordkeeping system conforming to the requirements and formats we prescribe from time to time. We
may require you to use approved computer hardware and software in order to maintain certain sales data and other information. We also currently require that you have access to the Internet in order to
submit reports, including Gross Sales Reports for your FACILITY to us, but we reserve the right to change the method of delivery of these reports upon reasonable notice. You agree to give us on the
forms that we prescribe from time to time: 

        (1)   within
ten (10) days after the end of each fiscal month of the FACILITY, a report on the FACILITY's Gross Sales during that fiscal month; 

        (2)   within
twenty-five (25) days after the end of each fiscal quarter of the FACILITY, the operating statements, financial statements, statistical
reports, copies of sales tax returns and other information we request regarding you and the FACILITY covering that fiscal quarter and the fiscal year to date; 

        (3)   within
sixty (60) days after the end of the FACILITY's fiscal year, the operating statements, financial statements, statistical reports, copies of income and
sales tax returns and other information we request regarding you and the FACILITY covering that fiscal year; and 

        (4)   within
ten (10) days after our request, exact copies of any other forms, records, books and other information we may periodically require. 

        You
agree to verify and sign each report and financial statement in the manner we prescribe. We may disclose data derived from these reports, provided, however, that we will not disclose
your identity or the FACILITY's location in any materials that we circulate publicly. We also may require you to have compiled, reviewed or audited financial statements prepared on an annual basis.
Moreover, we may, as often as we deem appropriate (including on a daily basis), access the Computer System (if we have required you to maintain a Computer System) and retrieve all information relating
to the FACILITY's operations.

 

10.    INSPECTIONS AND AUDITS.    

        A.    OUR RIGHT TO INSPECT THE FACILITY.    

        To
determine whether you and the FACILITY are complying with this Agreement and all System Standards, we and our designated agents may at any time during your regular business hours, and
without prior notice to you: 

        (1)   inspect
the FACILITY; 

        (2)   observe,
photograph and videotape the FACILITY's operations for the consecutive or intermittent periods we deem necessary; 

        (3)   remove
samples of any Supplies for testing and analysis; 

        (4)   interview
the FACILITY's personnel and customers; and 

        (5)   inspect
and copy any books, records and documents relating to your operation of the FACILITY. 

        You
agree to cooperate with us fully in these inspections, observations, photographing, videotaping, product removal and interviews. You agree to present to your customers the evaluation
forms that we periodically prescribe and to participate and/or request your customers to participate in any surveys performed by or for us. 

        B.    OUR RIGHT TO AUDIT.    

        We
may at any time during your business hours, and without prior notice to you, inspect and audit, or cause to be inspected and audited, your (if you are a corporation, limited liability
company or partnership) and the FACILITY's business, bookkeeping and accounting records, sales and income tax records and returns and other records. You agree to cooperate fully with our
representatives and independent accountants we hire to conduct any inspection or audit. If any inspection or audit discloses an understatement of the FACILITY's Gross Sales, you must pay us, within
fifteen (15) days after receiving the inspection or audit report, the Royalty due on the amount of the understatement, plus interest from the date originally due until the date of payment.
Further, if an inspection or audit is necessary due to your failure to furnish reports, supporting records or other information as required, or to furnish these items on a timely basis, or if an
understatement of Gross Sales is determined to be greater than two percent (2%) for any period reviewed, you agree to reimburse us for the cost of the inspection or audit, including, without
limitation, the charges of attorneys and independent accountants and the travel expenses, room and board and compensation of our employees. These remedies are in addition to our other remedies and
rights under this Agreement and applicable law. 

11.    TRANSFER.    

        A.    BY US.    

        You
acknowledge that we maintain a staff to manage and operate the System and that the members of this staff can change as employees come and go. You represent that you have not entered
into this Agreement in reliance on any shareholder's, director's, officer's or employee's remaining with us in that capacity. We may change our ownership or form and/or assign this Agreement, any
Lease and any other agreement without restriction. 

        B.    BY YOU.    

        You
understand and acknowledge that the rights and duties this Agreement creates are personal to you (or, if you are a corporation, limited liability company or partnership, to your
owners) and that we have granted the License to you in reliance upon our perceptions of your (or your owners') individual or collective character, skill, aptitude, attitude, business ability and
financial capacity. Accordingly,

 
neither this Agreement (or any interest in this Agreement) nor any ownership or other interest in you or the FACILITY may be transferred without our prior written approval. Any transfer without this
approval is a breach of this Agreement and void and of no effect. As used in this Agreement, the term "transfer" includes your (or your owners') voluntary, involuntary, direct or indirect assignment,
sale, gift or other disposition of any interest in: 

        (1)   this
Agreement; 

        (2)   you;
or 

        (3)   the
FACILITY. 

        An
assignment, sale, gift or other disposition includes the following events: 

        (a)   transfer
of ownership of capital stock, a partnership interest or another form of ownership interest; 

        (b)   merger
or consolidation or issuance of additional securities or interests representing an ownership interest in you; 

        (c)   any
sale of an ownership interest in you or any security convertible to an ownership interest in you; 

        (d)   transfer
of an interest in you, this Agreement or the FACILITY in a divorce, insolvency or corporate or partnership dissolution proceeding or otherwise by operation of
law; 

        (e)   transfer
of an interest in you, this Agreement or the FACILITY, in the event of your death or the death of one of your owners, by will, declaration of or transfer in
trust or under the laws of intestate succession, as provided in Section 11.E.(1) below; or 

        (f)    pledge
of this Agreement (to someone other than us) or an ownership interest in you as security, foreclosure upon the FACILITY or your transfer, surrender or loss of the
FACILITY's possession, control or management. 

        C.    CONDITIONS FOR APPROVAL OF TRANSFER.    

        If
you (and your owners) are fully complying with this Agreement, then, subject to the other provisions of this Section 11, we will approve a transfer of all or any of the
FACILITIES operated hereunder: 

        (1)   the
transferee has sufficient business experience, aptitude and financial resources to operate the FACILITY; 

        (2)   you
have paid all Royalties, amounts owed for purchases from us and other amounts owed to us or third-party creditors, have submitted all required reports and statements
and have not violated any provision of this Agreement, any Lease or any other agreement with us during the ninety (90) day period before you requested our consent to the transfer; 

        (3)   the
transferee and its owners and affiliates are not engaged in a Competitive Business; 

        (4)   you
are allowed to transfer the Lease; 

        (5)   you
or the transferee pays us a training fee equal to our then-current transfer fee; 

        (6)   [intentionally
omitted] 

        (7)   you
(and your transferring owners) have executed a general release, in a form satisfactory to us, of any and all claims against us and our shareholders, officers,
directors, employees and agents;

 

        (8)   we
have determined that the purchase price and payment terms will not adversely affect the transferee's operation of the FACILITY; 

        (9)   if
you or your owners finance any part of the sale price of the transferred interest, you and/or your owners have agreed that all of the transferee's obligations under
any promissory notes, agreements or security interests that you or your owners have reserved in the FACILITY are subordinate to the transferee's obligation to pay Royalties and other amounts due to us
and otherwise to comply with this Agreement; 

        (10) you
and your transferring owners (and your and your owners' spouses and children) will not, for a two (2) year period commencing on the effective date of the
transfer, engage in any of the activities proscribed in Section 14.D. below; 

        (11) you
and your transferring owners have agreed that you and they will not directly or indirectly at any time or in any manner (except in other Cookie System Facilities
you own and operate) identify yourself or themselves or any business as a current or former Cookie System Facility, or as one of our licensees, use any Mark, any colorable imitation of a Mark or other
indicia of a Cookie System Facility in any manner or for any purpose or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a connection
or association with us; 

        (12) you
or the transferee has agreed to any refurbishment of the FACILITY required by us to bring the FACILITY in compliance with the then current standards and trade
dress; and 

        (13) the
transferee has agreed to be bound by all of the terms and conditions of this Agreement, the transferee and its owners comply with Section 1.C. of this
Agreement, and you and each of your owners sign and deliver to us the transfer and related agreements that we specify in which you and these owners agree to remain fully and primarily liable for all
obligations under this Agreement, any Lease and any other agreements with us through their remaining terms. If, after a transfer which satisfies these conditions, a default occurs under this Agreement
and the transferee voluntarily returns possession of the FACILITY to us on terms we deem acceptable, then, if you and your owners who signed this Agreement perform all of the obligations arising under
this Agreement (including paying any amounts owed by the transferee), any Lease or any other agreement with us, we will allow you to assume possession of the FACILITY under this Agreement. 

