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Home My WebLink About98-00408 . .. DQMOE, INC" Plaintiff v, IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO, 98-408 Equity C. DAVID SPEALMAN and LOUISE M, SPEALMAN, Defendants CIVIL ACTION - IN EQUITY SOGGESTION OF STAY TO THE PROTHONOTARY: All proceedings concerning the above-referenced action should be stayed pursuant to the filing of a Petition under Chapter 13 of the United States Bankruptcy Code, A copy of such Petition is attached. The Notice is entered for the limited purpose of providing notice of the pending Chapter 13 case and is not intended to be an entry of appearance by the undersigned. Respectfully submitted, CUNNINGHAM & CHERNICOFF, P.C. ~w. tJ,'~ Robert E. Chernicoff, Es Marc W. Witzig, Esquire 2320 North Second Street P. O. Box 60457 Harrisburg, PA 17106-0457 (717) 238-6570 By: J.re Attorneys for David and Louise Spealman Date: February 5 , 1998 ~ .. '~....' ....,...:'. t'."' ~ . t I I 1,\1 I', !\ I f.-, 1.: I i ~ )/, ~t! I .... i l .",,1 (") .0 ~ c: Q) -~ :~ 'TJ ;-gO} I'T1 ::::I ~~H O:l Hii 1-. I 'U .;;~.<;; en e5 ~o ~8 -0 ~..., ::.: '-i!:l .:;.:1 :<> ('- 'f:l Cirri ~ c:- ~ C~ ~ ,<JRMBl (1m.) . FORM 1. VOLUNTARY PETITION - United States Bankruptcy Court VOLUNTARY MIDDLE District of PENNSYLVANIA PETITION IN RE (Name 0' deblor . If Individual, enl., Lut. First. Mlddle) NAME OF JOINT DEBTOR (Spou..)(L.u~ Flrs~ Mlddl.) SPEALMAN. C. DAVID ALL OTHER NAMES uM<! by Ill. d.blor In tho lul8 Y"" ALL OTHER NAMES used bV the Joint debtor In lhe lasl 6 )'8811 Iln~lud. man1ed. malden. and trade names) (Include matrfed, melden, and trade name,) a/k!a CARL DAVID SPEALMAN soc.see.ITAX 1.0. NO. (If mOl. than one, stale all) SOC.SEe.ITAX 1.0. NO. (II mOl. than on8, stal.all) 164-28-0589 23-1676309 STREET ADDRESS OF DEBTOR (No. and 1I1t..~ city, ...... and zip cod.) STHEET ADDRESS OF JOINT DEBTOR (No, and 1I1t..~ cily, .Iat., and zip COd.) 158 KLINE ROAD SHIPPENSBURG, PA 17257 COUNTY OF rlSIOENCe o~ COUNTY OF RES~ENCE o~ PRINCIPAL P CE OF BUSI ESS PRINCIPAL PLAC OF BUSI ESS CUMBERLAND MAILING ADDRESS OF DEBTOR MAILING ADDRESS OF JOINT DEBTOR (II different trom street addresa) (If different tram .treet address) LOCATION OF PRINCIPAL ASSETS OF BUSINESS DEBTOR V NU heck one box) (II different Irom addreue.lIsted above) (ilt'1Jeblol has been domiciled at has had. I.sldence, princlpaJ place or business. or principal assets In this Districllor 180 days Immltdlately preceding the dale 01 this petillon or for a longer part of such t80 days than In any other DiSlrlct. o There Is a banktuptcy CMe concerning debtor's affiliate. generaJ partner. or partnership pending In this District. INFORMATION REGARDING OEarOR (Check applicable boxes) TYPE OF DEBTOR (Ch.ck on. box) CHAPTER OR SECTION OF BANKRUPTCY CODE UNDER WHICH THE PETITION IS FILED (Check one box) lIl"lndlvlduaJ o Corporallon Publicly H.ld Cl Chapler 7 o Chapter 11 IP' Chapter 13 o Joint (Husband and Wife) o Corporation Not Publicly H.ld D Chaptl" 9 o Chapter 12 o Sec. 304 .. Cass Ancillary to o Partn.rshlp o MunlclpaJily SMALL BUSINESS (Chapl.' 11 only) Foreign Proceeding o Other o Debtor Ia a small business as defined In U.S.C. , 101 o Deblor Is and elects 10 be conslder&d a small business under 11 U.S.C. it 121(e) NATURE OF DEBT (ChlOCk on. box) FILING FEE (Check one box) (Optional) o Non.BuslneS5/Consumer BtSuliness .. Complete A & B below i)1=iIIng 'ee attached A. TYPE OF BUSINESS (Chock one box) o Filing fee to be paid In Installments. (Applicable to IndMduals only.) Must attach signed application for the court's consideration certifying that the debtor Is o Farming o Transportallon o Commodity Broker unable to' Day f.. exceot In installments.. Rule 1006(bt See Official Form No.3. o Professional o Manufe<:turing/ o Conll1tuc1lon NAME AND ADDRESS OF LAW FIRM OR ATTORNEY lIl"R.IaIWfl1olesaJ. Mining o RoeJ Estal. CUNNINGHAM & CHERNICOFF o Ralltoed o StockblOket o Other BUllnesa 2320 NORTH SECOND STREET B. BRIEFLY DESCRIBE NATURE OF BUSINESS HARRISBURG, PA 17110 RESTAURANT BUSINESSES Telephone No. (717) 238-6570 NAME(S) OF ATTORNEY(S) DESIGNATED TO REPRESENT DEBTOR ROBERT E. CHERNICOFF, ESQUIRE 23380 STATISTICAlJADMINISTRATlVe INFORMATION (28 U,S.CA! 80<) o LJootor IS n~,,-repr.semea DY an arlorney. olepnone NO. 01 ueOlor nOI (Estimates only)(Chsck applicable boxes) repr8'Sented by an attorney: ""..~-_.~~.~~-_.__. "f. >>8~"~'(j'"m""~5 OOebIO' ..timal..lhat, all" any .x.mpt property is excluded and admlnlsltaliv. .xpen... paid, "'Iirill' 0 2 0 no funds available for dlstributfon to unsecured creditors. _ ESTIMATED NUMBER OF CREDITORS 1..1~ 1lW9 50-99 100.199 200-999 1000.0ver 0 III" 0 0 0 0 ;:...,,.........--. ESTIMATED ASSETS (In thousands of dollars) , , --, ... ." r-'f~~ -. . . ''--,' Under SO SQ.99 100-<99 500-999 1000.9999 10.000.99.999 tOO.O(}(k)ver :" " ._ n,. . ... '.'-. ~, . 0 0 0 lIl" 0 0 0 ' , .. " "'- ......., ,." ....\ - , ' '. __. ~().p.. ' ESTIMATED LIABILITIES (In thousands 01 dOllars) .(5) Under SO SQ.99 100-<99 500-999 100().9999 10,OQO.99,999 tOO.OQO.over - . ..... 0 0 0 lIl" 0 0 0 , EST. NO. OF EMPLOYEES.. CH. 11 & 12 ONLY '.. ':CCl 0 1.19 2().99 1()().999 1DOO-over - '.',., 0 0 0 0 0 EST, NO, OF EOUITY SECURITY HOLDERS. CH. 11 & 12 ONLY ... .!c:.- , 0 1.19 2().99 100-<99 SOO-over .._ r';"4"'t""t . . 0 0 0 0 0 ~:":.i .," ." = 1995 WEST PUBLISHING COMPANY ~ SPEALMAN. C. DAVID . Name 01 Deblor C....No. FORM 81. ConL (121V41 FILING OF PLAN FotCh.pl" 0,11.12. and 13 c.... Dnry. Check appropriale bo.. , CJ A copy 01 deblors proposed plan daled (It Clblor intend. to nil. plan within the time allowed by ,laM.. rule I. .nached. or ord., of the court. PRIOR BANKRUPTCV CASe FILED WITHIN LAST II YEARS Itf mot. than onl, attach addIUonallh..l) Locdon Whar. Flied cu. Number Oala Filed PENCING BANKllUPTCV CASE FILED BV A~ SPOUSE, PARTNER. OR AFFILIATE OF THE DEBTOR (n mo,o!han ono, IlI4ch addltlonal.hHI) Name of Debtor CUe Number 0&10 Rolalionshlp OiItrict Judge REOUEST FOR REUEF QebIor I, eligible for and requests "II., In accordance with the chapter 01 dUe 11. Untted StItes Cod, Annotated specified In this petition. "..., ../VI , SIGNATURES ~/ /,AIP // ATTORNEY /-/Lf-9? X Slgnatur. e./ Ir:- Dale INDIVICUAlJJOl1IT DEBTOR(S) I / CORPORATE OR PARTNERSHIP DEBTOR . declare under penalty of perfury that thalnrormatJon provided in this petition Is I doclate under penalty or perjury that the Inlormation provided In this potitlon true and correct. is true and correct and that I have bHn authorized Co file this petition on behalf x(,D~~ of the debtor, X Signature 01 Debtor Signature 01 AuthorizMl IndividuaJ DaIa IkJtj~ Pr1nl or Type Name or Author1zed IndividuaJ X Signature or Joint Deblor nUe ollndividuaJ Authorized by Debtor to File this Petition DaIa Dato tI debtor Is . corporation filing under chapler 11. exhibit -A-Is attached and made pan or this petttlon. TO BE COMPlETED BV INCIVIDUAl CHAPTER 7 DEBTOR IVITH PRIMARILY CONSUMER CEBTS CERTIFICATION AND SIGNATURE OF NON.ATTORtlEY (SMP.L.Il&<l5:I'322) BANKllUPTCY PETlTION PREPARER (SM II U,S,C,' ItO) l.m SWatl that I may proceed under chapter 7. 11, or 12. or 13 ortitfa11, United Slales Coda I cert!fy thai I am a bankruptcy ~n prepat., as defined In 11 Annotated, understand the'rellef aVaJlable under each such chapler, and ChOOM to procood under U.S.C. f 110, thall/repated th s document 'or compensation and chaptet 7 or such title, that I have provide the debtor with . copy of thIs document' I. am represenled by an attorney. exhibit B has been completed, Printed or Typed Name ot Bankruptcy Pelitlon Prep.,er Socllll Security Number X Signature or Debtor Date X Addr..., Tel. No.: SIgnature at Joint Oebtor Dato Names and Social Security numbera 01 all other IndMduala who prepated or asslsted In preparing thbi document EXHIBIT 'B" (To be complelad by anomey for Individual chapter 7 deblor(.) wIth primarily consumer debts.) I. the attorney for the debtor(s) named in the loregoing petition, declare thAI I have Informed the II more than one person prepared this document. attach additional debD'(.) that (he.~e, orthltY) may proceed underchapter7,11, 12. or 13 at titJe 11. Uniled States signed ,heets conlormlng to the appropriate ornclal Form ror each CocM Annotated, and havo explained tho rellor available under such chapter, person. X X Slgnalure 01 Bankruplcy Petition Prep...er Signature 01 Attorney Date A bankruplcy petition prep&1er's 'a1lur. 10 comply with the provition3 of tide t1 and the Federal Rules 01 Bankt\lptcy Procedwe mav resull In fine. or imprisonmenl or both. 11 U.S.C. 1110: 18 U,S.C. 1 1S5. C 1_ WEST PUBLISHING COMPA~ : , .~ I I, ' '\ ; ~ II IJ I:" I I, i I.,. i I , , 11 ("-1 , J I , ! ) I ' ! r, I , \ , I I \ j I ,I ': .' " 'I " , , il~ ,',"" , \ \ . (") \D !?t E co ..., :::l [Bffi (Tl fh~ co Z::-n I ;..::r- -rJ~ :u C'l..t:; 0'\ 0 r.;G .." :t!~. (:l:B i:n ~l:: -.n ;SQ ~.rn ;. . t:? ~ k.: ~, ~? c- .... co> -< , , " '. ,) Q MOE, INC., IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 98- '1)/ EQUITY TERM CIVIL ACTION - EQUITY Plaintiff vs. . DAVID SPEALMAN and OUISE M. SPEALMAN, Defendants NOT ICE You have been sued in court. If you wish to defend against he claims set forth in the following pages, you must take action ithin twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by ttorney and filing in writing with a court your defenses or objections to the claims set forth against you. You are warned hat if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland county Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 MAN & SPARE, P.C. By torneys for PlaJ.ntJ.ff LAW OFFICt9 SNELDAKER. BReNNI:MAN 8: SPARE .1 " , \: Q MOE, INC., plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 98- "i')( EQUITY TERM I I, \ I' ,/, .~ , , ',' ) i" , , :~ vs. . DAVID SPEALMAN and OUISE M. SPEALMAN, Defendants CIVIL ACTION - EQUITY " COMPLAINT AND NOW, comes the plaintiff, DQ MOE, INC., by its ,~ I ttorneys, SNELBAKER, BRENNEMAN & SPARE, P.C., and avers the following cause of action in equity: 1. The plaintiff herein is DQ MOE, INC., a business corporation organized and existing under the laws of the commonwealth of Pennsylvania, having its principal office at 184 '} , Golf Lane, Grantville, Pennsylvania, and a principal place of ~ r, I ; I I I I business at 607 East simpson street, Mechanicsburg, Cumberland county, Pennsylvania. I \ 2. The Defendants herein are C. DAVID SPEALMAN and LOUISE i ,I M. SPEALMAN, adult individuals, husband and wife, who reside at 158 Kline Road, Shippensburg, Cumberland County, pennsylvania. 3. On or about March 1, 1974, Lucian and Helen Dmochowski as Licensors entered into a certain "Dairy Queen" operating Agreement with C. David and Shirley M. spealman as Licensees, for the franchise operation of a Dairy Queen store at 920 south Main LAW OFFIces SNELBAKEn. BRENNEMAN 8: SPARf! street in Chambersburg, Franklin county, pennsylvania (hereinafter called "Chambersburg store"), a true and correct copy of said Agreement being attached hereto marked "Exhibit A" , - . and incorporated herein by reference thereto (hereinafter called "Chambersburg Agreement"). 4. On or about April 21, 1975, Lucian and Helen Dmochowski as Licensors entered into a "Dairy Queen" Operating Agreement with Bert (also known as Elbert) H. and Nancy Anne Thornton as Licensees for the franchise operation of a Dairy Queen Store at 3890 Jonestown Road, Harrisburg, in Susquehanna Township, Dauphin County, PennsYlvania, (hereinafter called "Harrisburg Store"), a true and correct copy of said Agreement being attached hereto arked "Exhibit B" and incorporated herein by reference thereto (hereinafter called "Harrisburg Agreement") . 5. By assignment dated April 14, 1989, the Thorntons aforesaid assigned the Harrisburg Agreement to Defendants. 6. By due and proper assignments, Licensors' rights in and nder the Chambersburg Agreement and Harrisburg Agreement and all f the franchise and territorial rights of Lucian and Helen mochowski became vested in Plaintiff. 7. On or about April 23, 1993, Plaintiff as Licensor into a "Dairy Queen" Operating Agreement with Defendants s Licensees for the franchise operation of a Dairy Queen Store Shippensburg Shopping Center, Walnut Bottom Road in hippensburg, Cumberland County, Pennsylvania (hereinafter called IShippensburg Store"), a true and correct copy of said Agreement r LAw OFFICES SNELBAKER. BRENNEMAN 8: SPARE eing attached hereto marked "Exhibit C" and incorporated herein Y reference thereto (hereinafter called "ShiPpensburg -2- \, " I , I i I i, 8. Beginning in 1994, Defendants began to violate the above mentioned operating Agreements in the manner set forth in notices sent to Defendants by Plaintiff dated February 13, 1995, true copies of said notices being attached hereto and incorporated herein by reference thereto marked as follows: "Exhibit 0" re Chambersburg store and Chambersburg Agreement "Exhibit E" re Harrisburg store and Harrisburg Agreement "Exhibit F" re Shippensburg store and Shippensburg Agreement 9. As a result of Defendants' violations aforesaid, Plaintiff caused a formal audit of Defendants' operations for the years 1991, 1992 and 1993 to be conducted by representatives of International Dairy Queen, Inc. 10. As a result of the findings of the aforesaid audit, Defendants admitted various violations of the Operating Agreements, and on or about May 3, 1995, the parties entered into a further agreement whereby Plaintiff granted Defendants forbearance of the cancellation and termination of the Operating Agreements upon Defendants' promises to comply with said Agreements, a true and correct copy of said agreement being attached hereto marked "Exhibit G" and incorporated herein by reference thereto. LAW OFFICES 5NELBAKER, BRENNEMAN 8: SPARE 11. Beginning on or about August 1996, Plaintiff noticed that Defendants' reported ice cream mix gallonage purchased was decreasing without explanation, thereby reducing the continuing license fees owing under the Operating Agreements. 12. On or about November 1, 1996, received information that Defendants were diluting and adulterating the ice cream mix used -3- , " LA~-I OFFiCeS SNELDAKER. BRENNEMAN 8: SPARE "' in their several stores, thereby reducing the continuing license fee under the Operating Agreements. 13. During the months of November, 1996, and March, April and May 1997, Plaintiff collected samples of ice cream produced at each of Defendants' stores and had the samples tested for content by an official laboratory designated by American Dairy Queen corporation (hereinafter called "Laboratory"). 14. The results of the tests mentioned in paragraph 13 revealed that the ice cream produced by Defendants was manufactured with diluted and adulterated ice cream mix. 15. As the result of the facts set forth in paragraphs 11, 12, 13 and 14 above, Plaintiff caused a formal audit of Defendants' operations for the years 1994, 1995 and 1996 to be conducted by representatives of Dairy Queen International, Inc. during the week beginning May 12, 1997. 16. As a result of the findings of the foregoing audits, Plaintiff's suspicion of Defendants' dilution and adulteration of ice cream mix was confirmed and ultimately admitted by Defendant c. David Spealman. 17. At the exit conference of said audit on or about May 16, 1997, Defendant c. David Spealman was specifically warned and admonished by Plaintiff to comply with all the provisions of the Operating Agreements. 18. On or about May 16, 1997, Plaintiff notified Defendants of various deficiencies and violations of the Operating Agreements, a true and correct copy of said notice being attached -4- hereto marked "Exhibit H" and incorporated herein by reference thereto. 19. On or about June 10, 1997, Defendants were notified of their various deficiencies and violations of the Operating Agreements by report of audit by American Dairy Queen Company, a copy of said report being attached hereto marked "Exhibit I" and incorporated herein by reference thereto, 20. During the months of June and July, Defendants (and at all times thereafter) persisted in violating the Operating Agreements in the manner set forth in "Exhibit J" as mentioned hereinbelow. 2l. On or about July l8, 1997, Plaintiff collected samples of ice cream from Defendant's stores and had them analyzed at Laboratory, the results of which indicated that Defendants continued or resumed the dilution and adulteration of the ice cream mix. 22. Because of Defendant's persistent violation of the Operating Agreements, Plaintiff issued a Notice of Default to Defendants on or about August 18, 1997, a copy thereof being attached hereto marked "Exhibit J" and incorporated herein by reference thereto. 23. As the result of Plaintiff's notice to Defendants LAW OFfiCES SNELDAKER. BRENNEMAN Be SPARE ("EXhibit J"), Defendants through Defendant C. David Spealman (with their attorney, Thomas J. Weber, Esquire) met voluntarily with representatives of Plaintiff on August 25, 1997, to avert the termination of the Operating Agreements as indicated in said -5- ''', I I I. i , notice. 24. In the meeting of August 25, 1997, Defendants agreed to (a) repair leaks in roof at the Harrisburg store, (b) actively market the sale of Shippensburg store and Chambersburg store, to be predicated on professional appraisals to determine realistic sale prices. 25. At said meeting of August 25, 1997, Defendant admitted to diluting and adulterating ice cream mix. 26. At said meeting of August 25, 1997, Plaintiff again warned Defendants to supply required periodic operations reports as requested many times, to replace the floor in the public area of the Harrisburg store, comply with all provisions of the operating Agreements and to desist from diluting and adulterating ice cream products. 27. As the result of Defendants' pleas and commitments made at the meeting of August 25, 1997, plaintiff agreed to allow Defendants the opportunity to improve their operations provided that they immediately and continuously performed their commitments aforesaid and comply with all the terms of the operating Agreements. 28. Defendants have failed to repair the roof at the Harrisburg store. 29. Defendants have failed to indicate any positive effort LAW OFFICl:S SNELBAKER. BRENNEMAN 8: SPARE to sell the Shippensburg store and Chambersburg store, including the failure to obtain professional appraisals. 30. As the result of a site inspection by plaintiff at the -6- \ , I, , , ,', /. '" ,. H ., :l.'l I} fi. ..l j u_ 1,\ i I I I l I ,I , I I' I , i i I I.' Chambersburg store on October 9, 1997, Defendants were using a cabinet ice cream machine with a temperature of 51 degrees fahrenheit. The maximum temperature of such machine is 38 degrees fahrenheit. 31. On October 5 and 6, 1997, Plaintiff collected samples of ice cream products at all of Defendants' stores and transmitted the samples to Laboratory for analysis. The results of such analysis indicate that Defendants continue to dilute and adulterate ice cream mix. 32. Since May 1997, Plaintiff has conducted Quality, Value, Service and Cleanliness ("QVSC") inspections of Defendants' stores and has found various and continuing deficiencies. said inspections were conducted in accordance with the pertinent revisions of the Operating Agreements and policies of American Dairy Queen Corporation. 33. Despite repeated notices of QVsc deficiencies, Defendants have failed and refused to remedy the deficiencies. 34. Defendants' persistent and continuing violations of the operating Agreements reflect adversely on the Dairy Queen image, generally, and on Plaintiff's regional franchise operation, in particular. 35. Defendants' adulteration of ice cream mix poses potential dietary risks to customers by purveying products not in LAW OFFICES SNELBAKER. BRENNEMAN Be SPARE accordance with required and published contents. 36. On or about November 25, 1997, Plaintiff delivered notice of cancellation and termination of the Operating -7- I I' !." ,';1 ) i " :B , I ~", ..l Ii i II ') I J I I I' , ii II i I 1 \ , i' : \: ! " , f' '1/1,._. ~ <: I~(? ~ i . j' .' Agreements to Defendants. A true and correct copy of said notice is attached hereto, marked "Exhibit K", and incorporated herein by reference thereto. 37. Defendants have failed and refused to comply with said notice of cancellation and termination. 38. Plaintiff has no adequate remedy at law. WHEREFORE, Plaintiff requests your Honorable Court A. To declare the Operating Agreements to be cancelled and terminated, and to declare the licenses thereunder to revert to and become the sole property of Plaintiff; B. To enjoin Defendants, preliminarily and then permanently, from further operations under the operating Agreements and as Dairy Queen stores and from using Dairy Queen trademarks; C. To require Defendants to comply with the sale of equipment and supplies pursuant to section 11 of the Operating Agreements; D. To order Defendants to pay the costs of this action and all costs, expenses and fees allowed by the LAW OFFICE:8 SNELBAKER. BRENNEMAN & SPARE -8- 1 ' \ . J I , ,I , " Operating Agreements and law; and E. To order and direct such other lawful relief as may be necessary to protect Plaintiff's rights. By BRENNEMAN & SPARE, P.C. C. Snelbaker 44 West Main street Mechanicsburg, PA 17055-0318 Attorneys for Plaintiff J -9- VERIFICATION I, Cheryl Dmochowski-Zeigler, hereby certify and verify that I am the President of DQ MOE, Inc., the Plaintiff in the foregoing Complaint; that I am authorized by Plaintiff to make this affidavit on its behalf; that as to those facts within my personal knowledge, I verify them to be true and correct; and that as to those facts supplied by information of others, I believe them to be true and correct. I understand that any false statements made herein are subject to the penalties of 18 Pa. C.S. S4904 relating to unsworn falsification to authorities. :/' ~' /' , /c: /. .~~ _ Cheryl Dmochowsk -Zeigler Dated: January 20, 1998 I 'I I, ~ ~ J I " l r J i , I I - CONTENTS _ i. \.. "';' FOREWORD OPERATING AGREEMENT _ 202 PADE Preambles and Recilals ',.,..".,"""""",.,',.,...".".,....,.".""."",. I ORANT OF LICENSE Licensor's Granl to Licensee I Acceplance by Llcensec ,........,...".....,......""....,......".............., I Term ...,",."..,..,.,.",..".""""", ~ ' , . . , , , , , , , , , . . . , , . , , , , . , , , . , , , , , " 2 TRADIlMARK STANDARDS AND REQUIREMENTS Oeneral Dec/aralions, Un/tormily and Qual/ly Conlrol ,..."...,.",......,."."",.,.. 2 Approved Adaplalions ....,.,..,.,....,',..,..,.,....,......"",..."...,..",.., 2 LIlIgalion ',.......,...,',.,.,.,',.,.,.,..""",.....".,...,.,...",..,....,." 3 FACILITY STANDARDS AND MAINTENANCE Slore Facl/ily ,..,...".,.,..,.."..".,....,...,..."......,.",.....,.,.,.".... 3 FUlure Allerallon ...".,.,.,......."....,"'"".........",............,.,..,.. 3 Maintenance .........,........,..."..."..."",.,..,..,., ..'..",..",..."".. 3 Relocalion ..,',.,."..,...,..,..."..,.,",.."..,..,.,.....".......,.".,."" 3 PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS AUlhorlzed ProduCI line ,..,........., 0\ . . , .. , . . . , . . . . . . . .. . , . , . . , , . . . . . , . , , . . , . . . 3 Approved Menu ...,",.,...,."....,..,',......,.....,..."....",.".........., 3 AUthorized Ingredienls, Formulas, Supplies, Preparalion ....,...".........,...,....,... 3 Serving and Promollon Ilems ',.,...,..,.,.,............,.,.........,...,......,... 4 Maintenance and Sanilalion .....,..,.....,....;..,.,....."........""........".. 4 Inspecllon and Recommendation .......,.......,.......,......,..,....,.,....,..,." 4 Operalional Aid by Licensor 4 Period or Opera lion ....,.....................................................,... 4 PERSONNEL AND SUPERVISION STANDARDS Ma?a.gement Syslem ..............,.............,......,..........,............,.. 4 Trammg ...,......".,..,.".........,......,..,.........",...,..........,...., 4 Smiling ........."......,...........,................".....,.,..,.....,.,..... S Internal Training Program ....................."....."..,.......,......."..".. S Allendance al Meelings ,.................,....................,..............,.... S ADVERTISING AND PROMOTION . Adverlising and Promolional Programs ....,......,..........,..................,.... S PARTICIPATION FEES, REPORTING AND FINANCIAL MANAGEMENT Franchise and License Fees ................,.,..................................... S Surcharge Melhod or Pre,ColleClion ......,......,............,.......,..........,... S Records and Reports .........,...........,....,.,................................ S Adverlising Conlribution .............,............,.,..,.................,........ 6 Financial Planning and Management ...,..,....."......,.".........,.....,........ 6 Payment ot Debls .......,............,.,."..............,.....................,. 6 Liabilily and Insurance ......,..............,.,.,.,..,.,...,...."..........,...... 6 Assignment and Transrer Fee ....,.,.,"',..............,......,........,....,..... 6 RighI or First Rerusal .................................,........,................. 7 CONTRACT VIOL....TlON Remedies ..............,........"..,........."................,.,............. 7 Breach ot COntracl ,..,...,..........,............................................ 7 Indemnity .....,........................,.,.,.........".....................,.. 7 Land or Building lease ...............,....,...,.....................,......,.,.., 7 TERMINATION RIGHTS Reversion ot Trademark Righls ..........,..........,.....,......................,. 7 Purchase Oplion . . . . . . . . . . . . . . , . . , . . . . . . . . . . . . . , . . . . . . . . . , . . , , . . . . . . . . . , . . , . . . . , . . 7 Non Compele . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . , . . . . . . , , . . . . . . . . , . . , , . . . . , . . . . . . . . . g GENERAL PROVISIONS .,...................,....".....,........,................. g SIGNATURES ............,..,.,.......,......"....,.............,..........,...... 8 APPENDIX "A" ......,.......,............."...,.........".....,.............,... 9 APPENDIX "B" .................................,.,.,......"...,.,....,...,...,... 10 , I , ~ .' , " " 4i EXHIBIT "A" I , ' t'] .. - FOREWORD - The "Dairy Queen"'" Operating Agreement you are about to re~d is both an opportunity and a pledge, It is an opportunity to combine your skills, ambition and resources with one of the world's largest and most successful food service franchise organizations. It is a pledge to support all elements of the "system" which has made "Dairy Queen" a household word in much of the world, - - a system which has nearly 4,000 franchised retail outlets in business to provide our customers with quality products, at a value. We recognize that our customers are served one at a time, at individual retail units, and thus the importance of quality products and efficient service from each store owner in the "Dairy Queen" system cannot be overstressed, By signing of this agreement, you pledge to meet your responsibilities to the consumer standards set by "Dairy Queen", and to contribute a small portion of the sales you will realize to the growth of the business of which you will be a part, The Licensor has the responsibility to make available the systems, materials and services that you will need to be successful, including. Trade Marks respected by the consumer and protected for you through government registrations throughout the world, complete facility and equipment systems, complete training in store management, advertising and promo- tional programs, store accounting systems, and many other specialized services, Our success will be achieved by our daily efforts aimed at satisfying customers. WELCOME TO "DAIRY QUEEN"! 'REO. U,S. PAT. OFP. - AMERICAN DAIRY QUEEN CORPORATION 202 EXHIBIT "A" I' 1I0AIRY QUEEN" OPERATING AGREEMENT 1st March 74 11l1~tr~.m'::l~1""m;i~n~0 '8~o'ch'ow'iikI"......d.y ol...........................,.....:...........cii'iiip' ~i'll' by .nd betw..n ........'........'.......c'ii'iiiti'erlii'nd.....'.........."...'..'......".."............p'ii'~....,.......,ol Ih. city 01..................,..,.................................., coun8'.ofMV'l'd.... 'nCl"'ll'il'rl'ey"'M'; .nd SI'I. 01...................................,............................. h.r.in.ft.r r.lerred 10 as "Licensor," and.....J.P.,~~,..~!L..,.............,.....,ol the cit~ ol,"'....C..b~m.R~r./;l,9.~g..............,',................,....................... county of...~:~~~~.~.~.........................., .nd st.le ol..........~,~,...................................,hereln.ller reterred 10 as "Licensee": WHEREAS, Licensor is th. .xclusive lic.ns.e 01 Am.ric.n D.iry Qu..n Corpor.tlon In cert.ln g.ogr.phic.t areas including th. territory h.r.inafter d.fined 01 lh. righl to us., licens. .nd p.rmit oth.rs to use the "D.iry Queen" trad.mark, s.rvlce m.rk and tr.de name which has been r.glst.red In Ih. United Slates p.tent Office, in each st.te of th. union and in foreign countries as well as t~ose tr.d.marks and s.rvic. m.rks (h.rein.fter coll.ctiv.ly ref.rr.d to as "Tr.d.marks"), . lisl of which is au.ch.d h.r.to .nd m.de a parI her.of as App.ndlx A: and WHEREAS, Lic.nsor .nd iLs pred.cessors In interest ,cllng und.r s.id exclusiv. ,license Instituted, d.veloped, pro- moted, and .st.bllsh.d th. "D.iry Qu..n" fr.nchis. busln.ss .nd syst.m in lh. .for.s.ld t.rritory which consisLs of the sale of d.iry producls, food products, b.v.rages and olh.r products .nd s.rvic.s under said trademarks and utilizing in conn.c- lion therewith c.rt..!n typ.s of f.cilili.s, .quipm.nl, suppli.s, ingr.dlenu, m.rchandising .nd business techniqu.s .nd m.thods togeth.r with .dv.rtising .nd promotion programs dev.top.d from time to tlm.: and WHEREAS. it Is th. purpose of Lic.nsor to provide to Licens.. in a r.t.il store outl.t an org.nlzation 10 controt and m.ke uniform Ihe oper'lion of f.ciliti.s and .quipm.nt tog.ther with lh. quality of producu, the us. and proleclion of th. tr.dem.rks and to make availabl. uniform and approv.d .qulpm.nt, suppli.s, Ingr.dlenu, merchandising and busln.ss I.chnlqu.s and the adv.rtising and promotional programs of Am.rican Dairy Qu..n Corporalion, and WHEREAS, Lic.ns.e d.sir.s to .ng.ge in lh. "Dairy Qu..n" busin.ss and syslem and to enl.r into this operating Agr..m.nt subj.ct 10 lh. condilions and conlrols her.in prescribed for th. purpose of offering to the public products and services of uniformly high quality and slandards to Ihe .nd of prol.cling the inl.resLs at Lic.ns.., of Lic.nsor, of Am.rican Dairy Qu.en Corporation and all olh.r p.rsons cngaged in s.id busin.... NOW, THEREFORE, in consid.ralion of th. mutual promis.s and covenanLs her.in contain.d. th. granl by lic.nsor of Ihis Op.rating Agr.ement and th. paym.nl by licens.e of Ihe participation f..s provid.d in Paragraph 9 h.reof, it is agr.ed by and betw.en the parlles h.relO as follows: GRANT OF LICENSE UC.llJor's Gnat!o UeollJee I. lic.nsor h.rcby granlS 10 Licens.e, subjecI to all the lerms, conditions and provisions her.of Ihe righl and liccnse 10 920 S. Ma in st. 1.1 ESlablish and op..rale a relait slore und.r th. name "Dairy Que.n" at........"....,............................. Chambersburg Pa. l7;:;O.l. ".." City Sllte ZIp Code and lic.nsor agr..s Ihal it will nol .slablish anolh.r "Dairy Qu..n" r.tail store wilhin Ih. . ,from the square In Chambershul'g, fivp. ~o~~wl';ll i";~ed sl;{rl~{r on..'(is....Z;o.ute...II'..fn...PrankIfn...c.ounty.;....pa.:.. 1.2 Us. the Irademark "Dairy Qu..n" and Ihe olher Irademarks idenlifi.d in Appendix A on and in assoclalion wilh the advertising, promolion and sale of all oniform and approv.d producls and services as Licensor may authorize rrom time to time. 1.3 Use Ihe Irademark "Dairy Queen" and Ihe olh.r Irad.marks identifi.d in App.ndix A on and in associalion wilh the uniform equipm.nl, supplies, and ingr.dienu for Ih. products approv.d by Licensor. 1.4 Employ in Ihe husiness of said slor. the merchandising. advertising, promo lion and business methods and lechniques develop.d, adopled and approv.d by Licensor. 1.5 Receiving Ihe assistance, materials, and services of licensor as .xpressly provided for in Ihis Operaling Agreemenl. Aeeopl.onco by Ue.nsoe :!. Licen.!lce hereby accepts the above license from Licensor subject to all the terms. provisions and condilions helcof and agrees Ihal Licensee shall cause 10 have a "Dairy Que.n" slorc eSlablished and maintained at Ihe address given above, under Liccnscc's active and continuous supervision and man. asemenl and upon Ihe slandards hereinafler provided. licensee further expressly acknowledges and agrees: :02 -1- EXHIBIT "A" '2.1 liCensor is Ihe exclusive licensee of the right to use the trademark md Irade naine "Dairy Queen" and the Itademarka set forlh in Appendix A in the aforesaid 'milory, 2,2 Said 'rademarks are valuabte propeny righls owned by American Dairy Queen Corporalion and exclusively licensed to Licensor in sold terrilory. 2,3 Said Itademarks shall be used onty In connection with such products and services as may be approved or specifted by Licensor and shall at all limeJ be used only in a manner approved by Licensor, 2.4 Licensee's righls to Ihe use of Irademarks is speciftcally limited to Licensee's relall Slore operation at sold location. 2.5 Licensee shall use no olher Irademarks, trade names or service marks in sold business except those authorized by Licensor and as sel forlh in Appendix A exccpt with Ihe written consent of Licensor. 2,6 Licensee shall not use Ihe words "Dairy Queen" as a parI of lis corporale or business name unless first approved in writing by Licensor, and shall use only Ihe word "Dairy Queen" land no olher words whatsoever) as the Itade name on the srore trom which Ihe said products and services are sold. . 2,7 Licensee shall adopl and follow in good tailh the systems, p~ograms and methods prescribed by Licensor for Licensee's relail operalion in accordance with this Operating Agreemenl Term 3. The License gran led herein shall be for a term of Iwenly years unless sooner terminated in accordance with Ihe provisions hereof. This Operaling Agreemenl shall be automatically renewed tor successive Bve year periods unless either party shall give the other six months' written nolice of intention not to renew. Galen1 DedantIo.... UDllorm11J' ad QaaIIIJ' Coalrol TRADEMARK STANDARDS AND REQUIREMENTS 4. licensee agrees Ihal nothing herein conlained giveJ him any litle 10 or intere!! in the Itademark and Irade name "Dairy Queen" or any ot the trademarks set fonh in Appendix A excepl the righlto use Ihe same under Ihe lerms and condilions of this Agreement and Ihat Licensee's use Ihereof inures to the benefit of Ihe owner thereot. Licensee shall use said trademarks and trade names only on and in association wilh Ihe adver- tising and sale of products and serviceJ which shall in quality, mode and conditions of manufaclure and sale, comply with such standards as are eSlablished or approved by Licensor, In order to promote and prolecl the business inlerests of each of lhe panieJ, Ihe value of the "Dairy Queen" business and the business inlerests of olher persons engaged therein, uniformity shall be maintained in Ihe type, slandard and qualily of stores, equipmenl, supplies and ingredienls used therein, and the condilions of preparation and the procedures employed in lhe sale of said producls and services, To this end, it is agreed Ihal the rules and conltols conlained in Ihis Agreemenl shalt prevail in the use of lhe "Dairy Queen" trademark and in the conduct ot Licensee's said business, Licensee agrees thaI Ihe provisions, reslriclions and controls provided in this Operating Agree- ment are all necessary, reasonable and desirable for such purpoSeJ and that licensee's said business shall be conducted in accordance with Licensor's uniform requirements Wilh respect to quality, production. appearance, cleanliness. service. merChandising and advertising standards. These controls shall include the specific requirements hereinaller provided. Nothing herein shall be construed 10 limit Ihe sources from which licensee may procure equipment, supplies, ingredients or services provided thaI such items conform to the Licensor's standards and specificalions of cons is lent qualily and unifo'mity, and provided funher Ihal any such supplier shall have reliable produclion and delivery capabililies as well as such financial responsibilily as may be necessary to adequalety provide lhe samc on a conlinuing basis. NOlhing conlained herein shall be deemed 10 require Licensor to approve an inordinate number or suppliers of a given item or service so as to render the same economically delrimcnlal to Licensees of licensor or incapable of proper supervision by Licensor. Requests tor approvat of supplicrs shall be in wriling and shall con lain such informalion as Licensor may reasonabty requcst. Apprond Adaptations 4,1 Complele and delailed uniformity under many varying conditions may not be possible or practical and Licensor reserves the right and privilege. at Licensor's sole discretion and as Licensor may deem in the best interests of all concerned in any specific instance, to vary standards (or any olher like business based upon Ihe peculiarities of a parlicular site or localion, density ot popu- lalion, business pOlenlial, populalion of tude area, existing business praclices, or any other condilion which Licensor deems to be ot imponance to the successful operation of a like business. Licensee hereunder shall nol be heard to complain on accounr of any varialion from standard specifications and praclices sranled to any other like licensee and thereby shall nOI be entitled to require Licensor 10 grant to Licensee a like or similar variation hereunder. 