FRIENDLY’S RESTAURANTS FRANCHISING CO

Item 11

Utilizing our communication network as it is from time to time configured, we will have independent access to and will collect information and data from your computer system.

Franchise agreement

You will furnish us the following reports to us, in the form we prescribe: (1) By the tenth (10th) day of each calendar month for the preceding Fiscal Month, a report of the Net Sales of the Restaurant, other revenues generated at the Restaurant/Store and other information we request.

Item 11

We currently sponsor the Friendly’s Franchise Advisory Council (“FAC”).

Item 8

We reserve the right, in our sole discretion, from time to time, to change standards and requirements for products, suppliers or distributors, and/or to modify the number of authorized suppliers of approved products.

Item 8

During most recent fiscal year, December 30, 2024 to December 28, 2025, we derived no revenue or other material consideration as a result of franchisee purchases or leases.

Item 8

During the same period, our parent, Friendly’s Restaurants Group, LLC, derived $1,001,636 from supplier rebates and other payments based on franchisee and licensee purchases as reflected on our current audited financials.

Item 8

Our evaluation of prospective suppliers and/or distributors is conditioned upon your payment of our reasonable evaluation costs of their products and/or services.

Item 8

Except for our proprietary products, approved computer system and gift card program, you may request our approval of alternative suppliers or distributors.

Franchise agreement

Upon our written demand upon any termination, expiration or non-renewal of the License, you must assign to us any telephone number used in the operation of the Restaurant.

Franchise agreement

All of your POS System, Computer System, and any other card payment systems must be compliant with all applicable laws, codes, regulations, and commonly accepted industry standards, including without limitation those laws, regulations, and commonly accepted industry standards relating to privacy, data security, and…

Franchise agreement

You agree to cooperate and assist us by participating in our customer surveys and market research programs, test marketing new food products and services in the Restaurant/Store and providing us with timely reports and other relevant information regarding such customer surveys and market research.

Franchise agreement

A representative of the Franchisor may make visits to the Restaurant/Store to ensure compliance with all required standards, specifications and procedures.

Franchise agreement

We will from time to time modify the Operations Manual to reflect changes in the Standards for Friendly’s Restaurants and Friendly’s Stores, and you will comply with all new mandatory Standards within a reasonable time after we specify or, if no time is specified, within 30 days after receiving notice of the…

Item 11

We must approve the location of each Restaurant and Store and our then current standards for sites will apply.

Item 11

You may not create websites, social media accounts, e-mail marketing software accounts or other comparable accounts outside of those which we license to you.

Franchise agreement

you must plan, coordinate and execute a “grand opening” promotional campaign at your sole cost and expense of no less than $10,000 for a Friendly’s Restaurant or no less than $5,000 for a Friendly’s Store.

Item 11

In addition to your payments to the Marketing Fund, you must also spend 1.0% of the Net Sales of the franchise location annually for local advertising and promotion.

Item 8

Franchisees are not required to purchase products and services from us, but certain proprietary products must be purchased from our designated distributor, US Foods, Inc.

Item 8

In some cases, you must purchase specific equipment and products only from our designated suppliers.

Item 8

You are required to use the credit card processing service we approve.

Item 6

ITEM 6 - OTHER FEES FRANCHISE AGREEMENT TYPE OF FEE 1 AMOUNT DUE DATE REMARKS Royalty 2,3 6.0% of Net Sales for Weekly, by electronic funds If you are one of the first five Restaurants transfer (“ACH”) or other to sign a Franchise Agreement method we approve for a Friendly’s Restaurant, the Royalty Fee will be (i)…

Item 8

You must purchase gift cards and related services only through the third-party vendor that we designate (currently Paytronix).

Franchise agreement

For the operation of a Friendly’s Restaurant: You will at all times (i) employ a General Manager with significant restaurant management experience who will have principal operational responsibility for the Restaurant, and who will have satisfactorily completed our training program; and (ii) employ on a full-time…

Item 8

Franchisees are required to use only those food products, supplies, equipment, technology system, ingredients, seasonings, mixes, beverages, materials and supplies used in the preparation of products, menus, paper, glassware, china and plastic products, packaging or other materials, utensils and uniforms that meet…

Item 8

You must purchase the POS computer system from our approved third-party vendor.

Item 11

We will have the right to independently access all information and financial data recorded by the system for daily polling, audit and sales verification.

Item 11

We will generally charge you a fee to recover our costs for such training.

Franchise agreement

We may require you or your Restaurant/Store managers to attend Friendly’s franchise conferences which may be offered by us from time to time, at our sole discretion;