        If
the proposed transfer is among your owners, subparagraphs (5) and (6) of the above requirements will not apply, although the transferee must reimburse us for any
administrative costs we incur in the transfer. We can review all information regarding the FACILITY that you furnish to the transferee, correct any information that we believe is inaccurate and give
the transferee copies of any reports that you have submitted to us or we have made regarding the FACILITY. If we approve the transfer, we will sign a general release of any and all claims against you
and your shareholders, officers, directors, employees and agents relating only to your operation of the FACILITY being transferred (and no other Cookie System Facility that you or your owners
operate), provided, however, that we reserve the right to audit your pre-transfer books and records and to recover any amounts owed to us that the audit discloses accrued before the
effective date of the transfer. 

        D.    TRANSFER TO A WHOLLY-OWNED CORPORATION OR LIMITED LIABILITY COMPANY.    

        Intentionally
Omitted. 

        E.    YOUR DEATH OR DISABILITY.    

        (1)    Transfer Upon Death or Disability.    Upon your death or disability or, if you are a
corporation, limited liability company or partnership, the death or disability of the Managing Owner or the owner of a controlling interest in you, your or that owner's executor, administrator,

 
conservator, guardian or other personal representative must transfer your interest in this Agreement or that owner's interest in you to a third party. The disposition of this Agreement or the interest
in you (including, without limitation, transfer by bequest or inheritance) must be completed within a reasonable time, not to exceed twelve (12) months from the date of death or disability, and
will be subject to all of the terms and conditions applicable to transfers contained in this Section. A failure to transfer your interest in this Agreement or the ownership interest in you within this
period of time is a breach of this Agreement. The term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you,
the Managing Owner or an owner of a controlling interest in you from managing and operating the FACILITY. 

        (2)    Operation Upon Death or Disability.    If, upon your death or disability or the death
or disability of the Managing Owner or the owner of a controlling interest in you, the FACILITY is not being managed by a trained manager, your or that owner's executor, administrator, conservator,
guardian or other personal representative must within a reasonable time, not to exceed fifteen (15) days from the date of death or disability, appoint a manager to operate the FACILITY. The
manager must complete training at your expense. Pending the appointment of a manager as provided above or if, in our judgment, the FACILITY is not being managed properly any time after your death or
disability or after the death or disability of the Managing Owner or the owner of a controlling interest in you, we may, but need not,
assume the FACILITY's management. All funds from the FACILITY's operation during the period we have assumed its management will be kept in a separate account, and all of the FACILITY's expenses will
be charged to this account. We may charge you Two Hundred and Fifty Dollars ($250.00) per day, plus our direct out-of-pocket costs and expenses, if we assume the FACILITY's
management under this subparagraph. Operation of the FACILITY during any period will be on your behalf, but we only have a duty to utilize our reasonable efforts and will not be liable to you or your
owners for any debts, losses or obligations the FACILITY incurs or to any of your creditors for any products, materials, supplies or services the FACILITY purchases during any period we have assumed
its management. 

        F.    EFFECT OF CONSENT TO TRANSFER.    

        Our
consent to a transfer of this Agreement and the FACILITY or any interest in you is not a representation as to the fairness of the terms of any contract between you and the
transferee, a guarantee of the prospects of success of the FACILITY or transferee or a waiver of any claims we may have against you (or your owners) or of our right to demand the transferee's exact
compliance with any of the terms or conditions of this Agreement. 

        G.    OUR RIGHT OF FIRST REFUSAL.    

        If
you (or any of your owners) at any time determine to sell, assign or transfer for consideration an interest in this Agreement and the FACILITY or an ownership interest in you, you (or
your owner) agree to obtain a bona fide, executed written offer and earnest money deposit (in the amount of five percent (5%) or more of the offering price) from a responsible and fully disclosed
offeror (including lists of the owners of record and beneficially of any corporate or limited liability company offeror and all general and limited partners of any partnership offeror and, in the case
of a publicly-held corporation or limited partnership, copies of the most current annual and quarterly reports and Form 10K) and immediately submit to us a true and complete copy of
the offer, which includes details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price. To be a valid, bona fide offer, the proposed
purchase price must be denominated in a dollar amount. The offer must apply only to an interest in you or in this Agreement and the FACILITY and may not include an offer to purchase any of your (or
your owners') other property or rights. However, if the offeror proposes to buy any other property or rights from you (or your owners)

 
under a separate, contemporaneous offer, that separate, contemporaneous offer must be disclosed to us, and the price and terms of purchase offered to you (or your owners) for the interest in you or in
this Agreement and the FACILITY must reflect the bona fide price offered for it and not reflect any value for any other property or rights. 

        We
may, by written notice delivered to you or your selling owner(s) within thirty (30) days after we receive both an exact copy of the offer and all other information we request,
elect to purchase the interest for the price and on the terms and conditions contained in the offer, provided that: 

        (1)   we
may substitute cash for any form of payment proposed in the offer; 

        (2)   our
credit will be deemed equal to the credit of any proposed purchaser; 

        (3)   we
will have not less than sixty (60) days after giving notice of our election to purchase to prepare for closing; and 

        (4)   we
must receive, and you and your owners agree to make, all customary representations and warranties given by the seller of the assets of a business or the capital stock
of or other forms of ownership interest in a legal entity, as applicable, including, without limitation, representations and warranties as to: 

        (a)   ownership
and condition of and title to stock or other forms of ownership interest and/or assets; 

        (b)   liens
and encumbrances relating to the stock or other forms of ownership interest and/or assets; and 

        (c)   validity
of contracts and the liabilities, contingent or otherwise, of the corporation whose ownership interests are being purchased. 

        If
we exercise our right of first refusal, you and your selling owner(s) agree that, for a period of two (2) years commencing on the date of the closing, you and they will be
bound by the noncompetition covenant contained in Section 14.D. below, although this noncompetition covenant does not apply to other Cookie System Facilities that you or your owners operate
under a license agreement with us. You and your selling owner(s) further agree that you and they will, during this same time period, abide by the restrictions of Section 11.C.(11) of this
Agreement. 

        If
we do not exercise our right of first refusal, you or your owners may complete the sale to the purchaser on the exact terms of the original offer, subject to our approval of the
transfer as provided in Paragraphs B and C of this Section, provided that, if the sale to the purchaser is not completed within sixty (60) days after we receive the offer, or if there is a
material change in the terms of the sale (which you agree promptly to communicate to us), we will have an additional right of first refusal during the thirty (30) day period following either
the expiration of the sixty (60) day period or notice to us of the
material change(s) in the terms of the sale, either on the terms originally offered or the modified terms, at our option. 

12.    EXPIRATION OF THIS AGREEMENT.    

        A.    YOUR RIGHT TO ACQUIRE A SUCCESSOR LICENSE.    

        When
this Agreement expires, if you (and each of your owners) have substantially complied with this Agreement during its term, and provided that: 

        (1)   you
maintain possession of and agree to remodel and/or expand the FACILITY, add or replace improvements and Operating Assets and otherwise modify the FACILITY as we
require to comply with specifications and standards then applicable for Cookie System Facilities, or

 

        (2)   if
you cannot maintain possession of the Premises, or if in our judgment the FACILITY should be relocated, you secure substitute premises we accept, develop these
premises under specifications and standards then applicable for Cookie System Facilities and continue to operate the FACILITY at the Premises until operations are transferred to the substitute
premises, then, subject to the terms and conditions set forth in this Section 12, you may acquire a successor license to operate the FACILITY as a Cookie System Facility on the terms and
conditions of the license agreement we then are using in granting licenses for Cookie System Facilities (modified as necessary to reflect the fact that it is for a successor license), provided,
however, that you will only have to pay a successor license fee equal to our then current license fee less the license fee you paid upon signing this Agreement. 