202 ~ EXHIBIT "A" L1llpdoa Slore FadIJl)' Fulllnl AJlendoa Malol_ce RelOClIllon Autborized Product Uoe Apprond Meou Authorized mllledlenls, Formulas, Supplies, Preparadou 1O2 4,2 In the event,that any person, firm or company, who Is not a licensee or franc)1isee of. Licensor, uses or Infringes upon the "Dairy Queen" trademark or trade name, Licensor shall, at its ex- pense, cause a trademark infringement or any other appropriate sult to be iostltuted against such offending pany, With respect to all olher sltual/ons, as between Licensor and Licensee, Licensor shall control all lIl/gaiton relating 10 the trademarks listed in Appendix A and shall be the sate judse as to whelher or not sult shall be instUuted for the infringement Ihereof, 4,3 FACILITY STANDARDS AND MAINTENANCE S, The tollowlng provisions and conditions shalt control with respect to Licensee's store sUe and unit. S.1 Pursuant to separate wrillen agreement ""tween the panIcs Licensor shall construct and deliver to Licensee possession at a completed "Dairy Queen" retail outlet at the aforesaid localion (or In Ihe alternalive, Licensee shall cause to be constructed and completed on or before......,................. ................................................a "Dairy Queen" relall oullet at said local ion), Said outlet shall be conslructed and equipped in accordance with Licensor's currenlly approved specifications and standards as respeclS building, equipmenl, inventory, signag~ and accessory teatures. S,2 Any replacemenl, reconstruction, addltion or modificalion in building, equipment or signage, to be made hereaftcr, whelher at the request at Licensee or of Licensor, shall be made In accordance wilh wrlllen specifications approved by Licensor, S,3 The bUilding, equipmenl and signage employed in Ihe conduct ol Licensee's business shall be maintained In accordance with an annual maintenance list prepared by Licensor and based upon periodic inspeelions of Ihe premises by Licensor's representatives. Within a period ol ninety (90) days alter the receipt of such annuat maintenance list, Licensee shall effect Ihe items ol main- lenance reasonably provided Iherein Inctuding the repair at delective items and/or the replace- ment of unrep.irable or obsolete items of equipmenl and sign age, S.4 Should it become necessary, on account ol condemnation, sale, or olher cause, inClUding expira- tion or cancellalion of lease or rental contrael, 10 relocate said Slore within terrilory, any new store sile shall be designated, approved, Improved, and equipped in accordance with the current standards at Licensor at that time. S,S Each and every renewal or eXlension ol this operaling agreement as provided in Paragraph J hereof dnd each every transfer as provided In Paragraph 9.11 hereof shall be expressly condi- tioned upon Licensee promplly performing and effecling such items of modernization and/or replacemenl of building, equipmenl, and sign age as may be necessary 10 permil Ihe same to conform to the standards Ihen prescribed by Licensor for similarly situated store operations. Licensee recognizes and acknOWledges thaI Ihe requiremenlS of this paragraph arc bolh rea- sonable and necessary 10 insure continued public acceptance and palronage and to avoid delerioration or obsolescence in connection with Ihe operation of the business. PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS 6. The following provisions shall conlrol wilh respect to producls and operations: 6.1 Licensee's business shall be confined 10 Ihe preparalion and sale of onty such products as from time 10 time arc designated or approved by Licensor. The premises upon which said business is operated shall nol be used for any other business and there shalt not be sold or offered for sale Iherefrom any other product or service wUhout the wrillen consent of Licensor which shall not be wilhheld unreasonably with respecI 10 Ihe sale of any non'compelitive product which may complemenl and promOle additional sales at the produclS which arc authorized hereunder, Alcoholic or intoxicaling beverages shall not be sold or offered for sale or olherwise handled upon said premises. 6.2 AlIached hemo as Appendix B is the currently approved menu tor Licensee's oullet. Varia lions therefrom shall only be made wilh the wrillen consenl of the Licensor. 6.3 Licensee shall use in preparing produclS only such ingredients, formulas, and supplies as are specified by Licensor and in such pan ions, sizes and appearance and packaging as sel forth in a "Slore ~fanagemenl Opera lions Manual" published by American Dairy Queen COlporalion which shall be supplied 10 Licensee by Licensor Upon Ihe execulion of Ihis Operaling Agree- ment. All olher supplies, including cones. cups, conlainers, eating ulensils, napkins, and all olher CUSlomer selvice malerials of all descriplion and Iypes, shall meet Ihe standalds of -3- EXHIBIT "A" ," " ., " J' I \ , I i I , 'i ~ I " '! \ / ' . Smla.ud Promotion IletIII Malallauce ucI Sullalloa IDspeCIIDD ud Recommead8lloa OpmItloul Aid by UeenlOr Period of Opentloa Management System Tnlnlng lOl '"' uniformity and qualilY as noW or hereafter set by Licensor. licensee shall. be furnished with IIsls of approved sources of supply annually. 6.4 All advenising material, customer "goodwill" items, cartons, containers, wrappers and paper goods, eating and serving utensils, customer convenience items (Including napkins, baby bibs, and disposal containers), used In the advertising, sale and distribution of all produCU covered by this Operating Agreement shall, where practicable, indicate that It is produced and sold under the authority of American Dairy Queen Corporation and shall be sublectto approval by Licensor before being used. 6,S Licensee's said businell shall be operated and maintained at alt times in compliance with any and alt reasonable health and sanitary standards prescribed by licensor or by governmental authority, tf said store shall be subject to any sanitary or health Inspection by any governmental authorities under which it may be rated in one or more than one classification, it shall be maintained and operaled so as to be rated In the highest available health and sanitary classlfica. tlon with respect to each governmental agency inspecting the same. 6,6 Licensor or its authorized representative shall have the. right from time to time to enter Licensee's store at all reasonable times during the business day for the purpose of making periodic inspections to ascenain If all the provisions of this Operating Agreement arc being observed by Licensee and to inspect licensee's said store, lands, equipment, and to test, sample and inspect his supplies, ingredients and products, as well as, the preparation and formulation thereof and the conditions of sanitation and cleanliness in the production, handling and serving thereof. The foregoing shall include the right to review, analyze, and make corrective recom. mendallons on all phases of business management, from purcha._ing and inventory conuol through financial, personnel, and merchandising management, Whenever it shall appear in Licensor's .reasonable judgment that Licensee's said businell is not being operated in compliance with the requirements hereof, that the volume of business being done is not equal to the average volume of other businelles similarly situated, or thaI thc business is not being operated profitably or efficiently, Licensor, at Licensor's option: (a) May place one or more represenlatives at said store for a reasonable time 10 observe or examine any or all phases of the operation thereof and may make any reasonable recommen. dation to Licensee as to any operational change or procedore considered necessary or proper for an efficient and profitable operation, which may include the placing by Licensor of a qualified representative at Licensee's place of businell to train, instruct and familiarize Licensee or Licensee's employees wilh standard "Dairy Queen" business operations and procedures, or (b) Licensor may reqoire Licensee or any operaling employee of Licensee to spend a reasonable amount of time at another like place of businell or at a training center designated by Licensor at Licensee's expense for the purpose of observing and receiving training and inmuction (including periodic refresher training), and the practice of standard "Dairy Qoeen" business operations and procedures. Licensee shall effect promptly any such operational change or proccdure so recommended. , 'h d d d . 'd f I eight Licensee 5 score 5 all be opened an operate unng a perIC 0 at east...................................... " d h II h bl' I eleven conseCUllve monlhs '" each calendar year an s a be open to t e pu IC at cast......................., hours each day during said period. Acts of God, war. strikes or riots preventing Licensee from temporarily complying with the foregoing shall exempt compliance therewith. 6,7 6.8 PERSONNEL AND SUPERVISION STANDARDS 7. The following provisions and conditions shall control with respect to personnel, training and super- vision: 7.1 Licensee shall adopt and use as his continuing operational rouline the standard "Dair)' Queen" management syslcm as well as Licensor's standard with respect to product preparation, mer- chandising, employee recruitment, training, equipment and facilily maintenance and sanitation. Licensee shall also utilize aids supplied or made available by Licensor to all licensees ror this purpose. From time 10 time the Licensor will revise these programs to meet changing conditions of rei ail operation in the best interests of Licensee. 7.2 Licensee ,hall allend Licen,or's Slore management training program at a place 10 be designated by Ihe Licensor prior 10 the opening of Licensee's slore, If during the lerm hereof Licensee operates ~aid ~tore with a manager Olher than himself, Licensee shall at his expense !:lend such manager Ihrough Ihc same program, -4- }\: , : ,. I , " li' I ' l \ [" ; I ! !MdIal IalemaJ Tralalal Propam Atleaduce at Meetlap AdnrtUlallllld Promotional Propanu Fraocblle and L1ceue Fees Surcbarge Method of Pre-CoOectlon Records and Ropol1s :0: .7.3 Lic,ensee s~all hire and supervise emcient, competenl, sober and cpurteous operalors and employees for Ihe operation of the business and set and pay Iheir wages, commissions and incenlives with no liability therefor on Licensor. Ucensee shall require all his emptoyccs 10 work in clean uniforms approved by Ihe Licensor but furnished at the cost at Licensee or Ihe employees as Licensee may delermine, " 7,4 Licensor shall provide or make available 10 Licensee an in,slore training program for all Slore employees. Licensee shall train and periodically re'lrain all store employees using the training aids made available by Licensor. From lime 10 time, training material will be updaled and added to as required by Licensor, with such training male rials and aids available for purchase by Licensee, 7.5 Licensee, at his expense, shall allend al least one national or regional meeting each year which Licensor or American Dairy Queen Corporation origin ales for and on behalf of "Dairy Queen" Operalors 10 set forth new methods and programs in store operalion, training, managemenl, sales, advertising, and promotion, ADVERTISING AND PRDMOTION 8,1 Licensor and Licensee, logether with 01 her licensees of Licensor, and of American Dairy Queen Corporation, shall cooperale in the promotion and advertising of approved products. To this end, Licensor reserves Ihe right in iu sole discretion 10 establish and organize advertising and promotional programs from lime to time and Licensee agrees to participale in Ihe caS! and expense thereof by Ihe payment 10 Licensor at an advertising fee as set forth in paragraph 9.S hereof, Each year Licensor shall notify Llcen..e of Ihe advertising and promotional programs to be conducted during the year and shall turther notify Licensee of the advertising tee to be paid by him during such period, Licensor shall from time to time expend all sums received as and tor advertising fees for consumer advertising and Ihe promotion of said products through any malerials and any media such as radio, television, newspapers, billboards or speciat promo- lions, or point of purchase malerials, originaling, appearing, fumisbed or received in whole or in part in said territory. 8,2 Licensee shall only use such advertising and promotional materials as are furnished, approved, or made available by or through Licensor. Said malerials shall be used only in a manner prescribed by Licensor. PARTICIPATION FEES, REPORTING AND FINANCIAL MANAGEMENT 9,1 In consideration of Ihe righls granted herein, Licensee shall pay 10 Licensor as a tranchise tee Ihe sum at upon the dale of execution of Ihis Operating Agree- menl, the same having been heretofore deposited by Licensee, In addition to said franchise fee and during lhe full rerm of this Opelaling Agreemenl or any renewal or extension hereof, Licensee shall pay to Liccnsor as a license fee in respect of the righls gran led herein a sum equal 10 four pereenl (4%) at gross rei ail sales, exclusive of retail sales laxes, of all produeu, goods and wares of every kind and nalure sold from or in connection wilh the operation of said SIOle, including sales of all producls under any at the Irademarks sel forth in Appendix A as well as sales of other approved merchandise bearing olher brand names which may be authorized for sale by the Licensor from lime 10 lime. 9.2 All amounts due and owing hereunder shall be compuled 01 the end of each monlh's operallon and remillance tor Ihe same shall be made 10 the Lieensor on or before the tenth day of Ihe following month accompanied by the leporlS provided for in paragraph 9.4 hereof. 9.3 Atlhe oPlion of Licensor, Licensor may require Licensee to pay to the suppliers of mix, meat, and olher ingredients used in the conducl of the business a surcharge on all units of such com. modiries purchased by Licensee 10 be paid 10 such supplier by Licensee at the lime of purchase of such commodities, Said surcharge shall be paid 10 said supplier or suppliers tor the account of Licensor, Ihe same to be regarded by the parties as a melhod of collection of said license fee. The amounts so collecled shaa be crediled by Licensor against the license fee due from Licensee to licensor ~t Ihe end of each month's oper:uions. Licensor shall submit to licensee wilhin a period of len days afler lhe receipI of Licensee's monlhly report and remillance a reconcilialion selling fOllh rhe credils 10 Licensee's account by reason of the amounlS collected for the Licensor by soppliers by way of rhe aforesaid surcharge melhod. 9.4 Licensee shall keep ltue records tram which all sums payable onder lhis Agreement and Ihe dares of accrual lhereof may be readily dele,mined and said records shall be open to inspeclion by Liccn)or or its aUlhonzed rcprcsent:ui\'cs at all reasonable limes. Licensee shall make wriuen -5- EXHIBIT "A" AdnrtblDl CoDlrlbdoa Ftaaadlll l'IaaaIaI_d Maaqemeat Paymeal or Debts UabWI)' aad IaslUllllce AssIgameal and Transfer Fee :02 , . . reporu to Licensor in such lorm as Licensor may Irom time to lime prescribe wilhln ten days aller the end 01 each monlh's operalion selling lorth tbe amount 01 gross sales 01 all prod. ucts Irom or in connection wilh Ihe operation 01 said store and tbe busin.... Ihereol during said monlh, In addition to Ihe loregoing and in addition to such olher Inlormatlon as Licensor may Irom lime to time reasonably requirc, said monlhly report shall accuralely set lorth the total number 01 gallons 01 mix, Ihe lolat number 01 pounds 01 meal, and the quantily 01 other basic commodities used during said month and Ihe sources where said mix, meal and other commodilies were purchased, For the purpose 01 said reporu Ihe date 01 use 01 such mix, meal and other commodities shall be the dale 01 receipt al the store tram the approved source. 9,5 Pursuant 10 paragraph 8.1 hereol, Licensee shall particlpale with Licensor and with other licensees 01 Licensor in Ihe cost and e.pense 01 advertising and promolional programs, To this end Licensee shall pay to Licensor as an advertising participation lee an annual sum nOI to exceed Ihree percent (3 %) 01 gross retail sates in connection wilh Ihe operation 01 said store. All 01 the provisions 01 this paragraph 9 shall apply wilh respect to Ihe determinalion, reporting, collection and payment at advertising participation lees. . 9.6 Licensee agrees 10 employ sound financial managemenl practices in connecllon with Ihe opera- tion 01 said business and 10 Ihat end Licensee shall main lain on lorms approved or provided by Licensor a monthly profit plan, a monthly profit and loss stalement and a monthly balance sheel accuralely refiecling Ihe operations 01 said business, In addition to the loregolng, Licensee shall employ such melhods 01 recordkeeping, bookkeeping and reporting as the Licensor shall Irom time to lime reasonabty require and copies 01 all monthly profit plans, profit and loss slatemenlS and balance sheets shall be torwarded to Licensor on or belore the tenth day 01 each month. In Ihe event that an accounting andlor bookkeeping service shall be made avail- abte to other similarty situated licensees 01 Licensor. Licensee shall have Ihe right to request that the same be provided to him by Licensor al a level 01 charges equivalent to charges mnde 10 such other similarly situaled Licensees, 9.7 Licensee covenants and agrees 10 pay promptly when due all taxes and assessments Ihal may be assessed against said premises or the equipment used in connection with Licensee's business, all lien and encumbrances 01 every kind and character crealed or placed upon or againsl any 01 said properlY and all accounts and olher indebledness 01 every kind incurred by Licensee in the conduct 01 said business. In Ihe event Licensee should detautt in making any such pay- menl, Licensor shall be aUlhorized, but not required, to pay the same on Licensee's behall and Licensee covenanls promptly 10 reimburse Licensor on demand Cor any such paymenl. Any and all amounts owing to Licensor by Licensee hereunder whether Ihe same arise under the provisions or Ihis paragraph 9.7 or under any olher provision oC this Agreement shall bear in- teresl at the maximum legal rate tram and alter Ihe date 01 accrual thereoC. 9,8 The deraull by Licensee in the timely payment 01 any indebtedness owing to Licensor here- under or Ihe deraull by Licensee in Ibe payment 01 any indebtedness wilh respecl 10 which Licensor or any 01 Licensor's affiliated entities is a guaranlor, co-signer, or endorser or obligor sball conslilule a breach 01 Ihis opcraling agreement rendering Ihe same subject to termination in accordance wilh Ihe provisions 01 paragraph II hereor. 9,9 In Ihc event that Liccnsce be declared insolvent or bankrupt, or in Ihe evenl a receiver is appointcd, or Ihal any proceeding is taken, by, ror, or against Licensee under any provisions 01 Ihe Federal Bankruplcy Act or any amendmcnt Ihereor, Ihis Operating Ag,eemenl may be tcrminated rorthwith by Licensor. 9.10 Licensee hereby waives all claims against Licensor ror damages 10 properly or injuries 10 pcrsons arising oul or Ihe operalion 01 >aid business. and Licensee shall indemnily and save Licensor harmless or and Irom any damage or injury 10 property or persons arising Irom or growing oUI or Ihe operations 01 said business or the consumption or the producl thereor. Licensce runher covenanls and aglees 10 purchase and mainlain in rull rorce and effect, at Licensee's sole expense, lIabilily insurance in an amounl not less than SIOO,OOO insuring bOlh panies herelo rrom Iiabilily ror any and all such damage or injury and Licensce lurther agrees to deliver to Licensor a proper ccnificale evidencing the existence of such insurance coverage and Licensee's compliancc with the provisions 01 Ihis paragraph. 9.11 Licensee ag,ees Ihal Ihe inlcrcsl or Licensee heleunder may nol be transrerred, assigned or aliena led in whole or in part Wilhoul Ibe wrillen consent 01 Licensor, which consent shall not be wuhheld unreasonably, bUI Licensor may insiS! that any proposed assignee be a person, in Liccnsor's judgment, qualified to provide aClive supervision over the operation at said slore in compliance wllh Licensee's obligations hereunder. In the everT Licensee's said inlcrest should be so Iransier/ed or assigned, Licensee shall pay 10 Licensor ',untemporaneously Ihelewith Ihe -6- EXHIBIT "A" ; RIp. of FInt RefaaJ RemedJe. Breach of COblnd Indemnlly Land or BuUdlul Lease Rumlou of Trudemarll Rlgbts Purchase Option ' ~o: sum" of One' Thousand Five Hundred Dollars ($1,500) as and for a' trans(er fe<!,' for lhe preparation at a new operating Agreement in aulgnee's name, and (or any and all such ell- penses incurred by Ucensor In effecting said trllUler, Includln, allendance by the assignee at Licensor's training center, 9,12 LicenSe<! hereby grants to Licensor the right 01 fint relusal to purchue alt 01 L1ccruee's right, tllIe and Interest In and to said "Dairy Queen" store and lhe Wllhln Operating Agreement In lhe event Ucensee should desire to sell the same. In such event, Licensee shall notlty Ucensor In wrlling thaI he has received and Is prepared to accept a good lalth offer (rom a qualified buyer, shall identity the buyer and state the terms 01 such offer. Licensor shall have thiny (30) days aHer receipt 01 said nOllce to exercise its right o( first re(USal, the same 10 be in writing and subjeclto the same terms and conditions as have been offered to Licensee by said qualified buyer. ff Licensor does not exercise said right at first retusal within said thlny (30) days, Licensee may then sell or transfer his said intemt to such qualified buyer, subject, however, 10 Licensor's wrillen consent to such assignment and the payment o( transler lee, all as provided in para- graph 9.lt hereot, CONTRACT VIOLATION 10, Licensee recognizes that his "Dairy Queen" store is one of a large number o( Slores similarly built and selling to the public similar products, and hence the tailure on the pan o( a single licensee to comply wilh Ihe terms Ollhis Operating Agreement, could cause irreparablc damage to some or all other "Dairy Queen" licensees, There(ore, It is mutually agreed that in the event of a breach or lhreatened breach at any ollhe lerms of this Operating Agreement by either party, Ihe olher party shall forlhwilh be entitled 10 an injunclion restraining such breach andlor a decree of specific per- tormance Wilhout showing or proving any aClual damage, but such injunclive relief or decree shall nol preclude any judgment for damages suslained. 10,1 In Ihe evenl Ihat Licensor delermlnes Ihat Ucensee has failed to meel the requiremenls and specifications eSlablished wilh respecl to qualilY, physical properties, or condition of equipment or malerials used or products manutaclured, or with respecl to packages or advertising, or any olher provisions of Ihis Operating Agreemenl, Licensor shall notify Licensee in wriling of that tacI, and shall set forth Ihe conditions 10 be correcled, and il Licensee shall tail 10 lake posilive sleps 10 correcl Ihe conditions specified in any such nOlice within seven (7) days from Ihe dale 01 sending such notice by mail addressed 10 said Licensee al his lasl known address as shown by Ihe records of Licensor, Licensor shall thereupon have the right 10 cancel and lerminale this Agreement upon delivery 10 Licensee, personally or by mail, of wrillen nOlice 01 such can- cellalion. 10.2 Licensee expressly agrees to save Licensor harmless tram any loss, damage or liabililY incurred by Licensor by reason of any violalion at Ihis Operaling Agreement by Licensee. 10.3 Any lerminalion ot Ihe land or bUilding lease for Licensee's Slore shall automatically lerminate Ihis Opetahng Agrcemenl. TERMINATION RIGHTS II. Upon Ihe lerminalion or expiration Ollhis Operaling Agreemenl: tl.l All righls 10 Ihe use of Ihe Iradcmark and Irade name "Dairy Queen" and 10 Ihe Irademarks and Irade namcs Iisled in Appendix A. and Ihe righl and liccnse 10 conduct said business in the lerrilory dcscribcd hereinabove, shall revcrt 10 Licensor and Licensee shall immedialely cease all Use of said Iradcmarks and Irade names, or any olher similar Irade names or trademarks and pay all monies due al said dale; 11.2 All righI, hlle and inlerest of Licensee in and 10 Ihis Opera ling Agreement shall become Ihe properly ot Licensor. 11.3 Licensor shall have Ihe first oplion 10 purchase any or all equipmenl or supplies. at whatever kind, owned by Licensee and used b~' him in Ihe production of the "Dairy Queen" produCl, or any of Ihe olher aUlhorized produels under any of Ihe lrademarks heleunder at a price deler. mined hy a qualified appraiser selecled with Ihe consent of bolh parties. II Ihe parties cannOl agree upon Ihe seleclion of such an appraiser he shall be appoinled by a Judge of Ihe Uniled Slales Dislricl COUrt for Licensee's lerrilory. Said option 10 purchase may be exercised by Licen- sor al any lime within 30 days tram Ihe dale of such lerminalion and shall nol be abaled or lermlnaled by Ihe ,"Ie or olher Iransfer of any such equipment or supplies by Licensee 10 a Ihird party, Upon Ihc cxercise of such ophon and lender of payment (or any such equipmenl or supplies, Licensee ag,ces 10 sell and deliver Ihe same 10 Licensor, flce and clear of all en- cumbrances. and 10 c~ecute and deliver a bill of sale therefor 10 Licensor. -7- EXHIBIT "A" h " Da i rll Queen* "Dairy Queen"* Operating Agreement Confidential Excluslvelv for and use bV IIDalry Queen'" <<l Copyrliht 1968 Am. D. a. Corp, 'Rei. U.S. Pal. 0". Amer. D. Q, Corp. 202 EXHIBIT "B" " .' , . - CONTENTS - FOREWORD OPERATING AGREEMENT - 202 "/ PAOE Preambles und Reehals "....""..."'.....".",.",..,....,.,.".,."",,..,.,. t GRANT OF LICENSE L1ccnsor's Granl to Licensee I Acceplance by Ucensee ...,."",.,.",."..."..."....".,."",."",..,...,." I Term.,..,..,....,...",...,.""""",.,.. ,. ,.,....".,.... ......".,..... ,.. 2 TRADEMARK STANDARDS AND REQUIREMENTS General Declarations, UniformilY and Quathy Conlrol .."".,..,.,...,.,.."..".",... 2 Approyed Adaptations ,.,..................",...........,..,.....",.,........". 2 Llllgallon .,.,.,.....,.,.."...",..",.,...".."".."........"...,.."......, 3 FACILITY STANDARDS AND MAINTENANCE Store Facilhy ".",.,.,.,.,..,.....,.,.....,..,........"".,..."".,..,..,...., 3 Future Alleration ..,..",.,..,..,.,....,.."..,....."....,....."".,'.......... 3 ~1ainlcnance .................................................................... 3 Rclocalion ....,.....,...,............."""..",..",........,..,..,.....,."., 3 , " , ~';' J' I I PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS AUlhorized Product Line "..,.,..,..,...,.....,..,......,..,...,...,.,.,..,.".... 3 Approved Menu .........,."..,.,.."..................,..,.,.,....,..",.,.,.., 3 Authorized Ing,edienls, Formulas, Supplies, Preparation ,'.,.,..,........,.............. 3 Serving and Promolion lIems ...,."............;.....,.....,.......,......,.".... 4 ~fninlcnance and Sanitation ........................................................ 4 Inspection and Recommendation .................................................... 4 Operational Aid by Licensor 4 Period of Operalion .........,..........,.,.................",.,.........,.,..... 4 PERSONNEL AND SUPERVISION STANDARDS Ma~a.gemenl Syslem ........,..............,.,.......,.....,...,..".",.,..""., 4 TralOlng '......,..............,...,..............................,.,..........., 4 Slaffing ............',..............,.,.......,.",...,.....,................... S Internal Training Program ........................................................ S Attendance at Meetings ........................................................... 5 l I Il I' , -1 ) ) ..., I , I ADVERTISING AND PROMOTION Advertising and Promotional Programs ......................................... ~ . '. .. 5 PARTICIPATION FEES, REPORTING AND FINANCIAL MANAGE~IENT Franchise nnd License Fees ........................................................ 5 Surcbarge Metbod of Pre.Colleclion ......................',....'...,.....,.......... S Records and Reports ....""..................,................."..........."., S Advertising Contribution .......................................................... 6 Financial Planning and ~1unagcmcnt ................................................ 6 Payment of Debts ..,.............."........................................,.... 6 Liabilily and Insurance ,......,.....................,............................" 6 Assignment and Transfer Fce ...................................................... 6 Rigbt of Firsl Refusal ...........,.........,...,.....,......................,..... 7 CONTRACT VIOl.ATION Rcnlcdics ....................................................................... 7 Breacb or Conlract ,......,.........................................,..........". 7 IndemnilY ................"..............,.................,.,................. 7 Lund or Building Le,,,e ,........,....................,..."...."...,.,..,......,. 7 TERMINATION RIGHTS Reversion of Tradl:!m<lrk Rights .................................................... 7 Purchase Option . . . . , , . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Non Compele "..... , . . , . . . . . . . . . , . , . . . . . . . . . . . . . . . . . , , . . . . . . . . . . . . . , . . . . , . . . . , .. 8 GENERAL PROVISIONS .."....................,..........".........,.,.........., 8 SIGNATURES ,..,.,...'..........,..........................,.......,.............. 8 APPENDIX "A" ,..."..........'..........................,....,.......,.........,. 9 APPENDIX "B" '.........,.....,.,........,.".................,.............".". 10 EXHIBIT "B" ) i j r , . . , I ~ ~, ....: , 1 " 'I , "l, '-' { ., , {' - FOREWORD - /:' , { I I" The "Dairy Queen". Operating Agreement you are about to read is both an opportunity and a pledge, It is an opportunity to combine your skills, ambition and resources with one of the world's largest and most successful food service franchise organizations. It is a pledge to support all elements of the "sy~tem" which has made "Dairy Queen" a household word in much of the world, . - a system which has nearly 4,000 franchised retail outlets in business to provide our customers with quality products, at a value. We recognize that our customers are served one at a time, at individual retail units, and thus the importance of quality products and efficient service from each store owner in the "Dairy Queen" system cannot be overstressed. l By signing of this agreement, you pledge to meet your responsibilities to the consumer standards set by "Dairy Queen", and to contribute a small portion of the sales you will realize to the growth of the business of which you will be a part. I ) j The Licensor has the responsibility to make available the systems, materials and services that you will need to be successful, including, Trade Marks respected by the consumer and protected for you through government registrations throughout the world, complete facility and equipment systems, complete training in store management, advertising and promo- tional programs, store accounting systems, and many other specialized services. Our success will be achieved by our daily efforts aimed at satisfying customers. (.;. WELCOME TO "DAIRY QUEEN"! 'REO. U.S. PAT. OFF. - AMERICAN DAIRY QUEEN CORPORATION ,,:. ,tr, i~" :1/, } ~ '" 202 , ':.1 "..; f.:.: trf ,~,''''': EXHIBIT "B" .. < "DAIRY QUEEN" OPERATING AGREEMENT 2lst April 75 This Agr..m.nt .nl.r.d inlo Ihls.,..."",,,............, ,d.y 0(..",."",..."...."...,,,...,,,,...,,..,,,,........,, 19......." by .nd b.lwe.n ....."..~~~.~.~.~,..~~~"'~.:~~,~,,?~,O.~.~,(),~,~,)~.~.," .""" """ ",'" ""'" "'" "or Ih. .ily or. ,Q.!1,H1.P.",AJ.:J,;I".".,...."""",..,.",." county or.,".~.~;R~F~~~'~:?<'..i~iinC'Y'..i\.i1Mtnl. or..."r~m:1.I!,y.~.Y,'il:nJ~..."...".,.......,....., h.r.ln.H.r r.r.rr.d to .s "Lic.nsor," .nd"". ,."", ,""" ,."""""""'.",, ,."",,,,,.,, ,0 r Ih. cil I' ot."""" "..", ,ii~,rr,iB burg" """'" ,. ,..",. '." ,.,,,,,,,, '."" ,......' ,.., counly oC.."......!?~~P.~~.~"..,........,........, and .Inl. or.J~~Il:I3Y.}Y.!a..l:!.~,~,......,,,....h...ln.H.r r.C.rr.d 10 ns "L1c.ns..": WHEREAS, Lic.nsor is the .,c1uslv. IIc.ns.. DC Am.ric.n Dairy Que.n Corporal ion in cmnin g.ographical nr.ns including th. t.rrltory her.lnaft.r d.fin.d DC th. righllo us., Iic.ns. .nd p.rmil olh... 10 us. th. "Onlry Qu..n" trademnrk, "rYlc. mark and lrad. name which has he.n r.gi'l.rcd in the Unil.d Stales Pnt.nl omc., in .nch .1.1. oC the union .nd in Coreign countrl.s as w.1I as I~OS' tr.d.marks nnd s'rYic. m.rks (h.r.in.rler collcctively r.C.rr.d to as "Trad.m.rks"), . list DC which is .tt.ch.d h.relo .nd made . p.rl h.r.oC ns App.ndl, A; nnd WHEREAS, Li..nsor nnd ils pr.dec...ors in Inl.r.st nCling und.r s.id .selu.lv., Iic.ns. institul.d, dev.loped, pro. mOled, nnd ,sl.bllshed the "Dairy Qu..n" rr.nchi.. business and .ystem in Ihe .ror.snid I.rrilory which conslsls DC the s.le DC dniry products, Cood products, b.verag.s nnd olh.r produclS .nd servic.s under snld lrademnrks .nd ulillzlng in connec. lion therewilh c.rt.ln types or r.cilities, .quipm.nl, supplies, Ingr.di.nts, merch.ndising .nd busln.ss t.chniques and melhods logelh.r with advertising and promolion progr.ms d.v.lop.d Crom time 10 lim.; .nd WHEREAS, it is the pUlpose oC Licensor to provide 10 Licensee in n relail slore outlel .n org.nlznlion 10 control .nd m.ke uniCorm the operalion or Cnciliti.s nnd .qulpmenl logether wilh Ihe qu.lity DC producls, the use nnd prolection oC the tr.dem.rks .nd to make .vail.ble uniCorm and .pprov.d .quipmenl, supplies, ingr.di.nts, merch.ndlsing .nd business lechniques .nd lhe adv.rlising .nd promotional programs oC American O.iry Qu.en Corpor.tion, .nd WHEREAS, Licensee desires 10 .ng.ge in lh. "D.iry Que.n" bus in... .nd system .nd to enler into this op.r.tlng Agre.m.nl subje.t to the conditions and controls her.in pr.s.rib.d tor the purpose oC offering to Ihe publi. products .nd s.rvi..s or uniCO/mly high quality and st.nd.rds 10 th. .nd oC prole.ting the inter.sts DC Lic.ns.., or LIc.nsor, oC Ameri..n D.iry Queen Corporation .nd .11 oth.r p.rsons .ng.g.d in said business, NOW, THEREFORE, in consid.ration or the mUlu.1 promises .nd coven.nlS her.in conlained, lh. grant by Li..nsor oC Ihis Oper.ling Agreement and th. paymenl by Licens.. or Ih. p.rticipation Cees provid.d in Paragraph 9 her.oC, il is .greed by .nd belween Ihe parlies herelo as Collows: GRANT OF LICENSE U.ensor's Granllo LI.ensee 1. Licensor hereby granls 10 Licensee, subject 10 nil Ih. lerms, condilions and provisions hereoC Ihe righl and license 10 3890 Jonestown 1.1 ESlablish and operate a retail store under the name "Dairy Queen" at............................................ Su sq uehann~...:l:'.~p.,~."....H,!1,~,~.~.Il.P.1,!,r.g",..,."....,'p..~.~~.~;!.~y.~.!';1.~.~...................,.....,......~~~...~~.................. City Stale ZIp Codl .nd Lic.nsor agre.s Ihal il will nOI eSlablish .nolh.r "Dairy Queen" retail store wilhin Ihe rollowing d.fined lerrilory: ,.,'~,.,IIl1.,~.e:...~~~~...~..J..,~.~.:!:~....!'!.~.!i.~....f.:r.9.m...~.j;g.r..li!_ '''~,?,c:/J:~1.().~...(),~....J..()~~!>,~~,l'l!l..,!,ir:l,!,..........,....."...."..."".................................................... ad. .............................................................................................................................................................. I.~ Use Ih. tr.d.mnrk "Dairy Queen" and Ihe olh.r tr.d.marks identified in Appendix A on .nd in associ.tion wilh lhe .dv.rtising, promotion and sal. oC nil unirorm .nd approved produ'ls and services as Licensor may authorize (rom time (0 time. I.J Use Ihe tr.demark "Dairy Qucen" and Ihe olh.r lrademarks identified in Appendi, A on .nd in associ. lion wilh Ihe unirorm .quipment. supplies, and ingr.dienls Cor th. products .pproved by Licensor. 1.4 Employ in the husiness of said store the merchandising. advertising, promotion nnd business melhods and lechniques developed, .dopt.d and approv.d by Licensor. 1.5 Receiving the assistance. materials. and services o( Licensor ns expressly provided for in this Operating Agreement. A.cepllln.e by U..nse. 2. Licensee hereby accepts the above license (rom Licensor subject to nil the terms, prOVISions and conditions hereof nnd agrees that Licensee ,hall cause 10 have a "Dairy Queen" store established and maintained at the address given above. under Licensee's active and continuous supervision and man- .gement and "pon Ihe -randards her.ina fler provided, License. rurther .xpr.ssly acknowledg.s and agrees: )'(' ~:, If -:"1 202 -1- EXHIBIT "B" Term General Deduallo.... Uniformity and Qaa1lty Control Approfed Adaplallon. 202 "' 2,1 L1c.nsor is Ih. .xcluslv. lIc.nsee of the rlghl 10 us. Ih. Irademark 'and irade name "Dairy Qu..n" and Ih. Irademarks s.1 10rlh in App.ndlx A in Ih. alol.said I.rrilory, 2,2 Said Irad.mark. ar. valuahl. prop.rly rlghlS own.d by Am.rlcan Dairy Qu..n Corporallon and .xcluslv.ly IIc.ns.d 10 L1c.nsor In said l.rrllOry, 2,3 Said Irad.mark. shall b. used only in conneclion wilh such producls and service. as may be approv.d or sp.cined hy L1c.nsor and .hall al all limes be us.d only in a manner applOved by L1c.nsor, 2.4 L1c.ns..'. rlghlS 10 Ih. us. ollrademarks Is specincally IImiled 10 Licensee's relail slore operalion al said localion, 2,5 Licensee shall use no olher lradematks, Irade names or s.rvlce marks in said business exc.pt Ihos. aUlhorlled by Licensor and as sel lorlh In Appendls A excepl wllh Ihe wrillen consent 01 Licensor. 