        B.    GRANT OF A SUCCESSOR LICENSE.    

        You
agree to give us written notice of your election to acquire a successor license no earlier than twelve (12) months and no later than six (6) months before this
Agreement expires. We agree to give you written notice ("Our Notice"), not more than ninety (90) days after we receive your notice, of our decision under Paragraph A of this Section: 

        (1)   to
grant you a successor license; 

        (2)   to
grant you a successor license on the condition that deficiencies of the FACILITY, or in your operation of the FACILITY, are corrected; or 

        (3)   not
to grant you a successor license based on our determination that you and your owners have not substantially complied with this Agreement during its term. 

        If
applicable, Our Notice will: 

        (a)   describe
the remodeling and/or expansion of the FACILITY and other improvements or modifications required to bring the FACILITY into compliance with then applicable
specifications and standards for Cookie System Facilities; and 

        (b)   state
the actions you must take to correct operating deficiencies and the time period in which these deficiencies must be corrected. 

        If
we elect not to grant a successor license, Our Notice will describe the reasons for our decision. Your right to acquire a successor license is subject to your continued compliance
with all of the terms and conditions of this Agreement through the date of its expiration, in addition to your compliance with the obligations described in Our Notice. 

        If
Our Notice states that you must cure certain deficiencies of the FACILITY or its operation as a condition to the grant of a successor license, we will give you written notice of our
decision not to grant a successor license, based upon your failure to cure these deficiencies, not less than ninety (90) days before this Agreement expires, provided, however, that we need not
give you this ninety (90) days notice if we decide not to grant you a successor license due to your breach of this Agreement during the ninety (90) day period before it expires. If we
fail to give you: 

        (i)    notice
of deficiencies in the FACILITY, or in your operation of the FACILITY, within ninety (90) days after we receive your timely election to acquire a successor
license (if we elect to grant you a successor license under subparagraphs (2) and (b) above); or 

        (ii)   notice
of our decision not to grant a successor license at least ninety (90) days before this Agreement expires, if this notice is required,

   
we may extend the term of this Agreement for the period of time necessary to give you either reasonable time to correct deficiencies or the ninety (90) days notice of our refusal to grant a
successor license required under this Agreement. If you fail to notify us of your election to acquire a successor license within the prescribed time period, we need not grant you a successor license. 

        C.    AGREEMENTS/RELEASES.    

        If
you satisfy all of the other conditions to the grant of a successor license, you and your owners agree to execute the form of license agreement and any ancillary agreements we then
are customarily using in granting licenses for Cookie System Facilities (modified as necessary to reflect the fact that it is for a successor license). You and your owners further agree to execute
general releases, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, agents, successors and assigns. Failure by you or your owners to
sign these agreements and releases and deliver them to us for acceptance and execution within sixty (60) days after their delivery to you will be deemed an election not to acquire a successor
license. 

13.    TERMINATION OF AGREEMENT.    

        A.    BY YOU.    

        If
you and your owners are fully complying with this Agreement and we materially fail to comply with this Agreement and do not correct the failure within thirty (30) days after
written notice of the material failure is delivered to us or, if the failure cannot be corrected within thirty (30) days, provide reasonable evidence of our effort to correct the failure within
a reasonable time, not to exceed sixty (60) days after your notice, you may terminate this Agreement effective thirty (30) days after delivery to us of written notice of termination.
Your termination of this Agreement for any other reason or without notice will be deemed a termination without cause. 

        B.    BY US.    

        We
may terminate this Agreement, effective upon delivery of written notice of termination to you, if: 

        (1)   you
(or any of your owners) have made or make any material misrepresentation or omission in purchasing the License or operating the FACILITY; 

        (2)   you
(or your Managing Owner) fail successfully to complete initial training to our satisfaction; 

        (3)   you
(or any of your owners) interfere with our efforts to complete the FACILITY's development, as provided in Section 2.C. of this Agreement; 

        (4)   you
fail to begin operating the FACILITY within three hundred sixty-five (365) calendar days after signing this Agreement or on or before the date
specified in the Lease, whichever is earlier; 

        (5)   you
fail to operate the FACILITY every day unless the FACILITY has been closed for a purpose we have approved or because of casualty or government order; 

        (6)   you
surrender or transfer control of the FACILITY's operation without our prior written consent; 

        (7)   you
(or any of your owners) are or have been convicted by a trial court of, or plead or have pleaded no contest to, a felony; 

        (8)   you
fail to maintain the insurance we require from time to time; 

        (9)   you
interfere with our right to inspect the FACILITY or observe its operations, as provided in Section 10 of this Agreement;

 

        (10) any
judgments, executions or liens are obtained against the FACILITY and remain unsatisfied and unbonded of record for more than fifteen (15) days; 

        (11) you
(or any of your owners) engage in any dishonest or unethical conduct which may adversely affect the reputation of the FACILITY or another Cookie System Facility or
the goodwill associated with the Marks; 

        (12) you
(or any of your owners) make an unauthorized assignment of this Agreement, the FACILITY or a controlling ownership interest in you; 

        (13) we
have sent a notice of termination under any other license agreement for a Cookie System Facility between you (or any of your owners) and us due to a failure to pay
monies owed; 

        (14) in
the event of your death or disability or the death or disability of the Managing Owner or the owner of a controlling interest in you, this Agreement or that owner's
interest in you is not assigned as required; 

        (15) you
fail to comply with any provision of the Lease or any other lease or sublease between us and you and/or any of your owners and fail to cure the default within the
prescribed time period (if cure is allowed); 

        (16) you
(or any of your owners) make any unauthorized use or disclosure of any Confidential Information or use, duplicate or disclose any portion of the Operations Manual
in violation of this Agreement; 

        (17) you
violate any health, safety or sanitation law, ordinance or regulation and do not begin to cure the noncompliance or violation immediately, and correct the
noncompliance or violation within seventy-two (72) hours, after written notice is delivered to you; 

        (18) you
or any of your affiliates fail to make payments of any amounts due to us and do not correct the failure within seven (7) days after written notice of the
failure is delivered to you; 

        (19) you
fail to pay when due any federal or state income, service, sales or other taxes due on the FACILITY's operations, unless you are in good faith contesting your
liability for these taxes; 

        (20) you
understate the FACILITY's Gross Sales by more than four percent (4%) in any report or financial statement; 

        (21) you
fail to comply with modifications to System Standards within the required time period; 

        (22) you
(or any of your owners) fail to comply with any other provision of this Agreement or any System Standard and do not correct the failure within thirty
(30) days after written notice of the failure to comply is delivered to you; 

        (23) you
(or any of your owners) fail on three (3) or more separate occasions within any period of twelve (12) consecutive months to do any one or more or
combination of the following: (i) submit when due reports or other data, information or supporting records, (ii) pay when due any amounts due to us or (iii) otherwise comply with
this Agreement, whether or not any of the failures set forth in subparagraphs (i) through (iii) are corrected after written notice of the failure is delivered to you; or 

        (24) you
make an assignment for the benefit of creditors or admit in writing your insolvency or inability to pay your debts generally as they become due; you consent to the
appointment of a receiver, trustee or liquidator of all or the substantial part of your property; the FACILITY is attached, seized, subjected to a writ or distress warrant or levied upon, unless the
attachment, seizure, writ, warrant or levy is vacated within thirty (30) days; or any order appointing a receiver,

 
trustee or liquidator of you or the FACILITY is not vacated within thirty (30) days following the entry of the order. 