2,6 Licensee shall nol ose Ihe words "Dairy Queen" as a pari 01 it.! eorporale or business name unless nrsl approved in wriling by Licensor, and shall use only th. word "Dairy Queen" (and no olher words whalsoever) as Ihe lrade name on Ihe Slole Irom which th. said plOduct. and services are sold. 2.7 Licensee shall adopt and loll ow In good lailh Ihe syslems, programs and melhods prescrlb.d by Licensor lor License.'s relail operation in accordance wilh Ihis Op.lallng Agreemenl 3. The License gran led herein shall be lor a lerm of Iwenly years unless sooner I.rminated in accordance wilh Ihe plOvisions hereol. This Operaling Agreemenl shall he aulomalically renewed for successive five year pellods unless eilher parlY shall give Ihe olher six monlhs' wrillen nolice 01 intenlion not to renew. TRADEMARK STANDARDS AND REQUIREMENTS 4, Licensee agrees that nOlhing herein contained giv.s him any lille 10 or inlerese in Ihe trademark and trade name "Dai,y Queen" or any ollhe Irademarks 5.1 10rlh in App.ndix A .xcept the right to use the same under the terms and conditions of this Agreement and that Licensee's use thereof inures 10 tbe benent of Ihe owner Ihereol. Licensee shall use said trademarks and trnde names only on and in association with the ndver. tising and sale 01 producls and services which shall in quality, mode and condilions of manulacture and sale, comply with such slandards as arc eSlabllshed or approved by Licensor. In order 10 promole and protect Ihe business in lereSIs 01 each of Ihe parties, Ihe value of Ihe "Dairy Queen" business and the business inle'esls 01 olher persons engaged Iher.in, uniformily shall be maintained in the lype, standard and qualllY 01 slores, equipmenl, supplies and ingredienlS us.d lhe,ein, and Ihe condilions of preparation and the procedures employed in the sale of said products and services. To this end, il is agreed Ihat Ihe rules and controls contained in Ihis Agre.menl shall prevail in Ihe use of Ihe "Dairy Queen" trademark and in the conduct of Licensee's said business. Licensee agrees that the provisions. restriclions and controls provided in this Operating Agree. ment arc all necessary, reasonablc and desirable for such purposes and that Licensec's said busincss shall be conducted in accordance with Licensor's uniform requirements with respect 10 quality, produclion, appearancc, clcanliness. service, merchandising nnd advertising slandards. These conlrols shall include Ihe specific 'equiremenls hereinaher provided. NOlhing he,ein shall be construed to limit the sources from which Licensee may procure equipmenl, supplies, ingredients or services provided that such items conform 10 the Licensor's standards and specifications of consistent qualilY and uniformil}', and provided furlh.r Ihat any such supplier shall have reliable produclion and delivery capabilllies as well as such nnancial responsibilily as may be necessary 10 adequalely provide lhe same on a continuing basis. NOlhing conlained herein shall b. deemed 10 require Licensor to approve an inordinate numher of suppliers of a given item or service so as to render the SBme economically detrimental to Licensees of Licensor or incapnhlc of proper supervision by Licensor. Requests lor app,oval 01 suppliers shall be in writing and shall conlain such information as Licensor may reasonably request. 4.1 Complele and del ailed unirormity under manl' varl'ing condilions may nol he possible or practical and Licensor reser\'es the right and privilege. at Licensor's sole discretion and as Licensor mBY deem in the he.!!t inlereM."i of all concerned in any specific instance, to vary !iIBndards Cor any other like husiness hased upon the peculiarities of a parlicular site or location, density of popu. lation, business pOlential, population of trade area, existing business practices, or any olher condition which Licensor deems to be oC importance to the successful operation or n like business. Licensee hereunder shall not he henrd 10 complain on account of any variation Crom standard specificalions and plOcli.es granled 10 any olher like Iiccnsee and thereby shall not be entitled to require Licensor 10 grant to Licensee a like or similar variation hereunder. , i -2- EXHIBIT "B" LUlptlon Sfore F.eWIy Future Alleratlon Maintenance Relocallon AUlborlzed Product Line Approved Menn Authorized ln~redJenls, Formulas, Supplies, Preparation '0' , 4,2 In the evenl that any person, firm or company, who is not a licensee or franehi"e of Licensor, uses or Infringes upon the "Dairy Queen" I",demark or trade name, Licensor shall, at Its eX- pense, caose a Irademark infringemenl or any other approprlale suit to be Instituted against such offending party, 4,3 With respect 10 all olher ,itualions, as belween Lice",or and Licensee, Licensor shall control all litlgaiton relating 10 the Irodemarks listed in Appendix A and ,ball be the sole jodge as 10 wbelber or not suit shall be instituted for the infringement thereof, I J ,i I' FACILITY STANDARDS AND MAINTENANCE 5. The following provisiuns and conditions ,hall control with respect to Licensee's store site and unit. 5,1 Pursuant 10 sepnrale writlen agreemenl bDlween Ihe parties Licen,or shall conSlruct and deliver to Licensee p,,,,ession of II completed "Dairy Queen" retail oul1el al the aloresaid location (or In , , Seotember the allcrnallvc, Licensee shull cause to he constructed and completed on or berore.....~.................. l, 1975 "D ' 'Q ," 'I I I '.1 I ') S 'd I h tl b ..............................,.................3 air} lIcen rctal oul c at S31u oeaUo". 01 oul et 5 a e construcled and equipped in accordance with Licensor', currently approved specification, and standards as respects building, equipment. inventory, signng'c and accessory features. t / I I'; :) ; , i' i.~ .' il , , 5.2 Any replacement. reconstruction, addition or modification in building, equipment or signagc, 10 be made hereafler, whelher al the reque't 01 Licensee or of Licensor, shall be made in accordance with wrillcn specifications approved by Licensor. i' I, ! , I 5,3 The building, equipmenl nnd signage employed in the conduct of Licensee's business shall be maintained in accordance with an annual maintenance list prepared by Licensor and based upon periodic in'peelions 01 the premises by Licensor's representatives, Within a period of ninely (901 days aller the receipt 01 ,uch annual muinlenance list, Licensee shall elfeel Ihe items of main- lenanee reasonllbly provided therein including the repair of defeclive items and/or the replace- ment of un,epairable or obsolele items of equipmenl and signage, S.4 Should it hecome necessary. on account of condemnation. sale, or other cause, including expira- tion or cancellation of lease or rental contract. to relocate said store within territor)', any new slore sitc shall be designaled, approved, improved, and equipped in accordance with the current standards of Licensor at that time. S.S Each and every renewal fir extension of this operating agreement as provided in Paragraph 3 hereof ,ond each every transfer as provided in Paragraph 9.11 hereof ,hall be expressty condi- tioned upon Licensee promplly perlorming ,ond effecting such item, 01 modernization and/or replacement llf hllllding, c~uipment, and signage as may be necessary to permit Ihe same to conform to the Mandards then prescribed hy Licensor for similarly situated slore operations. Licensee recognizes and acknowledges that thc requiremcnts of this paragraph arc both rea- sonable and necessary to in:illre continued public acceptance and palronage and to avoid deterioration or obsolescence in connection with the operation of the business. i \ I, I . I t r " 'r:-,.' 'I' t .i: ,.(", '~iJ l' , '.1 I . it PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS 6, The following provisions shall eonlrol wilh respect to product' and opera lions: 6.1 Licensee', business shall be confined 10 Ihe preparation IInd sale of only such products as from time to time arc designated or approved by Licensor. The premises upon which said business is operated shall nol be uscd lor any other bu,iness and there shall not be sold or offered for sale therefrom any alher product or servicc without the written consent of Licensor which shall not be wilhheld unreasonabl)' with respecl 10 the ,ale 01 any non.competitive product which may complement and promote additional sales of the products which are authorized hereunder. Alcoholic or intoxicating beverages shall not be !<aold or offered for sale or otherwise handled upon said premi~e~. 6.2 Attached hereto as Appendix B is the currently approved menu for Licensec's outlet. Variations Ihercrrom shall only be made with Ihe written consent of the Licensor. 6.3 Licensee shall use in prep..ring produces only such ingredients, formulas, and supplies as arc specified hy Licensor and in such portions, sizes and appearance and packaging as set forth in a "Store Managemenl Operations Manual" published by American Dairy Queen Corporation which shall he supplied to Licensee by Licensor upon the execution of this Operating Agree- ment. All other supplies. including cones, cups, containers, eating utensils, napkins. and all other customer service materials of ..11 description and types. shall meet the standards or -3- EXHIBIT "B" Senlng and Promollon lIem. MaIntenance and Sanltalloa Inspecllon and Recommendallon OpenllorW Aid by Ucensor Period of Openllon Managemenl System Tnlnlng 202 upiCormity, and quality as now or herealler set by Licensor. Licensee. shall b. turnished wilh lislS oC approved sources oC supply annually, 6.4 All advertising malerlal, cuslomer "goodwill" items, cartons, containers, wrappcrs and paper goods, eating and serving ulensils, CuSlomer convenience items (Including napkins, baby bibs, and disposal containers), used in the advertising, sale and distribution oC all produclS covered by Ihis Operating Agreement shall, where practicable, indicate Ihat it is plOduced and sold under the authority oC American Dairy Queen Corporation and shall be subjecl to applOval bl' Liccnsor beCore being used. 6.5 Licensee's .aid business shall be opetaled and maintained al all times in compliance with any and all reasonable heaith and sanitary slandards prescribed by Licensor or by governmenlal aUlhorilY. IC said .Iore shall be .ubjecllo any .anitary or heaith inspection by any govern menial authorilies under which il may he raled in one or more than one classification, it shall be maintained and operated .0 as to be raled in lhe highesl available heaith and sanilary classifica. tion Wilh respect 10 each governmenlal agency inspecting Ihe same, 6,6 Licensor or its aUlhorized represenlalive shall have the right Crom time 10 time 10 enter Licensee's slore at all reasonable times during the business day Cor the purpose oC making periodic inspeclions 10 ascertain iC all lhe provisions o( tlris Operating Agreement arc being observed by Licensee and to inspect licensee's said Slore, lands, equipment, and 10 test, sample and inspect his supplies, ingredients and products, as well as, the preparation and Cormulalion IhereoC and Ihe condilions oC .anilatlon and cleanliness in Ihe production, handling and serving thereof. The Coregoing shall include the righl to review, analyze, and make corrective recom- mendalions on all phases of business management. (rom purchasing and inventory control through financial, personnel, and merchandising managemenl. 6,7 Whenever il shall appear in Licensor's leasonable judgment that Licensee's said business is not being operated in compliance with Ihe requiremenls hereoC, that the volume oC business being done is not equal 10 the average volume of other businesses similarly situated, or that the business is not being operated plOfilably or efficienlly, Licensor, at Licensor's option: (a) May place one or more rC(1rcsenla.ives at said store for a reasonable time to observe or examine any or all phases o( the operalion Ihe,eoC and may make any reasonable lecommen- dation to Licensee as to any operational change or procedure considered necessary or proper (or an efficient and profitable opetalion, which may include the placing by Licensor o( a qualilied representative at licensee's place of husincss to train, instruct and familiarize Licensee or licensee's employees with standard "Dairy Queen" business operations and procedures, or (b) Licensor may ,equire Licensee or any operaling employee oC Licensee to spend a reasonabte amount of time at another like place oC business or at a training center designated by Licensor at Licensee's expense for the purpose of observing and receiving training and inslruction (including periodic reCresher training), and the practice of standard "Dairy Queen" business operations and procedures. Licensee shall clrcct promptly any such operational change or procedure so recommended. nine 6.8 Licensee's storc shall be opened and opera led during a period o( at leasl..,......,............,...,.........., , , . ten conseCUllve months 10 each calendar year and shall be open to the public at least........................ hours each day during said period. Acts of Gud, war. slrikes or rialS prevenling Licensee Crom lemporarily complying with Ihe (oregoing shall exempt compliance lherewilh, PERSONNEL AND SUPERVISION STANDARDS 7. The following provisions nnd condilions shall conlrol with respcct 10 personnel, training :md super.. vision: 7.1 Licensee shall adopl and use us his continuing uperational routine the standard "Dairy Queen" management system as well as Licensor's slandard with respect 10 product preparation. mer- chandising, empluyee recruilmenl, Iraining, equipment and Cacility mainlenance and !\anitation, Licensee shall also utilize aids supplied or made available by Licensor to all licensees for this purpose. From lime to rime the Licensor will revise these programs to meet l.:'hanging conditions of retail operalion in Ihe besl inlere~ts of Licemce. 7.2 Licensee shall attend Licensor's More management Iraining program at a place to be dcsignated by the Licensor prior 10 Ihe opening of Licen!icc's store. If during Ihe lerm hereof Licensee operalcs said !llilre with it manager other than him~clf, Lil.:cnscc shall &11 hi~ expcnse !lcnd such manager through the ~amc program. -~- EXHIBIT "B" , , I! , I i I I I i i i , i , SlaIIInl Inl.maJ Tralnlnl PrDlfalll Atl.ndance al Meedn.. Advortlslnl and PromndonaJ Propam. Franchbo and Llc.n.. F... Surcbarge Mclbod of I'r..collecdon R.corm Dnd R.porls 202 I 7,3 Licensee shall hire and supervise emcienl, compelent, sober and courteous' ope;ators and employees (or the ope,alion o( Ihe husiness and set and pay their wages. commission. and incentives wilh no liabilily therefor on Licensor, Licensee shall require all his employees to work in clean uniforms approved by the Licensor bul (urnishcd al the cosl o( Licensee or Ihe employees 1I5 Licensee may delcrmine. 7.4 Licensor shall provide or make available 10 Licensee an in.store Iraining program (or all store employees, Licensee shall train and periodically re'lrain all store employees using Ihe training aids made available hy Licensor. Flom lime to lime, training material will be updaled and added to 1I5 required hy Licensor, with such training materials and aids available (or purchase by Licemee. 7,5 Licensee, al his expense, shali a\lend at least one national or regional meeting each year which Licensor or American Dairy Queen Corporation orlginales (or and on hehal( o( "Dairy Queen" operators to set forth new methods and programs in store operation, training, management. sllIes. advertising, nnd promotion. ADVERTISING AND PROMOTION 8,\ Licensor and Licensee, logether with olher licensees o( Licensor, and o( American Dairy Queen Corporation, shali cooperate in the promo lion and advertising o( approved products, To this end, Licensor reserves Ihe right in its sole disc,elion to eSlablish and olganize advertising and promotional programs (rom time to lime and Licensee agrees to partieipate in the cost and expense thereof by the payment to Licensor o( an advertising (ee as sel (orth in paragraph 9,5 hereof, Each year Licensor shall nOli(y Licensee of the advertising and promolional programs to be conducted during the year and shall (urther nOli(y Licensee of the adverlising (ee 10 be paid by him during such period, Licensor shall from time 10 time expend all sums received 1I5 and (or advertising (ees (or consumer adverlising and the promotion o( said products through any malerials and any media such as radio, lelevision, newspapers, billboards or special promo- tions. or point of purcha~e materials, originating, appearing, furnished or received in whole or in part in said telritory. 8.2 Licensee shall only use such adverlising and promotional materials as are (urnished, approved, or made available by or through Licensor. Said malerials shuil be used onl)' in a manner prescribed by Licensor. PARTICIPATION FEES, REPORTING AND FINANCIAL MANAGEMENT 9.\ In consideration of the rights ~rantcd herein, Licensee shall pay to Licensor as a franchise fee lhe sum often thousanC1 dollarllt>on lhe date o( execution of this Operating Agree- ment, the same having been herelo(ore deposited by Licensee. In addition to said franchise fee and during the (ull lerm o( Ihis Operating Agreement or any renewal or eXlension hereof, Licensee shall pay to Licensor as a license fee in respect of the righls granted herein a sum equal to fOllT percenl lol'1) of gross retail sales, exclusive of retail sales taxes, of all products, goods nnd wares of e\'ery kind amI nature sold from or in connection with Ihe operation of said store, including sales o( all producls under any n( lhe trademarks set (orlh in Appendix A as well as sales o( olher approved merchandise hearing olher brand names which may be authorized (or sale by the Licensor (rom time to time. All amounls due and owing hereunder shall he computed at lhe end o( each monlh's operation and remittance (or the same shall be made 10 the Licensol on or before lhe tenth day o( lhe (ollowing month accompanied by Ihe reporls provided for in paragraph 9.4 hereoC. 9.2 9.3 At thc option of Licensor, Licensor may require licensee to pay to the suppliers of mix, meat, and other ingredients used in Ihe conduct of the husiness a surcharge on all units of such com. modities purchased by Licensee to be paid to such supplier by Licensee at Ihe lime of purchase of such commodities, Said surch,..ge ,hall be paid 10 saId supplier or suppliels (or the account of Licensor, the same (0 he regarded by the parties as a method of collection of said license fee. The amounts so collected shall be credited by Licensor against the license fee due from Licensee 10 Licensor at the cnd of each month's uperations. Licensor !lhall submit to Licensce within a period of ten day' after the receipl of Licensee's monthly report and rcmiuance a reconciliation selling fOrlh the credits to Licensec's account by reason of the amounts collected (or the Ucensor hy suppliers by way o( the aforesaid surcharge method. 9.4 Licensee shall keep true records fmm which :111 sums paynhle under this Agrcement and the dates of accrual thereof may he readily determmed and said records shall be open 10 inspection hy Licensor or its authorlzcd reprcscntatl\'cs .It all reasonilble times. Licensee !lhall make written -5- EXHIBIT "B" ~ ..~. ~.' .-' Ad..r1IIlII. Conlribatloa F1auelU Planala. and Mana.emeat Payment or nebts L1abWly and Insurance AssIgnment and Transfer Fee 101 r:poru td Licensor In such form as Licensor may from time to lime prescribe within len days afler Ihe end of each monlh's operation seltlng forth the amounl 01 gro55 sales 01 all prod- UCIS Irom or In connection with the operation 01 said store and the business Ihereol during sold monlh, In addition 10 Ihe loregoing and In addition to such olher inlormalion .... Licensor may Irom time 10 lime rea,onahly require, said monthly reporl shall accuralely m lorlh Ihe tOlat number 01 gallons 01 mi., the tOlal numher 01 pounds ul meal. and the quanlilY 01 olher b",ie commodities used during said month and Ihe sourees where sold mix, meal and other commodities were purchased, For the purpose 01 said reporlS Ihe date 01 lISe 01 such mix, meat and olher commodities shall he the dale 01 receipl al the Slore Irom Ihe approved source. 9,S Pursuanl 10 paragraph M.l hereol, Licensee shall particlpale with liccnsor and with other licensees 01 licensor in Ihe cost and expcn,e 01 advertising and promotional program" To Ihls end licensee shall pay 10 Licensor lIS an advertising partlcipalion lee an annual ,um nol 10 exceed Ihree pcrcenl (30;;) 01 gross retail sales In conneclion with Ihe operation 01 said 'lore, All 01 Ihe provi,lon, 01 lhi, paragraph 9 shall apply with re'pecl to Ihe determination, reporllng, colleclion and paymenl 01 adverti,ing participalion lees, 9.6 Licen,ee agrees 10 employ sound financial managemenl praclices in connection with the opera- tion of said bu,iness and to thai end licensee ,hall mainlain on lorms approved or provided by Licensor a monthly profil plan. a monthly profil and loss 'Ialemenl and a monlhly balance shecl accuralely reflccling Ihe operation, 01 said bu,iness, In addilion 10 Ihe loregolng, Licen,ce shall employ such melhods of record keeping, bookkeeping and reporting as the Licen,or ,hall Irom lime 10 time rea,onably require and copies of all monthly profit plan" profit and loss statemenlS and balance sheels shall be lorwarded 10 Licen,or on or belore Ihe lenlh day 01 each monlh. In Ihe eVenl lhat an accounling and/or bookkeeping ,ervice ,hall be made avail- able 10 other similarly situaled licen,ee, 01 licen,or. Licen,ee ,hall have Ihe righl to request thai the same be provided 10 him by Lieen,or 01 a level 01 charges equlvalenl 10 charge, made 10 such olher similarly silualed Licen,ees. 9.7 Licen,ee coven an!! and agree' 10 pay p,omptly when due all taxes and assessments thai may be assessed against said premises or the equipment used in connection with Licensee's business. all lien and encumbranccs 01 evc,y kind and charaCler crealed or placed upon or again't any 01 said property and all accounls and other indebtedness 01 every kind incurred by Licensee in lhe conducl 01 ,aid business. In Ihe even I Licensee should delault in making any such pay- menl, Licen,or shall be aUlhorized, bul not requi,ed, 10 pay lhe same on Licen,ee', behalf and Licen,ee covenants promptly to reimburse Licen,or on demand lor any ,uch paymenl. Any and all amounts owing to Licen,or by Licensee hereunder whether Ihe same arise under the provi,ions 01 Ihis paragraph 9.7 or under any olher provi,ion 01 thi, Agreemenl shall bear in. leresl al Ihe maximum legal role Irom and oller the dale of accrual thereol. 9.8 The default by Licen,ee in the limety pay men I 01 any indebledness owing to Licensor here. under or lhe delault hy Licensee in Ihe paymenl 01 any indebtedness with respect 10 which Licensor or any of Licensor's affiliated entities is a gunranlor. cO.!liigncr, or endorser or obligor shall constitute a breach of Ihis operating agreemcnI rendering the same subject to termination in accordance with Ihe prov;,ions 01 paragraph II hereol. 9.9 In the event that Licensee he declared insolvent or hankrupt. or in the event a receiver is appointed, or that any proceeding is laken. by, for. or against Licensee under any provisions of the Federal Bankruptcy Act or an)' amendmenl lhereol, lhi, Operating Ag,eement may he terminated lorthwith by Licensor. 9.10 Licen,ee hereby waive, all claim' again,' Licensor for damages to property or injuries 10 persons arising oul of the operation of said business, and Licensee shall indemnify and save Licensor harmless of and from any damage or injury to properlY or persons arising (rom or growing out of the operalions of said business or the consumption of the product thereof. Licensee fUrlher covenants and agrees 10 purchase and maintain in full force and elYecl, at Licen~ee's sole expensc, liability insurance in an amount not less thnon S I on,ooo insuring hOlh parties hereto from liabilily for nony and all such damagc or injury and Licensee furlher agrees to deliver to Licensor a proper cerlificate evidencing the existence of such insurance coverage and Licensee's compliance with the provisions of lhis paragraph, I I I ~ . j' 9.11 Licensee agrees that Ihe interest of Licensee hereunder may not he transferred, assigned or alienated in whole or in part wilhout the written consent of Licensor, which consent shall not be withheld unreasonabl>'. but Licensor may insisl thai ,my proposed assignee be a person, in Licensor's judgment, qualified to provide active supervision over the operalion of said store in compliance with Licensec's obligalion~ hereunder, In the event Licensee\ SOlid interest should be so tr3nsferred or assigned. Licensee shall pay to Licensor contemporaneously therewith the " -6- EXHIBIT "B" Rlpl of F1nt Refusal Remodl.. Brearb of Contract Indemnity Land or Building Lease Reversion of Trademark Rights Purchase Op'lon :0: '". " sum o( One nIDusand Five Hundred Oollnrs ($I,Soo) as and (or a lIonster (ee, (or Ihe preparalion o( a new operaling Agreemenl in assignee's name, and (or any and all such ex. penses incurred by licensor in effecting soid Irons(er, IncludIng allendance by Ihe assignee al licensor's 1I0lnlng cenler. 9,12 licensee hereby granls 10 licensor Ihe righl o( firsl ,e(usol to purchase all o( licensee's right, litle and In teres I in and 10 said "Oniry Queen" Slore and Ihe wilhin Opera ling Agreemenl in Ihe eVenl licensee should desire to sell Ihe same, In such evenl, licensee shall notity licensor In wriling Ihol he has received nnd I" prepared 10 nccepl a good (ailh otTer (rom a qualified buyer, ,hall idenli(y Ihe buyer and 'tale Ihe lerms o( such otTer, licen,or ,hall have Ihllly (30) day, afler receipl o( 'aid oOlice 10 exerci,e ii, right of fim re(u,al, Ihe 'a me 10 be io writiog and ,ubjecllo Ihe 'ame lerm' and condition, '" have heeo otTe,ed 10 I.Iceo,ee hy ,aid qualified huyer, I( lIcen,or doe, nOI exerci,e said right of filSt refu,al wilhin ,nid Ihlrly (30) day" licen,ee may Ihen sell or tran,fer hi, 'aid inlere,1 10 ,ueh qualified huyer, ,uhjecl, however, 10 licen,or's wrlllen con,enl 10 ,uch assignmenl and Ihe paymenl o( Iran,fer fee, all a, provided in para. graph 9.1 J hereof, CONTRACT VIOLATION 10. licensee recogoize, Ihal his "Dairy Queeo" Slore is one of a large numher of 'lore, 'imilarly buill and selling 10 the public ,imilar Producls, and hence Ihe fai/ure on the parI of a single licensee 'a comply wilh Ihe lerm' of Ihis Operating Agreemenl, could cau,e irreparahle damage 10 some or all other "Dairy Queen" licensees, Therefore, iI i, mUlually agreed Ihal in Ihe event of a breach or Ihrealened breach of any of Ihe terms o( Ihi, Operating Agreemenl hy eilher pally, the olher pally shall (ollhwllh be entitled 10 an injunclion remaining such breach and/or a decree o( 'peclfic per. (ormance Wilhoul ShOWing or proving ,ony aClual damage, hUI ,uch injunelive relle( or decree ,hall not preclude any judgmenl (or damage, ,usia In cd. 10.1 In Ihe el'enl Ihal licensor delermines Ihat Ucensee has (ailed to meel Ihe requirements and 'pecificalions e"ahllshed wilh respect 10 qual ill', phy,ical propertie" or condilion o( equipmenl or mate,ial, u,ed or produel' manu(aclured, or wilh ,e'pecI to package, or advelli'ing, or any other p,ovi,ion, o( this Operating Agreemenl, lieen,or shall nOli(y licensee in wriling ot thai (acl. nnd ,hall 'el rOllh Ihe conditions 10 he eorrecled, and i( Licensee shnll (ail to lake posilive steps 10 correel Ihe conditions specified in nny such nolice wilhin ,even (7) days (rom Ihe date o( sending such Ilolice hy mail nddressed 10 said licensee nl his la" kllown nddress as showll by Ihe record, o( licensor, licen"or 'hall Iherellpon have Ihe righl 10 cancel and lerminale Ihis Agreemelll upon delivery 10 Licensee, persall ally or hy mail, o( wriuen notice o( such can. cellalion. 10.2 licensee expressly ngree' 10 ,"ve Licensor harmless (rom nny loss, damnge or IInbilily incurred by licensor hy reason o( aoy violnlion o( Ihis Operalins Ag,eement by licensee, 10,3 t\IlY le'minalion o( Ihe land or huilding lease (or Licensee's ,;Iore shnll aUlomnlicnlly lerminnle 'his Operating t\grccmcnI. TERMINATION RIGHTS I J. Upon Ihe t~rminafion or expiration of this Opemling Agreemenr: 11.1 t\1I ,ighls 10 Ihe lI.\e o( Ihe Irademnrk and Irade name "Dairy Queen" nnd 10 Ihe Irndemarks and Irnde names lIS1ed in Appeodix t\, nnd Ihe righl and license to conduel said h'''illess ill Ihe lerrilo,y descrihed hereillahove, shall revell 10 Licensor nnd licensee shnll Immedinlely cease all use o( said Irademarks and Irade Ilames. or nllY olher similar Irade Ilnmes or lrademnrks nnd pay all monics due ul1iaid dale; 11.2 All riShl, lille nlld inlereSl o( Licensee in nod 10 Ihis Opelllling t\greemeot shall hecome Ihe properlY of licem-ur. I J.3 Licensor shall have Ihe Ii,,, npliOIl 10 pureha'e all)' nr all equipmem or supplies, o( Whnlever kind. owned b}' Licellsee and IIsed h}' him in Ihe produclinn of Ihe "Oni,}' Queen" P'Oduel, or any o( Ihe olher "'''horiled products under ao}' n( Ihe trademarks hereunde, al a price deter. mined hy a qualified appllliser selecled wilh Ihe conselll of bnlh parries. If Ihe pallies cannol ag,ee upon Ihe seleclioll o( such an apprn;,er he ,hall he appoinled h}' a Judge o( Ihe Uniled Slales DiSlricI Courr (or Licensee's lerrilor)'. Said oplion 10 purchase may he o.e,cised hy Licen. ,or al nlll' lime Wilhin .111 davs (rom Ihe dale o( ,ueh lorminalion and shall 1101 he aha led or lermmaled h)' tho ,ale or oll;er Iransfer o( an}' 'uch equipmenl or supplies h}' Ucen"ec 10 a Ihird parr}'. Upnn Ihe exerci"e o( ,\lleh Oplllm and lender o( pa}'menl (or an)' such equipmenl or supplies. Licensee agrees 10 sell and deliver Ihe 'a me 10 Ucensor, (ree and clear of all co. cumbrances. and 10 l"<CClllc :md dcliver.. hill of lialc 'heref')f 10 l.iccnsor. -7- EXHIBIT "B" , I: Ii i II ,I I \ . 'i I ,I " , , .' " Non Compele . . \1,4 Lic~ns.. ,h'all nol dir..lly or indir..lly .ngag. in any .omp.lillv. husi~ess wilhin Ih. I.rrilory s.l forlh in paragraph \.1 for a p.riod of on. year all.r said dol. of I.rminalion or .xpiration. GENERAL PROVISIONS 12,1 In th. .v.nl 01 any fulur. 11m. on. or lTlO'. c1aos.s of Ihls Agr..m.nt shall h. h.ld to h. void by any court of compel.nl jurisdiction fa, any r.ason, such c1aus.s shall he d..med to be s.parable and Ihe r.mainder of Ihis Agre.m.nl shall he d..med to be valid and in full force and eIT.et, 12,2 Any waiv.r hy Li.ensor of any hr.ach hy Licens.. shall not h. de.m.d 10 be a waiv.r of any subs.qo.nl hreacb nor an estoppel 10 enforce ils right for n sub,equ.nt br.aeh. 12,3 This Agreemenl constilules the sole agre.ment between lhe parties wilh r..pe.l 10 Ih. enlire subject mailer of Ihis Operating Agreement and embodies all prior agre.m.nls and n.golialions wilh r.sp.ct to tbe "Dairy Que.n" bu,iness. There arc no repr.sentalion, of any kind exc.pt as contained herein. 12,4 It is ag,.ed and understood that Licen,ee is an independent contractor and is nol in any manner the ag.nl or .mployee of Licensor nor has Licensor any inler.st in the busin.ss of Licens.., .xcept to Ihe ext.nt sel forth in this Agreement. 12,5 If th. Lic.nse. con,i'ls of Iwo or more individual" such individuals shall b. joinlly and s.verally liable and r.f.rences 10 Licensee in this Agreement ,hall includ. all such individuals. R.f.renc. to Lic.nse. as male ,hall also includ. a female lic.n,.e or corporution or any olher business .ntily, 12,6 This Agre.ment shall be hinding upon and inure 10 the hen. fit of Ihe adminisllators, exeCUlo,s, heirs, successors and Dssigns of the parties. 12,7 License. h.reby acknowledges r.ceipt of "Slore Management Op.rations Manual(s)" bearing Issu. numberls) ,..............,and..,..........,..publish.d hy American Dairy Queen Corporal ion. IN WITNESS WHEREOF, the parlies hereto have execllled the foregoing "Dairy Queen" ating Agreem.nt the date first above wrillen. ,~..7.., ..'.... ..,.. ..~'....l-........... ~,I,~,~.~~~:................,..........,................,......,...., 2t:o/..,......._',....,..,....V'.~......,.. L1CE~ _...C-'-""'''' . J .."..,........,..........,......,...,',.,...,.., ",..""""".."..',' ",.."""",," ~~C~ t~~::1~~ Ily", """"""..,.."""......"...................,.......".....,........,...,.....". ATTESTCA ~A .".........."IY:...!...~..".L.(.~"""""" Its............,......,.................,......................,............ APPROVED: AMERICAN DAIRY QUEEN CORPORATION By......,......................,....,....................................,..............".... NOTE: IF LICENSEE IS A CORPORATION EACH OF THE STOCKHOLDERS THEREOF MUST EXECUTE THE FOLLOWING UNDERTAKING. The undersigned p.rsons hereby represenl to Licensor Ihat Ihey are all of the S1ockholders of Licensee. In considera- tion of the grant by Licensor to Licensee as herein provided each of the undersigned hereby agree, jointly and severally, and for Ihemselves, their heirs, legal represeolalives and assigns thai Ihey, and each of Ihem, shall he firmly bOllod hy all of the lerms, provisions aod conditions of Ihe foregoing "Dairy Queen" Operaling Agreement; that they and each of them do herehy unconditionally guarantee any indebtedness of Licensee arising under or by virtue of the aforesaid Operating Agreement and that they and each of them will not permit ur cause the voting control of Licensee to be modified or altered by stock transfer without first notifying Licensor of said proposcd transfer and uhtnining Licensor's prior wrillen consent thereto. ...............................................,............................................. ............................................................................................ ........................ .....-............................................................... ........................................................... #:!O:! _ Fnr use hy territory operalOr~ other than American Dair~' Quccn Corporation. Execute in 5 counterparts. IO/68/1000~. ~ ~ ~ ~V;~ -8- EXHIBIT "B" , APPENDIX "A" Below are 1 is ted the authori zed Trademarks and Servi ce Marks of Company which are in current use and effect, licensee has the right and privilege to use these Trademarks and Service Marks in accordance with the attached Operating Agreement. This Appendix "A" may be amended by Company from time to time in order to make available additional Trademarks or Service Marks or to delete those which become obsolete. Licensee agrees to use only those Trademarks and Service Marks which are then currently authorized. DAI RY QUEEN QUEEN OAIRY QUEEN KITCHEN BRAZIER BRAZIER CRISPY FRIED CHICKEN BRAZIER WITH DESIGN SUPER BRAZI ER THE "HALF POUNOER" BRAZIER KITCHEN BOSN I S MJ\ TE MR. MISTY MR. MISTY KISS MR. MISTY PLUS DESIGN MR, MALTIE CURLY TOP IRREGULAR RECTANGULAR DESIGN ROOF OESIGN BUSTER BAR DILLY DQ JET DQ ONE OF LIFE'S LITTLE PLEASURES THE ELLIPSE DESIGN THE ELLIPSE PATTERN DESIGN LIVE A LITTLE FLAVORED IN FLM1E BROWNI E OELI GHT EAT, DRINK AND BE MERRY THE CONE WITH THE CURL ON TOP DESIGN "THE CONE WITH THE CURL ON TOP" LET'S ALL GO TO THE DAIRY QUEEN DAIRY MAID GIRL CONFIGURATION Each of the above Trademarks and/or Service Marks must be used only in the manner specified by the Company and in connection with the goods and/or services specified by the Company. No deviations will be permitted. 11/72 EXHIBIT "B" .' APPENDIX "Il" Belo\~ is listed the approved menu of Company fOI' "Brazier" stores which Is in current use and effect, Licensee is authorized to use this menu in accordance with the attached Operating Agreement. This Appendix "Il" may be arrended by Company from tire to time in order to make available additional products or to delete those \~hich become obsolete, Licensee agrees to use only those products which are then currently authorized ,for use in "Brazier" stores, CONES DIPPED CONES SUNDAES , MALTS AND SHAKES SUNDAE SUPREME BANANA SPLIT STRAWBERRY SHORTCAKE PARFAIT SODAS HOMEPAK "MR. MISTY" "MR. MISTY FREEZE" DRINKS (Cola, Root Beer, Milk, Coffee, Mr. Misty, Orange) SUPER "1l1~ZIER" THE HALF POUNDER BIG "BflAlIER" BIG "BRA'_IER" DELUXE BIG "BRA::IER" CHEESEBURGERS "BRAZIER" "BRAZIER" CHEESEBURGERS "BRAZIER" DOG " DILLY BAR" "f1R. MISTY KISS" SUPER "BRAZIER" DOG "BRAZIER" CHILI DOG SUPER "BRAZIER" CHILI DOG "BRAZIER" CRISPY FRIED CHICKEN "BRAZI ER" FRENCH FRIES "BRAZIER" BAR-B-Q (Beef or Pork) BOSN'S MATE FISH SANDWICH "BRAZIER" ONIOIl RINGS "D.Q, SANDlHCH" "BUSTER BAR" "1I0T FUDGE BROWN I E DELI GHT" FLOATS FREEZE FIESTA "MR, MISTY" FLOATS "BRAlI ER" CHILI Each of the at-ove products must be used only in the manner specified by Company and in connection \~ith the goods and/or services specified by the Company as set forth in the "Dairy Quecn" Store r'lanagement Operations f~ilnllal and the "Brazier" Operations r1~nllal of the Company, as changcd or amcnded from time to time by Company. rlo dcviation5 \1i11 be permittcd, EXHIBIT "B" 4/72 .' ~(Q)f1f \ ASSIGNMENT , I ,\ I' '.0' TillS ASSIGNMENT, made this 14th day of April, 1989, from ELBERT Il, THORNTON and NANCY ANNE TIlORNTON, his wife (hereafter 'Assignors.) to C, DAVID SPEALHAN and LOUISE A. SPEALMAN. his wire (hereafter 'Assignees.); " ~: WIT N E SSE T 01 ) i , I :Ef WHEREAS, the parties have entered into an Agreement for the Sale of Real Estate and Dairy Queen Franchise Business from Assignors to Assignees, which Agreement requires the assignment of Assignors' right, title and interest as Licensees under a Dairy Queen Operating Agreement dated April 21, 1975; '. NOW TOEREFORE, in consideration of the sum of Twenty-Five Thousand ($25,000,00) Dollars in hand paid, receipt of which is hereby acknowledged, Assignors do hereby transfer, assign and set over unto Assignees all of Assignors' right, title and interes t as Lic ensees un de r the Do i ry Queen Ope ra ting Agreement a foresa id; and represent and warrant that they have full, unfettered right to make this assignment, having previously secured the authorization from Licensor under said Agreement; that Assignors are not in default of any term, condition or obligation set forth in said Agreement; and that all conditions precedent to the right of Assignors so to assign unto Assignees have been satisfied; and that Licensor has heretofore, in writing, consented and agreed to the assignment set forth herein. l '} I ~') ! ) I I f-, I . I ) I ' , IN WITNESS WHEREOF. intending to be legally bound hereby, the Assignes have hereunto set their hands and seals on this 14th day of April, 1989. Signed, Sealed and Delivered in the Presence of: ASSIGNORS: ()2(j! /j-gr:eL A71/~l/J/( , f/ V--J:.. (T/~ (SEAL) I ' '71~.c< C.,-"- " A' N CY ANNE TIlORNTON . L-' (SEAL) I ,I , , ~ I " EXHIBIT "B" , . , ;. .1' ," ;,/", '. ",."j","Y' , .. i;, 0 a 11:1f' <i\::.' :'0' ': ':il('i;" ',,:e' , '.i'e'" ':in~~,';';'.:""~:' -~I.:: '.. ~ ;114 L:-.,. l~.. .'