        C.    ASSUMPTION OF MANAGEMENT.    

        We
may (but need not), under the circumstances described below, enter the Premises and assume the FACILITY's management for any period of time that we deem appropriate. You must pay us
Two Hundred and Fifty Dollars ($250.00) per day, plus our direct out-of-pocket costs and expenses, during the time we assume the FACILITY's management. If we assume the
FACILITY's management, you acknowledge that we will have a duty to utilize only reasonable efforts and will not be liable to you or your owners for any debts, losses or obligations the FACILITY incurs
or to any of your creditors for any products, materials, supplies or services the FACILITY purchases during any period we have assumed its management. 

        We
may assume the FACILITY's management under the following circumstances: 

        (1)   if
you abandon or fail actively to operate the FACILITY; 

        (2)   if
you fail to comply with any provision of this Agreement or any System Standard and do not cure the failure within the time period we specify in our notice to you; or 

        (3)   if
this Agreement is terminated and we are deciding whether to exercise our option to purchase the FACILITY under Section 14.E. below. 

        Our
exercise of any of the rights granted by subparagraphs (1) and (2) above will not affect our right to terminate this Agreement under Section 13.B. above. 

        D.    REMEDIES.    

        If
you or any of your owners violate any provision of this Agreement, we may (in addition to terminating this Agreement as provided in Paragraph B of this Section): 

        (1)   seek
damages of every sort against you and each owner, jointly and severally; 

        (2)   seek
temporary restraining orders, preliminary and permanent injunctions and other equitable relief against you and each owner, jointly and severally; and 

        (3)   exercise
all other rights and remedies available at law or in equity. 

14.    OUR AND YOUR RIGHTS AND OBLIGATIONS UPON TERMINATION OR EXPIRATION OF THIS AGREEMENT.    

        A.    PAYMENT OF AMOUNTS OWED TO US.    

        You
agree to pay us within fifteen (15) days after the effective date of this Agreement's termination or expiration, or on any later date that the amounts due to us are
determined, the Royalties, amounts owed for purchases from us, interest and all other amounts owed to us which then are unpaid. 

        B.    MARKS.    

        When
this Agreement terminates or expires: 

        (1)   you
may not directly or indirectly at any time or in any manner (except with other Cookie System Facilities you own and operate) identify yourself or any business as a
current or former Cookie System Facility, or as one of our licensees, use any Mark, any colorable imitation of a Mark or other indicia of a Cookie System Facility in any manner or for any purpose or
utilize for any purpose any trade name, trade or service mark or other commercial symbol that indicates or suggests a connection or association with us;

 

        (2)   you
agree to take any action required to cancel all fictitious or assumed name or equivalent registrations relating to your use of any Mark; 

        (3)   you
agree to deliver to us within thirty (30) days all signs, sign-faces, sign-cabinets, marketing materials, forms and other materials
containing any Mark or otherwise identifying or relating to a Cookie System Facility that we request and allow us, without liability to you or third parties, to remove these items from the FACILITY; 

        (4)   if
we do not have or do not exercise an option to purchase the FACILITY under paragraph E of this Section, you agree that, after, as applicable, the effective
date of this Agreement's expiration or the Notification Date, you will promptly and at your own expense make the alterations we specify in our Operations Manual or otherwise to distinguish the
FACILITY clearly from its former appearance and from other Cookie System Facilities in order to prevent public confusion; 

        (5)   you
agree to notify the telephone company and all telephone directory publishers of the termination or expiration of your right to use any telephone, telecopy or other
numbers and any telephone directory listings associated with any Mark, authorize the transfer of these numbers and directory listings to us or at our direction and/or instruct the telephone company to
forward all calls made to your numbers to numbers we specify; and 

        (6)   you
agree to give us, within thirty (30) days after, as applicable, the effective date of this Agreement's expiration or the Notification Date, evidence
satisfactory to us of your compliance with the foregoing obligations. 

        C.    CONFIDENTIAL INFORMATION.    

        You
agree that, upon this Agreement's termination or expiration, you will immediately cease to use any of our Confidential Information in any business or otherwise (except in other
Cookie System Facilities you own and operate) and return to us all copies of the Operations Manual and any other confidential materials that we have loaned to you. 

        D.    COVENANT NOT TO COMPETE.    

        Upon 

        (1)   our
termination of this Agreement according to its terms and conditions, 

        (2)   your
termination of this Agreement without cause, or 

        (3)   expiration
of this Agreement, 

you
and your owners agree that, for a period of one (1) year commencing on the effective date of termination or expiration or the date on which all person(s) restricted by this Paragraph begin
to comply with this Paragraph, whichever is later, neither you nor any of your owners will have any direct or indirect interest (e.g., through a spouse
or child) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, representative or agent in any Competitive Business (as defined in Section 7 above)
operating: 

        (a)   at
the Premises; or 

        (b)   within
five (5) miles of the Premises. 

        If
any person restricted by this Paragraph refuses voluntarily to comply with these obligations, the one (1) year period will commence with the entry of a court order enforcing
this provision. You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting these skills. Consequently, enforcement
of the covenants made in this Paragraph will not deprive you of your personal goodwill or ability to earn a living.

 

        E.    OUR RIGHT TO PURCHASE FACILITY AND/OR LEASE PREMISES.    

        (1)    Exercise of Option    

        Upon 

        (a)   our
termination of this Agreement according to its terms and conditions, 

        (b)   your
termination of this Agreement without cause, or 

        (c)   expiration
of this Agreement (if we offer, but you elect not to acquire, a successor license), 

we
may, by giving you written notice within sixty (60) days after the date of termination or expiration, (i) purchase the FACILITY's Operating Assets and Supplies that you own and/or
(ii) exercise the rights under subparagraph (2) below. (The date on which we notify you whether or not we are exercising our option is referred to in this Agreement as the "Notification
Date.") We have the unrestricted right to assign this option to purchase the FACILITY. We will be entitled to all customary warranties and representations in our asset purchase, including, without
limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the
assets, contingent or otherwise. 

        (2)    Leasehold Rights.    

        You
agree at our election: 

        (a)   to
assign your leasehold interest in the Premises to us; or 

        (b)   to
enter into a sublease for the remainder of the Lease term on the same terms (including renewal options) as the Lease. 

        (3)    Purchase Price    

        The
purchase price for your Operating Assets and Supplies will be their fair market value, determined in a manner consistent with reasonable depreciation, provided that these items will
not include any value for: 

        (a)   the
License or any rights granted by this Agreement; 

        (b)   the
Marks; 

        (c)   participation
in the network of Cookie System Facilities; or 

        (d)   goodwill
attributable to our Marks, brand image and other intellectual property. 

        We
may exclude from the assets purchased any Operating Assets and Supplies that are not reasonably necessary (in function or quality) to the FACILITY's operation or that we have not
approved as meeting standards for Cookie System Facilities, and the purchase price will reflect these exclusions. 

        (4)    Appraisal    

        If
we and you cannot agree on fair market value, fair market value will be determined by an independent appraiser we designate, who will be bound by the criteria specified in
subparagraph (3) above and whose determination will be binding on all parties. You and we will share equally the appraiser's fees and expenses. 

        (5)    Closing    

        The
purchase price will be paid at the closing of the purchase, which will take place not later than sixty (60) days after the purchase price is determined. We may set off against
the purchase price, and

 
reduce the purchase price by, any and all amounts you or your owners owe to us. At the closing, you agree to deliver instruments transferring to us: 

        (a)   good
and merchantable title to the assets purchased, free and clear of all liens and encumbrances (other than liens and security interests acceptable to us), with all
sales and other transfer taxes paid by you; 

        (b)   all
licenses and permits of the FACILITY which may be assigned or transferred; and 

        (c)   the
leasehold interest in the Premises and improvements. 

        If
you cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will be accomplished through an escrow. You and your
owners further agree to execute general releases, in a form satisfactory to us, of any and all claims against us and our shareholders, officers, directors, employees, agents, successors and assigns. 

        F.    LIQUIDATED DAMAGES.    

        Upon
our termination of this Agreement according to its terms and conditions or your termination of this Agreement without cause, you agree to pay us within fifteen (15) days
after the effective date of this Agreement's termination, in addition to the amounts owed under Paragraph A of this Section, liquidated damages equal to the present value (using the then
current 30 year Treasury Bond rate) of the Royalties you would have paid on the product of the FACILITY's average monthly Gross Sales during the twelve (12) months of operation preceding
the effective date of termination multiplied by the number of months remaining in the Agreement had it not been terminated. We, you and each of your owners acknowledge and agree that it would be
impracticable to determine precisely the damages we will incur from this Agreement's termination and the loss of cash flow from Royalty payments due to, among other things, the complications of
determining what costs, if any, we might save and how much the Royalty payments would have grown over what would have been this Agreement's remaining term. We, you and each of your owners consider
this liquidated damages provision to be a reasonable, good faith preestimate of those damages. If you pay us the required liquidated damages (as computed above)
by the date due, we will refund (without interest) a portion of those liquidated damages if we grant a new license for a Cookie System Facility at the FACILITY's location during what would have been
the remaining term of this Agreement had it not been terminated. The portion of the paid liquidated damages that we will refund will be the amount that relates to the months in what would have been
the remaining term of this Agreement during which the new licensee actually operates a Cookie System Facility at the FACILITY's location. We will use reasonable efforts to grant a new license for a
Cookie System Facility at the location upon termination of this Agreement. 

        The
liquidated damages provision above only covers our damages from the loss of cash flow from the Royalty. It does not cover any other damages, including damages to our reputation with
the public and landlords and damages arising from a violation of any provision of this Agreement other than the Royalty section. You and each of your owners agree that the liquidated damages provision
does not give us an adequate remedy at law for any default under, or for the enforcement of, any provision of this Agreement other than the Royalty section. 

        G.    CONTINUING OBLIGATIONS.    

        All
of our and your (and your owners') obligations which expressly or by their nature survive this Agreement's expiration or termination will continue in full force and effect subsequent
to and notwithstanding its expiration or termination and until they are satisfied in full or by their nature expire.

 

15.    RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.    

        A.    INDEPENDENT CONTRACTORS.    

        You
and we understand and agree that this Agreement alone does not create a fiduciary relationship between you and us, that we and you are and will be independent contractors and that
nothing in this Agreement is intended to make either you or us a general or special agent, joint venturer, partner or employee of the other for any purpose. You agree to identify yourself
conspicuously in all dealings with customers, suppliers, public officials, FACILITY personnel and others as the FACILITY's owner under a license we have granted and to place notices of independent
ownership on the forms, business cards, stationery and advertising and other materials as we may require from time to time. 

        B.    NO LIABILITY FOR ACTS OF OTHER PARTY.    

        You
agree not to employ any of the Marks in signing any contract or applying for any license or permit, or in a manner that may result in our liability for any of your indebtedness or
obligations, and not to use the Marks in any way we have not expressly authorized. Neither we nor you will make any express or implied agreements, warranties, guarantees or representations or incur
any debt in the name or on behalf of the other, represent that our respective relationship is other than licensor and licensee or be obligated by or have any liability under any agreements or
representations made by the other that are not expressly authorized in writing. We will not be obligated for any damages to any person or property directly or indirectly arising out of the FACILITY's
operation or the business you conduct under this Agreement unless caused by our sole negligence. 

        C.    TAXES.    

        We
will have no liability for any sales, use, service, occupation, excise, gross receipts, income, property or other taxes, whether levied upon you or the FACILITY, from the business you
conduct (except any taxes we are required by law to collect from you for purchases from us). Payment of these taxes is your responsibility. 

        D.    INDEMNIFICATION.    

        You
agree to indemnify, defend and hold harmless us, our affiliates and our respective shareholders, directors, officers, employees, agents, successors and assignees (the "Indemnified
Parties") against and to reimburse any one or more of the Indemnified Parties for all claims, obligations and damages described in this Paragraph, any and all taxes described in Paragraph C of
this Section and any and all claims and liabilities directly or indirectly arising out of the FACILITY's operation or your breach of this Agreement, unless caused by the Indemnified Party's sole
negligence or resulting from any strict liability imposed on any Indemnified Party. For purposes of this indemnification, "claims" include all obligations, damages (actual, consequential or otherwise)
and costs reasonably incurred in defending any claim against any of the Indemnified Parties, including, without limitation, reasonable accountants', arbitrators', attorneys' and expert witness fees,
costs of investigation and proof of facts, court costs, other expenses of litigation, arbitration or alternative dispute resolution and travel and living expenses. We and each of the other Indemnified
Parties may defend any claim against us and them at your expense and agree to settlements or take any other remedial, corrective or other actions we and/or they deem expedient. This indemnity will
continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination. 

        Under
no circumstances will we or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and
expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue a recovery or mitigate a loss will in no way reduce or alter the amounts we or another
Indemnified Party may recover from you.

   
16.    ENFORCEMENT.    

        A.    SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS.    

        Except
as expressly provided to the contrary in this Agreement, each section, paragraph, term and provision of this Agreement will be considered severable, and if, for any reason, any
provision is held to be invalid or contrary to or in conflict with any applicable present or future law or regulation in a final, unappealable ruling issued by any court, agency or tribunal with
competent jurisdiction in a proceeding to which we are a party, that ruling will not impair the operation of, or have any other effect upon, any other portions of this Agreement that may remain
otherwise intelligible, which will continue to be given full force and effect and bind the parties, although any portion held to be invalid will be deemed not to be a part of this Agreement from the
date the time for appeal expires, if you are a party, otherwise upon your receipt from us of a notice of non-enforcement. 

        If
any covenant which restricts competitive activity is deemed unenforceable by virtue of its scope in terms of area, business activity prohibited and/or length of time, but would be
enforceable by reducing any part or all of it, you and we agree that the covenant will be enforced to the fullest extent permissible under the laws and public policies applied in the jurisdiction
whose law is applicable to the covenant's validity. 

        If
any applicable and binding law or rule of any jurisdiction requires a greater prior notice than is required under this Agreement of this Agreement's termination or of our refusal to
enter into a successor license agreement, or the taking of some other action not required under this Agreement, or if, under any applicable and binding law or rule of any jurisdiction, any provision
of this Agreement or any System Standard is invalid or unenforceable, the prior notice and/or other action required by the law or rule will be substituted for the comparable provisions of this
Agreement, and we have the right to modify the invalid or unenforceable provision or System Standard to the extent required to be valid and enforceable. You agree to be bound by any promise or
covenant imposing the maximum duty permitted by law which is subsumed within the terms of any provision of this Agreement, as though it were separately articulated in and made a part of this
Agreement, that may result from striking from any of the provisions of this Agreement, or any System Standard, any portion or portions which a court or arbitrator may hold to be unenforceable in a
final decision to which we are a party, or that results from reducing the scope of any promise or covenant to the extent required to comply with a court order or arbitration award. These modifications
to this Agreement will be effective only in that jurisdiction, unless we elect to give them greater applicability, and will be enforced as originally made and entered into in all other jurisdictions. 

        B.    WAIVER OF OBLIGATIONS.    

        We
and you may by written instrument unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice to the
other or any other effective date stated in the notice of waiver. Any waiver we grant will be without prejudice to any other rights we may have, will be subject to our continuing review and we may
revoke it at any time and for any reason, effective upon delivery to you of ten (10) days' prior written notice. 

        We
and you will not be deemed to have waived or impaired any right, power or option reserved by this Agreement (including, without limitation, our right to demand exact compliance with
every term, condition and covenant or to declare any breach to be a default and to terminate this Agreement prior to the expiration of its term) by virtue of any custom or practice at variance with
the terms of this Agreement; our or your failure, refusal or neglect to exercise any right under this Agreement or to insist upon the other's exact compliance with our and your obligations under this
Agreement, including, without limitation, any System Standard; our waiver, forbearance, delay, failure or omission to exercise any right, power or option, whether of the same, similar or different
nature, with other Cookie System Facilities; the existence of other license agreements for Cookie System Facilities which contain different

 
provisions from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or
similar item given to us will constitute a waiver, compromise, settlement or accord and satisfaction. We are authorized to remove or obliterate any legend or endorsement, and that legend or
endorsement will have no effect. 