~~M . ..~ . ". .' . .: . .' .." ":,.'. . 't!::'_. .~"",.....,,'/,.,: ," I ,.... :..:.t ,';;' '<.:\,k' ;':' t' ,:' ";:'-' : -; , '. ~t' .,. " ",.' ~.Dairy Oueen"* Operating Agreement " , I oj ~~v\ /\~ / .. ,.... .:; :....:.; ConfUf.nUI' , E..eluslnly 'or 'nd us. by "C.I.ry Queen'" 10 CDpy"lht 1968 Am. D. a. Carp. 'Rtl. U.S. "I. Off. Amer. D. a. Corp. :102 EXHIBIT "e" ,.... '. ., ~ . - CONTENTS - FOREWORD OPERATING AGREEMENT - 202 Preamble. and Recital. ............................................................ GRANT OF LICENSE Llcen.or'. Grant 10 Licensee Acceptance by Licensee ............ I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , Term ...... ....... to ................................ .......... .............. ... TRADEMARK STANDARDS AND REQUIREMENTS General Declarations, Uniformity and Quality Control.... I......... 'ot.................. Approved Adaptations ....;.....: I.... ..~... ~..... ..... .... .. ~ ...... ,".. . .. . . . . . . ., . . . . . LhiSlllon .........;.......................................... ~ . . . . . . . . . I . . . . . . . . FACILITY STANDARDS AND MAINTENANCE , Store Facilily ..... .:... .... .. .. .... .. ...... .. ..... . .. . ...... .....",:.. .. . . .. . , . . .. . Future Alteration ................................................................ Maintenance .................................................................... Relocation ...................................................................... PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS Authorized Product Line .................................'......................... Approved Menu ..................... ~ . . . . . . . . .; . . -;"; . ; .' . . . . . . . . . . . . . . . . . . . . . . . . . . . AUlhorized Ingredienu, Formulas, Supplies, Preparation ,..,....,.,.....".,...,...,.,.. Serving and Promotion Items ......................... ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maintenance and Sanitalion ........................................................ Inspection and Recommendation .................................................... Operational Aid hy Licensor ' , , , . ' , ' , ' , , , , . , , , ' . ' , . " .".'"""""", Period of Operation .............................................................. PERSONNEL AND SUPERVISION STANDARDS Ma~a.gement System .............................................................. 4 Training ........................................................................ 4 Staffing ........................................................................ 5 Internal Training Program ........................................................ 5 Attendance at Meetings ..... ..... ........ ...... .............. .... ..~:..... ....... ....; 5 ADVERTISING AND PP.OMOTJON Advertising and Promotional Programs .............................................. 5 PARTICIPATION FEES, REPORTING AND FINANCIAL MANAGEMENT Franchise and Uccnsc Fees ........................................................ 5 Surcharge Method of Pre-Collection ,................................................ S Records and Reports ............................................................. 5 Advenising Contribution .......................................................... 6 Financial Planning and Management ."................,..........,.......... '.. .. . .. 6 Payment of Debts ................................................................ 6 Liability and Insurance ............................................................ 6 Assignment and Transfer Fec ...................................................... 6 Right of First Refusal ...........................,...... ',' .. .. . . .. . .. .. . , . . .. .. . . . 7 CONTRACT VIOLATION Remedies ....................................................................... 7 Breach of Contract ............................................................... 7 Indemnity ...................................................................... 7 Land or Building l..ease ........................................................... 7 TERMINATION RIGHTS ~eYersion of Trademark Rights .................................................... 7 Purchase Oplion ..,.............................,....................,..,....,.... 7 Non Compele .....,............................................... .. .. .. .. . .. .. .. 8 GENERAL PROVISiONS..........,.,..,..............................,.......,.,... 8 SIGNATURES .............,.............................,........"................ 8 APPENDIX "A" .....,......................,.................................."... 9 APPENDIX "B" ,....................,....................................,......... 10 EXHIBIT "e" . PAGI! I I I 2 2 2 ] ] ] ] ] ] ] ] 4 4 4 4 4 :UDAIRY QUEEN" OPERATING AGREEMENT This Agreement enlered Inlo Ihls._.............................day 0(......................................................... J 9........, by and belWfen ~,...r:b.\?~ ,..:J;:or"...."0.,b.~M.'.....r.:!..,,.;;t>..I!'.!?Si.lR.\fl..~!!I,....,~!.'i!.~.ot the cilY ot...,..Gr.;1rn;!1!ll.l.t".,._................,....... counlY or..:1?~.l?hi::I.................................. and Slale ot......::P..~...............,...............................,. hereinarler reterred 10 as "Ucensor," andJ:lli.,.,II....';!..,.I,,~.'.(rlill,.,~.~I,..!:~.'!i.l,ot Ihe city O("...s:ih!f!.P.l-m.h.;l.~.~I..............,..............................,................., counlY ot..C.blm.12.o,r..\f.':nd....................., and Slale ot........:::P..fu.................................hereln.(ler reterred 10 ILl "Ucensee": WHEREAS, Licensor Is Ihe exclusive licensee at American Dairy Queen Corporallon In cenaln geographical areas Including Ihe lerritory herelnarler defined at Ihe rlghl 10 use, license and permit olhers 10 Use Ihe "Dairy Queen" !r.demarlc. service marlc and Irade name which has been reglslered In Ihe United Stales Palenl Office, In each stale of Ihe union .nd In foreign Counlrles as well as I~ose tr.demarks and service marks (hereinafler collectively reterred to as "Tradem.rks"), . IIS1 of which Is allached hereto and made a parr hereat as Appendix A: and , WHEREAS. Ucensor and lu predecessors in InlereS! aCllng under said exclusive license inslltuled, developed, pro. mOled, and established Ihe "Dairy Queen" rranchise business and syslem In Ihe aforesaid lerrllory which consills o( Ihe sale of dairy producu, rood produClS, beverages and olher products and services under said Irademarks .nd ulilizing in connec. lion Iherewilh cerlain IYpes of racilllies, equipmenl, supplies, ingredlenu, merchandising and business lechniques and melhods logelher wilh advenlsing and promotion programs developed tram lime 10 lime; .nd WHEREAS, il is Ihe purpose o( Ucensor 10 provide 10 Licensee in a relail slore oullet 011 organizalion 10 con!rol and m.ke unitorm Ihe operalion or racililies and equipmenl logether wilh Ihe quallly of producu, the use and proleclion at the !rademarks and 10 make available unirorm and approved equipmenl, SUpplies, ingredienu, merchandising and business lechniques and lhe advenising and promolional programs of American Dairy Queen Corporal ion, and WHEREAS, Licensee desires 10 engage in Ihe "Dairy Queen" business and syS!em and 10 enler into this oper.ling Agreement subjecl 10 Ihe condilions and conlrols herein prescribed tor the pUrpose of offering 10 the public producu and services of unirormly high qualily .nd slandards to Ihe end at prolecling the inlereslS or Licensee, o( Licensor, at American Dairy Queen Corporation .nd all olher persons eng.ged in said business. NOW, T}fEREFORE, In consideralion at Ihe mUlual promises and eovenanu herein COnlained, Ihe granl by Licensor of Ihis Oper.ling Agreemenl and Ihe paymenl b). Licensee or Ihe parricip.lion tees provided in Paragraph 9 hereot, il is .greed by and belween Ihe parries herelo as follows: Lieensar'. Grant 10 Licensee GRANT OF LICENSE 1. Licensor hereby gr.nts to Licensee, subjecI to all Ihe terms, conditions OIId provision! hereof Ihe righl and license 10 1.1 Eslabli.h and operale a relail slore under Ihe name "Dairy Queen" .L........................................... Slftt't ................................................................................................................-..........-.......................-....... ell' SUle ZIp CodI and Licensor agrees Ih.. it will not eSlablish another "Dairy Queen" relail Slore within the fallowing defined lerrilory: ...........~.!:t.!,., .....Qi:>.l."(r...........................................,....................... .......................................................................................................................-..........-..-.................... .......................................................................................................................-..-.-..-......-..............- 1.2 Use Ihe rrademark "Dairy Queen" and Ihe olher !rademarks idcnlified in Appendix A on and in associalion wilh lhe adverlising, promollon and sale 'Of all uniform and approved producu and services as Licensor may .ulhorize tram time 10 lime. " 1.3 Use Ihe ".demark "Dairy Queen" and Ihe olher tr.demarks identified in Appendix A on and in' associallon Wilh the uniform equipmenl, supplies, .nd ingredienu tor Ihe producu approved by Licensor. 1.4 Employ in the hu,iness or .aid Slore Ihe merchandising, advertising, promotion and business melhods and technIques developed, adopled and approved by Licensor. I,S Receiving lhe assiSlanee, malerials, and services at Licensor as expressly provided ror in Ihis Operallng Agreement. Aceeplllnce by Licensee 2. Licensee he,eby aeceplS Ihe above license tram Licensor subjeCI 10 all Ihe lerms, prOVlllons .nd conditions he,eor and agrees Ih.1 Licensee shall cau.e 10 have a "Darry Queen" slore establi.hed and m::ainrained :ll Ihe address given above, under Licc:nsee'~ active and conrinuou:'i :;~pervisir:'1 and man- a~emc:nt .:md u;::Jn the ~land3Ids hereinafter provllJed. Licensee further expreuly Olcknowledges and agrees: ,> j:. iI, ;1 'I' ,., -1- EXHIBIT "C" Term General Declarallon" Ualfonnity aDd Quality CODlro\ Apprond AlbplDlioDI WI "' 2,\ " Licensor is Ihe exclusive IIcenlee 01 Ihe right 10 ule Ihe Irademark and rrade name "Dairy Queen" .nd Ihe lrodemorks sel fonh in Appendix A In the .Ioresaid lerritory, S.id trodema,ks are valuable properlY righls owned by American Dairy Queen Corporollon and exclulively licen,.d 10 L1cen,or in uid I.rmory, Said Irad.marks shall be Uled only In conneclion with such products and services .. may be approv.d or Ip.elfi.d by Licensor and shall at all limes be us.d only In a manner approved by Lic.n,or, Lic.n,ee', rights 10 Ihe use 01 Irad.m.rks is sp.cifically limiled 10 Licen,ee's r.tail slor. op.ralion at said 10eOlion, Licens.e shall use no olh.r rrad.m.rks, lrode nam.s or ,.rvice marks in said bu,in.ss exccpl those ,ulhor!z.d by L1c.nsor .nd .. s.1 lonh in App.ndix A exc.pt wllh Ihe wrlll.n consent of Licensor. Licens.e shall nol u,. the words "D.iry Qu.en" .. . porI of Its corporote or business name unl.ss firs! approv.d In writing by Lic.nsor, and' shall us. only the word "Dairy Queen" (and no olh.r words whalsoev.r) as the trade name on the slore from which Ihe said products and ,.rvlces are sold. Llc.ns.e shall adopt and lollow in good faith the systems, programs and methods pr.scrib.d by Llc.nsor lor Lic.nsee's r.la,1 op.ration In accordance with this Op.rating Agr.em.nl 2.2 2,3 2.4 2.5 2.6 2.7 ... .1 . 3. The Lic.nse gran led her. in shall b. for a I.rm of Iw.nty y.ars unl.ss soon.r lerminat.d in aceordan~. with Ih. provisions h.r.of. This Op.raling Agr..m.nl shall be automatically r.n.wed for successive five year p.riods unl.ss .ith.r party shall give the oth.r six months' wrltt.n nOlice of Int.ntion nol to renew. TRADEMARK STANDARDS AND REQUIREMENTS 4. Llcens.. agree' Ihat nOlhinR h.reln conlained gives him any tltt. 10 or int.r.st in the lI.demark .nd trod. n.m. "D.iry Qu..n" or any of Ih. trod. marks s.1 lorth In App.ndix A ....pl the right to us. the >>m. under the I.rms .nd condillons of Ihis Agr..ment and thOl Lic.ns..'s us. thereof inures to the b.n.fit 01 Ih. own.r th.reol. Licens.e shall u,e said Irad.marks .nd lI.d. names only on and in :usoeiation with Ih. .dver. tising .nd ..Ie 01 products and ,crviccs which sh.1I in quality, mod. .nd conditions of m.nuf.cture .nd salc. comply with such slandards as nre .slOblish.d or approved by Licensor, In ord.r to promol. and prot.ct Ih. business inler.sts 01 each 01 the parties, th. volue of the "D.iry Qu.en" busin.ss .nd Ihe busin.ss inlerests ololher p.rsons eng.g.d th.r.in, unllormity ,hall be maintained In the type, standa,d and qualilY 01 'tor.s, equipm.nt. suppli.s and ingr.dients used th.rein. and the conditions of prepor.tlon and the procedures employ.d In Ihe sale 01 said produets and s.rvic.s. To this .nd, it is agre.d ,hat Ihe rul.s and controls contained in thil Agreement shall prevail in th. UI. of the "Dairy Queen" trademark and in the conduct of Licensee's said business. Licensee agrees Ihat Ih. provisions, remlctions and controls provid.d in this Operaling Agree- m.nt are all n.cessary, reasonable and desirobl. lor such purpo,es and that License.'s said busin.ss shall be conducted in accordance with Licensor's uniform requirements with respect to quality, production, appearance, cleanliness. service, merchandising and advenising standards. These controls shall includ. the specifie r.quir.m.nll her.in.fler provid.d. Nothing h.reln shall be conslrucd to limit the sources from which Licensee may procure equipment. supplies, insredicnlS or services provided th:u ~uch items conform to the Licensor's standards and ~pc:cific:uions of consistent qu.llty and unilormity, and provided lurth.r that any ,uch suppli.r shall h.ve r.li.ble production and deliv.ry eapabili"es :u well as sueh financi.1 r.sponsibllily as may be necessary to .d.qu.t.ly provide the same on a eonlinuing basis, NOlhlng contained her.in ,hall be d..m.d 10 require Lic.nsor to approve an inordinate number of suppliers of a given item or service so as to render the same .conomieally detrimenlOl to Lic.n,e.s 01 Lic.nsor or incapable of proper sup.rvision by Licensor. R.quests lor approval 01 supphelS shall be In writing and shall conlOin sueh inlormation :u Lieensor may reasonably request, 4.1 Conlplele and d.tailed unilurmity under many voryinC condilions may not b. possible or proctleal and Licensor re~crvcs the righe and prlvlle!:lc. 3t Liccn~or's sole discrellon and a~ liccn!lor may deem In the bc~t intcre~l~ 01 all conc.:rned In an)' specific imt.mcc. 10 \'ary ~Iand:u~~ (or any other like hUSlncss ha\ed upon Ihe peculiarities of a parl1cular slIe or location. den!llty o( popu. lalian. hUSlneSl\ pOlenlial. pC'lpulallun of trade area. eXlstmg busincs~ praclicc~. or an)' other condition which Licensor ueems 10 be of imporl:mce to Ihe succes!liul oper:lIion of a like bUSiness. Licensee hereunder ~hal1 not be he:ud to complain on account of ::my variation from st.ndard 'peelfic.tions and p"ellees cranled to any other like licensce and th.reby ,h.1I not be enlilled to reqUire Licensor :0 {;ranllo Licensee a like or similar varialion hereunuer. -:!- EXHIBIT "c" , UdgalloD Slor. FadlUy Furur. AlleralloD IIralDleoUlee ReloClltioD Authorized Product UDe Apprond M,uD Authorized Iagredlents, FonnuJas, Supplies, PreparndoD '0' 4,2 f '. . '. . In the eve;,t Ih.1 .ny p.rson, firm or eomp.ny, who Is not . license. or .tranehls.. 01 Llc.nsor, wes or infrlng.s upon Ih. "Dairy Qu.en" trad.mark or tr.d. nam., Uc.nlor sh.ll, al Its e." pens., caUle . Ir.d.m.rk Infringement or any oth.r approprl'l. sull 10 be Instltul.d .,.inst such otrendln, p.rly, Wilh r...p.el 10 all olh.r sltu.tions, u b.lw..n Uc.nlor and Ue.ns.., Liccnsor sh.ll conrrol all 1Ill,.ilon r.llting 10 Ih. rradem.rks IIsl.d In Appendix A and shall b. Ih. sol. judge u 10 wh.lh.r or nol suh shall b. Insllluled ror Ih. Inrrlngemenl Ih.r.ot, 4,3 .' FACILITY STANDARDS AND MAINTENANCE 5. Th. tollowing provisions and condilions .hall conlrol wilh r.sp.cI 10 Llc.ns..'s slor. ,il. and unit, 5,t Pursuant 10 s.paral. wrill.n .gr..m.nt belw..n Ih. panl.s Llc.nsor shall conSlruct and d.llver 10 Licens.. poss...sion ot a compl.led "Dairy Qu.en" r.I.i1 outiet allh. aloresaid lacadon (or In th. all.rnallv., Uc.nse. sh.ll cause to b. cons!rucl.d and complet.d on or betor......................... ..~I,I!.h!.......L......!.:.\::'.;.:........ "O.iry Queen" r.lail oull., ., s.ld loc.lion), S.id oull., shall b. construcl.d .nd .quipped in accord.nc. whh Uc.nsor's currenlly .pprov.d sp.cificalions .nd ".nd.rds as respecu building, .quipmenl, inv.nlory, signag. .nd .cc....ory t..'ur.s, 5,2 Any repl.c.m.nl, r.construclion, .ddilion or modific.lion in building, .quipm.n' or sign.g., 10 be made h.realler, Wh.lher .1 Ih. r.quesl at Licens.e or at Licensor, sh.ll b. m.de, in .ccordanc. wilh wriuen specificalions approved by Uc.nsor, 5.3 Th. building, .quipm.nl and signag. employed in Ih. conduct at Llc.nsee's business shall be m.inl.in.d in .ccordance wilh .n .nnual m.inl.nanc. list prepared by Licensor .nd bas.d .'pon periodic inspeclions 01 Ih. pr.mises by Licensor's r.present.lIv.s. Wilhin a p.riod at nin.lY (901 d.ys .n.r Ih. receipl or such .nnu.1 m.int.n.nc. lisl, License. sh.1l elfect th. h.ms of main- I.nance reasonably provid.d Ih.rein including Ihe r.pair of d.fective h.ms .nd/or Ihe r.plac.- men I of un repairable or obsolele il.ms ot equipm.nl and sign age. 5.4 Should it become necessary, on account of condemnation. sale, or ocher cause, inCluding cxpira... tion or cancellation of Ic.:L5c or rcnt31 contract, to relocate said store Within territory, an)' new slor. 5ile .hall bc designaled, approved, improved, and cquipp.d In accordanc. with th. curr.nt slanda/ds of Ucen"., 'Ichallim.. 50S Each and .very ren.wal or .X1.nsion 01 Ihis operaling agr..ment as provided in Paragraph 3 h.reor Jnd c.ch ev.ry Iransr.r as provid.d in ~aragraph 9.11 h.reol shall be .xpressly condi- Iioned upon Licen.e. promplly performing and e/fecllng such ilems of modernJUlIon andlor replacemenl ut building, .quipm.nt, .nd signag. as may be n.cessary 10 permil lh. sam. 10 contorm 10 th. slandards Ihen pr.scribed by Uc.nsor ror similarly shualed slor. operalions. Lic.nsee r.cogniz.s and acknowl.dges Ihat Ih. r.quiremenls of Ihis paragraph ar. bOlh r.a- sonable and necessary 10 Insure conlinued puhlic acceplance and palronage and 10 avoid deterioration or obsolescence in connection with the operation of the business. PRODUCTS AND OPERATIONS STANDARDS AND REQUIREMENTS 6. Th. tollowing provi,ions shall conlrol wilh respect to producls and operalions: 6,1 Lic.nsee's business shall be confin.d 10 Ih. prepar.tion and sal. of only such products as from time 10 time are d.signaled or approved by Liccnsor. The pr.mises upon which said business is operal.d shall nol b. used ror any olher business and chere shall nOI b. sold or olrered ror sal. cherefrom any olher P'OdUCI or service without Ih. wrlU.n consenl at Ucensor which shall nol be wilhheld unreasonably wilh r.spect 10 Ih. sale of any non-compelilive product which may complemenl and promole addilional sal.s of Ih. products which are ,ulhonzed h.reunder. Alcoholic or inloxicallng beveroges sh.1I nol b. sold or otrered tor s.le or olhetwise handl.d upon said premises. 6,2 Auached herero as Appendix n is the currently approved menu ror Licensee's oull.t. Varialions Iheref,om shall only be made With lhe wriuen conSenl of che Licensor. 6.3 License. sh.1I use in pr.paring producls only such ingr.dients, rormulas, .nd 511pplies as are specified by Licensor :md in such portions. sizes and appear.1nce and P:Jck:Jgrng as sel fonh in i1 "Slore ~Ianagemenl Ope"lIons Manual" published by ,o\merican 0.111' Queen Co'poralion which shall b. supplied 10 Licensee by Liconsor upon che oxeculion or Ihis Operating .o\gree- menl. All other suppli~s, including cone~. cups, comalners. eating ulenslls. napki~\, and all olher customer !ierVlce m:llerials of :.ill d~scnption and 1)'peS, sh:JlI meet the standard~ or -3- EXHIBIT "e" Sunn'lnd Promollon lIoml unlformllY and qualhy u now' or herealler set by Licensor, L1c~nsee Ih.all be . furnished whh IlIu of approved sourcu of supply annually, All adverlls/nB mlterlal, cUllomer "goodwill" hems, corlons, canlalners, wrappers and piper goods, eallnll and servlnll ulensill, cUIlomer convenience Hems (Includlnll napkins, baby blbl, and dllposal containers I, used In the adverlislng, sale and dlstrlbullan of all productl covered by thll Operalinll Allreement shall, where pracllcable, Indicate Ihal h Is produced and sold under Ihe aUlhorilY of American Dairy Queen Corpora lion and shall be subjecllo approval by L1cenlOr before being used, L1cenlee's said buslnus shall be operated and malnlalned at all limes In compliance wHh any Ind all reuonable heallh and sanllary standards prescribed by Licensor or by govern menIal aUlhorlty, 1/ said store shall be subjecllo any sanitary or heallh Inspection by any govern menial authorities under which Is may be rated in one or more Ihan one clauiftcalion, II shall be mainlained and operated so as 10 be raled In the hlghesl available health and sanitary classiftcI' lion with respecl to each gavernmenlal agency Inspecling Ihe same. ' , ..ft', ~ "", ~ 6.4 Malnteoanee and SanJllllon 6.5 IIIlpecdon and Recommtndadoa Licensor or IlJ authori:ed represenlalive shall have Ihe righl from lime 10 lime 10 enter L1cen..e's slore at all re...onable limes during the business day for Ihe pu'pose of making periodic Inspecllons 10 ..certain if all Ihe provisions of this Operating Agreement are being observed by Licen..e and 10 inspect Licensee's said Slore, lands, equipmenl, and to tu~ sample and Inspect his supplies, ingredients and produclJ, ... well ..., the preparation and formulation Ihereof and Ihe conditions of sanitation and cleanliness In Ihe praduclion, handling and serving thereof. The foregoing shall include Ihe right 10 review, analy:e, .nd make corrective recom. mendations on all phases of business management, from purch.sing and inventory conuol through financiat, personnel, and merchandising management. Whenever it shall appe.r in Licensor's re...onable judgment that licensee's said business is not being operated in compliance with the requiremenls hereof, Ih.1 the volume of business being done is not equal to the .ver.ge volume of olher businesses similarly situ.ted, or that the business is nol being operaled profitably or efficiently, Licensor, at Licensor's option: (a) May place one or more representatives 01 said slore for a reasonable time 10 observe or examine .ny or all phases of Ihe operalion theteof and may make any reasonable recommen- dation 10 Licensee as 10 any operational change or procedure considered necessary or proper for an efficienl and profitabte operallon, which may include the placing by Licensor of a qualified represenlative al Licensee's place of business 10 uain, Instruct and familiari:e Licensee or Licensee's employees Wilh slandard "Dairy Queen" business operations and procedures, or . (b) Licensor may require Llcen..e or any operating employee nf Licen..e 10 'pend a realOnable amounl of time al another like place of business or at . Iraining center design'led by Licensor at Licensee's expense (or the purpose of observing and receiving training and instruction (including periodic refresher Iraining), and the pr,clice at slandard "Dairy Queen" business operations .nd procedures. Licensee sh.1l effect promptly any such opef3tional change or procedure so recommended. 6.8 Licen,ee's slore shall be opened and operaled during a period of al le.st.........t.9......................... consecutive months in each c.lendar year .nd shall be open 10 the public at leasl.......!..~........... hours each day during said period. Acu of God, war, slrikes or riots prevenling Licensee from lemporarily complying with Ihe foregoing ,hall exempt compliance Iherewilh. 6,6 Opentlonal Aid by Ueensor 6,7 Period of Opendoa . .. .' PERSONNEL AND SUPERVISIO~ STANDARDS 7. The following plOv!>ions and condilion, ,hall control Wilh respect 10 personn.I, Iraining and super- vision: 7.\ License. shall adopl and us. as his conlinuing op.ralional roulin. lhe slandard "Dairy Qu.en" management system as well as Licensor's standard with respect to product prcparaticn, mer- chandising. employee recrUllmcnt. tr6lining. equipment and fa.cility maintenance a.nd sanitation. Lic..... shall al,o utilize aid, ,uppli.d or mad. availabl. by Lice..or 10 all lic.n,..s for this purposc. From time co lime che Licensor will revisc chese pros rams to meet ch:lOcing condiuons oC rctail operation in che best intcrcsts of Liccn!lee, . MlU1I~.meDI Syslem Tralnin~ 7.2 Liccnsce shall :lIIend Licensor's !!otore m:1n3ccment training program at :1 plOlCC to be de~i[!n:lted by lh. Lic.n,or priol 10 the op.ning at Lic.ns..'s ,tal.. If dUling lhe t.,m h.r.oC Lic.n'.. operatcs said store with a manager other than himself, Licensee shall at his expense !!ocnd such manag.r lh,ough lh. sam. program, lD% -4- EXHIBIT "e" 'SlaIIIn. of! , Intamal Tralnln. I'ropIm Allcndanel II Mttdnp Ad...tIslag..d rrnmodoaaJ Pm...... Fran.hlsl and UeclIII Fe.. Sur.harge Method of Pro-CoUe.don Rc..rds Dnd Rcpom ::0. ~' ; 7,3 Ucensce shall hire and supervise em.lenl, eompelent, sober, and ,courteous operators and employees (or Ihe openllon o( the business and set and pay their wases, commissions and Incenllves whh no lIabllily Iherelor on licensor, Ucensee shan require all his employe.. to work In ele.. unl(orms approved by the Ucensor but (urnlshed at Ibe cost of Ucensee or Ibe employees OJ Ucensee moy del ermine. I 7.4 Ucensor shan provide or make available to Licensee an In.store training program for an slore employees, Licensee shall tmin and periodically re.lrain an 5Iore employees using Ihe training aids made available by Licensor. From lime to time, "alnins malerlal will be updated and added to IS required by Licensor, with such training malerials and aids available (or purchase by Ucensee, , , ' "1 0, ) I I 7,5 Ucensee, at his e.pense, shan auend at least one nail anal or regional meering each year which Ucensor or American Dairy Queen Corporalion originates for and on behalt of "Dairy Queen" operalors to set forth new melhow and programs in slore operation, Iraining, managemen', sales, advertising, and promollon. ' ADVERTISING AND PROMOTION 8,1 Licensor and Licensee, logether wilh other licensees of Ucensor, and at American Dairy Queen Corporation, shall cooperale in Ibe promolion and advel1ising of approved producu. To Ibis end, Ucensor reserves Ibe right in iu sole discrclion to establish and organi.e advertising and promorlonal programs from lime to time and Licensee agrees to participale in Ibe cost and e.pense Ihereof by the payment to Licensor of an advertising tee as set forth in paragraph 9.5 hereof. Each year Licensor shall nOlify Ucensee of the advertising and promotionat programs to be conducled during the year and shall turlher notify Ucensee of Ihe .dvertising fee to be p.id by him during such period. Licensor shan (rom lime 10 time e.pend all sums received as and for advertising (ees for consumer advertising and the promolion at said produclS throug~ any marerials and any media such as radio, television, newspapers, billboards or spe<:i.1 promo- tions, or point of purchase materials, originating. appearing, furnished or received in whole or in pan in said lerritory. 8.2 Licensee shall only use such adverlising and promolional materials as arc furnished, approved, or made available by or through Licensor. Said maleriats shall be used only in a manner prescribed by Licensor. l I J / , ., ~ ') I , , 9.1 PARTICIPATION FEES, REPORTING AND FINANCIAL MANAGEMENT In consideralion of Ihe righlS gra.qled herein, Licensee shall pay 10 lIconsor as a tranchise te. the sum of 30, t:'OO c...2.. :?~~tj' upon the date of execution of this Opcr:uing Agree.. menl, Ihe same having been herelofore deposlled by Licensee. In addition 10 said franchise fee and during Ihe full lerm of this Operaling Agreement or any renewal or e.tension hereof, Licensee shall pay 10 Licensor as a license fee in respect of the righu granted herein . sum ~ 10 four percenl (4%) of gross relail sales, e.c1usive of retait soles la.es, of all producu, goods and wares of every kind and n.tur. sold from or in connection with the operotion of soid slore, including sales of all producls under .ny of Ih. trademarks set torth in Appendi. A as w.1l as sotes of olher .pproved merch.ndise bearing other brond names which m.y be .1l11iorlzea- ror sal. by Ibe Licensor (rom lime 10 tim.. . All .mounlS due .nd owing hereunder sh.1l be computed .t Ih. end of e.ch monlh's operolion and remill.nce (or Ih. same shall be m.d. to Ihe Licensor on or be(ore the lenlb d.y of th. following monlh .ccompanied by the reports provided for in paragraph 9.4 hereof. , . 9.2 9.3 Al the option of Licensor, Licensor may require Licensee to pay to Ibe suppliers of mi., meat, and orher ,"gredienlS used in the conduct of rhe business a surcharge on all UOlIS of such com- modities purchased by licensee to be paid 10 such supplier by Licensee at the time at purchase of such commodities, Said surcharge shall be paid 10 said supplier or suppliers for the accounl or Lic.nsor, rhe same 10 be regarded by Ihe parries as a method of collection or said Ii..n,e fe.. The amounts so collecled shall be credited by Licensor against Ihe Ii.ense ree due from Licensee to Licensor at the end of each month's operations. Licensor shall submit 10 Licensee within :1 period of len days 3(u:r the receipt of Licensee's monthly report 3nd rc:minancc a reconciliation setting fonh che credits to Licensee's account by rl:350n of the .:J.mounlS collected for Ihe licensor by suppliers by way of the aroresaid surcharge method. 9.4 liccnsee ,hall keep Irue records f,om which all sums payable under Ihis Agreement and Ihe d:1u:: of :lccrual thereof may be readily determined and said rccords shall be ('lOCO rn in~~ by Licensor or Its authOrized reprc:scnc,:Ulves 31 all rc:a!.onable limes. licensee snail make "r,lten -5- EXHIBIT "e" Ad..rtIIlDl CODIribDdoD FInancial Pl:u1nlDgud MaulgemeDt Plymenlof Debls ~ tlabDlIy ud IDsunIDce As5ll:11meDI ud Tl1lI1SferF... ,., rcporu 10 Licensor In such form as Licensor may from time" to lline prescribe' within len days aller Ihe end of each monlh's operallon selling forlh the amollnl of gross sales of all prod. ucu Irom or In conneclion with Ihe operation of said Slore and the business Ihereof during said monlh, In addition 10 the foregoing and In addilion 10 such other Informallon as licensor may from lime to lime reasonably require, said monlhly reporl shall accuralely sel forth Ihe lotal number of gallons of mi~, Ihe total number of pounds of meat, and Ihe quanlity of other basic commoditi.. used during said month and Ihe SOUICes where said ml~, meat and other commodities were pUlchased, For the purpose of said reportS the date ot use of such ml~, meat Ind olher commoditic., .hall be Ihe dale of receipl al the More from Ihc opprnved ,'"l1fee. 9.5 Pursuant to paragraph 8.1 hereof, Licensee shall participate with Licensor ond with other licensees of Licensor in lhe cost and eapense of adverlislng and promotional programs. To Ihis end Licensee shall pay to Licensor as an advenislng participation fee an annual sum nol to eaceed five percenl (5%) of gross retail saies In connection with Ihe operation of said Slore, All of the provisions 01 this paragraph 9 shall apply wilh respect to the d.t.rmination, reporling, coll.ctlon and payment 01 adv.rlising participalion Ie... 9,6 License. agle.. to .mploy sound financiol managem.nl prac!ic.s in conn.ction with Ih. opera- tion of said bus In.... and to that end L1c.nse. shall maintain on lorms approv.d or provided by Lic.nsor a monthly profil plan, a monlhly profit and loss stal.m.nt and a monthly balance " sh.et aecuraii:ly I.fiecling th. op.rations of said business, In addition to th. lor.going, Lic.nse. shall employ such methods 01 r.cordke.ping, bookkeeping and reporting as th. Licensor shall Irom time 10 time reasonabty require and copies of all monlhly profit plans, profit and loss stat.m.nlS and balance sh..ts shall b. lorwarded to Lic.nsor on or before th. lenth day 01 .ach month. In th. .v.nt th.t an accounting and! or bookke.ping s.rvic. shall be m.de avail- abl. 10 oth.r similarly situat.d lic.nsees 01 Lic.nsor. Lic.ns.. shall have th. right 10 requ.sl thai the sam. b. provided to him by Licensor al a level of charges equival.nt to charges mad. to such oth.r similarly sllual.d Lic.nse.s. 9.7 Llc.ns.e covenanlS and .grees 10 pay promptly when due all taxes and assessm.nts thot may b. a.s5cs~ed 3gain~t said premises or the equipment u)cd in connection with Liccn!\c:c's bu~incss. all lien and .ncumbranc.s of .v.ry kind and char'Cler cr.ated or ptaccd upon or .g.inst .ny of said prop.rlY and all accounls and olher ind.btedn.ss of .very kind incurred by Licensee in th. condUCI of said busin.... In th. .v.nt Licensee should defaull in making any such pay. m.nl, Lic.nsor shalt be .uthorized, bUI nol r.quired, to pay the sam. on L1c.ns..'s behall and Lic.ns.. cov.n.nlS promptly to reimburse Lic.nsor on d.mand lor any such payment. Any and all amounlS owing to Lic.nsor by Lic.ns.. h.r.und.r wh.th.r th. sam. arise und.r Ih. provisions of this paragraph 9.7 or under any olh.r provision of Ihis Agre.m.nl shall bear in- I.r.st at th. maximum legal rat. from and afl.r th. dot. of accrual th.r.of. 9.8 Th. d.laull by Lic.ns.. in th. tim.ly paym.nl 01 any ind.br.dn.... owing to Licensor h.r.- und.r or Ih. d.fault by Lic.nse. in th. paym.nt 01 any ind.bt.dness with r.specI to which Licensor or any of Licensor's affiliated entities is a guarantor, c~signer, or endorser or ob1igar shall constitut. a breach 01 Ihis op.rating agr..m.nt r.nd.ring th. sam. subjecI 10 I.rmination in .ccord.nce with Ihe provisions of paragraph II hereol. ' 9.9 In Ihe evenl Ihal Licens.. be declar.d insolvent or bankrupt, or in th. ev.nt a receiv.r is appointed, or thai any proce.ding is tak.n, by, for, or against Lic.ns.. und.r any provisions of Ih. Feder.) Bankruptcy Act or any am.ndm.nt th.r.ol, this Operoting Agre.menl m.y be t.rminated fonhwilh by Licensor. . .. 9.10 License. h.r.by waives all cl.lms againsl Lic.nsor, for d.m.ges to propeny or injuries to p.rsons arising out olth. oper.tion 01 said busin.ss, and Lic.ns.. shall indemnify and save Lic.nsor harmless of and trom any damage or injury to prop.rty or persons ariSing from or growing oul of th. op.rations 01 said busin.ss or Ihe consumption of th. product Iher.of, License. fUrlher covenants and .gr..s \0 purchase .nd m.lnlain in full forc. and effect, at Lic.nse.'s sol. .ap.ns., liability insur.nc. in an amount nol less than S I 00,000 insuring bOlh pa'lie, he,elo (rom liability (or any and all such damage or injury and License. furlher .grees to deliver co Licensor a proper certificate evidencing the existence of such in~urance co\'er.:Jge and Lic.nsee's complianc. with th. provisions 01 Ihis por.graph. 9.11 Lic.nse. aglees that Ih. interest of Licensee h.reunder may nol be lI.nslerr.d, ",signed or alienated in whole Of in part without the wriltcn consent of Licensor, which consent shJII not be wilhheld unr.ason.bly, but Lic.nsor m.y insisl rhat .ny ploposed ",signe. be . pelson, in Licensor's jud!!mcnC, quaJified to provide active supervision over the operation o( s3id Slore in compliance wllh Licensee's obligations hereunder. In the event Licensee's ~aid interest should be so ltansierrcd or asSigned, Licensee shall pay to licensor contcmporam:ously thereWith the -6- EXHIBIT "e" R'~bl 0' Ftnt Re'usal Remedltll Breacb 0' Conlract ~ IodemnJty Land or Bol/dluC Lease Renrsioo 0' Trademark Rlgbts Porchase Option :li: '. . sum 0' One Thousand Five Hundred Dollars ($1,500) U and tor a transler lee, tor Ihe preparallon 01 a new operaling Agreemenl In wlgnee'. name, and tor any and all such ea- penses incurred by Licensor In eITtellng said lranl/er, Including aUendance by the wirnee a. licensor'. training cenler. 9,12 Licensee hereby gran Is 10 licensor Ibe righl 0' firS! refusal 10 purchlUe all 01 Licensee's rishl, lille and inleresl in and 10 said "Dairy Queen" slore and Ihe wilhin Operarins Agreemenlln Ihe evenl Llcen..e should desire 10 sell Ihe same. In such evenl, licensee ,h.1I nOllly Licensor in wriling Ibal he hill r<celved and is prepared 10 accepl a good lallh orrer Irom . qualified buyer, sball idenlily Ihe buyer and slale Ihe lerm' 0' ,uch offer. licen,or shall lIave Ihirly (30) days atler receipl 01 said nOllce 10 eaercise ils riF'" 01 first relusal, Ihe same to be in wriling and ,ubiectlo Ihe same terms and condilions lU have been orrered 10 Licensee by said qualified buyer, It licensor does nol eaercise said right ot firsl relusal within said thlrry (30) days, Licen,ee may then sell or Iranster hi. said inleresl to such quallfied buyer, subjtel, hOIl'ever, to Licensor's wrillen consenl to such assignment and lhe paymenl 01 Iranster lee, all :a provided in para- graph 9,11 hereot. CONTRACT VIOLATION 10. licensee recogniz.. thai his "Dairy Queen" slore i. one 01 a large number 01 ..ores similarly buill' and selling 10 lhe public similar producu, and hence Ihe failure OD Ibe parr of a .ingle Ilcensee 10 comply wilh Ibe terms ot this Operating Agreemenr, could cause iITeparable damage to some or all olber "Dairy Queen" licensees, There'ore, it Is mUlualiy agreed thar In lhe e"ent of a breach or threalened breach 01 any at Ihe lerms ot Ihis Operaling Agreement by either pany, the olher pany shall lorrhwilh be entilled 10 an injunction restra/ning such breach andlor a decree at specific per- torm.nce Wilboul shOWing or proving any actual damage, but such injunctive reliet or decree shall not preclude .ny judgmenr lor d.mages sustained. 