        Neither
we nor you will be liable for loss or damage or deemed to be in breach of this Agreement if our or your failure to perform our or your obligations results from: 

        (1)   transportation
shortages, inadequate supply of equipment, products, supplies, labor, material or energy or the voluntary foregoing of the right to acquire or use any of
these to accommodate or comply with the orders, requests, regulations, recommendations or instructions of any federal, state or municipal government or any of its departments or agencies; 

        (2)   acts
of God; 

        (3)   fires,
strikes, embargoes, war or riot; or 

        (4)   any
other similar event or cause. 

        Any
delay resulting from any of these causes will extend performance accordingly or excuse performance, in whole or in part, as may be reasonable, except that these causes will not
excuse payments of amounts owed at the time of the occurrence or payment of Royalties due on any Gross Sales afterwards. 

        C.    COSTS AND ATTORNEYS' FEES.    

        If
we incur expenses from your failure to pay when due amounts owed to us, to submit when due any reports, information or supporting records or otherwise to comply with this Agreement,
or if we defend any action or proceeding in which you (or an owner) make a claim against us (unless, after final appeal, you (or the owner) prove that you prevailed on every claim and cause of action
you asserted), you agree to reimburse us for any of the costs and expenses which we incur, including, without limitation, reasonable accounting, attorneys', arbitrators' and related fees. "Prevailed"
on a claim or cause of action means you (or an owner) obtained at least eighty percent (80%) of the highest damages you ever requested for your claim or cause of action. If you requested equitable
relief under a claim or cause of action, "prevailed" means you (or an owner) obtained all of the relief requested. 

        D.    YOU MAY NOT WITHHOLD PAYMENTS DUE TO US.    

        You
agree that you will not withhold payment of any amounts owed to us on the grounds of our alleged nonperformance of any of our obligations under this Agreement. 

        E.    RIGHTS OF PARTIES ARE CUMULATIVE.    

        Our
and your rights under this Agreement are cumulative, and no exercise or enforcement by us or you of any right or remedy under this Agreement will preclude our or your exercise or
enforcement of any other right or remedy under this Agreement which we or you are entitled by law to enforce. 

        F.    INTERPRETATION OF RIGHTS AND OBLIGATIONS.    

        The
following provisions will apply to and govern the interpretation of this Agreement, the parties' rights under this Agreement, and the relationship between the parties: 

        (a)    Our Rights.    Whenever this Agreement provides that we have a certain right, that right is absolute and the
parties intend that our exercise of that right will not be subject to any limitation or review. We have the right to operate, administrate, develop, and change the System in any manner that is not
specifically precluded by the provisions of this Agreement.

 

        (b)    Our Reasonable Business Judgment.    Whenever we reserve or are deemed to have reserved discretion in a
particular area or where we agree or are deemed to be required to exercise our rights reasonably or in good faith, we will satisfy our obligations whenever we exercise Reasonable Business Judgment in
making our decision or exercising our rights. A decision or action by us will be deemed to be the result of Reasonable Business Judgment, even if other reasonable or even arguably preferable
alternatives are available, if our decision or action is intended, in whole or significant part, to promote or benefit the Great American Cookie Company system generally even if the decision or action
also promotes a financial or other individual interest of us. Examples of items that will promote or benefit the Great American Cookie Company system include, without limitation, enhancing the value
of the Marks, improving customer service and satisfaction, improving product quality, improving uniformity, enhancing or encouraging modernization, and improving the competitive position of the Great
American Cookie Company system. By establishing the Reasonable Business Judgment standard, we and you recognize that it is in the best interest of the Great American Cookie Company system that our
exercise of discretion in making decisions concerning or that affect the Great American Cookie Company system, be given the same latitude that corporate boards of directors are given in regard to
decisions concerning the direction of their companies. Neither you nor any third party (including, without limitation, a trier of fact), shall substitute its judgment for our Reasonable Business
Judgment. 

        G.    GOVERNING LAW.    

        EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK ACT OF 1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051  ET SEQ.) OR OTHER FEDERAL LAW, THIS AGREEMENT, THE
LICENSE AND ALL CLAIMS ARISING FROM THE RELATIONSHIP BETWEEN US AND YOU WILL BE GOVERNED BY
THE LAWS OF THE STATE OF STATE OF UTAH, EXCEPT THAT THE UTAH BUSINESS OPPORTUNITY DISCLOSURE ACT AND ANY OTHER STATE LAW RELATING TO (1) THE OFFER AND SALE OF FRANCHISES (2) FRANCHISE
RELATIONSHIPS, OR (3) BUSINESS OPPORTUNITIES, WILL NOT APPLY UNLESS THE APPLICABLE JURISDICTIONAL REQUIREMENTS ARE MET INDEPENDENTLY WITHOUT REFERENCE TO THIS PARAGRAPH.

        H.    CONSENT TO JURISDICTION.    

        YOU AND YOUR OWNERS AGREE THAT ALL CLAIMS, CONTROVERSIES OR DISPUTES ARISING FROM THIS AGREEMENT, THE LICENSE OR OUR RELATIONSHIP WITH YOU (AND YOUR OWNERS) MUST
BE RESOLVED BY A PROCEEDING IN A COURT IN SALT LAKE COUNTY, UTAH, EXCEPT TO THE EXTENT LOCAL FRANCHISE STATUTES OR LANDLORD-TENANT EVICTION STATUTES MANDATE ANOTHER COURT AND EXCEPT AS OTHERWISE
PROVIDED BELOW. WE AND YOU (AND YOUR OWNERS) IRREVOCABLY CONSENT TO AND ACCEPT THE PERSONAL AND SUBJECT MATTER JURISDICTIONS OF THE COURTS OF THE STATE OF UTAH AND THE FEDERAL COURTS LOCATED IN SALT
LAKE COUNTY, UTAH FOR THESE CLAIMS, CONTROVERSIES AND DISPUTES AND WAIVE ANY OBJECTION TO THOSE JURISDICTIONS. WE AND YOU (AND YOUR OWNERS) CONSENT TO VENUE IN SALT LAKE COUNTY, UTAH AND WAIVE ANY
OBJECTION TO THAT VENUE. WE AND YOU (AND YOUR OWNERS) COVENANT THAT, EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, NO LITIGATION INVOLVING US AND YOU WILL EVER BE COMMENCED IN ANY COURT OTHER THAN A
COURT IN SALT LAKE COUNTY, UTAH. NOTWITHSTANDING THE FOREGOING, WE CAN (1) IN A PROPER CASE, SEEK TEMPORARY RESTRAINING ORDERS AND TEMPORARY OR PRELIMINARY INJUNCTIVE RELIEF FROM ANY COURT,
WHEREVER LOCATED, HAVING COMPETENT JURISDICTION, (2) ENFORCE JUDGMENTS OBTAINED IN THE COURTS IN SALT LAKE COUNTY, UTAH IN THE COURTS OF THE STATE(S) WHERE YOU ARE DOMICILED AND/OR THE FACILITY
IS LOCATED AND (3) SEEK TO ENFORCE THE

 
PROVISIONS OF THIS AGREEMENT WHICH RELATE TO RESTRICTIONS ON YOUR (AND YOUR OWNERS') COMPETITIVE ACTIVITIES IN THE COURTS OF THE STATE(S) WHERE YOU ARE DOMICILED, THE FACILITY IS LOCATED AND/OR THE
COMPETITIVE ACTIVITIES ARE OCCURRING.

        YOU AND EACH OF YOUR OWNERS AGREE THAT SERVICE OF PROCESS MAY BE MADE ON ANY OF YOU IN ANY PROCEEDING BY SERVING YOU AND YOUR OWNERS AT THE LOCATIONS AND IN THE
MANNER SPECIFIED IN SECTION 17 BELOW OR OTHERWISE AS ALLOWED BY LAW.

        I.    WAIVER OF PUNITIVE DAMAGES AND JURY TRIAL.    

        EXCEPT FOR YOUR OBLIGATION TO INDEMNIFY US UNDER SECTION 15.D. AND CLAIMS WE BRING AGAINST YOU FOR YOUR UNAUTHORIZED USE OF THE MARKS OR UNAUTHORIZED USE OR
DISCLOSURE OF ANY CONFIDENTIAL INFORMATION, WE AND YOU AND YOUR RESPECTIVE OWNERS WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM FOR ANY PUNITIVE OR EXEMPLARY DAMAGES AGAINST THE
OTHER AND AGREE THAT, IN THE EVENT OF A DISPUTE BETWEEN US AND YOU, THE PARTY MAKING A CLAIM WILL BE LIMITED TO EQUITABLE RELIEF AND TO RECOVERY OF ANY ACTUAL DAMAGES IT
SUSTAINS.

        WE AND YOU IRREVOCABLY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR IN EQUITY, BROUGHT BY EITHER OF
US.

        J.    BINDING EFFECT.    

        This
Agreement is binding upon us and you and our respective executors, administrators, heirs, beneficiaries, assigns and successors in interest and may not be modified except by a
written agreement signed by you and two (2) of the following officers: our Chairman of the Board, President, Principal Financial Officer and/or Principal Franchise Officer. 

        K.    LIMITATIONS OF CLAIMS.    

        Except
for claims arising from your non-payment or underpayment of amounts you owe us under this Agreement or otherwise, any and all claims arising out of or relating to this
Agreement or our relationship with you will be barred unless a judicial proceeding is commenced within eighteen (18) months from the date on which the party asserting the claim knew or should
have known of the facts giving rise to the claims. 

        L.    CONSTRUCTION.    

        The
preambles and appendices are a part of this Agreement which, together with any riders, addenda and exhibits, the Operations Manual and our other written policies, the Lease, the
Equipment Order (if any), the Agreement for Purchase and Sale of Assets (if any), the Turn-Key Asset Purchase Agreement (if any), the Principal's Agreement (if any), the Collateral
Assignment of Lease (if any) and the Lease Rider and Modification (if any), constitutes our and your entire agreement, and there are no other oral or written understandings or agreements between us
and you relating to the subject matter of these agreements. Our Franchise Offering Circular is not deemed to be a part of this Agreement. Nothing in this Agreement is intended, nor is deemed, to
confer any rights or remedies upon any person or legal entity not a party to this Agreement. 

        Except
where this Agreement expressly obligates us reasonably to approve or not unreasonably to withhold our approval of any of your actions or requests, we have the absolute right to
refuse any request you make or to withhold our approval of any of your proposed, initiated or completed actions that require our approval.

 

        The
headings of the several sections and paragraphs are for convenience only and do not define, limit or construe the contents of the sections or paragraphs. 

        References
in this Agreement to "we," "us" and "our," with respect to all of our rights and all of your obligations to us under this Agreement, will be deemed to include any of our
affiliates with whom you deal. The term "affiliate," as used with you or us, means any person or entity directly or indirectly owned or controlled by, under common control with or owning or
controlling you or us. For purposes of this definition, "control" means the power to direct or cause the direction of management and policies. 

        If
two or more persons are at any time the Licensee under this Agreement, whether as partners or joint venturers, their obligations and liabilities to us will be joint and several.
References to "owner" mean any person holding a direct or indirect, legal or beneficial ownership interest or voting rights in you (or a transferee of this Agreement and the FACILITY or an interest in
you), including, without limitation, any person who has a direct or indirect interest in you (or a transferee), this Agreement, the License or the FACILITY and any person who has any other legal or
equitable interest, or the power to vest in himself or herself any legal or equitable interest, in their revenue, profits, rights or assets. References to a "controlling interest" in you mean the
percent of your voting shares or other voting rights resulting from dividing one hundred percent (100%) of the ownership interests by the number of your owners immediately prior to or after the time
the determination must be made. "Person" means any natural person, corporation, limited liability company, general or limited partnership, unincorporated association, cooperative or other legal or
functional entity. 

        The
term "FACILITY" includes all of the assets of the Cookie System Facility you operate under this Agreement, including its revenue and income and the Lease. 

        This
Agreement may be executed in multiple copies, each of which will be deemed an original. 

17.    NOTICES AND PAYMENTS.    

        (a)   All
notices, reports and payments permitted or required to be delivered to us by the provisions of this Agreement or the Operations Manual, in order to be effective,
must be in writing and delivered by United States certified or registered mail, postage prepaid, or by independent private delivery service (such as Federal Express, Airborne or UPS) to us at the
address identified on the first page of this Agreement or any other address of which we have notified you. 

        (b)   If
any notice is given to you, it may be given or sent to you or your Managing Owner at the address identified on the first page of this Agreement, the FACILITY's
address (if different) or any other address of which you have notified us. 

        (c)   If
any notice is given or sent to one of your owners, it may be given to that owner at the address identified on the first page of this Agreement, the FACILITY's address
(if different) or any other address of which the owner has notified us. 

        (d)   Properly
given or sent notices will be deemed delivered on the earlier of the date it is actually received at an address or by a person described in subparagraphs
(a) through (c) above or seven (7) days after it is sent. 

        (e)   Notice
given either to you or any owner in the manner provided in subparagraphs (b) and (c) above will be deemed effective notice to you and all owners.

 

        IN WITNESS WHEREOF, the parties have executed and delivered this Agreement on the date stated on the first page. 

	GREAT AMERICAN COOKIE

COMPANY FRANCHISING, LLC	 	MRS. FIELDS' ORIGINAL

COOKIES, INC.
	

 	

 	
 	

 	

 
	/s/  SANDRA BUFFA      
	 	/s/  MICHAEL WARD      

	By:	Sandra Buffa
	 	By:	Michael Ward

	Its:	Sr. Vice President
	 	Its:	Sr. Vice President

	
DATED:	

March 16, 2004
	
 	
DATED:	

March 16, 2004

 