10.1 In Ihe eVenl rh.1 Liccn,or delermines Ihal Ucensee has lailed 10 meer Ih. requiremenu and specificalions establi,hcd wilh re.'pect ro qU.lily, physical propeni.., or condilion ot equipmenr or malerials used or products manulaclured, or wirh respect ro packages or .dverrising, or .ny olher provisions at this Operaling Agreement, ticensor shall nOli(y licensee in wriling ot rhal lacr, .nd .,ball set (orlh Ihe condilions to be correcred, and II Licensee shall lail 10 lake POsilive irep. 10 COtrecr Ihe condilions ,spccificd in an}' such notice wirhin seven (7) Jays trr'Tl Ihe dale 01 sending such nOlice by mail addrcssed to said licensee ar hi. lasl known addre,' as sb!1,wn by lhe record. 01 licensor, licensor shall Ihereupon have the rigbt ro cancel anc ,.rmlnale Ihis AFreemenl upon delivery 10 Licensee, personally or by mail, o( wrillen nolice 0; ;ucb Can. cella lion, 10.2 licensee eapressly agre.. 10 saVe Licensor harml... trom any loss, damage or liabililY incurred by Licensor by reason of any violalion at rhis Operating Agreemenl by licensee. 10.3 Any lerminalion 01 rhe land or bUilding lease (or liccnsee's Slore shall automalically lelminale Ihis Opcraling Agrecmenr. TERMINATION RIGHTS II. Upon rhe terminalion or e.pirarion ot Ibis Opcraling Agreemenl: II. I All rigb" 10 Ibe u'c of lhc tradcmark and trade name "Dairy Qucen" and 10 Ihe trademarks and tradc nam.. IiMcd in Appendis A, .nd Ibe rigbt and license to conducl said hUMnc" in Ihc lerritory described hereinabove, shall ,e'err 10 licensor and licensce ,hall immcdialely ccase all use 01 said Irademarks and rrade names, or any olhcr similar trade name. or trademorks and' pay all monics duc al said dalc; 11.2 All righi, lille and inlcrest 01 licensee in and 10 rhis Operaring Agreemenl sball become Ibe propeny of Licen,or. 11.3 licensor shall b.ve Ihe filSl oplion 10 purch.se any or all cquipmenl or supplies. 01 wh3l"'er kind, owned by LicellSee and "sed b}' him in Ihe production of Ihe "D.,ry Queen" producl, or an}' ot Ihe olher aUlhorized produc" under any o( Ibe Irademorks hereunder al a prrc~ deler- m,ned by a qualified appraISer ,e'ecled wilh Ihe consenr of bOln parries. It Ihe parlles c.nnOI agree upon Ihe selection of such an .pp,aiser he sh.II be appOlnlcd by a Judge 01 the Uniled SlalCS DIStricI Coun (or licensee', lerruo')', S.id oPlion 10 pu,cb3se ma}' be e.e,clSed b}' Licen. sor aI ony I,me wilhln 30 days (rom Ihe dare of such lermin:,. 'n and sh.II nOI be abaled or termonaled hy Ihe sale or olher Ir.ns(er of any SUch cquipmon' or supplies b}' Licemee 10 . Ihird p."y. Upon'lhe e.ereise of such opllon and "'nder of :','rmenr tor an}' such equlpn'enr or supplies, licensee a~rees 10 sell .nd deliver the same 10 Lie:,"~r, tree .nd ele.. 0; .11 en- cumbr.1nces, and fa execule and dc!l\'er 3 bill ot sale there tor fO Li:cnsor. -7- EXHIBIT "e" Non Compel. . 11.4 'I:icensee sh.1I n',1 direelly or indirectly enaage in .ny compelill,ve buriness whhin the lerrilory >It (orlh in por.groph 1.1 (or. period o( one yeor ofler said dale o( terminalion or expiralion, ! I I I I I I I I I I I , i I . GENERAL PROVISIONS 12.1 In Ihe evenl.1 .ny (ulure lime one or more clauses o( this Agreemenl shall be held 10 be void by .ny courl o( Compelenl jurlsd/clion (or .ny re,son, such clauses shall be deemed 10 be seporable and Ihe remainder o( Ihis Agreemenl shall be deemed 10 be valid and in tull (orce and elTecI. 12,2 Any w.iver by L/censor o( .ny hre.ch hy Licensee sh'lI nol be deemed 10 be a waiver n( any ",h>equcnl hre.ch nor .n CSlllppel 10 cn(llrcc ils righl (or a subscquenl brcach, 12,J This Agree men I conslilules Ihe sole .greemenl belween Ihe parlies whh respecI 10 Ihe cnlire subjecl mailer o( Ihis Oper'ling AgreemeOI .od embodies .11 prior 'greemenls .nd negotlalions wilh respecI 10 the "Dairy Queen" business. There ore no represenl.lions ot .ny kind excepl u conlained herein. , 12.4 It Is .greed .nd undersrood thO! Licen"e is .n independenl COnlr.Clor and is nOI in .ny m.nner Ihe .genl or employee o( Licensor nor has Licensor .ny inlerest in Ihe business ot Licensee, excepllO Ihe eXlenl sel tOrlh in Ihis Agreemenl, 12.5 It Ihe Licensee consisrs ot IWo or more individu.ls, such individuals sh'lI be jOinlly .nd severolly liable .nd references 10 Licensee in Ihis Agreement shall inclUde .11 such individuals, Reterence 10 Licensee .s male shall .Iso include a (emale licensee or corporarion or any olher business encilY. _ 12,6 This Agreemenl shall be binding upon .nd inure 10 Ihe benefil o( Ihe .dminislralors, execulors, hei", Successors and Wiens of rhe parlies. 12.7 Licensee hereby ,cknowledges receipI o( "Slore M.nagemenl Operalions Manual(s)" bearing issue number(s) .................nd................publlshed by American Dairy Queen Corporarion. IN WITNESS WHEREOF, the parlies herelo have execuled the torcgoing "Dairy Queen" O)lerating Agreement Ihe ,..""-~,,~ ...cJ)~._~"'"_.......__.... WITNESS: po..7&.~~...,.'212... _,.if, .':4..f&.~.lC)"/.", LICENSEE ~ ................................................................................................ ................................................................................................ LICENSOR A TrEsT: ;7.' ~-' # . ~ ,,' <' . 8Yt'.. .....,.~..... .........::..............~.,.:.O!;................................ . ?-- I.............................................................................. ................................................................................................ APPROVED: AMERICAN DAIRY QUEEN CORPORATION By................................_.......................................................... NOTE: IF LICENSEE IS A CORPORATION EACH OF THE STOCKHOLDERS THEREOF MUST EXECUTE THE FOLLOWING UNDERTAKING, The undersigned persons hereby represenl 10 Licensor IhO! Ihey are all ot Ihe stockholders of Licen5Ce, In considcra_ tion ot Ihe grant by Licensor 10 Licensce .. herein provided each of Ihe under.igned hereby agree, joinlly and sevcrally, and tor Ihemselves, their heirs, legal represcntalivcs .nd assigns Ihat Ihey, and each ot Ihem, shall be firmly bound by .11 of the lerms, provisions and condilions ot lhe to,egoing "DairY Queen" Operoting Agreemenl; thaI Ihey and each ot Ihem do hereby unconditionally guaranlee .ny indeblCdness at Licensee arising under or by virtue ot Ihe aforesaid Operaling Agreement and Ihat Ihey .nd e.ch o( them will nOI permil or cause the VOling control ot Licensee 10 be modified or alrered by slock Irans(er without first nOlitj.ing Licensor ot .aid proposed Irans(er .nd oblaining Licensor's pllor wrillen consem IherelO. ................................................................................................ ................................................................................................ ................................................................................................ ................................................................................................ # 202 - For use by terrilory opernlors olher lhan Amellcan Dal,y Queen CorporoIIO". Execule In 5 COunlerpans. 10/68/1000 -8- EXHIBIT "C" \ ~. APPENDIX II A" Licensee has Ihe Ilghlto use the followIng trademarks and servIce marks In accordance wilh Ihe allached Operallng Agreement, this Appendix "A" may be amended by Company from lime to lime In ordel to make available addllionaltrademarks or service markS or to delele those which become unavaIlable, Licensee agrees 10 use only those Irademarks and service marks which are Ihen cU'lenlly autholized, DAIRY QUEEN' BRAZIER' MR, MISTY' MR. MISTY KISS' LErS ALL GO TO THE DAIRY QUEEN'. DQ' THE ELLIPSE DESIGN" BROWNIE DELIGHT' THE CONE WITH THE CURL ON TOP' DESIGN: THE CONE WITH THE CURL ON TOP' QUEEN'S CHOICE AND DESIGN' DOUBLE DELlGHr. STARKISS' FIESTA'. FULL MEAL DEAL'. CHILt DOG sPLlr. PEANUT BUSTER' PARFAIT FUDGE NUT BAR'. BANANA SUPREME" WE TREAT YOU RIGHT' MORE BURGER THAN BUN' SUPER DOG'. ROYAL BANANA SPLIT'. SNAK DEAL ,. SIG"a"'" IT'S A REAL TREAT'. DQ CHIPPER SANDWICH' BLIZZARD' CHOC'OLATE PEANUT BUTTER CRUNCH'. MR. MALTIE" CHOCOLATE CHIP COOKIE SANDWICH" CHOCOLATE MOUNTAIN SUNDAE' BIG CONE AND DESIGN" DQWICH' BUSTER BAR' DILLY' BAR DILL YWICH' Each 01 the above Irademarks and/or service marks must be used only ,n Ihe manner soecrf,ed by the Company and in cqonecllon With the gOOds and/or services specl',ed by the Company, No devlallons Will be permllled. lA1\. 1/22/86 , Reg US Pat Ollice Am DO, Cora, "'Traoemark Am 0 Q Corp EXHIBIT "e" ," . APPENDIX "B" Llmltad Dairy Ouaan~ IBr81la'" ,- . . .. .. ~. . . (PllI..I I!lach la capy of curranl oparellng agraemenll Ud\t1. III1Udl:t. 1'- --kJ:s- Belaw Is listed Ihe appravad menu al Company lor L1milad Dairy Ouaon. IBr81ler' storos which Is In curronl uso and olloct, L1conseo Is authollzod 10 usa Inis monu In accordanco With lhe allached Oporallng Agreamonl, TnisAppendlx "B" maybo amended by Company from limo to lime In ordol to mako avallablo addllionaJ products or 10 deloto Ihoso which bocoma unavallabla, Ucansee agroes 10 usa only those products which ara then currenlly aulhonzed lor use In Llmiled DairY Ouoens IBrazler' slores, Uconsea shall use in preparing products only such Ingredients, formulas and supplies as are specified by Company and In such ponlons, sizes, appearanca and package as set fonh In Company's most currenl "Slolo Management Operallons Manual" and "Ploduct Preparallon Chans," National Required Dairy Oueen'" 5011 Serve Items Canas Dipped Cones Sundaes Shakes/Malls F10al MI. Misty' Float' Fleeza MI. Misty3 Fleezo' Banana Split Poanul Bustar" Pariait Doubla Delight.. Novollles: Dilly. Bar Bustel Bar' andlor Fudge Nul Bar'. DO' Sandwich andlor DiIIYWlch' MI. Misty Kiss. . and/or Starkiss. Home Pak: Pint Ouan Hall Gallon National Optional Dairy aueen'" 5011 Serve Items Hot Fudge Brownie Delight" Stlawbelry Shoncake Banana Supleme. Shake 'n Sundae Parlail Soda Sundae 11 oz, DO Chippel Sandwich" 01 DO Chocolato Chip Cookio Sandwich" and DO Chlppar Sandwich' DO' Push Low.Fal Soft Frozon Yogun'" Dairy Ouoon' Frozon Cakes'" Oueen's Choice' Premium Hard Ico Cream'" Blizzard.!) ... National Optional Brazier'" Food Items National Required Brazier'" Food Items Super Dog wlChill wlCheese Chill Dog Spli.. Ouanel Pound Hot Dog wlChili wlCheese Polish Sausage Barbecue Sandwich Chill Bowl Nachos Slolee with Approved Deep Fel Fryers moy offer Ihe following Items In addlllon to those listed ebove: Chopped POlk Loin friller Chicken Nuggets Beef Nuggets Flied Mushrooms Tumovel Hot Dog wlChili wlCheese Potato Chips (stores not having approved deep fat fryels) Stores wllh Approved Deep Fal Fryers are 10 oller Ihe fallowing Itoms In addlllan 10 those IIsled above: Fish Fillet Sandwich wlCheesa Chicken Bleast Fillet Sandwich wlCheese French Flies Regular 01 Large Onion Rings National Required Beverage Items Carbonated Soft Dnnks" M,.Mis:Y" . National Optional Beverage Items Soft Drinks 32 oz. Milk Calfee Hal Chocolate Iced Tea Lemonade Diet Soft Drinks' 'MI, Misty' contract stores only. .. A minimum 01 three carbonated soft dnnks musl be prOVided by Licensee. All carbonated soft d,inks must be of high qualilY, in national diSlrlbutlan ana maoe by a pnmary manulaclurel. , . 'These Ilems are Oellanal menu addilions to be sold only by Dairy Oueen' or Dairy Oueen' IBrazier' operalars whO have been cel. tllied to de so oy Amencan DailY Oueen Coreorallon or a TemlC'"i Oceratar !ar stare IrancnlSe owners Iranchlseo cllectly oy Ihem In their resoectlve arees, The prooucl weights/portions far Inese lIems are specllied In the :;;specllve proouct pre para lion procedures from ADOC, EXHIBIT "e" 1/22/86 ! Reg. U.S. Pet. Off, Am. O,Q. Corp . " .APPENDIX "B" , . . , , Dairy aueen" IBrazler!> " (Please aUach to copy 01 current operating agreement) Initials: ILIUM'" ~ (LclfttOl' Below Is IIsled Ihe approved menu 01 Company lor Oairy Oueen" IBlazler' slores which Is in currenl use and elfecI. Licensee Is aulhollzed 10 use this menu In accordance wllh lhe ellached Operaling Agreemenl, This Appendix "B" may be amended by Company from lime 10 lime In order 10 make available additional products 01 10 delele Ihose which become unavailable. Licensee agrees 10 use cnly Ihose producls which are Ihen curlenlly aUlhollzed 101 use In Dairy Oueen/Brazler slores, Licensee shall use In preparing producls only such Ingredlenls, formulas and supplies as are specified by Company and In such pOl1lons, sizes, appearance and package as sel fOl1h In Company's mOsl currenl "Slore Managemenl Opelations Manual" and "Ploducl Prepalation Chalts." National Required Brazier" Food Items Homestyle Hamburgers: Single Double Triple w/Lelluce and Tomalo w/Cheese Hot Dog w/Chill w/Cheese Fish Fillel Sandwich w/Cheese Chicken Breast Fillel Sandwich w/Cheese Flench FIles Lalge Small Onion Rings National Optional Brazier" Food Items Super Dog'. w/Chill w/Cheese Chili Dog Split' Oual1er Pound Hal Dog: w/Chill w/Cheese Polish Sausage Barbecue SandWich ChilI Bowl Nachos Chopped Pork Loin F,llIel Chicken Nuggets Beel Nuggels F,led Musnrooms Turnover Biscuit Breaklasl'" Tradlllonal Breaklast'.' Salad Bar'" Natlonat Required Dairy aueen'" Soft Serve Items Cones Dipped Cones Sundaes Shakes/Malls Float MI. Misty' Floal' Freeze Mr, Misly" Fleeze' Banana Spill Peanul Busler' Parlall Doubla Dellghl'. Homa Pak: Pint Oual1 Hall Gallon Novellies: DillY'" Bal Bustel Bar' and/ol Fudge NUl Bal'. DO' Sandwich and/ol Dillywlch" MI. Misty Klss~ ' and/or Slarkiss" National Optional Dairy aueen'" Soft Serve Items Hot Fudge Blownle Dellghr' Sl,awbelry ShOl1cake Banana Supreme" Shake 'N Sundae Parlalt Soda Sundae 11 oz, DO Chipper SandWich' 01 DO Chocolale Chip Cookie SandWich" DO Push Blizzard!' ... Low-Fal Soli FlOzen Yogurt'" Dairy Oueen' Frozen Cakes" . Oueen's Choice,' Premium Hard Ice Cream. .. National Required Beverage Items A minimum of thlee carbonaled soli dllnks" MI, Misly' ' National Opllonal Beverage Items Soli DrInks (32 oz.) Mifk Calfee Hal Chocolale Iced Tea Lemonade Diet Soli Drinks' . 'MI. Misly" contract sto,es only. .. All carbona led Clinks must be 01 high qual,ly In national dlSlllbutlon and made by a prrmalY manufacturel. . . These lIems are OOllonat menu addlllons 10 be SOld only by Darry Queen or Darry Oueen/Brazler slore opelalols who have been cer- lilred 10 dO so by Amellcan Dairy Queen Corporation or a Terrllo,y Ooelalor for store Iranchlse owners Iranchlsed drreclly by Ihem In therr respective areas, The proDucl welgnls/portlons lor Inese Items are specllred In Ine respectIVe prODuct preparation procedules Irom ADQC. l::~ 96 HOII: Tn, D.a,ry 0....." SO" servl .and 9'111,'1000 "'"0 C""'91 '11m, U!ld en'", NlloOl'I.a. COhO"" Mlnu, 'l'lCrw1'l .DO". mol,!, De '01" El, ",,,",".. LoCI"'" en"., ID aD '0. Dill AI.nocrI'CIl,I.OIOD'IO'" . R~ US P,. On "'" CO C:rD EXHIBIT "e" . OQ MOE, INC. Box 5246, Golf Lane, R.D, 1 Grantville, PA l7028 February 13, 1995 C. David Spealman Shirley M. Spealman 158 Kline Road Shippensburg, PA 17257 "First Class Mail" Re: Notice of Default Operating Agreement - 920 South Main Street, Chambersburg, PA Dear Mr. and Ms. Spealman: I write in my capacity as President of DQ MOE, Inc., the assignee-licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you are the licensee. This notice is made pursuant to Section lO.l of said Operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide OQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: l. Monthly profit and loss statement. EXHIBIT "0" .~....~. .. I. __ ..:_~. ~ . '" __ .~.;:.: I ,,' .. .-, _....~.. - .' . '. :. \; C. David Spealman Shirley M. spealman February 13, 1995 page 2 , I, : I' 3 . Monthly statement of payments made and account balances of each supplier. Daily log book to include report of cash over and short and to indicate daily deposit amounts. Calculate yields on a daily basis. I,', , ' , f ~.. )i " : Ef , 2. , I . , 4. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the SUbmission of specified routine records and reports (Section 9.4) . ,~ 'J This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February lO, 1995, as required. Some reports have not been received since the March notice above. ..l ,/ ) '\ il 'I J '. I " You have seven (7) days from the date of this notice to provide us with sl! reports required as provided above, pay all indebtedness due from the operation of the Chambersburg store and to bring the operation of this store into compliance with the operating Agreement. If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the operating Agreement in accordance with its terms. 'I ' ,\ . i , . I ,I This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class U.s. Mail -- in all cases postage and delivery charges having been prepaid. , ~ , ~~ I'. Very truly yours, " " DQ MOE, INC. By President EXHIBIT "0" , '. , " OQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA l7028 February l3, 1995 FEDERAL EXPRESS C. David Spealman Shirley M. Spealman 158 Kline Road Shippensburg, PA l7257 Re: Notice of Oefault operating Agreement - 920 South Main street, Chambersburg, PA Dear Mr. and Ms. Spealman: I write in my capacity as President of DQ MOE, Inc., the assignee-licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you are the licensee. This notice is made pursuant to Section lO.l of said operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide OQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: 1. Monthly profit and loss statement. EXHIBIT "0" "'-" , '. C. David Spealman Shirley M. Spealman February 13, 1995 Page 2 2. Monthly statement of payments made and account balances of each sUpplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the submission of specified routine records and reports (Section 9.4). This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid sUppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February 10, 1995, as required. Some reports have not been received since the March notice above. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Chambersburg store and to bring the operation of this store into compliance with the Operating Agreement. If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the Operating Agreement in accordance with its terms. This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class U.S. Mail -- in all cases postage and delivery charges having been prepaid. Very truly yours, DQ MOE, INC. By President EXHIBIT "D" \ :. ---------------------------------~ Fed " nH:?,:i:~(\I:l.r,l'r.~~r.'i"~z:,\.':":;~',7!;:,r.l:.,!::J~:I1':~:""OC.,,'" 1~~g~~L If 3? 0 5 b 5 I.f ? I.f ""r~ t.""u OUESTlONS? CALL 800.238.5355 TOLL FREE, TRACKING NUIoIBER :t;l''trl lf3?DSb F...;i~'~.:rp~.~,dp:;~ , .....,..,..L,,2/13/~......N_"vo~_, (7. 7-.,., 'J7-, 'j 'I '-'. ..-..'~cl.C.....1I-1b."-.....l8q....h......:....~...... _. : . H.....~.~.... ComP&ny O..,.nmenVFIoot No. ~N(L~~K~~ ~Nr ~~l"N.~~N si,..i Aci(i,.ii............. h....._ ... .......... ... ..................,...... ..h.. a (nklptenrl Nlmel Plaale Pnnl ~'f'hlrle~I'"'-'Y1rIWtInl1 ..c.1laYtli 'puluD Company Shirl.,. K. 'pu1aeQ E'.liCi 'Siiee,'Add;... ;W.-i:iMOtDflim ~ '0,' &", QI'O lip CJ<k. J ( ..1,....,.. .,".,... OepartmentIFlaot No. "lito ~ N,\I:4 'ii .Ciry...................h............ ...... . ...... .......... ....stiilii.. ...... liP RequlIltd :-;1.(.11l.t_L..aIiV"" P':' 1, J " .J YOUR 1NTDlNAl.. '/LLlNG REFCRlNCllNFORIlATlON (OPt/MIl) (FIlft 24 ""',et", rtilllPf)lM on IrtrO~) "'J;"l"'. allooeJlr-""-......,I~'L::.~~ II O~L "O~A~G'.. IS01ll1alE11lll selllnrotE11lll' 1201ll1a,AK' .20FIDlXFAK' l3Onrollll S3OFIDa'ox "01ll1a1l/l( "'OFlDIXIIIIl ar...,.",_""-,-,, ,..........____ '00 CCON/JAl,. OS 0 f?!;[" .I~l__"__ 0 GOI'7 :::::.~.... 41 'ACx.AGE ItIr",,_,W.., '00 OvtRNI/JNT 60 0 ....0" I F~EIGHT" fREICH'" '"--- 10..-__ .o.o.:.w."-~l!IX "".......-...... ..c......-....-.. ............................. ,,158ull1uIad, Crty JOs.3IdP.....,re<<.Acl:l:No '0 '''_eo. '" "'-- SIal. l1PReqlJlred DELIVERY AND SPECIAL HANDLING (CIHtck5.~'~IrtH1J .1'Il'fL. , OHOlDArflDEXlOCATIONWfEKDAY ~ I'.", S<<:tol H' 2 DlI~MEKDAY . . .. ....._n .................... NC(AU" """" .- DO I....."""'" '.'" I........' I -...............1............... 1 'u,.,.,......,I...,.....".., SERVICE CONDITIONS, OECWlEO VALUE AND L11011T OF LIABILITY U"oIlhfthbllCO'lAllll"ro.a'.tgr""*'lIarr,.~cznwo. "'CIUlN'f""Stfotq~"f~\(lOI'l'~s..tIIa;oI Ml'IlWI~oflhft..o.lloto:'llcrmat.:ln s..w.~IN' Wlrrfiol'Qoo,."'-"ltMmq1l~ s..U5 Gowetrmw.i s.r.a 0.. fioI'CIttItI W.M1nofbe'ltCOtIMlIt Ior.....,CIIIIn.,.lceU 01 lIDO Ptf P<<lJQI..'.etl'ltIrr,."kIllolIoU.~.dIlI'_~. =:=~o:::.~= ct&orlI ~frCIUlwi"''''Clnlrlf'''E'''''SltwuGudil lPClI'r't'tutqlflO'~lIornrtdtllllEQII"'Ior""'IDN. W'CkQrIq~w""'oI""PftU9I.lDMoIl.IltS ~n..... plott. .nom.,l'MI. COlli. IIld 0II\tt IorIIII oIG1n11Q1......,. dItIct.l"a*'itar,~..,OII01t\11I1"""'*'lOlhI"l..oI I'DOCII'lheOlCl.llIdWIWJPrIOl\Idlalf'4i1"~tft'OI 'IOIIdactull~IdIoun.I!l,II"""'Dk:u'Idva-...fioI' f IOU llilllt IIld fidEI Pall '**'I9M1I15OO 1n"'_cf","""""OIIlI4ty.fldllarEQIItU"Il~ 1~1t1lld"'ICmIMIQII;lIlI"fu04..,,~Cl'IIr9n 1IW s.. s.r,.qow.lor"-1Plllo:'llDrm.lll;lll Sro:>>tI\olllonl"fIdwllEQII",Ic~"'''-'''*'tWll'W:ll..t ~ f-=~.(.PI':r.'= =::. ~::.::: fOAt.lATIl60 1160/ 31 OHOlD~TFEDlXIOCAT/QNSAT/JRDAr If..., SeeIIOfl HI 'ODl'MRSATURDAr f("'-"It.......--. . OSAfURDAYPfCK.U' liJ..ox..... ... '~~~'....u.........._... .................+............... , i -....u....................... Total TOlal ! TOlal , , 1 ":.:"""";'-r.. .. OtJANGEROUSCOODSlr,u"'-"'l SODRTlCC Q~"",,"~Ic....OlO""_ IlfVISlOfifDAflll94 !l>rtllllil*l ___ I _"4101_ o '____'__"_-'-.~ " OHO(lDArOaM~Yt~""-" ,rlYl""""l ReI.... S.gnaIUft: ---- ---- EXHIBIT "0" " .. :. DQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA 1702B February 13, 1995 [certified Mail Return Receipt Requested No. Z ll5 697 2BB] C. David Spealman shirley M. Spealman 15B Kline Road Shippensburg, PA 17257 Re: Notice of Default operating Agreement - 920 South Main Street, Chambersburg, PA Dear Mr. and Ms. Spealman: I write in my capacity as President of DQ MOE, Inc., the assignee-licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you are the licensee. This notice is made pursuant to section 10.1 of said operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide DQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: 1. Monthly profit and loss statement. EXHIBIT "0" '. .. :. , I I ,I I I I , , , I 1 I I C. David Spealman Shirley M. Spealman February 13, 1995 Page 2 2. Monthly statement of payments made and account balances of each supplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the submission of specified routine records and reports (Section 9.4) . Very truly yours, This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February 10, 1995, as required. Some reports have not been received since the March notice above. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Chambersburg store and to bring the operation of this store into compliance with the operating Agreement. If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the Operating Agreement in accordance with its terms. This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class U.S. Mail -- in all cases postage and delivery charges having been prepaid. DQ MOE, INC. By President EXHIBIT "0" I,., . J " '. DQ MOE, INC. Box 5246, Golf Lane, R,D. 1 Grantville, PA 17028 February l3, 1995 C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Default Operating Agreement - 3890 Jonestown Road, Harrisburg, PA "First Class Mail" Dear Mr. and Mrs. Spealman: I write in my capacity as President of DQ MOE, Inc., the assignee-licensor of the "Dairy Queen" operating Agreement with regard to the above referenced "Dairy Queen" store in which you succeeded Bert H. and Nancy Anne Thornton as licensee. This notice is made pursuant to section 10.1 of said operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide DQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: 1. Monthly profit and loss statement. EXHIBIT "E" ~' ~ ' . C. David Spealman Louise M. Spealman February 13, 1995 Page 2 2. Monthly statement of payments made and account balances of each supplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the sUbmission of specified routine records and reports (Section 9.4) . This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February 10, 1995, as required. Some reports have not been received since the March notice above. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Harrisburg store and to bring the operation of this store into compliance with the operating Agreement. If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the Operating Agreement in accordance with its terms. This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class U.S. Mail -- in all cases postage and delivery charges having been prepaid. Very truly yours, DQ MOE, INC. By President EXHIBIT "E" .. ~. DQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA l7028 February 13, 1995 FEDERAL EXPRESS C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Default Operating Agreement - 3890 Jonestown Road, Harrisburg, PA Dear Mr. and Mrs. Spealman: I write in my capacity as President of DQ MOE, Inc., the assignee-licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you succeeded Bert H. and Nancy Anne Thornton as licensee. This notice is made pursuant to Section lO.l of said Operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide DQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: 1. Monthly profit and loss statement. EXHIBIT "E" '"' C. David Spealman Louise M. Spealman February l3, 1995 Page 2 2. Monthly statement of payments made and account balances of each supplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the submission of specified routine records and reports (Section 9.4) . This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February 10, 1995, as required. Some reports have not been received since the March notice above. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Harrisburg store and to bring the operation of this store into compliance with the Operating Agreement. If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the Operating Agreement in accordance with its terms. This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class U.S. Mail -- in all cases postage and delivery charges having been prepaid. Very truly yours, DQ MOE, INC. By President EXHIBIT "E" -Fed ": --==:-"'='==''''''.UlA ,,""=,-::---- A~~~~~r- 4370 Sb 5 q S2 -- _", lJSI THf,,,".--..IIOMl J,lItltAr"U '~SHI""N1J 10flJWO*ICQ.tNOAU/IIOIfUS 10CA/101ft rRACKING NUMBER I'td<I1l E.p'''' QUESTIONS? CALL BOO-23Bj355 TOLL FREE. .: 1f31DSbSlfS2 0.1. ~t:l'H~ l09b-717B-~ 1/13/95 F,.o.;;tvou;.N&iMi"PiNM'piinj..... ...... --.--........ ................. ~.VNPtiOM~ IV", I/!lpcrtanll TalReop'enl'l Namel Pl.... F'nnt "..~!~n~.~.._~~~~~.~1r,~...~~,~,.........~,~],1.:::r>}.,?::-.~l,:l.;.:1... .,"',...~~,~.,~~:1-.tD "...(, Company Dtpartm.nVFIoor No. Company :,r.EL,jA!I.t:1< ANl) k'oRc:.NtIE:1Ar. t.aiH H. Ip.a1M1l 'sii..rAddiiii--'--"'" ....-..... ......._.__._........mm........ ............ -...... n............. E.&C1'siiH'I-Ai:kiiip i* c,n;;.;,"0ii,;';; io,o JCld Oi,o lip eMs j' - . 158 lliDe load .citY................................... tot" ... It~Al!. 51 .c;ry...........---............ ................. . ......-. slii.--""" l1PRtQUl'td H(CHA~LCSau~~ ~i 1 7 G ) ~ YOUR INTE1WAI. BlUING RUEMNCE lNfORUAnON (op/IONI) (FltSl U UlIIKtIlJ 'lflllfJ(1Ul on In",!") Sill; l1PAequted Shlppaabuq PA 17257 IF HOLD ArffDEX LDCAnON, PI1tJt ffDEX A4dlfU HIli slt..t Addr... OELMRY ANO SPECIAL /WIOLING (CMdt UMlm teQtJlrN/ 10HOtDA,;["DaLDCAtlOIIMIKDAY ".Wls.dllnHl , III O/lMll .f1KOAr .....................--............... "OIl'CldCMt ... """'. "",wn, ll'fJCIfI' .- DO c.,y........... . siai. lJPAeqtllted :.4Yl1fN1' 1~1l's..:. 208ilRKoWIFtIllEIAocl~ 308il)lSPl/fyfldf:l.Ira.1..,..., O~ ..._ Aocl.<:ttocMC"~ SERVICES (CMck only one bo'l ,,~ .....,..' ~..----..) 1"-:.'1:.~ " 0 ~JW.1Ml SI 0 ~fc~OIMl 150flll/l'UTmI '5~fEoatE11lR' "Oflll/l',.... S'Oflll/l',.... "Oflll/l'.... 530flll/l'IO' "Oflll/l'llIIE s<Oflll/l'llIIE .' ~c.. f~.,___rt ......,.._-'....' "0'0_ "0mJ. .I_u'......... OO0Y7 ;e.-::..~_ 41 'A~E ....,. .r," ,........._.w... 10 0 ""N/CH' 10 0 ""'"OAr ~!!!!!.::..- FRlNiHr" fo.--.___ "OolInoI.......LI"OIL'lI>> e.'"",,_..... "1:.... ....... , , SERVICE CONOmONS, OECU-REO VALUE MlO LIMIT OF L/)Jjlll/Y UMoIIMIIltllICO'\IllU..\<U~IOIN~~ '" 06 Q.ll1d 5erYa Go.olM. n...c.l.oporIllIl1Itst. SM DIQ at ..,..,.,.CC0101l1'r1l1ltll1lol'~s-aCO''4'\lOtllIl\l'f vUYIol'~~Serra SMUS~ s.rvaGo.olMlol'ltNiS. w....l\Olbtl~IOl'AIl1d1Wr1'"..Cf"oIl'OOptf I*'--IQf.~""'ttUloIll:lIS.GII'II9f...,.non-dl......,. ~~~=~o::u~= CItm LJMt\O'IIku'd,"'IhI~'tcWIIEcnus-aGo.olM UIVt fOUl rwplO,fCQYfIlroI'Il'fIWII E.IOIHI lot.,.,~, II"Cll.dn;l'ltmIcv..... oI'1h1l*UQ11.bIlol......1I'ICCrIlf tIIfrnl. ~ICN. &norI't1'IIMl.cotU. and 0I'IfI "'""'at dMNQI ~ OoItd.II'CIdftUI.~orSPeOll""""Il!ICI'1h1~oI 11000l...QICI&Ill!v_K*Jf*IICI"'.... fl~c,arn:II .-.dICNll~1l)U "",~OIdIreIIvawlot FtOlIltIIllandFfdE.lPalIpICUQIfIOSl$OO In IN """' oI1,l1'l11mtly.,...,.,. ftc>>fll EIQI"HI..II y(U Ilq.IIllaro::l..rl lOIN lIIl'llWIOn.ItfIId&JIrII\I4)OrWlCInCNrgn l*I Set Strw:eGudlIot""'"'f'llormtIJ:n StrdtI-.cnoruu'....EIllFft,IIOCllli'lWII'rIIPlOftfl'll.....,.", == f~'(.IlI-==:: :.-:=:':':: Jl OHOLDArFlDlXlDCAr1ONSATURDAr "....5IelGlH' . 3 o DlUVfRSATURDAr . ,[1t10M/Vl.,1d"- ,0SA1URDArPlCK.UP ...-, .......~[.~~I...." InP~1l I ,.....,wI I 1 ,.....,......t....'.......". ....,.""...........,1..........,.,.. ,..,...........+......., T"i' 'To;a;...'.....rtoiAim.u' ,--'-"-- ".' .' ',' ~ t:, "~ RM$1l)tiItl&tt...,. 4 0 twlGr/fC1USGOODSI("'~1 5 0 ORYI" C-...,,*,~,o...._....- FORMAT IlllO 116DI ,. '.. o,a.I\JIIMlo_I__.'OIOI- o 12 O!:!!.~~MAyprCllMaI R...ne S+9n4IU1.: EXHIBIT "E" , . . . , DQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA l7028 February 13, 1995 C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA l7257 Re: Notice of Default operating Agreement - 3890 Jonestown Road, Harrisburg, PA (Certified Mail Return Receipt Requested No. Z ll5 697 287] Deer Mr. and Mrs. Spealman: I write in my capacity as President of DQ MOE, Inc., the assignee-licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you sUcceeded Bert H. and Nancy Anne Thornton as licensee. This notice is made pursuant to Section 10.1 of said Operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide DQ MOE, Inc., with the following items on a monthly basis Commencing on April l, 1994: l. Monthly profit and loss statement. EXHIBIT "E" .. C. David Spealman Louise M. Spealman February 13, 1995 Page 2 2. Monthly statement of payments made and account balances of each supplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the submission of specified routine records and reports (section 9.4) . This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February lO, 1995, as required. Some reports have not been received since the March notice above. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the op~ration of the Harrisburg store and to bring the operation of this store into compliance with the Operating Agreement. If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the Operating Agreement in accordance with its terms. This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class U.S. Mail -- in all cases postage and delivery charges having been prepaid. Very truly yours, DQ MOE, INC. By President , ", k . , EXHIBIT "E" ~' . , DQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA 17028 February l3, 1995 C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Default operating Agreement - Shippensburg Shopping Center, Walnut Bottom Road, Shippensburg, PA "First Class Mail" Dear Mr. and Mrs. Spealman: I write in my capacity as President of DQ MOE, Inc., licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you are the licensee. This notice is made pursuant to section lO.l of said Operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide DQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: 1. Monthly profit and loss statement. EXHIBIT "F" c. David Spealman Louise M. Spealman February 13, 1995 Page 2 ',,- 2. Monthly statement of payments made and account balances of each supplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. Calculate yields on a daily basis. ,), ., "~) , ~ 4. 5. Records of employee and family meals.".. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the sUbmission of specified routine records and reports (Section 9.4) . This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February 10, 1995, as required. Some reports have not been received since the March notice above, particularly the profit and loss statements. Your Operating Agreement with DQ MOE, Inc., required your payment of $30,000.00 as the franchise fee. Our agreement required you to pay $lO,OOO on account of the fee at time of execution of the agreement (which was eventually received) and $5,000 on July 1 of each of the years 1994, 1995, 1996 and 1997, together with interest at the rate of 8% per annum from March 16, 1993. The payment due July 1, 1994 ($5,000 on account of fee and $1,106.56 interest) was not paid. Therefore, the entire unpaid balance ($20,000.00) plus interest at 8% since March 16, 1993, is now due and payable. Demand is hereby made for said amounts. Failure to pay constitutes a default under Section 9.B of the Operating Agreement. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Shippensburg store, pay the entire balance of the franchise fee and interest due thereon, and to bring the operation of this store into compliance with the Operating Agreement. EXHIBIT "F" '"' ,. . . , .. C. David Spealman Louise M. Spealman February 13, 1995 Page 3 If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the operating Agreement in accordance with its terms. This notice is being sent by (al Federal Express, (bl certified U.S. Mail, return receipt requested, ~nd (c) first- class U.S. Mail -- in all cases postage and delivery charges having been prepaid. Very truly yours, DQ MOE, INC. By President EXHIBIT "F" , . DQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA 17028 February l3, 1995 FEDERAL EXPRESS C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Default Operating Agreement - Shippensburg Shopping Center, Walnut Bottom Road, Shippensburg, PA Dear Hr. and Hrs. Spealman: I write in my capacity as President of DQ HOE, Inc., licensor of the "Dairy Queen" Operating Agreement with regard to the above referenced "Dairy Queen" store in which you are the licensee. This notice is made pursuant to Section lO.l of said operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. I , I . , . . " I, II In March of 1994, you were notified to provide DQ HOE, Inc., with the following items on a monthly basis commencing on April l, 1994: 1. Monthly profit and loss statement. . , EXHIBIT "Fit , .1 ~'''. '. , c. David Spealman Louise M. Spealman February l3, 1995 Page 2 I I 2. Monthly statement of payments made and account balances of each supplier. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. '" " I I 1 3. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the sUbmission of specified routine records and reports (Section 9.4) . This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February lO, 1995, as required. Some reports have not been received since the March notice above, particularly the profit and loss statements. Your Operating Agreement with DQ MOE, Inc., required your payment of $30,000.00 as the franchise fee. Our agreement required you to pay $10,000 on account of the fee at time of execution of the agreement (which was eventually received) and $5,000 on July 1 of each of the years 1994, 1995, 1996 and 1997, together with interest at the rate of 8% per annum from March l6, 1993. The payment due July 1, 1994 ($5,000 on account of fee and $l,106.56 interest) was not paid. Therefore, the entire unpaid balance ($20,000.00) plus interest at B% since March l6, 1993, is now due and payable. Demand is hereby made for said amounts. Failure to pay constitutes a default under Section 9.B of the Operating Agreement. . i I ,I You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Shippensburg store, pay the entire balance of the franchise fee and interest due thereon, and to bring the operation of this store into compliance with the Operating Agreement. ,,: " 'I , . EXHIBIT "F" I r' "' ---:-;------------------IflfiiffLr-- . ~ Fed .. UUrHrJ.~'III'(}"SHI""N"ltIrHr~'HlC()lf'/lrf",'.,tlS. AUW'NOH'''AII PACKAGE 113705L5'11.3 . :1.... '. usl 'Hf"""*,,'~~ ',,,,urnl 'OASH',,,,,/ll"'O,,",,AIO.,CO./II0AUM1o'ItlJ IOCU/OIllS 'RACKING NUMBER I'tdor~ f..pro.. OUESTlONS? CALL 800.238-5355 TOLL FREE. '.f., i..',I.. 1f31DSI:.Slf1a3 ...'"...,.-.... " " '. ,I~~ ,.._. ~CiHr1 lC'i'b-717/i-'. 0.1, 2/13/95 ~~~~i~~~" ~~~~~l Uabard C. ....'Nk.r. "q. :~L7-pn-.oj~b 'cornpan~"'-""-'-'-""" n....... ....... .-.. n.. ........ .......... -.... ...... -. DepartmilntrFtOOf No:"' ~h~Ld4K~R ~~U a~ENNE~AM sii..iAddr'iii--"-'--' ..