STORE LOCATION SCHEDULE 

Franchise Agreement—Store Location dated March 16, 2004

	Company
	 	Store
	 	# Concept
	 	Name
	 	Address
	 	
	 	City
	 	State
	 	zip
	 	Phone
	 	Open Date

	97	 	3414	 	GAC	 	Discover Mills	 	5900 Sugerloaf Parkway	 	Suite 428	 	Lawrenceville	 	GA	 	30043	 	(678) 847-5360	 	11/2/2001
	97	 	4120	 	GAC	 	Orange Park Mall	 	1910 Wells Road	 	 	 	Orange Park	 	FL	 	32073	 	(904) 264-7664	 	3/7/1984
	97	 	4225	 	GAC	 	Mid Rivers Mall	 	2048 Mid Rivers Mall	 	 	 	St Peters	 	MO	 	63376	 	(636) 279-2410	 	10/14/1987
	97	 	4256	 	GAC	 	Towne Mall	 	3461 Towne Boulevard	 	 	 	Carlisle	 	OH	 	45005	 	(513) 422-0147	 	3/8/1988
	97	 	6102	 	GAC	 	Greenbriar Mall	 	2841 Greenbriar Pkwy	 	SW Space N-426	 	Atlanta	 	GA	 	30331	 	(404) 349-6626	 	9/1 /1977
	97	 	5103	 	GAC	 	Southlake Mall	 	1-75 & G a 54	 	 	 	Morrow	 	GA	 	30260	 	(770) 961-8444	 	4/1/1978
	97	 	5110	 	GAC	 	Shannon Mall	 	Highway 138 & 1-85	 	Space 729	 	Union City	 	GA	 	30291	 	(770) 969-1144	 	9/1 /1980
	97	 	5116	 	GAC	 	South Dekalb Mall	 	2801 Candler Road	 	 	 	Decatur	 	GA	 	30034	 	(404) 243-9279	 	7/17/1982
	97	 	5143	 	GAC	 	Northpark Mall (Mo)	 	201 Rangeline	 	 	 	Joplin	 	MO	 	64801	 	(417) 624-2447	 	9/15/1984
	97	 	5147	 	GAC	 	Sooner Fashn Mall	 	3515 West Main	 	 	 	Norman	 	OK	 	73072	 	(405) 360-3737	 	8/4/1984
	97	 	5152	 	GAC	 	Market Place	 	2000 North Mall	 	Space B-9	 	Champaign	 	IL	 	61820	 	(217) 351-1555	 	5/7/1987
	97	 	5179	 	GAC	 	Towne Square Mall	 	5000 Frederica St	 	Space #22	 	Owensboro	 	KY	 	42301	 	(270) 685-0225	 	12/15/1988
	97	 	5205	 	GAC	 	McCain Mall	 	3929 Mccain Blvd	 	Space F6	 	North Little Rock	 	AR	 	72116	 	(501) 758-5511	 	12/4/1989
	97	 	5208	 	GAC	 	Findlay Village	 	1800 Tiffin Avenue	 	 	 	Findlay	 	O H	 	45840	 	(419) 422-3333	 	11/29/1990
	97	 	5231	 	GAC	 	Towne East Square	 	7700 East Kellogg	 	Space Q-01A	 	Wichita	 	KS	 	67207	 	(316) 686-9403	 	6/18/1993
	97	 	5235	 	GAC	 	Northpoint Mall I	 	1000 Northpoint Circ	 	Lower Suite 1128	 	Alpharetta	 	GA	 	30022	 	(770) 751-1286	 	10/20/1993
	97	 	5251	 	GAC	 	River Ridge Mall	 	3405 Candlers Mnt Rd	 	Space K-380	 	Lynchburg	 	VA	 	24502	 	(434) 239-0974	 	12/23/1994
	97	 	5256	 	GAC	 	Galleria At Centervi	 	2922 Watson Blvd	 	Space 845	 	Centerville	 	GA	 	31028	 	(478) 953-9771	 	3/11/2002
	97	 	5265	 	GAC	 	Regency Sq (Va)	 	1420 Parham Road	 	Space F-19	 	Richmond	 	VA	 	23229	 	(804) 741-7828	 	9/26/1995
	97	 	5275	 	GAC	 	Midland Park Mall	 	4511 N Midkiff	 	Space C-29	 	Midland	 	TX	 	79705	 	(432) 689-8000	 	3/20/1996
	97	 	5283	 	GAC	 	Lakeland Sqr Mall	 	3800 US Hghwy 98N	 	Room 728	 	Lakeland	 	FL	 	33809	 	(863) 858-1264	 	10/26/1994
	97	 	5290	 	GAC	 	Acadiana Mall	 	5725 Johnston St	 	 	 	Lafayette	 	LA	 	70503	 	(337) 981-5713	 	4/1/1979
	97	 	5292	 	GAC	 	Cordova Mall	 	5100 N 9th Ave	 	 	 	Pensacola	 	FL	 	32504	 	(850) 478-2200	 	3/5/1986
	97	 	5293	 	GAC	 	Cortana Mall	 	9827 Cortana Place	 	 	 	Baton Rouge	 	LA	 	70815	 	(225) 928-0848	 	11/18/1982
	97	 	5300	 	GAC	 	Oakwood Center-La	 	Westbank Expwy &	 	Whitney Ave	 	Gretna	 	LA	 	70053	 	(504) 368-2344	 	8/3/1983
	97	 	5301	 	GAC	 	Panama City Mall	 	2188 Martin Luther King Blvd	 	 	 	Panama City	 	FL	 	32405	 	(850) 763-9981	 	12/5/1979
	97	 	5309	 	GAC	 	Padre Staples Mall	 	5844 S Padre Island Dr	 	#2080	 	Corpus Christi	 	TX	 	78411	 	(361) 991-6699	 	2/28/1997
	97	 	5316	 	GAC	 	Prien Lake Mall I	 	Prien Lake Road &	 	Ernest St.	 	Lake Charles	 	LA	 	70601	 	(337) 478-2447	 	10/7/1982
	97	 	5323	 	GAC	 	Crossroads Mall	 	Crossroads Mall (Ok) #2128	 	7000 Crossroads Blvd	 	Oklahoma City	 	OK	 	73149	 	(405) 631-6858	 	12/1/1981
	97	 	5325	 	GAC	 	Northpark Mall (la)	 	320 North Kimberly D	 	 	 	Davenport	 	IA	 	52806	 	(563) 386-9525	 	8/5/1981
	97	 	5329	 	GAC	 	Westgate Mall Tx	 	7701 1-40 West	 	Space 124	 	Amarillo	 	TX	 	79120	 	(806) 358-7388	 	10,6/1982
	97	 	5331	 	GAC	 	Prien Lake Mall Ii	 	496 West Prien	 	Lake Road	 	Lake Charles	 	LA	 	70601	 	(337) 474-6671	 	9/9/1990
	97	 	5332	 	GAC	 	Ashville Mall (Nc)	 	3 South Tunnel Road	 	 	 	Asheville	 	NC	 	28802	 	(828) 298-2849	 	9/1/1998
	97	 	5334	 	GAC	 	Citadel Mall (Sc)	 	2070 Sam Rittenburg	 	Blvd	 	Charleston	 	SC	 	29407	 	(843) 556-2387	 	9/1/1998
	97	 	5338	 	GAC	 	Haywood Mall	 	700 Haywood Road	 	 	 	Greenville	 	SC	 	29607	 	(864) 234-5559	 	9/1/1998
	97	 	5342	 	GAC	 	Northwoods Mall	 	2150 Northwoods Blvd	 	 	 	North Charleston	 	SC	 	29418	 	(843) 824-8600	 	9/1/1998
	97	 	5343	 	GAC	 	Westgate Mall	 	205 Blackstock Road	 	 	 	Spartanburg	 	SC	 	29301	 	(864) 574-6940	 	9/1/1998
	97	 	5348	 	GAC	 	Park Plaza Mall	 	6000 West Markham St	 	 	 	Little Rock	 	AR	 	72205	 	(501) 663-7726	 	2/21/2000
	97	 	5350	 	GAC	 	Oglethorpe Mall	 	7804 Abercorn Extension	 	 	 	Savannah	 	GA	 	31406	 	(912) 354-7591	 	12/7/2000
	97	 	5352	 	GAC	 	Gurnee Mills I	 	6170 West Grand Avenue	 	Space 700	 	Gurnee	 	IL	 	60031	 	(847) 855-0066	 	12/16/2000
	97	 	5353	 	GAC	 	Gurnee Mills 11	 	6170 West Grand Avenue	 	Space T205	 	Gurnee	 	IL	 	60031	 	(847) 855-0083	 	12/16/2000
	97	 	5903	 	GAC	 	Ohio Valley Mall	 	Ohio Valley Mall Drive	 	 	 	St Clairsville	 	OH	 	43950	 	(740) 695-5996	 	6/23/1999
	97	 	5906	 	GAC	 	Circle Centre	 	49 West Maryland Street	 	Suite 161	 	Indianapolis	 	IN	 	46204	 	(317) 636-3632	 	4/12/2002
	97	 	5907	 	GAC	 	Cottonwood Mall	 	10000 Coors Bypass NW	 	Space VC-01	 	Albuquerque	 	NM	 	87114	 	(505) 899-2428	 	4/1/2003
	97	 	5908	 	GAC	 	Yorktown Shopping Center	 	203 Yorktown	 	Space Fc-12A	 	Lombard	 	IL	 	60148	 	(630) 705-0083	 	11/11/2003
	97	 	15338	 	GAC	 	Haywood Mall Kiosk	 	700 Haywood Road	 	 	 	Greenville	 	SC	 	29607	 	(864) 234-5555	 	9/1/1998

 

APPENDIX A

	Mrs. Fields Holding Company, Inc.	 	100	%	 	 

 

APPENDIX B  

N/A

QuickLinks

Exhibit 10.28

GREAT AMERICAN COOKIE COMPANY FRANCHISING, LLC LICENSE AGREEMENT

TABLE OF CONTENTS

GREAT AMERICAN COOKIE COMPANY FRANCHISING, LLC LICENSE AGREEMENT

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