-........ . ..- ...h.................. n. ................... .... ".... _.. ........... _. o IRtlC'lpl.nl't Name) Pie... Pnnl c. DaY1d 'p.a1..n eom;a;;v.'.~i~..K~.'-.p~D ~I""'-~Iv.yllr>p)rll/'lfl j uu, .l....,..,...."......u. DtpIrtrMnllFloor No E.iiC1.sii.iiiiAddiii.j.... ciMOi Diih9i;o ,ii ,'MiDi '0' "t,p 'cDdii," 158 11f.ae toed .... .. .'lId,', ~ T . Cli)...............-..-. ............ -..... .....,..... . .......... .siili.... -.. llP ReqUlled ~lt"AN1'S~vRu PA l r u ~ YOUR INTEIINAL BILLING REFEliENCE INFORlJArlON (optiOMI) (Flflt 24 c/lItlCl,,, Jlfll 'IJP'M Off Inro;",} 'c;;;."..'.........................'...."..".'...... ShippeD. burl IF HOLDAr ffDEX LDCAnON. PI1trr ffDEX Mdrm HlfI Street Addlllll 5111'...... l1PR8QUlt~ 17257 PA 811,..,.,. 20u","""",.rldEl.&o:lNo ACEl.etldil Cll'll No SERVICES (Check OII/y one bO.) . '/:J~'.,(~" . ~"-"""'--'" I~"~a.:::.;- 110~~gGING 51~~=GING " 0 ""I)' LETmI 56 t:J FEDI)' LlT1lR' 120FEDI)''''''' 52 o Ft,I)',,,,,. 13 0 FlDlX'OX 53 0 FEDI)' lOX ..OFtDOrotE 5'OFEDUllill .,....... , 10.0.,,,__.,, I~__"'_' "OCCfJllOllr .60fffTf. .ICINRI'~_"'llIll""" GOYT ==:...,,=-,.. 410 PACKAfjE r.,,,, ., ....",....._1>>..' 10 0 O,"",IGHr SO 0 _0" 11Il1GH," FREIGHT" --- '0..,.,._...,. 'o.cs...\llUl......!oDO t._..__ ..e....._..-... 301W3rdPIITyFfl3EIACElNo oilY',....,' s~,i 401Wtr.MCMJ Em 0.,- ----L-. l1PA8QUlted DELIVERY AND SPECIAL HANDLING (Check MMe.' ffIqIJimdJ ...).'.., I DHo!oAr/;~lOCAr1ONIWEKDAr IF. on 5otd(ll'lHl 2 DU1Vf1fttm'DAr 1'IICWif,I 1ff1CH' , ...... I .. 1'M00CLWa .... ,~... SERVICE CONOmONS, DECLARED VALUE AND LIMIT Dr LIABILITY UMoflhlSlWtIlIalIlIlIM"yoJf~lOlNiMl'l'aCO"dlllcnl onCl.tCUtll'll Serva G&.le, ,vuatllllCJllll ,tquIIt SoH DIdI of &.-dII.tcICl101t1l1.awbolI101 Jlbn'\lbon SItva~1IIIy vMy lor GcMIM\II'II Ovtfnlltll Stl'YQ s..us ~ Strw;:tG\lldllorlMlaotl w...noc be r'lPOf'lllllle lot any cum III 'IClUoI SIDO PIf ~.whIlhIllhe'-lUIlllbu~.CItI.I1.~ =:"~':~o:::::.~= 0IIIlI UTwlallcInsb.n:lf\lfltcurtnlF,,*IlEJnrtus.-:.~ agpIy'tourI'9'1lIO'lIaMl'lt(wnhd'fIlErQf'UI(Il.".,1OI&. II"Itt.ldn;lIlUWIIICy...oIlhep<<uqt.IOUDlIMJI,~"""", P'QI1l:.allofl...'...I"..c:ostI,anaolhel~oIC6m&91....,.., dItIcr.t'ICIdIIUI.conMCllAf'lbll,Qf~"lwMldlOlhe9fN"'oI S'OOOllhedlCUlldVIIuI~lOtrltil~Jl<<:oYf<YtannoI '"t:Md~~lOu,ThI/I'IalO'lVl'l~Vlk.oeIol fedf.r.l..andfIldEIPuPItUQHllc.oo IfIlNi tYII'lI 01 unMlIIy"""", f""," E"""'.... yoJf =-SIIanas::.'g:.~~~~~Cl'\&t9II ~&ull'lOnl"f""'ElfqUlOdItWIIlMlhomInl~ =: f':.;'P.Qf~~~::~':-' ~::.= fORlolAY',r,o IlbOI '1 .......1'. 31 DHolDAt'rDEXloCA~FDf.f'~~X 30'CLMRSAIli,..r 'ItUCN/9lII......._ 'OSATURDArPlCK.U' "'oItQ_1 .._.~~~I To'ta'( . Tolal .......:.Toiai.......... 1 ;:":1 .. 0 OANGfROU5 GOODS l(rYIlt\Ir9Il 6D~~r.oc.n~,Ott"'.,,"llIll'_" IlIVISIO~D.n4," ()yutlll'liI$ ._..1 ._....,10ol. 0______ 12 o HOHDArOElMRrl"-"1 '(""lP\If'JIl Aeleu. S'9"IalUre' EXHIBIT "F" " , , DQ MOE, INC. Box 5246, Golf Lane, R.D. 1 Grantville, PA 17028 February 13, 1995 C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Default operating Agreement - Shippensburg Shopping Center, Walnut Bottom Road, Shippensburg, PA [certified Mail Return Receipt Requested No. Z 115 697 289] Dear Mr. and Mrs. Spealman: I write in my capacity as President of DQ MOE, Inc., licensor of the "Dairy Queen" operating Agreement with regard to the above referenced "Dairy Queen" store in which you are the licensee. This notice is made pursuant to section 10.1 of said operating Agreement which provides as follows: In the event that Licensor determines that Licensee has failed to meet the requirements and specifications established with respect to quality, physical properties, or condition of equipment or materials used or products manufactured, or with respect to packages or advertising, or any other provisions of this Operating Agreement, Licensor shall notify Licensee in writing of that fact, and shall set forth the conditions to be corrected, and if Licensee shall fail to take positive steps to correct the conditions specified in any such notice within seven (7) days from the date of sending such notice by mail addressed to said Licensee at his last known address as shown by the records of Licensor, Licensor shall thereupon have the right to cancel and terminate this Agreement upon delivery to Licensee, personally or by mail, of written notice of such cancellation. In March of 1994, you were notified to provide DQ MOE, Inc., with the following items on a monthly basis commencing on April 1, 1994: l. Monthly profit and loss statement. EXHIBIT "F" , . , ' C. David Spealman Louise M. Spealman February 13, 1995 Page 2 2. Monthly statement of payments made and account balances of each supplier. 3. Daily log book to include report of cash over and short and to indicate daily deposit amounts. 4. Calculate yields on a daily basis. 5. Records of employee and family meals. The foregoing were specifically required as the result of an audit conducted by International Dairy Queen, Inc. The Operating Agreement also provides various requirements, including, but not limited to, sound financial business practices (Section 9.6), payment of taxes and indebtedness (Section 9.7) and the submission of specified routine records and reports (Section 9.4) . This is to advise that you are in default for not performing the foregoing requirements. We have not received the enumerated items above and we receive calls from unpaid suppliers complaining of your delinquencies. Most currently, reports due for January 1995 have not been received by February 10, 1995, as required. Some reports have not been received since the March notice above, particularly the profit and loss statements. Your Operating Agreement with DQ MOE, Inc., required your payment of $30,000.00 as the franchise fee. Our agreement required you to pay $10,000 on account of the fee at time of execution of the agreement (which was eventually received) and $5,000 on July 1 of each of the years 1994, 1995, 1996 and 1997, together with interest at the rate of 8% per annum from March 16, 1993. The payment due July 1, 1994 ($5,000 on account of fee and $1,106.56 interest) was not paid. Therefore, the entire unpaid balance ($20,000.00) plus interest at B% since March 16, 1993, is now due and payable. Demand is hereby made for said amounts. Failure to pay constitutes a default under Section 9.B of the Operating Agreement. You have seven (7) days from the date of this notice to provide us with all reports required as provided above, pay all indebtedness due from the operation of the Shippensburg store, pay the entire balance of the franchise fee and interest due thereon, and to bring the operation of this store into compliance with the operating Agreement. EXHIBIT "F" ,. . , " C. David Spealman Louise M. Spealman February 13, 1995 Page 3 If you do not comply with this notice, DQ MOE, Inc., will proceed to terminate the Operating Agreement in accordance with its terms. This notice is being sent by (a) Federal Express, (b) certified U.S. Mail, return receipt requested, and (c) first- class u.s. Mail -- in all cases postage and delivery charges having been prepaid. Very truly yours, DQ MOE, INC. By President 'I . \ , , i j i , , l ~~ I ( " !I " '. ~ ~ " 'I I , ' EXHIBIT "F" I i : ~ .. ! I 't' f ;\':1" . ' , -- ; ",f-"'t; l/ ~ \ : .'-'. '-" THIS AGREEMENT MADE and entered into this 3rd day of May, 1995, by and between: DQ MOE, INC., a Pennsylvania business corporation, having its principal office at R.D. l, Box 5246, Golf Lane, Grantville, PA 17028, party of the first part, hereinafter called "Licensor", AND C. DAVID SPEALMAN and LOUISE M. SPEALMAN, individuals, who reside at 158 Kline Road, Shippensburg, PA 17257, hereinafter called "Licensees": WITNESSETH: WHEREAS, Licensor is the successor licensor by assignment under three (3) certain Dairy Queen operating Agreements ("operating Agreements") with respect to certain Dairy Queen stores located at 3890 Jonestown Road, Harrisburg, PA ("Harrisburg store"), 920 South Main street, Chambersburg, PA ("Chambersburg store") and Shippensburg Shopping Center, Walnut Bottom Road, Shippensburg, PA ("Shippensburg store"), and with respect to said stores, Licensees are the licensees under the respective operating Agreements; and WHEREAS, Licensees have defaulted in fulfilling various obligations to Licensor; and WHEREAS, Licensor has given notice of default to Licensees pursuant to section 10.1 of the operating Agreements by letter dated February l3, 1995; and EXHIBIT "G" WHEREAS, Licensees desire to avert the cancellation and termination of the operating Agreements and have negotiated certain terms with Licensor which the parties desire to document by these presents; NOW, THEREFORE, in consideration of these presents and Lic~ ,uL'S forbearance of presently cancelling and terminating the operating Agreements, and intending to be legally bound hereby, and in further consideration of Licensees' promises, covenants and undertakings set forth hereinbelow, the parties mutually agree as follows: 1. The foregoing preamble and paragraphs are incorporated herein as though set forth in full hereinbelow. 2. Licensees promise, covenant and agree to do and perform the following matters and things at the times indicated, time being of the essence of this agreement: A. On or before the tenth day of each calendar month, deliver to Licensor records for each of the three stores for the preceding calendar month indicating in a form satisfactory to Licensor the following: (1) Routine reports. (2) Income and expenses. (3) Profit and loss. (4) Payments made to and the account balances owing to each vendor/supplier. (5) Daily log records to include report of -2- EXHIBIT "G" , l' " cash over and short and daily deposit amounts. (6) Daily yield calculations. (7) Records of employee and family meals. (B) Record of all mix sent from and received by the three stores. B. Liquidate and pay the following balances due vendors/suppliers in the minimum payment amounts and on the dates indicated: (ll Mavfair: Balance owing: $9,509.00. Pay: March 25, 1995 $ 950.90 April 25, 1995 $ 950.90 May 25, 1995 $1,901.80 June 25, 1995 $1,901.80 July 25, 1995 $1,901.80 August, 25, 1995 $l, 901. BO (21 Shenandoah: Balance owing: $8,l06.60. Pay: April 25, 1995 $ 675.55 May 25, 1995 $ 675.55 June 25, 1995 $ 675.55 July 25, 1995 $ 675.55 August 25, 1995 $ 675.55 September 25, 1995 $ 675.55 October 25, 1995 $ 675.55 November 25, 1995 $ 675.55 March 25, 1996 $ 675.55 April 25, 1996 $ 675.55 May 25, 1996 $ 675.55 June 25, 1996 $ 675.55 (31 Glass city: Balance owing: $3,662.20. Pay: March 25, 1995 $ 225.45 April 25, 1995 $ 497.20 May 25, 1995 $ 362.46 June 25, 1995 $ 362.46 July 25, 1995 $ 362.46 August 25, 1995 $ 362.46 September 25, 1995 $ 362.46 October 25, 1995 $ 225.45 November 25, 1995 $ 225.45 March 25, 1996 $ 225.45 -3- EXHIBIT "G" ". " /' April 25, 1996 $ 225.45 May 25, 1996 $ 225.45 {41 Bunzl: Balance owing: $3,237.60. Pay: March 25, 1995 $ 313.05 April 25, 1995 $ 313.05 May 25, 1995 $ 3l3.05 June 25, 1995 $ 313.05 July 25, 1995 $ 313 . 05 August 25, 1995 $ 313.05 September 25, 1995 $ 226.55 October 25, 1995 $ 226.55 November 25, 1995 $ 226.55 March 25, 1996 $ 226.55 April 25, 1996 $ 226.55 May 25, 1996 $ 226.55 ~ All purchases made hereafter from the above vendors/ Suppliers shall be paid for in full in strict accordance with the terms of sale/purchase. r C. Remit Children's Miracle Network Telethon t, , , money by May 15, 1995, and by May l5 of each year thereafter. , . , \ , . , D. Meet at Licensor's call and convenience to review Licensees' operations and business. I . . , , I .I E. Successfully pass all Dairy Queen QVsc (Quality, Value, Service, Cleanliness) evaluations as administered by Licensor from time to time. F. Comply with all terms of the Operating I I I' I , . , , Agreements. G. Pay to Licensor the balance ($20,000.00) and interest owing on the franchise fee concerning the " Shippensburg Store in the amounts and at the times as follows: -4- EXHIBIT "G" I , ..0. " Date Due Principal Interest Total To Be Paid $5,000.00 $3,439.89 ~ ~ '1et.>- .:!z..... May 1, 1995 + = $8,"J~ ;1.1-- July l, 1995 $5,000.00 + $ 200.00 = $6,28B~O IC"C' July 1, 1996 $5,000.00 + $ BOO.OO = $5,BOO.OO July l, 1997 $5,000.00 + $ 400.00 = $5,400.00 3. Licensees acknowledge and agree that they have defaulted in performing their obligations under the operating Agreements and that the notices sent on February 13, 1995, were justified and in accordance with Section 10.1 of sa,id Agreements. 4. Licensees agree that in the event they should fail to comply with any of the foregoing requirements of this Agreement, they shall be deemed to have voluntarily terminated all three Operating Agreements and that each Operating Agreement shall thereupon be deemed terminated, and Licensor shall have all the Terminations Rights under Section II of said Agreements without further notice to Licensees or action of any kind. 5. This Agreement shall remain in full force and effect until all obligations set forth in subparagraphs Band G of paragraph 2 hereinabove have been paid in full. Upon the full satisfaction of said obligations, this Agreement shall be deemed to be performed and, therefore, of no further effect. However, the expiration of this Agreement shall not change, modify, abrogate or otherwise effect the terms of the Operating Agreements which are and shall remain in full legal force and effect. 6. This Agreement contains all of the terms of the parties' agreement and understanding. This Agreement shall not be -5- EXHIBIT "G" modified in any respect except by further written documents executed by all parties hereto. 7. This Agreement is not intended to amend, modify or change the terms of the operating Agreements. 8. The obligations of this Agreement shall be binding upon and the rights hereunder shall inure to the benefit of the parties' respective heirs, personal representatives, successors and assigns. IN WITNESS WHEREOF, the parties have caused these presents to be duly executed the day and year first written above. WITNESSED BY: .~ c,' e' " ~,I\,(v~,",A \C,/J (/ il ./1..-, " . _ (SEAL) c. David Spealman ~ ,,/J, (/( /u.ui..J.- /i~..p!.4..li.V/.<L"\.....(SEAL) Louise H. Spealman DQ HOE, INC. By /j;/ ,/i~ .. '~&:= p~id:~ - - , ATTEST: Secretary " , -6- EXHIBIT "G" '" ", " DQ MOE, lne, 184 GolfLanc Grantville, I' A 170211 (717) 574.3723 May 16, 1997 (Regular First Class Mail) \ :",\ \ .' C. David Spcalman Louise M, Spcalman 158 Klinc Road Shippcnsburg,l'A 17257 Rc: Noticc of Dc fault Dear Mr. And Mrs. Spealman On April 14, 16 and 20, 1997, DQ MOE,lnc. conducted QVSC inspections at your Chambersburg, Harrisburg and Shippensburg stores. Enclosed are copies of the evaluations, results and lists of deficiencies. This notice is given pursuant to Scction 10.1 ofthc Operating Agreements for each of the respective stores, You are notified that you are in default of the terms of the Agreemcnts and immediate correction is demanded. Failure to comply with required corrcctive action will rcsult in cancellation and tcrmination ofthc Operating Agreements, If you have any questions concerning the foregoing or dispute with the enclosed evaluations, you should contact the undersigned immediately. Very truly yours, DQ MO~~~. ,/ By ./? P<:~ , President Gl Enclosed: 3 Store QVSC Evaluation Documents . EXHIBIT "H" i , ~/ ~ '. ,. DQ MOE, lnc, , \. \ 184 Golf Lane Grantville, P A 17028 (717) 574-3723 May 16, 1997 (Express Mail- US Postal Service /I EH474923547US) C. David Spealman Louise M, Spealmlln 158 Kline Road Shippensburg, PA 17257 , ' ,:. ;1 J' '. Re: Notice of Default Dear Mr, And Mrs, Spealman ~ On April 14, 16 and 20, 1997, DQ MOE, Inc. conducted QVSC inspections at your Chambersburg, Harrisburg and Shippensburg stores. Enclosed are copies of the evaluations, results and lists of deficiencies. 0, This notice is given pursuant to Section 10.1 of the Operating Agreements for each of the respective stores. You are notified that you are in default ofthe terms of the Agreements and immediate correction is demanded. Failure to comply with required corrective action will result in cancellation and termination of the Operating Agreements, II hJ fl ! 0\ - , If you have any questions concerning the foregoing or dispute with the enclosed evaluations, you should contact the undersigned immediately. Very truly yours, DQ MOE, Inc. ~_ By .~;.:J;"~ . President G.- I , r ( I ~ ~..; J' I Enclosed: 3 Store QVSC Evaluation Documents , I r 1 EXHIBIT "H" i...." , . . , STORE': I'B'c,q..I" LOCATION: ~'" ,:)(.lLn:, b:.;,r-CI :' DATE: 'i1').D /q"7 SCORE: (..../ 'Yo Quality Value Service Cleanliness Q.V.S.C. STORE EVALUATION I1razieJ;, , Dairq Queen 0,' Revl.ec:t 10194 EXHIBIT "H" \ . 'I I ,I , I ~ I "f . .' , '", , , OS.HARulesPosted? "':",~i:r.":;"'~~'f Yes .: \"'.:",'~o No ":'''':'~'';;'i'~'llli';\1J:Y.':~l'''''lt~;~'r'':;J'" '':' ":'.r.'::Tit.;',',: -, .. _....,..1 ~'.iW . """:!':"':"'~""i""'\'-''''''''~''~':'':od''.\'~:!:)\~Qrv\v,r.r.S""C"S'~"!)~~~7',1~(;~ ';'J.'):"u"" '~:..,<.~:.....'.:~;;,,~:.,"'''' Pnj5ifous:QYS9Sco~e:'i ';'~.:<':':'" Date: "',. "",: ays..,!':, cqrll:' . ,,,,,,,,;::,,,,:<,,,":" ------------------------------------ --------- ., "l';''''~' " ':"~'. s' 'lis" '.", "u "~"U"" lIs'Y" ' f' 'NA" 'N''''t'Ap. '..."":rb:"I...'..~.J;~,'i;lj\~,,'?(;~~f:1.I~J>~"'.~".,r,.;,':;,:',..: '.:, , ,}, ,::, .::: '.. , tlndlcate. ,8 ~ a factoryf, ~, ~B8 ,Iactory ,. 0 p ca e,! '!iiM\t;,..',...I"\~~/,'''l t~':"'~h'7:;i,'r,,,;:, " ."1,,, '''~::~' , 2.. ~. -If any asterlsked flem Is marked unsatisfactory, operation Is disqualified from receMngthe 'Quality-Purity" award, :' ,:, )fJ ,"." 3," -In finsl scoring (see recap page), the 'U'tolals In double-asterlsked sections A, B, and J are doubled. snd"~ the "U',totals " ~',' , 'in lrfple-asterlsked Sections F and G are lrfpled so QVSC problems most obvious to customers are emphasized. ' .' : ;':::, . ,. ." , , ",. .,.." " :" , ,~~(AJFACILITY ,,' ,:' , ~]\q:'.'" :'~,;. '!.,;.... ~""I,~'Ext.rIor. '. o!~~.,:1. . Roof ~ . < ;;~~::...' ~ . . '~- ',,". BliIdi1g ;' 3. SIgnig.:' t'" "". , ~i...:~~':,:< .'.:' ,.' . .' id:'" ".';-' '-., . . "::4. .,SlgnegelApptoved 'to'"""", .'.., , ~i.~' '...::,,, ~. - '1.' . '. ~: 5." W1ndoMtsolarium ' J,: 6, Ilocn (frorM>oc:k) ~;-;"",.,,,,,,; '. '1/:"(,.',.......,.' ...... ., . (' 7. Ughla & Fbdures '" ~- ' ',.8. W~R~ W.ks PIttdng Atea :fy, '. {'11. PC1d"g Lot Sltiping ~.12. Landacaping 13, Traah DisposaJ Are. 14. Back of BUilcling 15. Drive-Uuu WI/ldow Menu System .. ., ,'16. Drlve-Uuu SYsleml App,oved 17. Playglound! Outdoo< SeaUng #. > ' <, "...t'~.~...;':'~;/\.;~ .:X::~':.. ~~":."; , ' " ,STANDARDS '/.."<" "',',. '.'" -..~,::.'. ,,1." ..... . . .,'. .',.. .', "',:.. '1. ...~~~.:.~._..:.;.,,;...'.;.,...:. ":,' , ROot I/lOUfd not have buill up gtIaIe/d'ut. Roof linea 1/1 In confotmanc:e WIth EnQInMring do>partment ~. MIIlIIId root..,." be red ahlngle... cedar 1Ihake; FIClIde on "ftat 1ep."lo be 11ld, blue, yellow '., 8nd Wh~.. 'M25" look hao · petapel wallin Qlutoty brcw8 wiIh llpJltll\oj,d banding. No aIaIna, faded, rWed 1h/ngIee, Chipped pe/nt, LI1IIIIlched colen and flldlng ... unaetlofectoty. ' ". GerW.lcIeeIiIng, maInlenanceofbuilding, Includa oOfr4anci/iMg,ibox, Toinc:bieccb.ofWh~e, beige, ... btfcIc. No gralrltJ, ch~ brick, block, aiding ... gIua. Chipped pe/nt, IM1tnaIched colen and fedfng ... WlSatiafllCtory. . " , ".'..: ' "',':',' '~': '. , No vislbIe d1tt' ... lUll JlIIVIIIenl. Broken panels, chipped ... foded Paint. 8nd ruaied pylon constitute WlaItiIfllCtoty grade. Lettlll'l f... reader board niatchlng. Reader boald hao current rneoaage. All bulbs ......../n ........,- ~-- I.....~-- an f ...._.~ . l :'.;,"",,;',."'''', """...": .. ',. "" .~ I~ ~N1'V U1~. I_~.. .' Y roo -WII",,"I~~ :}}~.\j~...~.~\r~:~~~::,~..~.:.-'./;... '~.'. Approved by Amellcan Dllry Queen Corp...etlon or Tetr~oty Operator. Hatidpllnled IIgn. are "'.lun~Jaf.ctory, \,.",':". y' . ','.::;:,~':~IJ,.~r.~:~A\:,~;,~j"..:,>;c,"_ " .' , NoIllrlllked, smudged, ... filmed. No hoIea, ICIatchea, ale. To lni:Iude wtndGW frerne8. ' , ' . " .)....."';. '-, --:' '". . ' IncIudea front and back doora. NoIllteaked, smUdged,or fdm8iCTo inc:fude aIalnIeu Ileal me and ' lhreahokt.,: ,: , "', '. ' ','..,:c"";:~'';.':'~~:'';?~~;;;'lr';.J';\{:,' '," . No viaibIe dirt...1naecta prevelenl. No damaged ...rusted fDCluteo. Must be no brnken... mlaaIng eIementa. ,AJlIIghla mUll be ~ng. MUll not be sevelely ICIat~, dented, faded, chipped, .... lUlled. Must use plastic Iinlll'l end have no unplee..nt odonl. Mull be no deposjl buildup... atlckIneaa. Free of Inaect.. Must have ae/f....1ooing lida. Emptied prior to reaching 75% capacity. To be awepl end washed aa needed. No gum... fotelgn objects attached to aurlacea. No broken ... ,cracked (large) mortar, No grass ... weed. ptevalent. .. HOsed down on · tegular achedule. Minimum of once per day litter collection, Including .rea. edjacent to JlIOperty rme, No product spillage ptevalent. No chuckholes, gtease depoalts, gal spillage, ale. plllvelent. Sltiping must be c1eeriy visible at night, dlsllnet lin.., eleeriy dafined. Altractive, lVe/J.pJanned and malnlained. Must be Ioceted OWly from building. Mull have either an encIosute ... dumpster VIith lid. SUtrOUnding area eleen. Rendering barrel mUll have a lid. Mull have enclosure r... all equipment and all Hem. .toted on e tegular basis 10 be aallsfllCtoty. No visible dirt .treaks ... smudges on face of can, No lape. Unifonn lettering end number.. No handwritten signs. All light. ~ng, speaker .y.'em Intact end operational. Bell CClId operational, extended and free of lee, snow, and other debri.. Painl must not be faded. Tran.pIl'llnClea not f.ded. panel. and lettering not warped ... faded; menu .ltips In track, no light leaks. Current menu Ilrlps end transparencies In use. layout shows clarity, nol clutter. Apploved by American Dairy Queen COIpO/illlon or Territoty Opera,.... Hendpalnted signs un..U.fllCtory. . ' No spillage, atains, ptoduet buildup... lille, on and around equipment and/... seaUng. All equipment . '. must be ptoperiy and ..rely maintained, Must nol be SClalched, chipped. dented ... lUlled. To Include bike /lICk (if available), EXHIBIT "H" , " CI F4"J CONDfTION " . ;.... .....-...,~Ji... . ""'."'~~<(';tt., 'i.'!j?lt;'.' V , .~..L.::,;.~~ '~~~;',,;-, ~ '~..L.:::. ~/~ ", . ' '. .,j'- ~ "-- .... ," '~' ~~. i:r.! --;-.-" ~ '-,;,.s '.,2, oS I ":~:iP~~;:: .---- .~.i. . r -IlL ~~' C'l ,s", VilJ_ _,_ . . ." <'.-:.:._.j~;~&':'~~;J ~ '--::21--::- , ',', .~,.:, ~i AI ILI_' .' " . oS,_ ~i-':' ~- ~'- i I I I ': -I~/!!::..'- IoJ ',A" , " 'I \ ~ , -IE: -IJb. I i ..' . 'J'.f -..'". ., '.{~, ,. " '. .r ~I 'i:. ...~. ~...4' ....~'. . 0.:;'''1 't' . '.~, ,'I'~~,,J.:,/~..,....,<Il''''' ..".. :," "i "~..I~t ~ "-~"~'J oj;,...... il:r;.:-y .",,<. ,'J t "" " ..... .... w.. /If"n" "'.:1 J "Is! . UghIa'IIld.FIllIIno ' N9 vlIIbIe,drt or ~ pnMIIenl.',AlIIghla wOI!elnerllld,1n jllii:io: , '''~~''/i''''- f >, ", ,~, r~. "\!~j'" FJxlIn __ not feeled dIllcoIotwd or CI8Cbd.' MUoI'be'oNilcfid,'- "If "'.", 'r i.. 't",..Jf... . ,..,:.... 1'-I"'."",','~"I't""I'" ~I" ''''*oL~~~ .. j'18, c.It1I \'ff ' No product, .wllalne, ~. gra... No _"CI8Ck8d or 't' ' ;, ".IiJ.~, ~. ;p, '.'~, . " "'rt~ ";"" 110 color IIld uf_ ~ ~ olhor, ,)!?(\,~;,;.,;~~~t"'?,~t~,'. ',t'. ' ,I ,,"~,,':"~'W ,': ~;':lll, v..didoii DucW . I .. No vIolbIe cUt, IIrt or ~ buIdup, ~ No! or pMlInil ~>;~;4~' , :'i 1{f, ~r;", !?~.::. ~, , '( l~.,',>: ~F~.:' '\i," ~:,' ,,', :".;:j~' ;:ll(f,~ft\/i.?J;j}t~,Ij.$t.'ll\.,,',. J .~ ,g.,~ff;M~"":,1:'~l.,i'qf~~Ni:' 1!21,'Temponrlure' ',., Comfor1olble(Toc:atfonnwMhgowm.,...~~,)NoClUllomw '"'~~.1 ..oy....' ~~ ", l~~ It" . . .': '.) I ., . I"" ,,'-"..' (\...w.q';';;'~"::'T"~'""~ W; ,"\';L ~'.. .f\(lI""~~"'~~ I G.22. FIoorI ," '. '" '. M....cen.lnIoc:heckOOllllll,t...bllllda,underbcioCh..iiid NO~!"l" "'i": '1"".'."'::.;,0,1 'if',..\, ;'iJ .',', , C', ..t,'~":",", ."f~.Fllloflrelh,Nobtokonondlormiulngll1oo:lfpolrleil,'llIlIIlnal'bit.~ i"colclllel.":\'~~ ',r.:~,:~,lj,'r~';':"r:.tr".' \.- ~. '.' . No-'-In-.... l" \.., .,~"". ',~I~. ....~,h~~4;;...-l...'.... I / . '~ ,,', \'; " ,I,~..", :,.<,' ',"''''''''' "'-, '" ";:;";~:':': 'r,~, ',1,;' . '';;':;i:'',!:c:,~~~,'4~~'\'l\~''\ i~~,!.F: l.::':~tij... -:;" ~~..~ '." ,'23, Will ,Noproduclorlllln.,mokoClltalnloc:heckbehlndeqUlPiiioi1i,~iicXih::NO bulldupor.~"i"'",I", ,::d'r',;" 1 ,". ",." ~. No chIppod polnt, unmotchod colort orfldlng, NolornarlooM\\IIc:oYiitw.g:'MUIl bo In "tS) " ":'''" ".; '.ot ., '. --a -I. '. . l r'1 '1'~i"':-.',~, ,:ht,~;t .;~~.~.... .\'" '.~"". _ 5/-.:.,\' , ~~:' ..' . ~I' ". . ~ ......- 1~1~_\i",,-~ \. ',. t ... :f~, ':"~'~"'fl!'~\f ":.. tr?~b~"~~~ ~'VI.~' r:J~! hh.,..~... I j ... .\ ", .r ~.,..:; :,24. W_ RocophIcfoI . MUIl__1InorI1Ild hove nounplouonl Odor. MUIlbo~" or ,Fill' n." ','. '., '..,' ."..:" . "",'" \ "''"I ,', oflnooc:lt. Mutt notbo MVeIIIy ICI8tchod, dentod, fodlid, i:l$;orrUileCl, MUit~r' . :Cloilng ",I,';; "" ',v.' '.. ,'h'i:,' .:,:,';- Id.., , ' . '. " :,;.. ,',::,., 't~V,.:\,>"';"\J(,,)a.w'r.,;.;~~~'Xiitlll. p- '\\b i":'~." ,':~'_.' ~-:;.' " ' \":15: Alhtreyi ~;. WolllCplonoCOty. Mutt UN ~'~y'~:.DQ~~.'N~'~:"..,;'i,; . ."'~~':,;. ',:: .' "'/:: :,';' '., " 0/, ,. _,mold COllI, ICe. Mutt hove on lllabIoo In'omoIclrig.. (Non.....lelnii'.....;toI/sn.tod If ."~,,L, . "IJ.,''" .' .,,:'; , ',. ; . ....,Itod by llIIlo/counlylcllu Iowa) "." '.; ,.... ':;'''L. . ";"1., ",,', ;,..,.,' ',," ""o'!:;'<'flo'" t' '.. . ' 1....1:! ,~ ' " ":, '-,- I .' :..:~,'...~...~.".'."..!..:)oA.: I,.,.y...~~~..v.{\'.~~:m!"." ,:,".,~ -..J....I ,26. SeotInglT.bIn MuttbonodopooitbullduporlllcldneuonlUlf.c..ondodgeo. MUotbofreeOfdobtit(gumjcinl8YlllM '.." .:": oldo of....., Includilg booCh bocb, logo, ond divIdotI, NO ~ In pUlIng. PodeIblllabloo do "', ,.: . ,'r, ~~.MUIlnoc~~chod,dll~,ordenl~',~~.~;;~;~~f..tened~,_ ~~.~, ,.71. ' HighChoIrtI One or tho othot m~kbo ovaUable /fIIOl1l hot dining rOoni:,F~ of~ ~~,' T.!"y , .c, :.,;<;":',.i:, ' ,.' , Boooler SUCI cIoon ond ~ mu. pIulJc WIlIp. MUll be In~. ~. :;..'!~,',~~,.~":~~::;:.:;~:,\'~: ~_ ~"'::;""',:.' ',.,:,..2B"." Deco.r""., ~~,=:::-"~~h~~:~;~r~;~~wall ~,_' ~':::\;. ,;: 29. ,WIndow TI8IImInlI ' MUtt noc bo cIrIy, imudgod.,; 1la1Md. Mull noc lMi,f~.;~;i;;;;jci:'M;;;~be.in ~:~~ repel,. .sf ''.5t:'Y..,,,~ :':::.' , ," ,,;': :.L~H~,r;;,- .~.:;,~..,;:;;f;:;\,.;. -~- ~ ',', 'NOTE: U.. t3()~ to rnI8IUI8"1ICUriIy gate; hlOle hot one Q.e"meQ ~1loM)\"';\ :;:;" .,;;.~;~+..Iit~~~~ON(A) [1~ 1- r LW...L ~., " " , ' ',1.,:;:'<, , '., '':''< .,<':;~;;':i,-.;.J:rL'.'j.,:\;.AI.U" x2 , ' [ .1 ] .: ~ [ ... ] .. '. . . .' '.'" " , ..... .l.-f>';l" ~," >. ~.. '.' ., ~ ........................................'.........~........................ '*'BI8Al.E8AND8ERVlCEAREA .,.'..'.;""_,f,;;l:;I~\:,":,~\"..,...><~',...h.., ' . ." .'.. '. ' " '. .. " ; _1~ "~'. ':.,.....1>..\...1).),.. ./..f"..!-....'. ..,'.;..~ ,,<"'. )'. '. f' :~; \' F~'(~ 118/V.) kiciude. cornmonIIln S)'Ilem B~DeIIn~. ~~~bie~i:a'k;ir~~~~~7$;~:llc.;__j..1L ~":1J...:" ':'2, F_ (10ft l18/Ve) filmy,llicky lUlfoce UIlIIItIIflClory. NolCI8tcheo,denII~ lUIl,ii1IoIiniljiooti;iind....:'coinpreuor . I ;'7:J.L ::....:f:..u..~'~, ':' 3. F_ (10ft 118/V.) ohouIdbowell~ondkeplcloetofcombulbbln.Chock...,..~~(I.e:,recovety ;~J.L '~-LL.\, ,.,4. Froozer' tineduring....,nomcclo...lreorllal,oIrvelve.nchplgoC), Tolnclude,tho!~;,:.."" .,.' '-1l/~ ",.:;;-i": ,;~,,' Freez~ (lheke) on,::!- ~ Iofloerve floez8ll, drive shaft end coupling 01... of botre/ 10 bo,pn.>C.~~,~y" ~ '''''-2lIILJ'c,;::~ ... ""I au.u. ~. ":~~!.l,\'.." . "'. . _ _ .'.' . 't. "< 1". ~,... '.. . " ~ =tIo~ 1/3 end lf2 full, W.sh and ..n~ize .ach time pan it emptied. Bott1~.r,"~ ,ie, ' '~~"'::;:' . .~. No food soil In cracks/crevices around .plash all.. Ploper handle on splgaI. No evidence of Ieeke8e. r' .." ,.,' , . No mix buildup inIldeJoutslde; IncI~ c1ampo.lnoulalod per S)'Ilem Bullelin 1264. ~o ,~, '.~i', ;': ',~~, mcka, Ieako, Iwdenlng II connection or 1WeI1Ing. ..' .',,._ _ -::-.~.~~' 7. MixPumps N~V;.;bIe 1011 on pump body, bteckel,~, end frttlng.. Nomioailg or damaged parll, No electrical , ~ :..iJ. -. """ , ' f, I ,', ((WIt.. 8llpOIod; I.e., cord., pllIIUte switcheo. "', c'" '\' J.ii].I- _' . - ". . :.. .~ .",: 1..- ". I ',1 . ':\)( '~,-. (1,..11.1.( in.............:: ~.' .'.' 8. MuJtl.MDCeI(.) NOviliblesoilotmccbuilduP,crackslcr~,denl.,RJlt,orchlppedpaint.Cnecx~.~CIllWIl:, ", '-liltfJ '::,;: ! ADsp/ndlesmuslbeoperallonal.NoWlr..8llpOIod, ' , """""'" ,""'-- "_' " I'" j. ' .... .., 'J'f. 9. 'BIizzatd' Mochlne(.) No vilible soil or mix buildup In cracksl clevlc.. of .plndl..hafl and agitalOl, Alto, no IOi/ buildup , ":' (or other suitable on !he undetIIde of CIllWIl, outel SUrfacel and .pla.h guatdl:Flee of'~ boll \r;d,booring ,~' . ;;;, Ipproved mix.,) nolle. OnlOff switch end .peed control (on 'Bllzza,d" Mochlne) operetional. 'BIizzetd" Mec:hIne , . placed whet. ~ has ptOpeI venlilation. Splash guard. not cracked or btoken. Check sp/ndIe ahoft for weer around agitalor colla,. 'Bllzzard" decal In good condition or removed, . No soiled containers. NSF approved. No crack. or chips. No food soilllilm. Can cleen; paper removod. Odor flee. Check pump and undetIIde of lid for dried fudge. Proper ...Ie, level, Spacer In bot1om. Conlrol. operate. No dialo milling. Pump In -"'ng condition, No foodfsojlllilm. Slock level rotalod and flesh. Un~ malnlained propetIy and II functioning, (Of DripPan SpIgolJFront Head 6. Mix Hose 10. Malt Dispenser 11. Fudge Wann.,(.) ~i__ ~'- S,_ ~-:. 12. CrunchWheeV Container 13. Dip Wanner(.) '" ^ _, 1.1.- -' , ',.1.&.:- ~-~~: , ., No visible soil In cracks/c,eviceslscrew h.ads. Drip lray clean of spillag. and Interior free of spillage. Papel lemoved from cans, Control. ope'ale properly; no dialo miIsing. 14. Milk Dlspensel/Conlainer Gaskel. and Ialchesln good condijion, Capable of maintaining ptoper lemperalullend In good lepal,. --.-- - --.--- --.-------- EXHIBIT "H" ,~. ' '.J&;I .s,_ 5'_ - -:~~.:))~."..:. .'" ',' ,;--,., '.,".' < ,":'\, ';~~II;~~~"'~-:';~i=;:""=' 'll'illiNil.-C '" ...\0.1 . , ,~ "...." ~ ',. - 'j \J. -".. ' ;loo t.... "i'... .' l'l "!'IBI AN 8ERVICE'AJlEA(c:clllt.1 c.'" . . ' '," .:", . D."Y>~'" .t '~l"'~' .f) ~l~"yg~~~;:':' f' :P"F~of~~~I.mt.'~.F";;of~'~ ,~;~~~~,~" ...,,, ,.J, .,. No~-'--'-'-'- ~- p...........- ~-'-'Io<--'1I~""~'" "'''~~~,<, .,1!)'j ".. .......1'01': ,1'4 :t"',:.. ::'., ",--:"""U.~I.w. IVfIW',.'~'_."'Ol...~~., T1~.; ',J> '~ll~.~,,,,'.:.rtB.r:~'tl:'~,,:,,.c.. t't.ot\" ~ ~'8, ;:~.... ~.) , '.' s.n. _ ,Cone R8Cb ('15 ~f:. - '\'", '" (. ",~;';i, ~li~it'i3r;~~~,~~~;!.l~~:.',~~~::'~~-', <l17:..."WllIA..dT~ ", Nozzleond.....tobe~lndunltluddlly,'C.........~~~~"!llll.~I~~ i.~ '~>.' ',\'$ ~~!\~... '" t .':; \' .' ~ repeIr~1f cn..d loflplng,...." ond kept In ~ ~~~i'~~~((l.J~:'1~,:'t.~,;, . ;P.i." \ I ~'~;I~" ,F' .; I ",18. 'ToppIngCeblnll ",;.;<..: Nowlbl..lIl,llIcldnouorfoodlnc:nc:kllcrevlcee,IClWW....,- F_ lI..k....ndlrUriar ,'~,,'..,; w ~\"'-l'.;..,;.,:,., ',:' ' ,''''" dMn Chick cotnflleIIOI/cll"d.nier We.lIel.. (coiiiumirvlllblil1f.;.) clIIii'ii1dOtgenlzell R:bIng..... ~1',1"",' ." ',,1 ail.;.,." ,I,' .',.. '''.~;...(lcnIf -~-"-~-- )c' I _................-.=- -,-"",,,,,,.,_.~~-,--"~' ,~.;';'" .'!J.,.lj ,,\.:' .\', .') ... . ~~.. UWII.... .,"'-\AIHI,Itc.. lutter romutlln~ _N.......~~~,...~.nuu:-'~-"".... J.J~ ";i-.t~~/"f ~i~. ~;..:.- . 'I /J~., '. '.., ' ' , ~ AI>lIily 10 hold IlI"I*' Iltnperelul1l, FrHZlI door gukIta InIec:t iliia'1iold tlghlMeI. Chick "lion..'" t'- ~(', r 1,.,.~ej','i'J;l'~ " ~t'.M~; ,\. ',' .:.' " . A ." (cauIc) ~ ~ ~ and, catMnlt. top" , .::..t:(;t~~'1iJf1~~J~.'r~.~k~/~ li~;~~ . ~.t~ --15 : ': ..~~~ '.19. F1Ivar lliIpIay , FI'M of food ... or Illcl<y bulldup of produc:l. biapley ~ tree'Of aUmbe ond llIoken producta. ". " , ',;" ..,n~" <.."~,,. . 'f:" '~~',;, ~.JlI"'" " '. ~ not cr8Cked or btokon. Product COVIIod. Noed.not Il!t~.~ IDQ)". eny Illomet. ..l.....:c ',' ,.:;,~'J,i,.:?;.,. ~ ,'_" t'. '", ::'; , ;" "" dIIlgn must edeqollloly diopLIY" well.. pn>perty IItote k'll'idlila. .-/Sr:\j,:"'>t:.",,.\Jo,:.'......:,t, "..-1_" I-,~"" " . .... . '::.,'" . ~_ . '. _,~ . ".. 'j.' ~t;t~.N"J~,~f\'.~ .,'F.r~'1IU""'('. .:'" ~ ' ~, J.';' , ',I . {:" ..~')~.,..(. ~-!'." .:ll), ,TapplngWoIle , '" ,', FI'M of lood..., moId,llIcky lllOlduo, eIolened boflllll refi1lInli. ~ ",up prcmplly, Chick lopI ,," :'~~.;F^\~ ~':~~I'i:'<'" .,';,",. ..':;' ondundetUleollldeondwello.PumJllWlll1dngondldJuoIlldpropirly, ."AIIptOducteCCMIIeCI. NOIlllJll . '.., "",.,.. '..:.. "~'I.'f, ,. ,(, 'In........(.. --') N u_...._......._~..... chipped...'.>>....."''','.'......' ,~ IJJ'<...::t. -,.. .~..;;).':.I... '_',,: .' :', ,~':: ~ ...,.,,--::-'... ~ ~ ~~':"'~1~~ or:, .'\ . f~f$F~~~:~~~t~,{:~t~:~,';;'...J;~~::.:...~; '.:." ~~~ - ,,;.'~',~~~i ,,21.:ToppIng ConIloIency TIIOlIedIe tapping In .....,or IIl10Cllh luII-bod'ood cansloIoncy: ObNrwicu.iixner atdote: topping IhauId . ; "'''.''', ..:,..;, ::l"~.".~ ',' Y,'.y~, ',neIlIw blab nor run"" when lit propor lIImplllllute IIIld c:onslIIeticy, ,', C.. ptOJlIIty.. noIed on, "" '. . ", /', .. ", :;.';:!'i':;. 't' corUinItllbel(whenuolngnotH8OdytO....productsonly),;;,'..,',:'::,' ,,' '. " /:.' '1-1Jb- :,22, ~SIIndISInk , F,.. 01 dirt, ptOduc:I, lIl1udges, 1tIlna. NlI'WetIl dopaslta vIIlIie, ;'t,"', ''. ' .. ' ,--1 fJ /11=_L__' ; 23.' WJpe-up CIalha ' CINn IIIld lr8eoi steinS. UN 01 unitlzllllllutlon. ',. "'~~.~ ';" '. ' . ' ~ _ 'SI,--::. ;:'24. S~, TenbIBeg-, In-Box No lood soi1IIlIcky lUff..... on hose ronos IIIld containers. SllIIllge ~" "nolll,IIIld~. Storage 1108 ',_fj;.:S,':, "",,, , " ",.. ,'"., autofpublicvlew..lloxllSlIlackedtllproporhelghl. ,'" J,.,\".... .,.. ',' I..:;:!L-.--" ~~~,..l...- .._.,',," - "',';'.':'.",'''1':'. - '. ...,:G:~,~",:;''-:''::'':'::'''':" .- .~-~,,~'..:;;.,'':':'!'~'' ',25 CarbonolcralBllI'ln-Bax SIlI-expI....tary ..' .. ,'r.~..j,\'.,' .. ,,'. " ' ,"', ,..,,?,..,,' ;:,:,:,: PIIr!l,... " " _. :.., ; ";:,,",.,,,., '... " -, ::'/- '~'.sl_ ~28..-.:COIT...k. .,', '." _' Chained and ..iely ',tored. :::J~,.;~:ir ;~~.(.;:.:t . ;./ .~, ". _ ;:,," ":..~:/.J.L ;27. :.Dtlnk 0lIp0n00i- H..., Drlnkdisplnlll~cIoanodclaily. NlIvlolblo~~.A,ctuelar,diIPor-....... Brixlovel ,t:;~t';,..;r~' :, '!'.,L ", :' I~,.!'l'!"ptf.te.,';\,::"..,,',' \".'J'!\~ " ...::-;,(I-{}:':"~....l/ ,I~.,t,:,,~:,,\ I., I'~-, ,--;. 28. Ice Bin Ice IhauId be only imn In bin (not millc, whipped tapping, e1c~\ tla wex builclui> or II1iIl produc!; no rust. I...,.f;.,...' '.' ,/' Ice. covotod.lce IICOlIp IIV8ilablo IIIld not stllt.clWbIn (.. requlnid'ilY Ioc8I hoaiIh ~).,==.L...:.... ,.51_' ::29. ~"D~' No~uc:I ~noIotlckInoIaIIlmy~rf.....or aIgae~: I~,~.;:.U~.,./..~. " :' \ " ",''t.~ ~.,:.::.:. ::::30.. MIaty" F_ " , Novloibl..aiIln aac:kIIctevIcnI heads, ole. ~lI f<lmy, 0tIc;ky'~"~' wh8oIO,lece ~., .'.:./, ..;..,; i ' ',;, '. , ,'(;', ~~Ifllgal~. No ICI1Ilchos, donia, missing parIa, IIIld JlII1!Ie".,~.campteaar "",ldillon, I.e.,,' ",", '., , ,:" ..' JeclI:VIIY tIm. cbing UN. NlI spigot Ioakege and/or drip JlIII Ieekego. M;1ains """"" product. q \A '... c::. ",;. ' , . :... clbl10iatency IUIamIIIlclIUv. To Include !he lallawing: "C ,,~$I.,t.s.:' Ild'iil', t.'", .' r ,- :::J2::!:-'~_ 'I~" f':>...J..t.-. \...._...,r,...."'~}..(.._.""-',....~\:. .". ~(..,.>j~L t~ - ..-. " ,..' .:. '. . {.: Happor....ta~~JllOCI"ioil;produc:lnotckiucly;freeolvlol'*~'. . .Chocklorpesl9dllr,I,IAI.o- ;,I,.$"-:...:,,,:l."',~' . C...., ,r,J"'<:~'''', ~..tlllllglltenk.,.,: -':->:~J;;;~~:f~'i~rt;;\."-",).,. <~i~'i".~F:Ll.< ,!', F1Ivar ~;..r~) Illoponiorlhauld beWlll1dng, c:loIn IIIld I,.. oIstjckY ,_ c::hetk , -~_. P~ohoUk!" i ':' rl.:... ,.:~~'{,c.':' ,(,.. '," " l' ".. beclean-....'--ofl--~~'-loam.noproduc:lonN"""top.':ll.t)1Ior~-t...I.\.""'..:d".." " .. '-:"'{ l""-"'I'I~' 1 ~~.. "_" . -"" I"JlIIlII ClIIJllftRGlAIIIl I ,..-..,.." . ,v:;-.... "'-Itl ...... .' . ~ . f .....1.-.:; v '-'31. Calloe ~(.) 'No ~'oialnS; IIIckinna or filmy lUffaces on pall'), ~orbr~.ln good..;par. nO Cricked; ..; A.1:i!.r.;:; ':"- . chipped ~ ...... fill _,_, ,\ ", -, '\ ' " L.,. t ".. .' or \NU" ~I If '""Cltner. . . I ,,: :-(~~'~.' ,,';- .". -. --:--.. : '32, Sneeze Gua,!\endllIt Whole .pp1ic:ablo (IIId1ng windows In walk-up), not stteaked, lIl1udgod, or limed. ~.~ 'or\~;I'" ~."'vf-j;<I';::f\:i:." . Wlndaw-" :",tlilgOodrepalr.Nohaleaort.aralnlCllllllS. . {,\,.L'J' ,,,,,' .....,.~-,.: t'll,. ~_--1_' ,':.~' Cuh R~"2'(-, ,Operetiac,>al; 8181 ,1IIld ~ogi.tel componen~ cIean~' ~ 01 ~~.~ aai.l'l" clhlp8"'~ ~ //:'.-,. '/c,.; 'l"<;:';-''''' ,....' ..,: ~ ", IC/OI/1I iand _ ptintara. Journal r_pI IaJll U1 rog~.,:, .. ,;_', c: Ir, ,., . ,.\.:iiU- '--1~-,' 34. sheIvnrlnv..\lory :." Free of lood IOiVdirt. Check paint condition lor exposed.-d. IIwen\ary neal, .A:lutteteci;tlendy 10";"" - ,... ) u:i i'iL. . --~ and f.... oflOil. - ,,- "!t (':",,:,.,,\.,i, ("I ..\'~{\..-"'''''~_?(':.'''.' /~.:....- . . . .~.w.... ..,,; r ' . :. '''"' . ....'.( .. : 35. SIIving Cou1tIl Surfece, odgeoondfronllllC8.lIlr08olIOiValickinesalgum. Floe oIchlppododgalllld bumspole. PeInt' (:?f ;~,"~ .:;:: not worn through doalgn lit discalated (~ metal, "08 01 dental. Under counter 1108 .-t, free 01 clulIlI. . e;J,!..2..' ~L..:.:.-' Floe 01 soil, including drain. and undet equipment. MlIp boatds clean IIIld undamaged. No llIokon endI ';:;:)'" " '","';:";" or missing liIoa. If painted, muaI not be ahapwam, dis<:oIatod. NlI c:tackIln gtOUl. " J=:i!!-':" .::=1,,-::'- , , .... ,- '.a , No praduc:l or Ilain.. NlI clapoait buildup lit slickinllSl. Make certain tll check behind equlpmont lndIor baath.. Must be In goad repair, no cracks or hales. Froe 01 soil, lood, dirt and stain.. NlI damaged tiI.., Tile caIat and surfaces match oech ather. NlI visible dirt or I~ ploYalent. All light. war1<ing .nd In place. FIxture Intect and llJlII1ItionIl. FIxture cavetI not laded, diacolated, lit Cl8Cked. Must be shielded a. cado requires, Slide window lIJlIIlIUanal; shelves, caunlara, f1aat and walls unclutt.red, clean, IIIld In goad repait. Must use pla.tic linero IIIld have no unpleasant adllt. Must be no depaail, buildup or stickI...... Froe 01 1nsocI.. Must not be sever.ly scratched, dented, laded, chipped lit rusted. BlIX un..UallCtary. 42. Hand SlnklSoapITawels NlI wat'" stains, dirt/grea.. buildup, Fixtures clean. NlI dents (~ metal) lit chips (~ porcelain). Flxtules not rusty lit pitted. Soap and clean pape,tawels availabl. at all Ume.. In campllance with lacal hoatth (i)t._ 6/}, .tandard., ' 36. FIoar 38. C,,;llngNont. 39. Ughts and Foctures ! .:, Drive- Thru h.a Waste Receptacles ~/_ 9_ ..~ ..51 ;""~~-- . ~I -'$1 1 NIII, j '. ;.t_.. ;., ,:;,,' --'-- . 'ST. Wal. .40. 41. EXHIBIT "H" ~ ", ..'" - .,. -~,.... 'J", ..~ :'..' """l!:>r Jl7~"" '!'t'~; J;v.'':'O:!l:,;um, ""'1I;~.?~'1 . <',. ~f..:',,~, }: '.i:Y;, "''''';\~ :. . ',' ,', '.' ~)\l!~'~I(. ~~!I',t ""'~"i;~~!.~;:;Jfi."IR~J:::"",' ~.., lIALESAND8ERVICI!AREAlccnL)' , .. . ' " '.' ''''~\/:''~ ""r.l )'lo,i,/,'\" '':_".:'1 CONDmllN,,, ".....:'.\~,,,..,;.,.." " .. ., ..:,\.." " ",' ,;. ,.j(''j..f~ J 1\.,,i~Ji.''''~''t'''l-:f!lj''~viiill''''''1 ;;.i3;":'~1b.do ' ". No vIiiM'cIri:.irMb,... omudgn On I... 01 moe.I';::":"AI.4lI~ : . ~~'",":~"r\-j;j ~~~flj~ ' ,~.,l Ii:":'",.., ''.' '; , . opIl...oII, Unlfonn IlIIeringlcol.....nd~, No t.1CIwrlItan .,.,.,', . II ct.....'~.......',: t'. ,'.r.r",~,;','., i'l! I~~~V;,/t: ,t ' ' ......., Ilrclbn I_pII1ele ...IIghlIeolul, AI"mllclld .....ed ~~"i8idIbIe'lnd aignz.t ,~;,~ <jo\. 'rt~$ i' ;o.:.~1 "'J~"': J ':,' " .': '(~orYl, cllIIlly).'1lIIzzanI' "*'" 1ncbIod. CWlW1l11M1nU ~lMb.'.,..~...1ri 1M. ':'{;'~~_''l' _ .:..W ~'t' ~".h '," ,.&_--, '-'.t..u . "r......""'...." ,'"' .~:h.'I~.'\~~ r. K>t. "f ~'\ ,.\.~.>~..'\l...1 I..,......' Menu 1loonlIt~~ AppnJwd by An.Icon D_, a...... Calpco..., or TIITlloty OperIlot, : ~.....':',1'~, " ","', ':" ,,~ ,i~.;:iiV_ ...~~,'. i, .~'\';. .''''-'f' .:,~,.,'.: '-, '.... .... :" "i':'''\ ,', ',' ~,.',v" . .)I.f It 1. .i4?~":'~:;~' "':';~'f ;'.),,~"~~":I~~i\ ,4S.~.~ ElllorloundlrMttarlnc:ludlngwnhcr...cleori.GlMllrwol 1luIcllp. ':". ,Y'J..'...."',. "J~~t '!,.,~No.....c.. '" CcndonIorlrwaf.....- NoIdenCed ""'--' orlClMdled:~"iiiilIi"'-" r-a. MUll ".'! ,'... "~,~'. :PI "" I ,~, ......,-, ..4 " ~. ,-.,..,-v, ~I~.~. ""''' 11_', , ,t'" .t"".rl't". '/ . ',:. ~"'''''' ' .,' a...toquNly IlocbcI and proporty rnerc:lwndlMd, ~.' ."AI rnotdIIndl....-" .: ,,'" ,.., ":' ,,~'" ,r:.~.: 't.' " '--..Ia--.I L.--....I . ''''''I4~ttIftI..'! 'i:1:J,;I.......~.~..-.-:..J_. .:_-.II..l....;.~/~) ",:;I:~'~~~ " ;;;;:;-rn:;';7':~~~:'F~~:~;:~~~,:~~:c~'J\:~~/~t'\.:';l'I,,:: ',":,;.;: DIpplngc:.tnl . It IoaI ddy. Elll8rtor Irw 01 cIrl and 1CnIchea. AllIwora 1dll1ll1led:.t~nIll <J;.;", .,.... ,'.' L:....:J. tJ n'I' :'\"' ", f~......~~...........~..... .'F oI-'~'. -........Illm..............: ...-'to'.' '1""..' ,..,..~'it~.,~.,.! .,'"" . .~- -_-:-" '~, ' 'F'", ,................ '- ,_,.,-"-, ,..,__....""'" MMlCIon own_Alcompo".nl........ ""..';_ , ".,..' .~.' .., 1f4~:;:;;,,'): '::;.. '.,', Should ~ ptMWIl.' hazanlto ccnaumor ~~.,~:~1f,:."'~:il:.~~.~~;,;"~i.: '.0\ . ::',2:1 N fj- '-':;" " . !id~, ~-oI-SaIe Approwd AppnJwd and.alIIaclJv; cllplayed, framed, nohhopwain, 10m, or I~"7NO hripeInlad malarial.' : . .' '- ;;,;., , " ~~';r.r:":, :<,y.. " ...,.: =~,;~',,~~.~~::~!~.E~~;f%~~~~~, ..;~:" ,.;,.',::5 I',.'.,'.' ' ,./411. NaplcmISttaw Nodepoolt buildup. Mull nota. ocnlchedcNpped, ruatad,...ilented: MUll a. iI1IIonn In color. MUll '. ','. ' """, '(.l., ;{:,;:: CorUileraIA\W~1o =...~;;,~ ~;~~~,.In,0?~t{,:~ ....~Ing~. ' ~ I), ;,,!.(~ :;' ,110. DrinIdng FCllria/n No vIolbIe dill ... ...... t:NIt enlft ~, IncIudlng Vllnl. F_ "0/ gum Or Iruh. MUll be .:: (~/1I _: ", ' , oplr.tio".1. No 1eeJcage, ruot ...COITOIlon.buiIdup. Pan Ulould not be~or peeling, ' -1.- ~~ }' 51, ,eoi.......ear Pumpe and pana muat a. cloan and.. c:orUIneta filled. Check ~.Iimea ddy. Fill ohpih, ' , ,:_' " ~.. , ~,.~:~:,,;'" ,,' otlcIclneu. Cooling cIaka In UM whet. raquItad.' " , >",." ,; 1'. 'c.' '. ;, 1Jb- I u... ,',,' .-""'e2. . ..,."...,.,-:.,,{ " "'i_ t..L....... ~:h;:: . " ' ,:",,1 ," >:'\~.iT.OTAl.OFSECTlON(B) [Z,tJv.1L [zqv. :'\1Q.: ;:{{:", . ',.'. " ".., :-.';';:r-.,"'~::':".>':: AIl,'U" x 2 , _;,lL~J~;[~~J, ~................................................,...~..................... ':'IC)"IlRAZlER"FOOD,EQUIPMENTANDPROOUCTlONAREA ' ,: ";" ,'..' ,;~'/;f':;i,::.','" '_. :'....:.;, '" "1. FIalGtlddle Sulfacelobellllolur-buildup(npecIaIlYoulaldlectsies). Gleaae'~:~..MIdod. ..d.L....:j~_, ~;:,..2. CharGli IIgtalnlrock,checkl"'Wllplgland~~~cleen ~:f"~:Nao:;""".1Mer "...,.. ~r;'" ahoIl...cleanIIt-..IlIanla,lr1ieafCllbonbuildup.RoIal8M :~ahouId~..oft :'; ':;',:;~';' ",., ,-, ' blue,l.rllfonn height tIame. Yellow Indlcalea plugged oriticea ...lmpIopei ilr iriIii adjualment. Ellleriotl I . < ll.. ":'. ' t --.......and'-"--Irwolaoiland' bumt_- ,\ '"",~",,:.~I.:i:t]'(";;"J-'" c".1 V," I /VTtL..T. "", ~~~.' ,t .JUn~ I-"Awm '1'\"-' ,.\...{~"oL;~~"'Fl~~~:-t\t..~-. '\ _ ,__ -4' i :i~3. chainBroi.!-, ',":' ;:. CheCk IirOii.w... ahoI. pally'I~, '.;,.,'meat calcl1 ~ (Gi~.~ M4~ ~.)..' , .' ,,: ~,: '. '. >":li;1~~'" '1;;'.,,;: ,,"', '.' ' """oIaoiIbuIIdup.ExI.,totMteriotlli1chlandll..afsoiliindlxnJt-on~~heCfc"ilnlaliec/product" ,',1' I ,.' ~., - ... to mal< '-"-- "'----,. ...;.a.,_,~", and wortdna....... "',' ., .,.r.<<,' " ,,'" " I Ii:' f.l. I " /:':',' ,',', .1UIll....-_._.._......., .;":,~;>~..'~ ~jo,.,',l'l!l!o'~"/ ____ Y;'4. Heated Holding Pan MUll beheatedto 14&F and bepropetty.coviinId:tofi,d~~:rOpe;..OfQriu. '" " . Pro\Mi' It.. ~ ~?~ . ..:'~.' ;'" t; .", l~ '1-; procedura lolla.\ied pot 10120I94 System BuDotln~ BiI'~r~e;Coll9157:t!7...(11 ,'" ,-:.1_ ...J '." 5. Web ~ ,'J/,::. Noproduct"f~.MakecetlalnlocheCkbohind~ipmoni.No~buI1d-upor~:MUsl "~, I l.'c:;;:f'.. ~.. be In'gDOd rMJtW,' '~' ; -l' " I ",. j,t ~ i: I,rJr.." i'J,r;II'~, '0 t: /.:;. t_ ,">~':..' . . ''-_ _~' . . ,.- 'T1.l.J" " ".,.'.." ,. ...,I:r~1...~'l((.: 'I!J.';/"}i~ '", , ", 1Make'Cottaln 10 check CClIIlIII, buoboatda, undorbclolhs, at"! ~ ~O,I!IClPIIrileki...olaIna . , ..' " aIOWed. Floor mala cloan. No broken encllot misilng tile.. II palnled,', must not be ohopwom, ',.... /. .,.,..: dlscoloted. No ....... ifi gtOUl. Floor mala In lIIIsfaclOf)' concWon. ',. ~ ,j ~ ,~, "I' , ,.: E....":::;' , ~L.~ . Ji..,. " '~'/."'.' ,..,' ..,'.. J. If ,.1.'.,. .~,\../s:.1 'ISI" Free oIlICllI, lood and stain.: NO damaged... miaslng tiles. , .' " .,'" ~....:.. _-'- , No visible dill ... Inoocta prevalonl. AIlllghta ~ and In J;i.... Fodutell Inlal:! iuid&p.,.tlonaI. .." .sf.! I i~'S" "', '.' L " ,FIxtur./COVIlI not laded, dlscoloted,'... ClICked. MUll be *hielded.. Code reqUAs~ ','" . '.' ,'. '~..:- "=-.1_" NO~lrost;checkg..kat'ccXiditiori: AIlaurf.....~and~musib,deai.;.,;l'IM'.,;~:;.,.~t. ,I.,~' , Check f,"ish I... BCIIlchos, chlps, atc. ", ,-. " ::" I ,., , -..', --1Jb- ~Jk ' , . All aurfl... Inside and out must be cloan and lroe 01 lUSt Check condition 01 flllish I... 1CnIchea, chips, atc. Chock ...Ia and Iholv... Productl 10 be .toted in covoted contailll/l. , , . "", ,- Same a. Countet F,oezet abovI (see 119). , ", ':.. .:"',' , ' , Includes proper lood handling. kitchen u1anlils present and WOtking. Tongl... disposable glovos '; '....' "". mUll be presentf...handIlng mo.t patlioa,FroeolloodsoilandallloodCOVllld.Cotidimointapropetty 1..:." "'., I, cooled. . , '. l., . I ;. ~ :'.. Flee 01 soil; not llIeaked, Heat eIomentl and switches working. FIll 01 d~tllll)d F"'~chos,. ( . No visible soil in craclca. crevices, SClew headl. ole, No filmy lticlcy surfa.... Inleriot 01 caN and whools clean. Frll 01 bumt-on soil. Check baskol condition. All counte, lop Iryl.. must be ~ _'f t.'- </_ mounled 10 Ilu,dy, stable countenop, I.ble ... stand. ~ 15. ShorteninglFiKeted Daily Tost lor clarity by balkol dip mlthod. No lmoke/foaming. Should be skimmed 10 lemov. bulk 01 loose fIoaling particl.., auestion operalor allo limo and 'OlIularit)' 01 ftltering, boil oul and changing 01 shonening, Operalor should be famiiiar with Operationl manual guldelinoa on procedUllS, FtItoring machines, glove. and ap,onl must be in good condition and readily available. ~ Lr.- ~ lA- EXHIBIT "H".'.- 6. Floor, r.... '\ Coifi:1gNanIa , ' LJait. al,.j-~ ,1;, 'I I \1 9. Countor Fleezer 10. Counter Rof~ "'&- ~Jk. . 'l NI'~"1' --~- 11. Spot Metchancfll8f 12. Condimonl Areal Sm.IIwa,.. - . 13. .. I.: P.... TIvu Deep Fryenl Fry Baskets .,:5'1 leA. I II.J 1/1-. I h....... j -"I"~"" .. ... ...' ..',,- ~~ ., "". 'I '\ l ........-~..,....." \ "\1'\' '". J'"."" .; I . \ . ..;~,~ . '\:'_ H, .FOOD;EQIJI~ENTANDPROIlU.CTlONAREA(c:ont.l\,;', '1 . }~~. , ' " ',," 1,/. i ..', .. '. l.. ,\ ',...It''}: !,' . ( 10 '.~ ~. :. . '" L . .~ . At'" I.~ll '~,' fi' .t,., ~.. ~~. 'Ii'~'" tl ""llK.~ t!j..... 'ilk' ..~, ~ 'f'" ," .0 "," .... '..... . .....,J' ...~ ,I. .....,..~. ., \' .' ....'.' -.ft"..., . .,.\~,., . j '." ' " 'o. .'.>, ~".. \'.''"..r''r fJ 1" t,";~ Jl!,;1 ti'.,)..;.~Jt:. ~~ll..:;f'I~~PIl'l&~, F...ofaollandbuml....ur-e..I~~~./. .. ~.,:: ,f: . ~~\.~ . i..~.~i.\ ." ~',:I ..1r...lIr1T..... . . '., F...ofoolllctumblllun....aolIClI'.......EIectrlc.Iy~. . IM_~ ~t'~ .' \.) ~.:!.)\.;-:.,',.;. ;':;- ':,,:," ':, 1I.If1Ic:e, no f~. '.,..~;. "':"-f.l~1.,;~~' ~'i~~~~;~tP~~~'~i":"C'>"'J";~:'~' "..' 1I.111.".PrIfll'IIlonTobIo .' No vlllbIe 10M In orocko/cmlcee. .........ect.. lie. No IImy~""""unoI flnIoh,,/o:('~h.,lit\-:1l' '" I ~"~'r.!,,:.~ ,;'... .;. ," :.; ."doMIble"1Il'litlzJlbIe 1I.If1Ic:e. Chock for ~ of edQoe';' '... of.....llWolved 10 iMc:h. :;0,", ~:"'.{?fl,. .~ ""'~".'lol""". ~.. U.....&.................... _..-1..~ _.......n....I....~~-. - .~'.. U--L......~ \ ~..~.~ " '.',.' " ' . ,.,1....,..'. '__'_N, 10 -, ~_...... If ....-__I@.......'" -- ....lU~ ..:"S I ).h.", l' . :11"- "... ..,. , " "n IWItchw ';' , ... , ..."'-:~..: . !(./,~'~ w: - ' ~1"':~(~' .....;,.. ';}".J'~l '. ..... ','.. ...~~. ,. '~"'J~,!!. .1/1\. . . ...n-:IlO',,,:,:'..:l.df1l.,,w:-;;:i'>lli',r.',;'1" .19. ~ElchaIIl Syolom '. DoIormIne by qun!lona 10 IlpOflllor n vlauII ..M C:loiilId by....... . "~'. '.'. < - .:" ..'; " ''i"r:;:.r "';;. . '. mImum of lwo u.n.!*, yew (owry Ii>c 11lOi1lha). To IridUde the f~'"~I~''\~''' .... ,....(,:r~. . '. ';/ p,.. ' '~fA..~ ""'.I'l . .', " " - $/":1;1'\1 ';l!i'1Yf'~'),/'!lI~~' ~.1,: ...., ~'i.'lltl . 0.11..... .M". .. .'" ~ .. ..~ ~ ...~li....ElchaIIlMotor . '''' R...quIotly.no~o&... Ileblighl ''''.',; C'.... ' W'.rJ.'" ~ 'I~ l~".~ ';"'r1- .', ,:" ""~" r~,.:1>t. ,;. I,' . I...~i>',.r.~":..:...{~ ~1.~~!(' I ,', 'f#~)i4..~.,.:~-I'~"""" ":.'.....,~.'. J;"'I':'\,j ExhaJIt Fa.. ~ ~ F.... afbumt.()l1lOi1. Check fortuneckKJt mfth, ~fBWj. c.....~. ':;:' ."'~ ','1:':--- .,~. ..'\ {!tt ". ~.. ~':' ~. .~., ",:~!;.. ~....~...:. Hood . F ofu'l .' ........_::.....~buIId R';;;-:r.1:~":'7.:.~""'~!,.~j~C'~~c~:~ '~..j;."'t!'I-"<, .. " ... '...., ! /'..., ,. . .' . , . """.'::,::CN"" '. I'M MIII,greue..lUV_IAlI up. -,__~.lIlUf......~ir:tckJdlnggntaMtrough 'J:'-:.,.... '~",.J,,~... :". 'l~"\t '.., .. .......nnvw<IIg...............-~.~ C~~that-'-_...._....:.;:;.''''....;.,...~,.- .'D....._Jnd. ~....b.'.l \ '.:J., -1.,.. ....... ".1" J ' '.' _N,...--.--, I,....y"""ft..~. ~ -.N~I'~,.~ .~ftOiW 1II.iII\.u I '. ."~ " I ,.".'1' .'',.'.': ..,. " " rnWmaIruohoflirinWlinloroutwwdwhendaCnll8op1ned.Chockfii -, -fIoWli1dei""""Ullhood : ID " ~i,:"., ... ;""It: . --..I ............... odor In ~- .~.._, -'-_0.' ..... ---...-.......1-- _~.._~....~. t..:.-l..l_" /: ,~ .. -' .w, .. .~,~ ". '. .., ... _lU ......~.M ~.. ._ w_ or..... ~__,.."""" Voi1Ian ...... ~,10. ,.r . " _. -:--. .\.211.":.....::..:..T~.' :.... F-ofu',nol' ~_.o....., H' -~.....__.::..~~~~''!...:';;J.;;;;Z;.r'!;.'~'::'E''''-\~~''''''''''': I ,..../r:..:J ,~ . t .~~II --. ,-',"..f 1_ MoJII, ...,--..u. 1NR~lJ'am _N_"'" """""",.r.'_. ena. . .."<.',', _-J-."1,. ~. :;21. '.WOlIfrII D_. . '.' . F... of lOll and 1lIirlI. CIMn ~ 'undoi'nIck f';~';':'If'f,M'cj:~ "t~~~ _ heir. .. ': .:'..:...JJ} Ie.:] :":,, , . . ',.. ''';'''', ". ~ ;. r. "':\.c:."'~'~~"""'~' . . . . 22. Hot Dog RllIer GriD Reller free of o0?I buildup. Drip pan cleaned dilly. Eld.lar.clHn. R~!"'" freely Without IIXCIlISive . I '-- ., u.- , . . naIII. 'Thennoat1awll"'- function prnperly. RoIIetI hut evenly; free of hollpClll. Grill never set on' '., _ . '. ". . "',', . hiah tembef'8Wre ," . '~':""' . L' "'''';'''\'~f'''~1~l(1~l,.~...;..I''...'r '",' I-AI JJJ-.l -' . ': ,...."...~.I,;.:.~,.~.Jl..........,'('cJ';::...'.-.'~;./,.\ .'.~ .'" . -..' - No product lOll. filmy or Iticky IUrflCel. Cleaned dany 1nIIdoi' end ~ 'iN.... r-Wlr .nd "'..m holea. . . free of Ilme buildup. Oplf8llonal n In good repair. ProperMterdlopenaec.._ob4lluil with Ileameet ' ." ' ,....i,'...~'.'. . 'product. Free of denla n.."."'- .; .,., . ,;....., ....;~~;<.t'"lj~'"'(o,.f""".''''...,. ~/-,- .S,....:... - . . ',' " . .,,'7 '\;::~''''~'''Y.~:'\l'fX'''' .. ."",,: i.' ,~, "'~""'.... ~'~ . . '.24. FoodW_ . No food IOiI or film. EJementunchwitcheSworki"g. F;W of ~'ind ~" -1..& I a:.J_ .25.:' Convectian Oven ' . Ell!eriorf..eofvlaibleciuit, _oraollbUiidup~ Glaia~:I..'iOrfi8,;ofca:.bon'depo.it..ndfood loti 'J.i'P:Vi.; ',,'v, partIcIn. R.....cIeIn. Flfland hutelemenll-'dngprnperly. Evenhell,~OIIidenced. Check ~''" '::::st;'it . , for blDken glall. Proper ...r"'llll door and OlCleriar dentIIIctaIchea. ....:,.;. , . .. _ _. '.28. W_ RecepIIcIea Clean and covered. Box. unsatlsflCtoly: MUll haVe h... "~;'.' :",' '; ;;;....~.:-:., ;J_~---:. ;~ . .~. .~4'~~.'., "f. . -.: ;.: . .. ~;t::::.. ,: '.' ;<~~~\<r::;;'~~~~.:'!:;.o";:1:OF~ECTION(C)I>ra)i13i'ilj)i1i1 , . ." " " ,~.,. ~ ' ......................................................................... :(01 STOREROOMIREAR OF HOUSE (lnclud.. remot. stor.ge .r...) .... .~'.~:< ~ :t.~I"~(1.1i~I~:e":~it;;,~~.~.r7;::t'~\,'::t--.::~;:::...; :_,' . . '..f., .;: .:,.:::j~:'";~~.-F~:" ..' ..... . .... ,-'.'~', "'~JI. ....I....:...r.r.~...A.~,,'.;....I'.'.'...'.;.. '. . . ...,.,....,.- :: ::1,..Cake FIeIh F_ . ~ IUrfllCelll~1ide end out free ofditt end ICfItches. Con1pieUorW""",*-,.'. .. f.... of dUll end dirt" "'/Z'i~ ;C' ~,' '-0' . . ond welt ventilated. Door geakol. In good condition. Inner doora Iali:h n clooe prnperly. . -1 Je#L- . ;::2. : Ice Machine Unil...nllery.hudoortokeepIceCCMlf.lNo'iustoril.'p.rlr~Of~OtiiniIIce;of"'"1 ',.i' ';':';',:';' . '. ,". t' bin . ..n~ary (NSF pleatIc buckol or alalnl.... alee! buckol). Scoop alored out of holding bin. . . :.' ~_':Jd_ . '3: . Walk.ln.CheII. - J , To Include: FIoor.IheIv... wall.. ceffing, compreasor/condan..'.lnventcry....... All IUlfllCllllnaIde end :. '- .... Upright Freeze.. out are clean. Check condition of finish: I.e., no scratches. chlpa. ole. Frail nollo exceed 1/4". Check geakol condaion and Ietchea. Compr...." and condenser to be free of duot n dirt, well ventileted. and kept clear of combustiblea. All product. to be stOfed off floor In Ofderty 111IIVlOf. Lights working end properiyohlelded. ': '. _~---:. ''-~_ InaIde and out clean and free of mold. mildew and food soil. To Include the follcw/lng: ' Free of foodldlrtlsoiLWeter. No rust condition. holea. Of t.... In metal. ~. 23. FIeIh S_ . . ,'., :.,,' .. 4..WIIk-lnCooler '- "':':"'" . -'\' . , Floor. WIiII. CeI,ng. ~ Shelve. Ughll ConlIinera Covered InaIde Odor Condition ComprelSorl Conden.er 5. Mix Storage Tank ,. .'.~ .. ' \ ~;-=:- " -> Free of food lOilldlrtIrUII. NOlHIbao<bent IUrface. Worklng and properiy Ihleldad. All food stuff CCMlfed end ..aled. No unpleesant odonI. Free of dust and dlrtlproperiy v.ntllated. Wat.r flow unrestricted. Able to hold proper temperature. no parts mining Of damaged. F.n. evaporatOf coil. and pan free of lOll. W_ r"", drain clear. Inside end out cl.an end In good repair. No spillage Of buildup on conteJner or spigot. Check VIII end mix wands. Top of tank I. not to be used for storage and must be clear. Tonk regulariy sanitized. 6. Th.... Compartm.nt Slnlcl Must be three compartments. Free of d.nts and defective dralnllfsucels. No food o0?I In crackIIcrevice. Cleaning Area eround splash araa; no m.tal discoloration or minerai buildup. 7. Dry Racks Free of rusl. dirt. grime and In good r.pair. A110W1 for a1r.<frying of equipment and 1IlIll11MIr... 8. Shelv.snnvontory Unclutt.red and mat.riall stored off floor (minimum requited by state code).lnventcry Ilea neat.nd clean. Check fOf soiled cases and rotation system. CI.aning product. stOfed separately from food and packaging. . . ~. ,'... ~ ! i. ., ,.~ ,~\.. -1..M.--1..M.- . -'I ~- "-r ~- SI_ ~- ~- 5'_ S,_ ~ !.L l'_. . ._- ~_.. -- EXHIBIT "H" . ~i~'/o""'i'" ':..o\r~ ,.V,i:"- .;;, . ~.,. /1\'~l';f'l' '\IIl'i'4.:r;' . (D) ClIlHoUle(Ollllt.I("":::" ~ ..... '''':''. ... ',' ~ ,~ ,;,~ ,"!', .1: . .' \ . . ~'(."l"".\),'t"""'" ~,"" ....'l:'~,... ,"~...".,~'~ .' 8, W~ '10...' r NapllldLdll(ti.lpcr.....,....c.taInlod1eck...... I ~ ~,:~r - :,;:.~.~.~I ,'.,~'}.~.---~. .~, ~,"~. MlkeOlft8lntod-..cIC comnbelll_~1 tnd~..~ -.... ~ '., :~~..iI~~~ .. ~ fIJi_' ~.~ ~.;...,.., j10: c.Ilr9'VenlIIU~ ", NoWlble~crlnMdlprwWot. AlIgIU~nln..; IIJ!!~~'" ;:,'~.J" ,':.."; . .,' ,':. -: FbIIn __ not feded, dleccbed cr crocked. MUIl..1hIeldiiI ii'~~ '^~~m!' ~,' .~. . " '.' .\...',. . . .." "." .... ....""'. ....~.........,' "fi,'" .......t., \ . i.u. "'_oll.A, ~ . ',1, F... of c:Npped edgoo, tun 1flClII, -uv. _ cr clIo...AO.~" ~"frM of ,~or\ '.', ......,..' ' 0')",''-'. '.:,.' ';~",,,: ...oId...).FreeoftoadlOln~.Undult"ed.CheclcpMf~~i'rar~Wood,:";11"~P_- :..2.~I, '" ~~ i. ' c.-n ~IS~ F... of 101 buIdup. In DOod~. chiCk bIede on oponiir i~ ....,!'I'ili:t,Lmi'.i;;.~'!t{'.}:;ijij ,. '. '~l?i' ',j "r;.tJ" .,. ~# ,I ",' ........) 8....... '-'--'In .....~ f--t..L-- "., ..~~" . ml?"~':' J; - ~+I 1 . ,.,~,,~I...,...., .....'. ,',,1,' -~~'.~~."."'!'"':,:", .,-0;::-' -..... "\ ,\'i;\~,:, . I f'H. ".;1'''' ~" .,.~;,t,'b ~13.: Mop6lnMlucklt , ..', ~.doIl'l n..ay .mulblo; <hIn not dogged. BInI! ..~ ~ ~1Mk:. ^' ~ ;-r.r:,1;':iJ.!, '~,' "f'!':!', ' ~\' ~t '. Mope . I", .~ ,;,. " ~. jmope he t:I~ ~ IIored cd ~the WlY vm.n.nat'~.~'It~,;~~~t,~6"~~~~"~:"~~'~J~;-;: --:--::'I~t~: '.14. WIndow WIIhIng ClIIl'l, ~ rubbw on ........ IlNoh In oood c:olldlllon. U.. of IUbble Cliiinlng '~.:.' . ,;f'~ SI '~..:~ ,~'- ~ .',;", _,,_....-. 6hauId be .......-.11........ oullide cIunIng...w:.. ~~''''~~I /~~.. :,,~..~,., "'. ",.- -.:-1_ --. I" " f '" "'"'f""'t"'.-.., . , " . ~~~, r ;r ..f ...,. ",..e I 51 c... )15..W...R~';.'. C~~~. ~lIun..ll.~~.M~how~~!;!~""; I~~'~;l~'::"'~~~'~~- -:-~,~~;~, 1111. 'IiolW..H_ ...' w......Y. UnIIIn oood ~ c:ondlllon; eqlolppeil WlIh ~.... IliIIWIIr v.IW: 'I.'! 'J:~' \,t;;5J_ S,-,:." ~ ': ;" .. ,~ . I .. .' " . ,1."'7'.r;:,r:-j,f...",."...,......~...~". . ". . /. . ,,- "\ ,'17., FnEldlngulahlrSyllom MUIl"Ir-.pec:ledaeml-annu.lly(willlt.gahowlnglMtll<vlcedll8andfuly..:,,,,aw.,Employ- 1.:.:,,~' ., 1,' " ~:.'h DllelMtlnepected .. rrut betnined In proper..... ..... , ... ""'l ;'.'.i'.~,.Ji.wjV.!!lW.;h?""t")"~. t" .,,,," ~). _-'A-. .\.. ;(.:r./ .....llqt, I,'... '...." "!'/""~"'~I't+. .. '., .'. -:'j:L?~)r)ii..TpTAL6FSeCTlON(D) ,'(15)I[31l/~31 'i'" ~,tEi' .UlIUootll r~.=,: :v;:.r~~~~ tJ:1~. ... .,.... ~ ~.~ ~,..~~r~.1~,;:r~~\~;~'~,~" ~,~.. .:.... .'./~., .... .::~ ,: 1. CtIInQIWI1III No pllldLd 1lIlna, gralIill ClI' depoaII buildup. Includel CIlIlWI, be........, und.,aInk alDol and ' '. (,." ", . F1ocrIILighta' ...... doorI. No holM. crocked broken ,...hopwom w.... F100f n .....,~..t1..,1n oood tepIIr. . . 'T~.'<' :'~~W:=:'~~~~;~1t.i~:~.m .$1_ S,~;.:t:., No viIlbIe cIrt ClI'inMc:lI prevallnl. FI.. of foul od",. NodUlI cr lint buildup on wnI c:overa. ElchIUII ::; . $, '(~A!,,'') to" fin opnlIve and Id Irac:t. . .' c.' , .., " :,,~M~,De..:~....Jt!~,J\ll':i.'k':'- ---1_ -~ ",~. . ,'. , .' " ~', oq,l.s.l:...., Iliot~,.,-""" '_1'."'; ToiIIWrll.us1nk . .CleIl'ledlllMllddy. Noooll,amudgea'" IOIp film buildup. FreefRxnclrt,rUal,oIc, ~iiii"opemloolll .'. T:."..,.. " nlnooodrepalr..No~,r\III,c:hIpI",crocka, .T~,~~.~~edwlth @,"CO"":')r' . ( _1UPPfY ci peper. . '...... ......... ,,'. ;"...; .".. l. '1;yt....-~"t'Y.'-bl~ J.;.....,-"~'J,,.. ",. ..'. :=...'L- -=:!!- '.::,.' . " . ... . , .' :. ;. ~'.~ .;;t.~.'1:. "~.l';;"~I-hf.""}'; ~. . . . ",-, ' 4. SOIplMlr.olITOWllI Sooopdilpenlet'and...,."lobef...offl1m,amudgeaandlluildlJp.Truhl....,.~""muat...pIaIllc "',' .: . ~lHand'BIOWlIII .... n haw no unplouInt odorI. Fr.. of dirt buildup n~. No InMdI. A paper '" . ' :.. : ;;, ..... Wille Rec:epl8c:Ie c:or&uoUI cloth 1.-1 dlIpenMr << hand blawet mull" ...a.bIe. No gralIill. AI fbd1na muat be . . '. . .=.=k~c:h~.=::='=~~~~~,~;~~..m~.be.61_ ---1Ll.. .. ." . _'. ' . _. .; _,' ......' I ~'I """~I"'~'l"'- ',.-" .". . . " , . . ,.;.' , I?-/DoorSIgn ... Noclrt,I/TllJdgeI,gl8ffllicrlllalnaondoot, trlm<<llgna.Docrmllllbelngood,..,....Nodlocolcnllon.., ',:" . of poInI, ICIIlc:heI <<Ihopwom.. MUll be aelI-cloIIng and ha.. CpeiBtIIIe IoclcL RIlIlroOm Ilgn and , i...' II'" . ..t'.. .""'".and'Women.lignlmc~un1.dondoota(unIou.EmpIoy-.~'. fil!idpai'Aadhnlgicman<et: ...' , ~ .... .:.s . >~. ,''to . ", ":'. ," :' algna not Keeptlble. . _',' ,", .. .', :, ,......-:."~}~,'~~~-;.:~.,.~'~y';.,.~ :,''-~~'',~'.:'~' ", ~1_ --1_";::.-,,,:. !;"""~":' ..:.'. .. ...... .:":."" '."'.:" ',. ': "., ....".;11".'.. 'TOTALOFSECTlON(E) '[")1[ ...[Ll)l[ II '." ~ 'I'" ,~ ., .-,t.!..!?I, -.;..,_.~~.. . ~ ""'"1 ........................................................................... ?(F)ClI8TOMERSERVlCE,j'", " ,...' ...:. ~ ". ,.,.<'~i;M;'\!!,ji.~f~~.~\ .' . ":... ",' OPERATlONSJ;;!; ';h. CclIIUrEliq1lelte - AlemploY"l~CUI\omIrcount"lI1lImull...counterlitiqtJllle~.Tolnclude: .::. " c' -. "':,;,": :.... f:'....., - . amiIe, eye c:ontac:I.1nItlaI greellng. CUIlomer llllistanc:e and flllll think you.. f?h;~,.;': . -.", '.:. ~-'>}~-:'" . 2.' Cullom<< AI openIto<a and employ_ -wng In the c:UIIomer oervic:e II1lI mUIIl.IldenlInd CUIlomer order ':. . Reaponlivenea. . queallonI and iii otdetI promptly and c:oneclly, with 8....... of wgency. StIlf ahouId" prepMed , . 10..... CUll...".,. order when the CUIlomer II reedy. .; ..... . , . .' 3. CornmunIc8llon and/or AI opond""' and employees ~ng CUIlomer oervic:e II1lI mUll have c:ommunIcatIon'and IangUlg. ._,:' _ l.Il'lgUIge Skilla .killlluflIcient 10 OIIIIy rnpond In 1I18pproprille manneI' 10 CUIlomer otdetI n illY queatlona they.. ';-51 y:;' i_"' .. may have. (See Syllem BuDelln 1293.) Li;:'-' . .' --n :.;.~.,; ( .' 4. SIlggestlve SeIIJngI AI employ_ -wng CUIlomer COIInler Ilea mllSl UI8 sugg..1ive aelf'"lll~. To Inc:lude: .:> I '. ,.' .', .-llpaellng prodtJc:t IIze optionI and product ....11lllOII. to' ..' " -.' ? -----:, .' . 5. StIlling Level' Appropriele I1IJmber of iliff ~ng to handle CU$lotnenI within oervic:e tine pI1IIinetOll. ". ,'-...:....-! /A.. ',', .:. 6. Spaed of SeMc:eJ1nlide MIxlmum of 2 m1nutea or I... (peak) '" 3 minut.. '" IeII (non-peak) from the tim8 CUIlomer otdetI Avg. TIme / 4 ~ I IIn1iI p1Jrc:hued product. ele leceived. Goallhould be 1 minute during peak periodI. 7. Drive- Thnl s.Mc:e Maximum of 3 mlnut.. << IeII (peak) and 4 mlnut.. << IeII (non-peok) from point uf order lhtough Speed pickup point. Goal should be 1 1/2 minut.. olles. during pe.k periodl, Avg, TIme t loti". I Employees mllSl be lnIlned end versed In their ,esponaibilities. SeMe:e .yIIem and equipment need 10 be ",ganlzed to leduce employee contu.1on 8nd unnecelllry stepa. AI employees must have thOl'ough product knowledge. Including prepamion and pricea of eO menu itemI .nd knowledge of cu"ent sales and promotions, All employ... must be 1nI1~ed 10 effectively resolve cuslomer complaints. Complainls should be tesolved immediately and documented f", evaluation. All ~ems readily ecceISibie neal point or plepalatlon. Packaging and Ingredients wellllocked and neat. Inventory at front COIInter can withstand peak period. Per product preparation chart. and opelatlons manUlI. EldlIUIlIOdor :r.' ." S. Organlzallon of Employees In SI",e 9. Product Knowledge 10. ComplalnlResolullon 11. Organization of Inven. lory at Front COIln1er 12. Ploduct. Packaged and Served Ploperly EXHIBIT "H" TOTALOFSECTlON (F) I MV" ",.', '~'. 21_., ',.1.. ...., _I lA.. AJ/~" , '^' i L.. _I u.. ~/- :"'- I~ I....l,- ''''''0 i78 [/).} '-' " _... .1;'.01. .,.' ~., ".;'1:(. '''.'..\'\l'....~...~~~:''\.... "~\'~'(' /1""':"._/~ '. "'''. , . " .)1,;';." ". t."~'.\ ~"~~ in.;!~~,,, ..1..,;('tl;A~'~,:.~.',.B.!.l'J.. 4lfii .,~.... ....'?'1t: .....'~~. ":,, ',I.t I >''10. II- ,j',' "\,;-'., "~' f!:;r~~~11 ~'~ . ~ '~4~~!":' ~~~ 'jl" '" \' ...j"il.'1roj,~~.\.7.,..I.; ,'... " , \,/t i"\'" , :../....,l\~}J\',..). ,f J';..~.~.,~'<;,..'.~.1...., , .', . '. '~'... ..,' ,.,.":1 ,:' " ~'.'~'\r:l'!~'1'" .:p .1i\'t'~ '~~<I:t<t:!;1 ~..EMPu,lYEU': ., 'j, ," · ", ",.,' . ..' '...'.~.:, ~, ~.:;~I,. .1(.;"~ 'W,. h:, !l"'li:, "~\~"\::s;'7" :,,1. r.~ Uniform! ,Eo......-..Io_......~w1Ifann(h:Wng_... ~.....,.-Iedlri lli1l"-- ~",,,"'lIhoia ",.,.amnt Syttem 1lUIeIIn. ,!'. ',:, . ..,~~~l.\o'.I.~..I; ;. :W.~"",....itPi. 1;1f#'..'fh..Ffl~.I'.. -:;:',., ,~. ~,., .l'.. , . .~'" r, t l ".I~ ot"V~f' ,~~:..:..lJ~~1l:r.f:f,Wj.i,j..".I.I,,'i!tt1iH ,.... .,1..,. ".2. Hygiene '., HIlr.HIlrnulbeWuhedllldoombedon.,...,.... Ei....,_......._tiilr ,.........unleH..'4i'.;t.', ""., ~.',..!' ",.. ,.',' I ',' .hI*Ie.." up, cU Ihcrt <<tied beck rwIIly, """"":l'~"if;;UI'!l:II' ~~:""" ."" "".';< ' , rl.....). '_:,'.:.",'". . .' .........,.... ,. ...,.,,:t'.'nr.,~r.1,i .1!'IU~"~'''ow''r~.rS,''~' 'r,'~>'}')': '! . ..'.' :'-.HIl'lda"~~""~::a~ ~....~~,~;~ ~..;', '~';L:1.'ftl ~r';'"'''' " ',' 1wIdt1G1l'lY. ..~~ ~,~" "!~~'I!'''''' I "~m,!..,.)l,,,,-,;\.., ....~'i'~r,,~..:9.;'~, ~: 3; Appear.nca . MM__,...n..,,,Ally_rellactlhaprafr" .....,aflha..u-r~,;: .. , :E/r4lla~.,':' 'ill. . _~:Jl.i~l: " :.'t. .... lhcUd'-anMInplMlllll~and_lioudof.iLt40Ul.*1I r yCilitoflelgaJawollrY. ..' '. :' ./~~i' :~<.. " ,..'..\. :' Tha lackaflhulllllhauld pRIllllIIa quaIIy producIIn .~ ......:..p,w..."N;~.1 :\oN.' .'.~ . ~..,~..,j',:;", \,:~:., ',' ',' '. . ' .\.'; ,.'. -/':....:~.~~fJ;'f-::.t.1;.'t~I~TOTALOFSECmON(G) ~.. . [;,-VJL,";,' ~~ }" ,.... t.... . 't'~", .,1' "~~., "I'''.... 11/ .... -. ~.1"...:.:. ., .(,I'"4_~", (~,-: , .:. . .:,":'l' or", ...,"';"1' t":o,. ,.:, '.:..!..,:~.-;J.i ".'-'~ . ~f,-~l ~~:~~~~:::,~~.. 'AI-lrx3 .:t:... " 1,J [ ^ ) "... '-4:'~'" ',' .\, _. ~ t '.," ',t'. ".1.'" "... , I\#..~~:"~ '-;1,~t'. ~"""7P.,i"":tTil' ,., r '1,. ~~.....~...................~...........'~..~~~~....~~......~'........~..... (H) PRODUCT CONTROL OUAOE8 (Employa. Iralned In proper un) '. .;': :;i~':~"-:-J,~:;.:~~;!J:f.'l!\{';t.'1f"';" ";;,':. ';'" '. "":,' . , . ,. .' '''',' .' U...~.l'l ' ....':'.'119. \, 'kll' "!l~"""il';"")'" l. \.'" ",11/, ,t. '1. .0VerM Scala ..',' AlIlInI..... hive a -'dng unit. ,"';," ", ,; .' ':''', '~"!'" .:,...... ,1"';"1'..4"-;'" .' .,,'? . ~,." .\. .., , """ ~.,. ,~, _ . ",1{I" "". ','.f 1" 1" r "~'. ....'\...t\lJ,~, 'r"" /" . ...~ 2. ......-mlOlm'-L-- 't . ~ ~".". \. . ",..r, 1'.....,....: I"i.,: ". ;.~.v '.. ,\.J 1....:.;~i:I';..t ,~~>I\~ ';":f ~1rlt~'I~"',).~~',Jt\.. . '.. ~.'" ;J ~( .."f;. . .',' .l!'-.' ,"_ ~... ....-~ . ,~\ I ,;.'.I.S:''';.'I.....~.),.f'"..::...#."..".,........'./,;''',.,. ,'~' ..'!"'.,~:. ~"L" ~,~:'~"'" ~..;; i:Ng~\~~~;~.~f !~?0:~ ~ " . ." Low Tampoullura AI ..... Inluat hive 10 IowMIIampetIIIn nMded: property c:Ubntted. ),<. I ',r, .,;.....:- .' Th..lllOC...... ..'..' ..,'., .'F;"?:.:.~t:,....~..... GrllTIoIln....... AI fit .pI"'" "BrazIa(' _..... hive 10 lha hIW*' tampntura naeded.'. ...... -,~ ...'. '. .' ,.' "d ..... '" . . " '" . .'. ' '..,.'~:.',.:...,,'~ri,.....,. .\~\.JOJ..loFSECT1ON(H) [0.' V' ., 'c:"; _ . .... :--..,: .... .' ;'.,"".'..-:r:_': \. ','; ~d,~!,~.:\d","!.\.,t. :.ir:' ;,;., . . ...c...~~""" :................O..............................'....~.~..................... 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I 4'f, ':Y't't'---IMII ar,' ,. ,.,...',.......... J: I.' ..,~;.~,'t 'I .'.;:~~.:,:~t...,:.!..>f(.. "..... ..\," <__..'~)..~i!'(...-..l ~~. .... ~_....dl.'.....Jrf.. ......':.........~... ',' .,:. ."'~:.~~/!itt..,., 'j,.:J.:..;......'.'.;.~~ .'..........,,:...);"" '~i1j. Jlfac....... _Nil,. ".'..' , '. ,,' -. "', ..., .' ~ .~.OJ...,:.; .. ,I. ll..~l.."... ...." 'I,.. "". . .\~' ,- , N... . rtion ed) It I ..~.,. . ,.'. ",+1, :n ...~~.-.1- .c......,."...... -'" ~:.~~~~~.....;,,:r:1dIeI\!11.;edln Sy.;1Ill B~~ 1183.A ht M;;";/"~ '".:~.\!;.l.~~F~:~Ike. ~I.' . . ", 37.s. L >.: . "~,t,,!l~Menu~Apprawd ';'~" ~ ',~ ,,~: ' ',j; ::,.~..~\'.,;,!I:~'~\:(1.]~';~.4,J:~~~~~/.s~~J.:.?{::.."\':.Jt.. . ';',,~': , :~. -- .,;,~'_ W~. 11<1lpykaica Or t<aPYil1 . MIrror8ndlenlclun. Nadlrtlll'praduc:iblllldup'On';;:~b;~:'~Q~udeabagO, lip". ring.. ':IO.s I"'::'-'~, ,""'. ". ',' .,'"PIIlJlCllll'lSmIIlwI... pInI, utensil.) Ilored prapel1y and oanlllzed Ifter each UM.' . .c,.. fA..... ,. :~~:'::~CIkII . , '.: SeIf-e>q>W1at..y. Ref" to Cake manuaiflll' guld.iiiM.:':'::"':.L' . , .. . ' 3~...:J~ .;.~ '1,',\h';""'.M-~-";""""" p............ ' .. '.. ' ,.,,~, .... ',. ' ._", '.. . . '.' r',. : .."'.....-u '""",,'Y. ::;,~;,,;..DlopllIy ....,WIIIllacked. '. - t. NIl '. ""."; ,p:i;'t',.;.:,.:.,',,:-. ...... " ....,.':'.:;:, .... "TOTALOFSECTION(J) ~OV~>,:!,:.:.. ,..~~;~t.I)~ ':'M'~~.':", . '.~., . '.' "'. '. '.' ..}.:.J.........,'. 4, ..... '. 'AU.U.X2 '-'[/'LJ ~.. 1~'~".:~'~~'....... .~. ~'.. ~.. ................. .~.:~~......... ~.. ............ .,~'. .'. ....~.:.. ~~~~~P.~EDU~S (Inckldea'~~:.~ ~~~~)~.~~:~~~B~I266. :::~~' :~:.';: K~~..::E5~..:~~~ e>>. Observe and ~ wkh>tt~~trt~t,~7:.~, ~ Indud~:"_7:" :~'~' ~.. ~, P...".,DIMy SInitIlIan Per ADO guidellMs. Use of laundry bleach does not follow manuflCtlnl'l auldellMI. .' ' :,-:-..7"7...... ~',:,;:.,;.ofSollSIMIEqulpment ',' .... :, .' "'/";";'''~''':''':'''<\''/''''l',""" ..,.. . ~ ":" '.' AI....'..}., ,.~.... '.. .. .'. . ..... ..' .' ,;.I"'r....../likr''-'..:.ct....l.t!\.'.~'..''J'..,c ;....,... ..: " wi ...~.\.,i'.... f);;;;. ..~'clIinIng and RII" laoanltltlan IIlIIlllIII fill' prop., agents. All d..iiln(~~.igonta~ ~ lower ~- ;j.~: 'A "'l.'.:\.,,"~ ~ Agenta : Ihetvn,. mlnImum oUi' above the ftoor.' .' ~ '.,' ..t~.:';..l,.':" :...~..:.;,,~~.~, ,.-.1I... . .<. (\~:,.'. '. \""'1'.~" . .. .'. , ", '...'I'~......','..I.'..".~.',~..,....."., ., ..~ '.,.J/ 'C.'" ' . ,l4..'1nIIctJP1Il CcrbaI:,Free of 11I__ MIl anImala (1IIeI, Il'ltt, radenlI, ilc.). MuIl~ peit CanlroI pragieni: '" -::-:-:-: --0' .:.i. ;~~~~'.Me~~." .' t'~~" '. ....,. ""'~.".I,: ...:._.'~:~.;~....~~?;~:~.}~~:;:.~t;~:'7";';.., '" ..'; '~'''Sl''::;';: .~;. .~. ".SInIlItian MIl,ChImIcaI Sllf-expllll.tcry. .. :'~ . " :.:.'" C'; ,"'.: ..:,.,. .' ~.- '~"';""""""--'-- ' ,. .'''..''..(~..".......,.. ,"..' .f.... ~~s.~~....."....r"".--- .,'. ". '\ . ':/" ...iJ(~,..:..~:.~....:;..-. .....~_.. . ~(.,. '''~'''''PaIlId fill' Ji/d RlIllfII\Ce' . " '.' "", . .. ~." ..{\' I .,~ ',1;'-;:,'''' ..' 'J 3 '1 '. ,.,,~ . TOTALFORSECTION(K) ;. ['iH't.,] . l;;'~..~ · · · · · .~. · · '. ~ · · : ~ -; · · · · · · · · · · · · · · · . · · · · · ~ · · · · · · · · · · · ;~:. ~ · · · · · .. ~.~ ..... ~ ~ · ,.1.._. · · -. '.' , 'i'.~1lf' ." fl\" .,~ . ....,. .J..' . ' '. I I . ~. ,,~..;) ~... ';1" 'f' ,. NOTE: The sta~dards of perfo~ance are gui~elines to assist in .~h.e p~opergr::'ldil;1g:p!il ~!ore'~va.luatiou rep'~~~ . . for QVSC (Quality, Value, Service and Cleanliness). Realize that It is Impossible toclanfy every Item because 'IOf extenuating circumstances In each store. However, these stan.d~rds 'sho'ulcf aid irr makin'g'ju~gmeiii ~d~ci:~lons.lffurtherclarlfication is needed, please consult Internati~.~~~.DairyQ~~~~~s regional office, >~:.:). .: t of: t~ 1: I'J I \ . , I \ \ } ,. , I ~ ~1 I .:1 .- ;1 \, " I I; ..... . " EXHIBIT "H" I, ~ ;" I, , ~~~ ~~ . " ..../ -~ /. ,-, ("'j.~.. .,..,..;j, .., Signature of Evaluator .;: .' Date (~:.;!, .'. ". i!~; ..~...! )r,i:.;:'".\.iI ~.' :j;f{' , ;., i" " , a~~:5j,.': M~~'l"'" ~P" t,~ - t' ,'.;, . ~"'~. :'I!:' ";: .::....; ~t~l1;;',:. 'i';,~" i .l "'~,,'.,: '. . ~"'" ".', ;~f,}\, ". { '. j:ranchlse~I~' N~rrie "1~;;t, .... , ..", , :i~.t\ . '. ,.,~~ >.: I:"~ ,.-, ~:'" '1: ~1,.~:'" ':i,~~~~, ", 'i'I~i";"':'" ' ~ 7".""'" ,. t,.. ',..... iI:"~ \'. .,.' ..... ~"l'.'.r.::""",. _'~~,\':J., .~ ; ~;. " ; 7" :.~ ". 't...::-- "~' I ~<'.:~'/ , " ~'.' ',:.' ',' \' !!~,"\'" i~,~' .. '.:}'.'[-':,' r '., .,' , ,~,,',I('I~t"'\ ....".,. ,~..." ':.".;."1...... ...".."" DEFICIENCY '.,.!.'-;,. " . .," ,". - . -' , . .' '. . (Nuinbereachdeficleri~yandexplain) '~.,', ITEM# .....;.. EXPLANATION ". .'. ..' \,,..'-"-" .... ,. ".\ ' :,.'.\}'~'1)J,' .~ ";..: ".. 60") '---' .' ... y,", ,,1,- r 0(" . .... r' , ' '. ~. .- ;o.:'~' . '. ~'. '...... '.. It)(\ ( :.. .V " , n ":) i ~ . ';1:.': '';'''. :1;". ; ,;:,', ..':..' ~ ~J \ t" I t i(.~ :'-~~ . ,~i:.::.-,. h.: -. *., f. ",~.;. ." i " f'\J'r to h', ~', rt i ~:., ..: ~" '~"'- ,. l/"l "',,,,' . . .u u(Il-of"II\I,\\ r." , t- ,~ "L " " ,.4.,. ;..- , , " ..... "" , '", 1t ,.. 1)'\ " . .'?, ." -I~' t\ ,. ,t. Q. .J , ~,- I,..... \. ,\ - ,., It . "I"" .t"' ..., ~. 6;:~ .~ ..JI2.- I.~("\. ""."./ ".1'...... .... ,. " - '.)r,,',f'-'4 .....\ . -'I' ,i ~ ," V L..,.....'..( ",,_.'t. . .' .:.IA Initials of OwnerlManager Dae j. ~,' , ." ...;l ,.:oo:~ :~ '''1,11\- '- , ,,,' l ..... r.., '''\l- (\.-,f.t;A ., ,{ " , ^ ~tl" t "N'\ ....nt. (}\..' (\. bfl<.k. II' . ~f .\ L...,. .1 'The facility deficiencies outlined below are the minimum facility upgrades that would have to be completed If the store'franchlse was transferred as of the date of this evaluation. EXHIBIT "R" .. ~ '''... . 'tti::" ',;,S,: j ,'I"'."t1lf' , '-''''':'''. :l.". , ." .. ''''',. , .. ~t.. .... ",' . .1 a o. .:.....,. '.If~' ;.: .(~,... ,. ,.-.,., !~ ~!.. ~:;~~:h..t'.! ' - "/:'~'}-:~~~;:.'. ".:.~:.;"",-:-(. . .t!'~/.::;:':' ~::~...t~:~,::. , {~~:;'.~~>;, '\('? ,/<: .; ,.~ .,'; .... , ...;: .-,'~.~ ..i'. _". "1. . ,.'., .. .:' t'" ..otr.' .' -, " .~"'., . . n_' "," .i...~.~ 'Sa.l.(' .....-. ;"i'-'.'",~,; -':ott' I' L~',j IT ; fof;.~ .;, ~1,';: 'A'/i ,- ~,\~ ~,,".., \ 1"'" r:, _ .L -- ~~.,~ J--,~' ~~J,,~ In ~~'" " .~.:; ~.':,. ir"j;;' 1"" ;'..'.""; , J'~~\~ . }7.:-1. ~"'~". rl'~ , ': ;, 'i' .\, ' . t:l t. \:; . " .1/ h~ it i;. '!, . ,'~"' ':', <, \ .f" ,/l.~ 1\' \;, , ". \ . '.~. "A I", ,,',. '. . ,I..,"...:.t'~" ..) : .-, \;~ .',.,;. ~.'~ ':: ';' I' . 1~~~~~~;~~~i~a~i~ai~.~~~~~~I~a~~~~~~~11 ~g~ ~~~~~~~ ii;~I~~~~ iilr~~~l~ v-j~~ ~~i;il~II;~ ~~1l!!II~ II !:!' Ii j!j i ~~~ ~V~ ~~~~~~~-~' ,c-=--.:l ooJ",.J...,-t...-I.:-V - w,...:..::.... - _ I . ','~ ~:" ;'-: . i~ w~~~ ~~~-~~~~~~~~-~~~~~S~~~-~ ,..;.' ~, ~ ~ ~ r S ~ ~ ~ I ~:.,., ;_1;. , ~1 (. ~ ...:~ .'~ ''';"'' . . " "~' ;.,' ~'l: '; r..~ ::",. \ r ...Ie~, .... ,j .. .' -. j wmlm~I~li~~~ ~m~u 1~11~~l;l~g 16il~',~ml~ \? 3. ~i.. . ~ I t:j q II. ~, ~ !:! ',~ ~ ~ i ~ ~ ~ ~ ~ ~ ill .\ .', .. .' : " ' ..~x; ..... .fI...., ...,'. t-.. _."T .... \.. ..... _ _ _ _ ...... .... ._ .~...; ~l~" ' , ":'" ~ tJ, ~ _;.-~~-, .. ~ .., i 0 LOa,.. '" ..,) .t .... ~ r .' .') \'" k\ !~_~ ... . ' " ~ ... - _ . ooQ <rj;< ,.,.,' "\ J. V _ _ r.; :I 0 J ',' 1-.11-,: T, . _," '., ~., <;, ,. _ t. ... . .. . . , '........ ~. ... '~.:"!. ~~~~=-~~~~~~S ~g ~ c.~.~..~,..~,.,~, ~c.A;1 ~~ ::- ~- ~ -~~(: _ , t< -' :\ .','. . .' . V~'. Ie {'f ..'.". ,"1, ~v:'~~-'~' ..... ...'\.,. ~\ " . ,.. C\ . ; r I tv \" ..:- , ';;;~ :::. ~ iil Ei ~ :'0 In o Z i!:j .C :a .. t'l ~;~I~i~~;!ig~i ~~I~I!!i:i::;[!;[!;~~"fil51 !ili:i!ilEl~~~i;1~ ~!il~ai!~[!; ~ .!;l s .., ~ n :c In '" '" .In '0 Z a :a t'l ,/ R21 " ' ~I ~ , e i! : .. ~<' .. . r o i!:j '" o i!:j '" EXHIBIT "H" :-' . ,.... ~ . . i. r., " t" '" I :,' '. I .~. '. .. ~ ~ .~. ~ I' il(' ~'. f- I l f l. I' f R' ! i ~ l. ~ 11: i' !to I i 0 !; r. ~'~"~'~ -L8 . ~ .. ~ ~ -:1 -a G" lJ ...t:.. C G' <'I .#t. . ~ ill Ii C') ".~'. ',' ,...:.r'JCi."';"~""'.''''''' ,..., , ,'f- '. :..'....~ '"'I'~''~i'\~;''' ,"" t, ..::.....'..-,.;,"'.. "! 'l:Ai~ ..ti~~..,~...,'.-i "J~" '!I,' " ~).r' .,...ll~,.... "Q' . .....#.,'..,/ . . I"!' '-' i,......~. ..,....,; 1. . i~.... '\. or. ~ l.... ~,.. ) ,,"-..., ... :.. r'J>"-' '.-1j.' . i> I) ',,, '. . " 'f- :~~ '4r "I'. r ..IW~' ... \ , ~" ~~I..-. ., ~~~l~'" I . l .,,t ~ t...t:' '. . i;~~:61.~'J~Qt~~N;:',ltiAiR~ ~J~E~;~r~B:'" ,': IER~~~i~ORE ' ~TIO:N ~::~ I ,-" i~~~~~, :t' l:' l..iJ"""''''';Y!!i~' ,..",.,,,' , .... ..,". ",' .....,.\h'" ''''''r: """"W'...,j.,.... 'I :f/:\:j} ISlore. ,!'.'.,!l'1 ..?-, ,(,.,' ';"," " EvaluaUonDale: ','" ''''''''11meln, '. i<./'K,,:nmeOut;.., ~ 'A. ~tul' 'Stllre~: ',oI~ "'''l'^I':'h~ \ ~+- ~" .'..;;.,;:,t;..t!!,.... "';'\I"',~'4l\.. ....:.~~ollIi....W~I'il1"i&}.II.M~'YJI'~1!:!;;::.\.tl~ i~:':' tCl!Yi~~';""\';"k"; ~ _f"" .. '"" ';' ",~,,';". :,' S!&'~,: ~,.!I\. p^'. ~C;-"';'\"'TYPIj'of~~li:' . .,...."','..,...J40~,...."... ~::.''''".t.ii';.~'J-;:. ~Fnmchlsee:'~.,;:HI'f.lA,I\. 'lnu\-,i\' "..st), ..=,,,,,",,d """"~Lessee:' '~..I.'ill ;l~~^'ti~ \ ir~"~"f'f~ ':"""~"',' ~,,'~';,"',.~. ',I,"''''~~)>t:l'J' ........, .' ," ' '. .... ~E~Ju!'l.~~~rm!KI~' ('hi..., J'. ....' fir,. "i".\: . "'.\l:f ...,., 't'.~'-:. . "'.~' ...~'t.'H~,;'~::;,"~i:...t:q~ '~.j'.,..~lj.ti~ ;.',.l: h~ '" ,~."v '" .~. ~"'h~?~t-,!V"~ ~,~!-~il.'.n .c:.h~rge o~ storJlaUme of eval~aUon ,n~.thelr capacity:. .' (' ~', "i:I"':~ '~'~~;t,,~1j.~.^ (. i~ ",'.t' _~'.. " ) " '''' ';,i.: ~, t'~l:,'..!.r~_,\,,,'n:"'.''',,,,,,, _....~ ",\"~,, "J!1'l:.. '. ,'.,.l\;.~J~' i:'~'.'.""'~~";"''''\.I;.' '. ..:d,.;', ....j...,.. t ,.,' ,.-. :'.,\.... . . ".- . ',', . ." . . ~~'. n,.". ,.,.,', "._ . .,' ,.~. ')14(: IO.l?!'lA ~,!Ies l:'osled1 .11:> .c." ;'!~'\"'W Yes ,,,MrS' '. ~O,~ .;!,~<<iyl.li~t:, . :il..\.: ;,~:""'.I, ,;,~';:." :' " i"'~~: ~l,];';': . pr8VIous ClVSC Score: "l'1.~ ,..~ ,% Dale: . ~ i'i1I. TodaY's~QV~CScore::I>, .", % ">;/~;'., ''''f'''-::';'J 4t'.1; ,. . v " . '. ..' _" . . I.' "''>~'.~'' '." . 1"'.":'" _ . '.. .-. 11:'~)iidl~18,~~:~~8h;~ct~rt;.u.~iJnsatiSfactorYrti;.~N~I'F.Ppii~~bl~~~1;U~~<<~~;':;:t;~~\!~~;;,,~~.;~~~;:.~I';l'i7:~i/0~:.:i} t2, ....If any asterlsked Item Is marked unsatisfactory, operaUon Isdlsquallfled fromreceMng the 'Quallty.purlty" award, '.,:,.. .,.:",.,~; ~ ~,.., .. ~ In nna\ scoring (see recap pagel, the 'U'.lolals.ln double:asterlsk.ed s~ct!o~iif',,~;iindJ ~re doubled.lm~.~.the 'U'.I!l~I.~ ,; In blple-aslerlsked Sections F and G are lrfpled so QVSC problems most obvious 10 customers are emphaslzed." '.. "'.':'".' . " " . ," ~ ',~" ..,..~. '. "., .;.. -...'~;. , ',. . . .. ~~ .' . ..' ".'. . .,'. .' "I:":'! .1-/t" "'1'" .....i~"" ..' . ~:':~ CONDR1ON ". ~TANDARD~ \'F:,,':{~'H;;\,,'::\l,~: <. . ',,',.... ......_......~,.. . I ,., ,f.';'r."'tl...:t~~R ~.. 1'. ~- ," . . ..'~ ~ ,1\" I . ..../~~. r.:~~J..i'; Y,':~N,fl! .. ':'..,. . 'I' Roohhould not hive buill up greue/dirt. Roof Unea ..In oonformancii iMIh EIIIlIII';;'''"", department _, guIdoIineI. Marurd roofl can be red ohlngle llt cedar ahIIca. FIICIIde lltl "llIIlope'lo be'red, blue, yellow .' MIl while. 'M25" look hII. pnp<< wd l(IlI8tutcry brOrD~ iPPriNed bending: Noll8inl. f1Idod. . r1>Ped oNngIea. c;hlpped p8InI, lnlIIIched colen MIl f8IIng'.........,"""'y~ "';:.: ; . '. , . . .. ."-, T,~-' -6of\.'.''''I;''.-. ~ " ~..i',\ ",'.,- . Genot8I clunlng, mMUnIlIatofbuilcfll1ll. Includn loflhrid Irn.gii box. TolnclucM CoIcn ofwhlte, beige, ~~.::::,~~,~IidlngOr~:.:~.~~~~coIen.~..' ~u:~~. Sjgnig..".. No vlIIbIe dirt llt ruot prevaJei,t. Brok8n panell, chipped llt fected j,liIn.;'.riciM,ied pylon conltitut.~,. :..? ~~'::.~ : :;;~~:. J"': .' .,. lnIIlIfllClcrygrede. Lett....fllt lfIIderbolrd matching, R".boIrdhll~ 1I!8INll8. AD bulbi . ,~ I'" "" c;""'.'\; ~ ;J.. l/ . ';.... '.'- or tubes In working order. Incfudes any roof algnsnettn~..!~.w['J!~~~1:',J.'r:w:~;;~':K~j:.'~:.:. " ~:.': ".:.'~" =-.-.::'~' ~,. \ ~'.':,:4:'Slgnail~Approve(t" .Approv8dby Amerlc8n Dllry 'Queen COfJl"':8tlon or.~e~M;"E~rak;;~~~di>~nlid',~iin~""." '.' "~"":r:.'~: ';:, [!fl..,..,.., ..f. ..,. unuUafllClory,. ',' . ,',.... ,,:;,;,;.l}"fi~~"'" '.; .,', . ,.,.' -. _~,('.:il-wirKI~~rium'" '. Nci 'atr8aked. Im~; .~ fim.d. No tde.:~cheI, ...~T:~ . ~;ct~~>':;<~;..::\;,:~_.,.:~:;:5J.-: ~,7::s1..'~~..7.'1. ".~';:.8.~o.;o,. (froni.1>.ck) , ,.i" 'IncludeItiont and bockdoora. Nolllrelked.amUdged, .rfilr;*t:T;'~;;:;'~ .i",~ and/~L"":'.:5J.:'.." !t. !':l" .' . ttveshold' '; ", -, .:.: .,:', _.".4.'-'1.:i:...,....~~~I:t.,.:'i~-\'..'.;;~~,. ,.,:,..,J, ._..~ ,', -........'.l".:~.'1: .\;:::. ,.-:." '~'. ". '.:-~'~: . " '. -' '. i.. .' """ --,' "'f,'~ ~~"",........:;~'..~I.:v,.~..'.',~'....Ii-.....~I'J.' I:....'.....: ", : _....:....:.:.~:., " t~..j.. Ughta & Fbdurea . . Novlllble dirt llt InsecII prevalent. No damaged lltrUlledfixltrie. MUll bOi no brok8r1llt rniaIlIig.ie",.t'llI: ;:,~~ . ,'.'),:r...~!, :-. . ..... , , AlIighta must be werking. MUll not be severely 1ctIt\:hed, dented, f1Idod, chipped, llt ruoted. .,' ~~ '::i.{-:- ".0 Wille Recepiacles Must use plastic Iinera and have no unplessant adora. MUll be no depoIit ~up lltllllc:kinilaa. Fr';of"'- . Iii.. :57""": . .~. '. . Inaec;ta. Must hive oelf-closlng rodl. Emptied prior to reaching 75% CIpllCity,' ':' ,. .' , " -:- , .-.;- ,". W..... To be awepI and W111hed .. needed. No gum llt foreign objecta .Itached to IUII~':;~~ ~ llt, . ~..:..:. .' S'i I "i ,: . . " cracked (large) mortar. No grau llt weeds prevalent.. . ". >", .... ., , . ~ ... , . 10. PIltdng /lJu HOled cIown.lltl . regular 1ched~1e. Minimum of once I*' day litter collection, Jnc!ud~'''''" edj8cenl_. ',.' \\t?;'>: ... to property Isne. No product Iplllage prevalent No chuckholes. grease depoIitI. ~"Ip/IIIge, lite.., (.i;I, . '::.:so,. . .',11. p..i.I~I.oISlriplng ~~~becieanvvilibleltnlght dlsUnctlln.. clear1vdefllled . r~~c"; ,.;<"':-. -;:;':'i5:.,.;:: -fUl'W -""'W I I I I' .>0'.." n" .l~'.' ,"" -. tGl LlI1daclplng AItractive. weU-planned and maintained. ' , .'.;J.L!- ...;...,/J.L. 'f{ Traah DispoIal MUll be located _y from building. Must have enher 111 enclolure llt dumpster with lid. . . . ". ," . " Ar.. SUlIIlUIld''"ll .... cIun. Rendering barrel must have. lid. .' . < '_ ::iJ_ M:'J Beck of Building MUll have enclosure fllt an eqUipment and all neml stored lltl e regular besia to be llItlafllClory, .-JLL. .....:.J.L1.. ~ DrMt-thru WIndow No visible dirt streaks llt smudges lltl face of can. No tape, Unffonn lettering and numbera. No , . '. Menu System handwritten signs. AD Ilghtl werking. speaker Iystem Iracl end operIItIoneI. Bell cord operlllollal, extended and free of Ice. snow, end other debril. Paint mUll not be faded. TranaparencieI not faded, paneII and lettering not warped llt faded; menu stripe In Irack. no right 1eakI. CUITIHlI menu stripe and transparencl.. in use. lJIyout &howl clarny. not clutter. . Apprnved by American Dairy Queen CorporaUon or Territcry Operatllt. Handpalnled slgnl unlOliIflCtcry. ;'.'(AjFACti.rrv . ,.' '. t,. "'_'.'" ,..." ,.. ',..." '.' ',,~ '". ..,', /''''; ;"'.\"'"\"Exterlo;" ~ " .- .ti',~' ','" t'.' 1. Roof .f .,' .",1 t' "'.- ,.;; , . ' ~_', , '.. : . t', ,:./ ~:~, ~ ';,fH~~;;,~~'<.~~. ~ ."..p' ,;, ';~^ :'.,'0B~ig :...~, r , .' . ~ .~.. "'F~~',: ';"~(~~~lti;':': .$1 ..,~.,;. .--.....-". ~ -'~,: . '16. Drlve-thru System! Approved 117. I Playground! V OutdOllt SeaUng .-J.!::!./~_ .#1./1;. 'No spiliage. stains, product buildup llt li<<er on and around equipment and/or "lUng. All equipment must be properly and sarely maintained. Must not be scratched, chipped. dented llt rusted. To lncIuda bike raclc (ij available). _'.ll... ~.1!.- EXHIBIT "H" ~~ . . ,.. ~:JF."" '~',", ""';I;""'~'" .".,-".,..'..., . t ". ,:or. ~I'~:!":"'i~...~w~t-.: ,.i~'.,'" :';)~:(l" , l"~,l :/,?;,' I ~~," - ..'~~' ~\;,:~<,'~':l,;~:'~, ~~:':~' ,-:; ~ '~~:". I. "",~1.. >~ '~~.s:' . ~ ..., 'r' >~ 1f." : .' "I~ 10';:;'''''' ."~f' ~.:~':i; ..~':-.:. ~I'{t..~..~ - ~~t.~ '." . ~. ~~~~~..'I'lO~.clrtci~~~.AlIIltU~.:id~.". ';' '.' .....~:~,J;~~)': ~;'" ,'t ,. '1',~c::1,\,I,i"I,: (.., .fbIIn 00YeII not feded, dIIcolcnd, <<crocked, Mull bli).iIilOlded .. f-luhii, '/'4:'." C,., ..: ~,. .3 ...1 ,;11l' ceii'-G'.(,:.;' , .... ,No ." . MIlt'" c:obWIb.. gr..... No brcibi.".!,~:,:j;"~,*,~GliclI:iiOI rUiled", ..;~..: '" :;"~) , '. ~,~~.t;N:..f~S:~; .',,' ':.;; , ;.,...~ ~~~~ uflCM"mItch eech other. .~~ ~it ;U~"~t,,;.4~. . ,~~r~r~..t~(;,..:,\ ;',;.\~ '..... .' ,t' '1 'f~ (l)l:;",.,,:<I."1".'''.'' ',' _ . ," ,',',:'. ,... ,..,. '.,' ,"~,.tltfll;l:, ',.'~ '. ~ '~,""i"'''' ,c."",!, ,.~. "~""i';;'~ '/\ ~211,..v..ilIi6A,~o/ ,; ''',No _ duII,.cIrt '!' ar- buildI;oP. ~ NIl.<< ~jlIik1l. it t \', \<'>1:'..'!J,I,:", ~:'i: . ....'S.,::...-;~~-.''J51,. \1i{f.l~;CelllngF.. :.' " ,; ;;\.. ,.... " 'j:')!"',!" \'. "':'~~\'l"\~~" i ~'l'(11~ ;1I1t-r.W .:,to'f......:'!~ttn<...'.~. " \Mt~.6"'~C.'.,~.^..~~t'7,. .~:t!I'l ..~,..~. ., ..,....... 't. .' . ~.-., '," ",1!1, _. .'.:....I.J._;.:.~~...~~~--= .' 'J~..''''~"'.t.t:sl",,,..:.,1~~' :~1..\.~:s/ t1..~.1.''i:;,;' I ..,;n,o(~ ,.' ",";'ComfClltlble (To oonfcrmwllh gowmmonI__.)....- --.'n>'!,. ,( . ,.-- ;'1""'\ ~,..., ,"v"j."'" . '.' ~ ,.. ., ".' ,."..".'. . '..., , .,..,.,.,...~.,..,..""".~'!!."""', I''''''''"'(~' ~..", ,Jo'\,.;,<.\t'" .,..,. t~.f.~.~Jo;l~.~-~..~.:~.., 'f Mlkecertllintocneckcornlf'l, blllb~rde,tl1der~.ind~-~~'.. or'" ~.~. ''rJ'r:~'''.'~,,,,''::~I;~'..\~~~,~'' "'. .,(.\"'.fj',l"l- !, ~" ~,F...oflrah. Nobrokerllndl<< mluIng 1IoI.1f~!l'I. mUalricl~ahaPwofn, cIo.CoIcred, .r...'ll' ',,-t,'~;', ,\,,'''''l.!.''I'' .!\~'I'j.foi,..."l!i~":', ,.:.,;, . Nocrocka In~, "'ir~'F'~~',', '. . , ,.. ;'r.::H"oll"'~t,:A...r.Jl ''','' ..",;loX"." :i.l"i...,,\,.:~.:-...c:l..:r.J~ ,It . .I'.t1"l'<.,.\.;...\' .<", ,'.' " "...;,...... ff'. ,",., '..',.r"V~\~I\v.;..,~!Wi!~'lt,....~\".',(..",'I' ,..,I. .,q',..;' .". """".:.~ 'l"~:,:,W'" ;' .... " ") Noproducl <<1lIIIne, make certlln to chock bihlnd ~ II1dI<irboOlha' Nodllpolll buIdup<< .', ,.',.;','. ,'... ,.. .., ,:::;,' ,r-,"' .",...;.. ..' ~.Nochlppodpelnt,unrnllchedcclclll<<fldlng,Nolom<<IooMWlllcovertng.MUllbeln ....,..' ; , .."..., lWJi.!..,,'. '.1, ... '. '.'" " .. good --" :,' ,j.:, ..,.". ,'.,;, ."','.,,, ',',',' '1I'~1il:;V.'..;/'\~'~li:I.:: I'.,it> ,...,. '.;".' . :..s..,~,. .~....'- .'~.. . ~,' .< ...,.......,'.'.:r...' ...' ..." ,\. .... ~.~'..;J" ,~'.:i.!",'" ,.,..:,I'i;':;,'_C'~1 :'-"'i,,,~\lh'.)f,!1(l..t'''"I/r'~~~'~'~JI1:J l,~,'.',:tll,,;.... ":"''''''C; ,~'. ;', .,.., "'1"[:"~:~1'. ~ W~,~ecepllIClea ' M~~plastlc""""!"lhaveno,~odor.M~beno~~<<., . . Free~"'I~'J..:,.; t,!;:,,~;~;,!, :',,"':. ,'.... '.. ,",:, .'. 1.OfInMCtl.MUllnotbeMve<elyacraIchoid,dented.fadlid,Chlpped,<<iiio*!:MuIlhrilt -dOilng ,'" .... ", 'J.!,." . . . 'X',,. ;',~".'L'...'_' \.,~;. . . lei'" "\" ',",' ,",.1'"' "'-,i";"i,,"l., ~'f."~~"""""'" " . _.' ," .<<./ . I . ,', m..,.....;.,..'...,,',..,",. '. I..""" '.'r;" ...,...,'.... ."', ...,.....~,.. .~,,'t '."l~:,.,..,............, -- ,,",', ~./' .'-+....,_,..:,. .... . . \, . ,t . .\1.1. I,... I, ,...... ,,'l4.:;~~j6!" , .11 .......,.. ...., '. '," to - .-" . ,,25.,Aah',.ya '~" .' SeIf-ellpllnllory, MUll... atMdardUhtnoy <<"QQ" ~ya, No:. ......1UCh..jw ,: ,'..' ,.','~, ...:. ," , ~;;~......:.(,_..,;..... .. OOYeII,malllCIlI8.Illo.MUllhaveon........lnomOldlia_.INon:ilmoIdng_deIIgMIedK .:,~~,...,.;. 'I "". '"'' .,., '. .. '-'.... ..-'--tu/cll '-'-) '''.J'..... ,~.. ~'. ,.,.. ..' "" "'. , . . kE)'~~.~" ::i;::~d~~=~?~=~~~== ~.~ ~-." not wobble. MUll not be ICfI1chac1. chipped. << dented. If boolh package. mUll be IaCUl8Iy fllienad ..s..' _ -1JJ- :@' H~C~ .~::.the.~~baav8Dabi.:~hudln~'~:~F;;~:~;;;:.~. T,.y ,.. . IlooIlar SaatI . ;." cIOIn n covarad wiIh plutic wrap. Must be In good'repalr. ',. .~~ Ji"':'.:~.". .1l' ~...J..lJ.- . .; ;", . . ...'. .' . - . . , . ." '~'I' , ~ ",' ~ ."", . . ::.~'\'.,~L' ::", ,,: ....~~..~ ~~~,(r~~i~i~4~f::~(\ Incl~ Will . -'~ 1J2:.j~. .~ ., 29. WIndow TraatmanlI 'MUll not be dirty, amudgad<< 1ll1ned. MUll not be faded<< warped. MUll be In good -'<Ing repelr, ...:..-f:..:.t.J, ,} 0-1:""':'" . ;.. :~IIl,f.~/"'l.,......".,_"'"'.h~'- . ,. " 0' ....:.:I1,'.~'..,1~.~'i',}!-.~ ~ , _/~-1J.L.-":" , '1 "". " ~., '). ~. -.... . .' " . ~ , 3 ., ." . . ... . ',: .,..... ' ,,'.JJ..' ,JJ.... '. TE: u..m apace to meaaura"oacuriIy gate: if olor. hU one (I.e., malIlocItIon)' '.,: d.. .: - "~' iL:..h;~jl'<.'" '..::.'... .",., ,'. ..",. .,:~;::~';,}OTAL()FSECT1~~(A) Il'tV..llil J511,Ja.. f~.;.~'~;(~:.~\'~~. ':;I~ ~.~ ~ '... ~. ..~ I. . .~I'. . .'~'~'. . . . . . .. .". .~~...;~i.f~~~...~~~:;~..;;.~,.~~~.~; ~ ~. u. :~ . . .~;! fll. . I; ll~.]. :~(BJ8ALE8AND8ERVlCEAREA .' " . " ":.:;.".,"...:;;.,',,"";.:' . ,.'. . . ~;:~:..~t.;...... 'tr-t :"1;~:~':' ,'< . ). '~1( '.' . /." . . i. ,:... . ' , " . ,.',: ,'," ,. r~.f-!r.:.:...~\_ .;.~~l,.,'~'J..f~~;~-"/i:.:...' '. _0,.,.' 1P1',:t.,.,t- (10ft 1alV.) JncludeI commanIIln Syolom BuIIaIln 1266, No.lljllbIe aoll.1n i:r8ckeIciavlCe.1crlIW haadI. ate.; ,~~F_ (1OIlIalVe) limy. atlcky lUll... unaatJaClClory. NolCflllcMa. denta. NII,mIalng pIIta, n ponalI, ComproIIOl' .".1> 3 c..F- (lOll ,1alV.) IhauId be weD vanliIatod and kepi cloIr of cornbuatiblol. ChaCkCompreuOr concIitlori 0..., rocovory o~. II'r_ tina during ..... no mix Iou at rail MIl. air VIIve and .pgd). To Include tho folowlng: ,..' " lUll . IllIZII' (lhake). On oIdet model 10ft MMl fr_OII, drive shall end coupling 1\ roar of bInol to be prolocIed by I .', ..' , . 'lIfoty guild. , .,. , .' Drip Pan Empty botMon 113 and 1/2 full. Wash and ..n~ize ooch time pail II ompliod. Bottom InIIIIln good ;',;..".' .. cOndition. . . ' . . No food aollln ctICl<IIcrovicos around splash aile. Proper handle on Iplgol. No ovidence of leakage. No mix buildup 1naIde/outIIde; Includel clampl.lnaulated per Sy.tem Bulletin ll264. No diIcolarlllon. S'_ . .- crocka' .Iaaka. hardening at connection or IWOlllng. . ~ No vlllbIo lOll on pump body. btackel, hosea. and (rttingl. No mIaalng <<damaged pIIta. No oloc:lricaI willi axpoaod; I.... cordi, prallUIll IWilcMa. . No vlllbIo aoll 0( mix buildup. CRlCkalcrovic:ol, dentl. NII.<< chipped paint. Chock underIIde of craNll. All apIndJes mUll be operational. No wires exposed. No vlllbIo soil << mix buildup In CRlCkaI crovlcel of Iplndl. Ihlll and IIJltator. AlIo. no aoll buildup on tho underIldo of oraNll, outer aurfacea and aplalh guardl. Frea of oxcesalva ball and bearing noiIo. OnlOff awitch and lpeed control (on 'Blizzard" Meehlno) llpOlltJonoI. "Blizzard" MochIno placed whore ~ his proper ventilation. Splash guards not CRICked 0( b(oken. Chock apIndle shall f<< wear OIllUnd lIJ~ato( collar. 'Blizzard" decal In good condltion'<< removed. No lOlled conlalllOl'l. NSF approved. No cracill or chlpl. No food soilnilm. Con clean: paper removed. Od<< frea. Chock pump end undoraIde of lid for dried fudge. Proper water level. Spacer In bottom. Contrail oponlte. No dlall milling. Pump In WllIklng condition. No foodlsoilnilm. Stock IovoI rotated and Cresh. Un~ maintained properiy end II functioning. ;<,.., .. Splgol/Fronl Head .",6. MbcHllIa . , , 7, MbcPumpl '''. ,- '.'. @ M~Mbcor(l) 9. 'BlizzaId'Meehlno(l) (<< other auitable approved mbcer) 6ID MaR Dllpenaer @ Fudge Wanner(s) . . 12. CrunchWhooU Container @ Dip Wanner(s) No visible soil In cracks/crovicos/screw heeds. Drip tray cleen of apillage and Interior flea of apIllage. Paper removed from cons. Controls operate proporiy; no dials missing. .14. Milk Dlspenaer'Container Gaskels and Iatchealn good cond~ion. Capable of maintaining proper temperatullend In good repair. .u__.__... _ EXHIBIT "H" ~-,~::"~"'.\ ;;S:l:...:i..~..F .. ':0:\ . .f:.u.;.. .J...u.. : (S:j_ .."S,l-.:.. "', ':.. . z:il ... .', I"~ .'. .....-~- . . \ .. ~ . it. ~ " ~ -.' , <, '~, . -.JIJ- " ,. , .s..f_ ,;~_': ':. . ...., ,.>... f . "ii...l...>' ~-"--' ..... ........... " ..' ~, ':'rsr i.,_ -0.-- ~_ ..;;;.,,_ ..sJ_ , . ""'1 I <,,_ -1JA- _f...AJ I tJ-'_ _'.lJ- -1~ _f.....LJ./aJ_ ,,' tirti':" :,.'U... mil' l.rtJ' 1'\ (,(1._l.., , , ;~;:::'H'~ND'J'r.l"~'C"'I!:':;~(';;'~I::" ;"~' ,. ,~,., "-:, ;Et:;1h'J1~1 'i~I~~""'~fo'1&"O..ji3'1;;;1(~' ~ DI r-' IERVI I \f4... :" . . ',:fit)l:~ } 111 'VI' i:Vfj: -:..\f'1\t'....\I"'.... 'AI . ;M' ...~~..:~!....;.F.;: ",;"::;';"'t "~"'f...." :,:; . "'~'f . ';". . \';~flJ1!.",J' "~I -I J~ -1" {"'{~":~:':\"'l't;"A~~~~" ~ !?< ~.R~I), '.~ ~': ~...ofcluitlroo,holl_lnIIdIdIIpenMr,F...of .clrtl ,1lD;.~..~IUl,?,,!*:<;..r~ii~. , . , ' ", > . . ,U . No lCIoIlcIlII cIInII lie P-'""- or IItxhIcIlo frIeDt~"''''~~'''I.~Ii'I'''' 'I.',' ..' "". ,~ ~-" I~""'l't'.;",l"(' "1,', ~ \' I'J '.......-:':'--" , 'loi'.;~~'!_1 ' ""~~ J '.&~."--.L~\lit ,I . 18," Cup"/~..;,;(.) , :..'s.m:..cOne'R.....C.111'abow): .,....... '-::,,",("V'IJ\hr, , ',:' ."." 'lIh:I~, ";'\'~l4 ;;....!,r,: -:,!. '.. ...~. ". '. .. " L '.... ....."...,., \'. -1'1' : J I',' \9' .)I.\r,{*~,.. .:,a .f ~~!~~ .,..t~ ,Ii' ~ f..",1': ~'~'~' ' i r~\..Wh/ppIcITClllPIna :..',~ ~and'-IoDl""""MIllll'lllzlclcllly,CIHn~Of~ ..~.!n~ ~'f;~'" 'J>;,' . ."i? I l)~ I," 1<" ~,.... tfOlflMdtClllPlna cIIIIn Ind kept In coofloGlHon . ...~",.~~~Ir'..'" v.f. . ." I ~~ ___' _ '.:J1 'II "Topj,Ing~ . ':~>~vliibIeiOll:iill~kir*acirfoOcl~cridc1Ior.,~~:t:='~'awI1'~~~~~.~.i}~~t,'~~2~~fl \ ""'1\" ,.."", ..' . "" 'dIIn Chock IeonclIm.- Wclrk C ., .. . - ,', .....MIl ",j,;,d ......:........ii1i'1'~~':i'~. .. ~'.it'f.l:l " ~~) ,:~,:,,' ," ',' ' :: '~;"(lcnlf'~~' 110) C.':'''froml/llut-~'-'-'--- "".~'-'",", ~'T:::.......~~ '. Y'::'';;,oh':ij 7,\."I;:~.."",i.) :L&'i"',:~"'," ~'" '.(! (. . ~I .. -........ ,.......~... ,"-AI ....- _'"u~m.~~... ....1II""!".nuu.t~......~. ,~~~:..,..ttt4lr' .3"'1:l1 '~J.{l:ltt , "l~ :-'.-'1/," . vi, ., '", NiiMy to hoIcI proper lempllltUII. Freez.. door glaketa Ir*d incI hoIcI.tfght _.'C,** IlIoonIIUI . :,~ ' . -,"" ;; a::; '. . ..~'h.I.; ",' ,! :" '. ..:-. ",(~) ~ \ClllPIna rWI and CIbInIl top._ " :'!/~~~~l~~~Wi,"t:~!:~:~~N";:-.\:"i':'e~~~.:. .~:'.:;.~ ...:'~ ,',18, FlIvor DIoplIy ; '," Free of food aolI or llJoky buildup of procluct. DlIplIy'Pocke!a 11M of.ortimbI and broker, proclucll. ',;'" ..';":1., ~ \. ."':f!':.. ':. ,,,,Cl.l~ Dlapl..... .;. ~notcrockedorbrokln. ProcIuclCOYlt'ed. NIIcI noi"~from IDQ 1M illY IItIllllll '<;'c:. ~ :;. '; ';, : ;,;,. I ~,: . " . ~":. '-, cIMIgn ~ .~~~..cIIIpIIY, - MI._ properf(~!9.~~W~}'l~,;~"~;:;':' :;'." ;.,~')'. ~+~.~ ~- ,;,,! ~ ,TClllPInaW'" , F.. offood.... mold, llJoky rIIictII, c:luned bef"",..~ up ~I Chock \opI ;~l' f !.:. ^ ::;l"'~">':f.};- i'.."! "" ,.,', MIlundlraldlofIclaMllWllll.I'IInpI~andidjuoi8dJl!.ll!lerly:'~procIuclI~. NOglpl .,it?\S I .;,.fe, ., " ~i:J.:t;':,;, " '.'," InWllll(....~), NoWllll__ycrocked or.ohlDDicI.",..../.i.I!i;\..,.., ."'-'. "".',' ...'L:!I_ '~- ;I~', . ~. . ~, ... '10. . .....~;. .' '.. ~~~.t~i~,~:)'..~.t'...;.. ._'/.", 'i. '.' --r' ,~'.I. ':,j_~ < 1, I, TClllPIna ConIIalIl1OY T~ IldlltoppIng In ~ forllllOOlhftt-bodleclc:onsloltnoY,.~~.......: toppi1g ohouk! .: ":' <,.,., :,., ", ,;, '" .:', .... ." rlIilhIr blob nor run 011 when II proper !lrnpltmUII MIl~; CLC property II noted on '",,', .:,'. / '. '~,',"I I.'. "'..'. :~. . conlIInIr IIbIl (when uIIng IlOIHIIdy 10 UII -"'-1.. .....).'~.:~.:,'\;..,'.;,'. ' '. ", /..1 ;)'-..:...J.J.!:' .} ;.t, ,'" . _ ,_ ' t"'..'.n~w,':"',~~_,hi (,/' ;~'C.J......,...' ,. .. .\ 1ft f'22, -DIpSIIndISInk F... of dIr1, pn>dUct. ~, ilaInoi. N9 watw'cIIpo1b viIlble>;,~':',:~ ~'." -:.' . .'. ~.J::h.llJ-:. ~~' ..., ".. ,-' ......'.. . ~'of.aJ:..~..IoI. '. '" .,,\.:.;t;,:_"l;.:ti........:,)~,:.,':"::;-:,.f. ~- .' <:, 'SI . . 23. W1pe.up CIolhI CIIIn MIl n_ _.., ull of 1Il'liIIz. lOlutfon. ".",'",'.. ..... '" I"",',,' ....::.J _ __ :'@ Syrup T~In-Box No food...1IItlclcyiUrf.... on hoIIlInea and coi.tal~: :~~:~:ru.' ~ ~.5torage 1l8I..:. , ;, . ~/_ . {" . ..,,,... ." ' out of pubIio.lIlIw. Boxllllacked to proper height.. ;.... ,..' '., "". n ,.' ... .---1~ __ '.~.2s. .Ca~..rn.aDXI Seff~I..;.tO!Yf:l:' . ':-,- " :' ". .~~'l:.,,:"::~)Y:;.:it~:.". n';" , .\1' ~i.:'.:'-/I.oA.:'/~:. . ~,...\'D._ \..: . ~.,' . :~:J.4. ". .'~'" .- '1-1::1 ~'I--' "l'~t.. 1_.,..... '.~ " ...'. .....,. .... .' .>>..., ~r.:}'';i.~'"'' I 'f .- ,-- i . CO,TllIka , . ,Chllned.nduf.1 Ilorlel. '. ". ';')":\:t";;'J:",'i~"\'''')'i''';' ..' . ;) l':..;J tL. '. .' J .1. I '....lJ., t.,\"""-...t'(,'f , .. . . .'-...., ?,: '. .DrtnkDilplnllrHIIcII .tJrinkdilplnl.- , c:lunedcllly.Novillble~~:~.;;clipenMicloln.Brlxlevol s,: ~ "S,"~" ~.;I. ,', , " .,ppropriatl. _ """ . ._..,.f..';...$,U'%..I...r.....,.~~~.~..'!,.. .' __ -- II ~~ Ii:IBIn I "'ICllhould!JIo.:.iYilemlnbln!notmilk,whlpf*.l"toppjng;.Olo," :j,~~biiIdup", '.ripiapnicluct;norUII. <(-~...:);!-, .' '.' . lei II 00YII1lcI. I.. ICOOp IVlllable MIl not stored In bin (_ ..quIrllcI by local tlIIlIh cIIpar1mInt). . .$1_ .W~ I ~~ 29.' ~II DiIpInIIr No product. mInI1ItIcIdMuIrlmy lUll.... or IIgae ~"I~jc:c~'~,"',:F ..,. .'~.. t"I-1..~ ~4:J::.~ ' : 1;30,' '. ..M~ F_ NovillbleIOilInCl8Ckllcnlvlcll~,lllc. No fiIrtIY,!lIokY,', ~..., ..,' .~, \W1IIiI, faoe~e, ,..,. .....l::'.~. ;;.,", i;-' " , ''i!~., ,.' MIl opIgoI cIIIn. No ICIItchll, dIntI, milling parta, MIl ~ Chicle CXIII1JlIIIIOO' OCIidlIon, I..., . '; C. .'. ,- . ',)' '-I{ ".. 'rJ,',;,c... ,::':.' " lICovory time cIurIng UII. No .aplgot Ioakage .ndIor'cIrIp' piin),;.JiIgii;.Malntllna f""PI" product :''!i.F ,.......,'~...:~~. t~f~/:,::\;.( ,.' . L ., ~ency automatically. To ~ ~ f~kMj~:....~i~t1\1;:~~~~:r..:-~~~,.;.i;\~;)1:t~;.,. ,~.::_ '.:. .:' : .... -.'. ,~..t:\..~.J~:;r;,..-.. ..(~T.J "'HOppel' Free of foodlOil; product not cloudy; free of viIlbleinlnnl.~. CMck.for yeul odor. . . '.Allo .::~.;;.c. 'f.;.~;,,!~~, '.':~d. . ~'lf'";?''' Checkf'8ll1Ota..~tank. .." ,. . ,'.," .'- .:J.;,.'l;,~"''>'_~''",t'~..: ..j,.l'l-....I<;'.-,.' '.',' ....~... "(;"'.'''''''''''''' :.... ~.,.,::::J..-.. . " .\. ---.- _ ' _: '. ,~,,~.,,'~' ';"-.\,'..J~~<';'.. ,'::":"':"'-:'~\:',-_',. '.. ..~ ," ....., , .'_'~..-" . ~;o" ''''0. f,; (;.'(.. FlIvor IlollIoI D~ IhouId be~, cIIIn 8nd free of sticky apIatl...: Check holcIIr ...WeIl. Producta ohould . ,',. '_\: ".';.. 'iJ...:::'.~,' , ,~~'~~;.: .."i :'.. . .' ...., be clean 'and, he of fermentation foam; no product on pump' top.'>t..::~~.i~t(~.;,.;tttd';G,;'::':~,,_,: "':", ,'-;:::'''~ ~_~;-'.,"-:: ~,:::~I:::;..c~,_;;;,::,; :~; "'JI', . , ,'- (., .:~...:-.'j..,.,..." . -''' ~ -: ':'...~.'.. , 1;; ~1, 'ColI.. DiopIm<<(I) . No prodtict 1lIInI, IlIckIMu or filmy surfacea on pot(I). Wlrmer or Ilrfiw. In good repU; no creckocI :'$.~ ,. .... ,"'f/"'''' :,"'~.. " or chlppocl coff.. poll, filII 1Iral1lll. . .' . ." . ~.21 .!!.J~' Snooze GuItd 1ndI... WhIle applic:ablI (IIiding windOWlln walk-up), not atrOlked, .mudged, or fiImocI. No CI1ICIC. or hoie.; :," .': .,~ lll"/'~> Window In good ropIIlr, No holII or tn", In acrtens. ' ---1 .....:,:' - 33. Cuh RegiateI1I Opllltlonll; are. end registll compononta clean .nd free of food end 1oiI. No chlpa. IncIudII vIdIo' ",:" ":' '., '. _I end rewrite print"",. Joumalroceipt t.paln registll, . . .; ~"":"';;!..S!.-..:.:'-; Free of food IOlVdlrt. CheCk paint condition for oxposecI wood. Inventory neat. unclutlllecl.hancly to UN ~,. ",' -: 's ..:: and frll of o0?I. . ,'. --" _ ; , _.' Surface, ocIgoa and fronlflco 0111... of IOlllaticklnesslgum. Frll of chlppocl ocIgoa and burillpoll. P.iInt ~- '.y. . :.'t5":.' ,,,",: '<:: not worn through design or discolored r~ metal, free of clonts). Under count. Il8I """', free of clutter, .;;:. S,~.:..s C:..: .:~ Free of aoll,.lncludlng drainIBnd under equipment. ~op boaldl clean and undImIged. ~brokIn IndI.J S';'.' ~:";i:L' or milling tiIoI. If painted, mUll not be ahopwom. discolored. No CI1ICka In grout" ---1_ ~_ No product or itaiM. No deposit buildup... stickln.... Mike cor1oIn 10 chock bIhlnd equipment lndIor CJ ' C J;" booths. MUll be in goodlOpalr; no CI1ICka or hoI... ...-J_ _ Fr.. of lOll. food, dirt end aIalnl. No damaged tirOl. Tile color and surf.... match IIch olhIr., ---1~~..Jd.- No viIlblo dirt orlnsactl pl'ovalent. All lights worldng end In piece. Fbcturelntact end oPllltiO"aI. Fbduro... , ".. ,,, COY.,. not faded. diacolored, or cracked. Must be shielded .1 code requirll. ---1..::=-__- Slide window operational; shelvel. count.,.. f100r and wails uncluttered. clean, and In goodlOpalr. ---1--1:J 1!1:J_ Must U1lO plastic IIn.,. .nd have no unpl....nt odor. Must be no deposit, buildup or 1llc:ldMu. Free of L.lo- Insocts. Must not be saver.ly SCflltched. dented, r.ded, chipped or Noted. Box unaatiIfIctory. 51......:..: ..ii!_ 42. Hanel SinkJ5oapfTowoIs No water stains. dirt/gr..sa buildup. Foouras cl..n. No d.nl. (~ _.1) or chlpl (~ porcelain). FbduIOl not Naty or pitted. Soap .nd cle.n paper towels .v.il.bIe .t all tlmea. In compllanco with local health sland.rdl. . . '301. SholVoo/lnvenlory ,35. 50rvlng Countll &FIoor 37. Will @ ClillngN_ @ Llghtl end Fcduras 040. Drive- ThN Alea . 41, Weste Receptacloa ---1JJII1-,_ .'~ ...- , . EXHIBIT "H" t~,.;'l:.:~i'Ti?[ii.\~~~T :(~~i'"t '. ~ ::~~1:, ~I, ....1 -~ ~ '~i '~~:,.^ i;~)~t~\',,~"tZ':F-\~~Vi.~~' ~ ~ . \ ~~~l~ .. ' "'''(8ISAlES'ANDSl!lMCI!AR6\(coritll :.~~.' ,.,t ", ".,' I,' " ~?n;.:il" ~ ~ ~ ~"'t:l1'o\,;',' '.'~.~ :~',.. ...., _Ii&';;" "11l.1.' ' ., ',,~rr ',." .\1'. .~~ "'I;\~'. +',\;.,:..' .,I'~;":;>>\:~'"" . ~~J",!;: ;.~~.,.., . " ,-,'io.:...~,...., ....No'.....L~....:~.... ._:......:..' ',' . of' c...:......::i...~<r..'.......:.: . ~. '''-''. p, 43. MIlIii_ ' " __ _. ___. ar ........... an _ ..- .......__..._ . _ .. , .,," i." . ).::,.;, '., " , '. '. ,opel....MlI, Uniform IIll.nngIcclcn MIl Ilrlpe. No h."dw.llt8.t .... ~fI.<<i-'~~'~.denIa, '.:'f.~~.\ :" l';'r."'~ ,q'....,'. ..." . I \.crocka.~'-~arlghllllka;AlIIom..aId..~.~..,...~~~~iID.c! .{lJl;~] . Yj" ". ""f.''''"''' ; h' (cUlt VI. dilly), '1lIzDnI' /IlIl'lU 1ncludocI. CWfIIIl /IlIl'lU .......Il'ld In 'Uie, '\~'" '; . -;g;=44, I "...;..~~. ~ by Anwtc.;, DaIry ~ 'CG.par...n ~.T~~r.;...,.... ,~" ,~:~:);,.., ~t!;1oI~ "~:~:'1 .ol\~"'(''''';'''' ': ." ","'.", ..... ."';".".; "." ',."',...!-t"ll'".....'-!t;,f:~.."~n; . ,',ll ",~~i.',. J,,' "J'f~;~ '~Ji'j' ,!,oi" ~' ".;.:'Eld.riarMll~lricbqvoni~.~:~~d{i,~~N~ "'f'~, '~i>:,~' '. ;'..;.U ' ~. . ...........,,--' ,. . "--1--1 --......- Not.............-............ ........."'-1 t1Mi.I.WIlU' ... .~~ M'~ ,1',.!~r. '~.. 'Aii:i;~ 4 I '~l'''_.~I-:-J''\ ::'~::::-..::!~""::'!:.......::.:::":!:.zr::~~~":!:;;~""""'~l"'!iiidI'~-"'" -,,'f...,.,., ' ~l!ij;.~ I .~.", ".. ".", ~ ... . '\ . .... --rU-.., ~ _11II ......,-" n....""..~ ...~'" ~ ~ .~ .. ~y i:;;.~ .:~\t":I.. 'J. u" ~h,",:;.,.,'.'., ..', .,.., llnppIdboggodarbatc8d. .. "~"" .'.. .,...!l.."'.!~"r~~.~. /:.ji'\7'..lI.;...~'Il'~,".,; \..f1..r.~: ",U,';'" ,:'jl I tif" '.~:' . .' ",. '.f ." '. :"1.,1"1. .'~'{f."~'r.:i. ~. ~'J .f, t"~~f","':,\j,.:"""'., .t,',. it '{:j :;:::::'fJ.....".. tf'~\~lI...,j . ";:'48. -a-.. Choice" .. IrUrlarmuatbedofralledMlldoonodMlldy, FroIlbulldup~ 14', CWll:l.mp doonod ",' ':..-; . ',.'1\' H, ~!'\; ,. :'. " ~CIbInII III1ut daIy. EJcIItlor hi of cIrt and 1crItchII, AlllIvara ~'6d. ~":1<lv...,~...rJ.U\iI,.f.."" ';'i..:;.J.;N 4, "";'~'~.'.( ,'" f ' ." . i: I . 'I "r.- )"., !,... If1I"'L;.......I......~,.... _. . . ,'" . . ~ . rllo, I !;\,~. c, SlInchIon SIgn :' ".' Free oftMldue.1mJCfgoa, 11m. cIrt buildup, Able 10 olInIl an'" own .....'AI ~ _: ... "P ~;W' ";l"i/:,,>-~tJ:~i ~ """ . ,'., '\ ~ 4' .. t!t...~.LInot..........~--'to_---.._.JaIu ~ ~.-..~,\1t~i'tta~lt..::.t~.f{i:..::., ,',... I ,':I. 'C,"'; ,. 1'1 . I , . ~ . QII~ t"--!.. I~U --,_ _I..,. t.~\ ~ ;.t~?,'.. ',. ,.> I'" '\... t ". _.......' , ....(;) PoH.d.s.lo ~ .~and~~;hiried..not~'om;;'WN~~~~.."^'t;./?;l :';'1:,:~'i~~'~~, ~.; .' ,. . " ." IncludIIcake.cbnmy..cIIplIyblnnn.maIIondlsploy;HICcobInot.........,..dkll.Cumin!y.... ~"I";:1'i':~'- .<lr~,':.:," l.f...l.., ., . mal 1..1 ,....~..... ~.........:.Jj......,..,.~..wW't.'._~"i,.",.~..rl'\ :' '.., e". ...~.~ ~'r'. ".1 ' ' , '~. .' -' 'If... " l '1,:0" " \ ' ,I ."'~~;','I'{.~l ;.1.;:' .~i "',~i.T~~'Jt' " vW'.'k ~;;;.~t ~\', "':.. ." \'/'., ..... ,~. ,).. I .....I""\~ II ..> '~~~.. ' ~~ Nlpklno/Slmv' .... 'No'd.poilllllJlck.p.MuIl'notbe~ChlpPed. j;1Il~;iit'... '. "M.::..';'.iiIt'<<nit;;'oOlo;:'MUet '.';t.!>;, i..4'~"':I'~~M:C .' ~~'. '. CoIUlnlralAVllllbIl hive nopldnI MIl onwa IYIiobII (Of CUltOllllt 1IIf-aervlce In IloIII wIf:I.Iobbln,' ,ar dining rooma, ~. 'J;;;.,'.. '" :,t' ...J .... SltlIWImuatbeInMlppldarlnll1Cloaeddisponaor" .,;.:;.....',~!...'.'!....7'..' .," ".':: <:3 _ ._'~ j 50. !lriivdngFlllrIlIln' :..=III.~:.:~OV:.~. ~wriJ=~~~' MUll be . s.~""\'S~,:.', eoo.....dllw PumpI and pIl'lI muat be dun MIl II conti"""" fiIlIci, Chock -...... ~ dilly. Free of opIIla,;' . 0.... '::'" .:; . 1ticldnIu. CooIng chlca In UII wiler.. roqultlld..: ..r', .".': .~;. ~;;!";l,;,,'i,:.. . . . :--.J AJ 1.!8_.;~ ',' 'j.' "., .1' ". - ';' v", .1."'~.,~./y"'.'..1J.4.. "",' ",." -..' ~.... ,..1\1/11,..'....... . . . ,. .'._' . : .....,.,.\"......:.":_.:~; ,'.' ':-''-'-''.' '~~."'-~' '- .,: ::~:E.::,./,'; ~'>.t;TOTAlOFSECTION(B) !?i' )I~!(')I~ . -.. . , . ,t",.. t" . ~..'~" '" ToO' :_. I _ _ ....... .'_ ., _. r'l . J _."."H... .'. '. . . . ~.....;:.:~~~.;~.~-~~3.:~i(::{:r~?>~..;.:~.;;';:~.-,>~.U"x2 ,..~[(,:J",6-_[~.]., ,~l.................................................~........~................. '." . .' , .' ....:.:.,..-":., .'~,+';"""'k~:\~"..'."'" '''..,... ."',..1.;.. : (CI"8RAZ1ER~FOOD,EQUIPMENTANDPRDDucmNAREA . ..... ,""':;:'?~~":X;:t'i..,.::,,,,! ,: :,:, , ..... ....;>' '.;' '.&" _~:: " .1, FIalGriddll Swf-Ioll!lf...ofgtUMbuildup(npeclallyautaldeodgn).~...........cIIanod..llIIlCled. ,-1---!".l.J!~ ;'; . 2.' ChatGril If gratlllrock. chock farWllplgl and~. rocka cIIIri, tiM.,iCibUiidijp.AloO: chock Inner. Y.' ' . .~'. '. ,';:. IhoIIfOf ,1f_.hlofClrbonbuildup,RolIla:~Wiol,dy,. . . ahaUldglfllfllllOft .. /';.'i:,'.!'~'i;' .~: ~ hIilt<lt:':i~"':;:'..":.,~I~.~.~::;:;(.;.~"'~.~..~~...~~' :,:......: -S/:..:.:.. ,:' .'1.:; " "~"_ . ".1o..:',_lJi:;'"::fI,,-.. ,,~'~""',,-:;.f."~~'-". ,......,. ~ ,~ ~. '+\....... ~~;,.3. ChIln BtoiIIr Check Inner 1hoI. pIdty fllCllr.1I1C/ mut CIlch lrayfOf , MIlui.... chaIn(l) 118 ..~,. .:/t: '~.r.+;~' .,.... J freeofaoll ExIIrioto1rUriarMllllllldfteeofaollinctbumt' ., WiMi,"Ch8Ckfinllhedproduct '.:.' i "....... ~:..,;f.~;;~,.,~.,: ~.,~ ~~\ ': ., tomakelUl'll 1Iernda~~and~...~ .._.~~<!;~~(,~r'~~..~l;;.,~:~I';. , .(~; . -, {"::\:.t:: t:.:.., HIIlIdHoIdIngPIII MUll hi haled to 1 and be properly COVIIlld. Toincludl TohlhlOfgreeubuildup. Ptopel' .~I,~~,:.;.: ,;~;:~< !~:." " ,... procedUlll f~ pel' Syatem BulleUn from B ucco ~ e. Coli ~1.57'117,' ,~_, :.::d~".k .. ,. 5. Will No product Of silins. Mike 10 check behind equl l No deposi buiJd.up Of sticldnesa. Must N I ;; "~c: ~.<t.',' hi In good repelr. : ......i,,. ,-1_ ,-1~ ".;,;' Make celIIIn to chock CDIIlIlI, . under . and equipment. No mop sirUJc. Or alalns "I i::', c:, -'" 1IIowed. Floor mall c1e1ll. No b ssing lilal. If pUoted. mull not hi shopworn. .' ," , dlscolored. No crocka In graul. factoty condition. ,-1_ --l....:....' Free of soil, food and slaIns. No tiles. "...:' '. ,-1_ :::...12', No vlllbIe dirt .; inIeda prevaIont. A1111g WDIkIng and In place. FbcIur.. Intact ~'~IlonaJ. -.' : "i -'!.;:. Fbduta COVII1I not faded, diacolored, ar ed. Mull hi shielded.. code requltea." :': . ,-1_',-1...:.::, ". , NOelCClllfrosl;chockgukll . AIls enlnsldaand....mustbecleanil.df,,;.ofrust. . .;~,'\:":~.,: Check r..ish fer ICIlItchn. chipa. ,-1_ --"'Lc...' All surf.en Inside and out mUll II. Check condition of finish far acalchn. chlpa, lie. Check ..ala and es. Products 10 hi ed In covered contalnera. ,-1_ --1_ Serne 81 Counter Freezer a va (see 119). ---1_ I~ Includes propel' food . g, kitchen utensila presenl and '. Tongs Of disposable glovn .":--i.L mull hi presentfOf meat patties. Free of food soil and CCMlfed. Condimenta properly cooled, Flee of soil; not No visible son . ka, crevices. screw heads. ole. No filmy sticky wheela clean. ee of burnt.... soil. Check baakal conditicn. All counter top mounted. to urdy. slabla countertop, table or stand. 15. ShorteninglFiKered DaUy Test fOI c y by baskol dip method. No smoko/foamlng. Should hi skimmed 10 remova bulk of loose floating icles. aueslicn ope18tor as to time snd regularity of rtllering, boil out and changing of shortening. Operator should hi familiar with ope18tions manual guidelinn on procedures. Filtering machines. glovas and apron. must be In Rood condition and readily available. ,-1_ ,-1_ EXHIBIT "H" 6. Floor 7. CoiIingNenta 8, Llghta and Fbdutos 9, Countlt Freezor 10. Counter RlfrlgntOf 11. Spot MOldlIndiaer 12. Condiment At"'" Smlllwlr.. 13. .. .1". P.... TIvu Deep Fryerll Fry Baaketa f dents and lICIlItches, . Interior of ca.. and era mUll be ~ ,-1_ L- '_4- -'- ~- " -' ,-1_ ,-1_ . .:' 24. Food WI/TllIt' ,;' 25. CcxMoctIon Own ',-'. lJ\')J~,.' . . ;;"4,'~''''\'' \, .~. .,'r,,~ ll:.\!I}",tr"\i'''il..'(r::~. ~:',~'1;,'M~~ . ' - :s , . ~.~,.,", ~ , \ ~. ,lC-:" ~ , ,. ..t,':or .-.\, If' 1] ~ L #~U:f' ~: ' . " r ,(C):~FOOD, ENTANDPROIlUCTlDNAREA(c:ont.ll' ''''''''I'''' '~. .v!' '~~1';' .' : ~. '.j,. ~Vf{~(~.:~j~?!~fLT/,~H,~,,~~~~'., \ :':..'~~:~l~"',!:~rf:~~~I:]~~:F:!,~'f~l'. \./l~~t.~::~~\~fiJ~ . I , ~. ~,lt\!t~~lJ;~~~~~~.. <18. OmlpSlllndPIIl&1Mnp F...dlCll MIl buml.... ur-e,ln good repW. "",i~, "..r,.'I~~, . >,",~',' '..~:')\'J'~'I;~~'v,)~,~.: FIt' ,. 1J.~., ,.~ ...... ~'_ .' """w,' "'f..'....,...~- .~~;4..N.......~,,'l'...~")i 11>1- 11'.:'17, B...TOIIIir : " '-,:, F...deollcrurnbanlUl....ooIIor......,EJectricaIy.No I*!a; _~Jeei :'I!} cor' .,' j~',: I~ ,(\'\, :':,:- ;0.:;,,:,: ;'....,...; no 101. ' :,. . t"1~;~": \~~':..\;~' ~~t~{~X.{' krrt1\f~I:; ~ i':':~'~'1 'Ait' ' ", ~ff i.l11,.~Pr~,TobIo,)i;"\'>~ v1l1b1e,ooIln lIetevle.., acnri.tMiildl,'~, N!': "l;,~"Uf~;UMlolnld tInloh,,' "~t;'\<t ,.:ftJ".' ""'" '.\,~., ".., ."'" ",ClNnobIt....... _. Chock fer c:l1lppIng of ,.!<!InmiIiI'llf IilPInvolved to r-h. \ ......', 11 .'.l,~ ~~ A -. l ......, .,. r' I"U ..............to _......... If ............._ ,., . ~"'-''-'-L_ ~ ',:l't,f J.;. .lU'd ~~'",':i:,'.~~..I.~.t"I'~~" ~:':.f'''''\ ncIutt__,__,. ....,:w"w--.u. .~'''I'''''I UI,~"...~ggnul,llll.;~.:'\.'';I.\...' '--...~.r..l .~~'.~:~:';4.~:i.\~~~if~'t; :;...~;I':..';lend awitc:t-'."~~~ '1:')'4\lh ~{~:~'~;(i\~~~r;.l.l~~~ '~1;\~ ~ .~~;.,"U~;~9.t'\; ~;;i:i<' ". '''r:I~~t:'i;"7{;'..~ ',.,8: ElchaIIlSyllem ':'" OoIenn1ne by~la MIlvlauolln ,MllIIbeCliridbylllOUlaldtaantl1lclan ';.::., ,,,,.:~:,1'~"~"f I;t.~;:..,:_". i:,' ........umall'Ml..,..perY- abC .Tolncludeltle'~;g; ';.1'l;'r;j..~'I::,;a.;.l)'.<l',,,.;> ":,)..,\..tpt:t..,.. ...'. ... - . "V '. ,., .,..'" . 'l'."'~' '~"""Mt';;~"" ~".',.. 'I ',' "....,'... f :.:/,i..,. e.hauIt Motor '. -.' . R..... quJetty; no vb~IDU.. Bella hl. ': it ' :...'t \'~;~". . ~ It/,ujf' .11;~~I~.' /\" f.): .\(.~. }, ,..'1 '., .'; 'I"l,'"r,;,,;.' :,...~ ~ ' . }l/".,.ElchaIIl FlIt....::' F... albuml..,;, d. C~ ferr.. ,mIUlniiti'.n:ci.;~'~T~'~" "F.:,"'; , . ,,~.. :\ ',;:'::r./ ~X.,I,~'r ' - , t'..'.:' . l." .,.:........... '.- "",,,*,\o;'V1.,~.t~""'~t'~'I\"";'" .("J,f..............." '., ",~.:.lr\.':<;t~t.1 j,.~IL1.:,' ~~aadi ~~ofaoll,~...~~bullduC'-~. ~~~~.~~,~. b_'_~~~bh :j.JIA':;'."~;i-I":'/~' ,.,;...., .... '."". ' , .', \,' ...proper........""""'n..l~.'~ ~.-uMIJMII\.up..~.."fW'I'.~l'OW~.u 'I ,... '~". ):-.; r ;1"'~' !".:..... .,' ," . ,.,'.: ','mlnlmalruohoflirlnwarderaulw8td ...opIlIed.Chei:kfal't.ckflawunderext..llIIhaad' , . . "il~i ",..' ~~" ," MIl ext..usl odor In....... Viaual k fer lICCUI1lulltlciO'wolin,I'YiilIllncl Inolde.~" ,.;,'" :'. '. ":"'-_'" ' _' """,..10 ; . ,"1..,'. .,'f''' .... .......... ....r..y"'.'::\oi:l....."'~, ~di.'4'*'...~...,-11,),.".G,..,~ ,,'I.,"';H'~i I .h 20. SINm T.... . Free of aoiI; notllrNkod, Heat and ~ WOIIdnil. Fr8ii Of iInd .....chn~. " ,.' " _ ~--' _ ~"21, W.mw oriwera: 'F_ aI aoil and~, Clun underiitclt ind.iu;,;,If'~D~i.~o;,;.; end ~~y, ._L....:. D-.-:' "22. HalOogRallerGrHl RolIerf...ofooMbulld..p.D ppenclean8dd.liy:~.R~j(tL.riirM/ywitl1cd~ <, "oS'.:: . .. . , nolae. ThennaatatIawil runctian properly. RoIlera I 0WJnIy; ,tiM'it hol opalI. Gril IllIYOf' Nt on '.., hiohlernoerBturll .~ .' ' I,~.' .,.....')i/i.....'!J..-I'~--'._...,. '" ., ----' ".' ,,' ,'-' ':'J"''''-':~'''''''''';:c'..: :,'!, ." .:;--_..,-~. No product aolI. filmy IIIcky MKeI. CIeIl1ed daUy .... WrbJt .-voir and 1111III haIn ", " free of lime buildup. pemJanal MIl In good repaIt, Proper .."......._lll.....' with....mod ,"'1,; ''',". "..;.. product. FrM' of and acrItches. . . ". ......h.....1 ,tl~~..kr~:.".~:~:f ''':.'L~ "', ,:',.' --1_'~, '~/~.... ~:, No food o0?I or . Elements MIl owit~ W<llklng:Fr.;. ai" i,d'~~: .:..' " ; _;..L....:,~~...:- . . Elderlorfr.e '~:grel..eraollbulldup.GlaU~.'lii" ."'OiCi'rbcin'~aildfood 7: I:i. ;'71"''!;.''.:'i.' partJc/eI.R clean. FanondhealelemenlaW<llklngpicperiy: Even , dlIlribUtlanllVidenc:ed.Check I . ",.,/}~""~ fat . P 'II' lit door and exterior dentaIociolchea ":'" "': '.' ::' ," .. " . r, , /'''' . roper.. ang .' "'~'\:c'" ~,I~~>,~}:~,~'i:'~~;i'.,~.~.:::.~,;: ': -,----:: ..~,~ CIoen CClYIlnld.BoxlaunllllarllCtOl)',MUllhavellnerl. ,...".,,' ','. '.,,".'.i ____ - '.:\:. <~::.:':.:ri)~:;~',.::.' "'I',, ---1_ ",~,_" ";;."': . ... ", 'J'. .~' "~~A';:~;' .....~~~ 'I," .. ..... ',' . ,-'---:.'~. :...~I',--:.;. , . '~')' :1'_~"-"" ' iI'~"'t'~\-I,...::rz . ", ',I '\./ '<. " -()o'''"...,..1'''''l''Jifll.,f!'t, ..~,.~,..l"., " . ____ '';-'' ;:::'(:i::..;~;:.~~TtrALOi=5EciiON(C)' [ ']I( 'I' [']I(' -::)", . . .', -,Ie, ,j.,,, ~".;,-..,;-....~ .-,,~,'.'..."..., '" . " ","f,r:.. ,..' . '... . . . . . . .. . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . .. . .. ,:~~.. . . . . . . . . . . . .. .. . . . . . .. . .. ;:(D~OREROOMIREAR OF HOUSE (Includ~1 _lIlareg;, arel.) ': .~. - ~"~',.::',,:~;y;}~~;t~'.}:i;'..,~(;. .'.:'.: .: ..':';" :,. ".'1~i~ :\;:::. ' ~ ~'C:J Cake ~ F!"l<< AlIUllKeI ~ ~ out free of dirt ond 1CfIl~~. Compr....,.itnd ccindenMrfrM'of~,MIl dirt ' S/' ':'/l:\~', ' "';Z'\' MIl wolI ventllMed. Door galkellln good condnlon.lnner~1atd1 MIl doN praporfy... ' ... __,~ ;~ IceMlIChuie Unnlaunltaty,"'~lokeeplcecavored. Narualan Int" paib.Method OItiWfi.rl.iu ice'tofrani' . ~ ....?!..~-..:;;: , bin Ia ..nnary (NSF plaitJc bucket er ltalnleu a1ee1 buc ). Scoop lIored out of holding bin. ' . ~~ -:::iI_ fl3.'\ WaIk,ln, Chell, To Include: Flaar, shelvea, 'wans, cetling. compretlsor/~en...., Inventory neat. AlIUllKeI Ji.slde lII1d - ,;,' -. ' ~ Upright Freez... out are clean. Check condnlM.of flllish; I.e., no ICflI1ches, chipa, eCc. FIOII not to exceed ".... Check " ':". ,..' , gasket condition and Iatchea. CcimprllllCll' and condenser 10 be free of dull and dirt, wolI ventilated, ...t "', .. ,-:::,~' kept clear of combustibles. All prOd~S 10 be/stored off floor In orderly manner. LIghts ~ lII1d <:'_' ~~,:",": Ii''''.' properly ohIeIded.:~ " .. '.:' , ...-..I; ... Walk,lnCaaIer Inside and out clean and free of mold, mildavi and food oaIl. To Include the fallowing: ' >,...: '",... ' ~ Walla, Ceiling, Free of foodldirt/aollNialer. No rust cand~ holes, or 1111I In melII. f,,'. ' :,",:.',~,~;,'j. i..,., .......,...:'....< . r Shelvel Free of food aolVdirt/rual. Nan.._( ~rfac:e. ",:) Ughts Working and properiy Ihlelded. / \. CnntaInen Covered All food IIuff coveted ond oealed. ' \., Inside Odat Condition No unpl.....nt odora, / .. Camprellor' Free of dusllll1d dlrt/praperly'ventilated. Water now unr~ed. Able to hold proper lemperalutl, no Candenaer, paril mIulng or damaged: Fen. evaporator coils and pan free pi aolI, Wiler line drain clear. 5. Mix Slorege Tank Inlkle and aut clean snd In good repair. No spillage or buildup on ~ or opIgal. Check vatalll1d mix wanda. Tap of tank I.. not 10 be used for storage and must be clew; ,Tn regularly sanitized. . . 6. Three Compartment Slnkl MUll be three compa'rtments. Free of dents and dIrective draln"'.~; No faad lOll In CI1lCkI/CI'1lVicea Cleaning Area around splaSh area; no metal disccloralion er mineral buildup. '\. . 7. Dry Rackl Free of rust, dirt, grime and In goad repair. Allowa for _ir.<frylng of oquipmenl. and amelMlmI. 8. Shelvesllnventary Uncluttered Ind materiall slored off IIoot (minimum required by ltall code).lnventOl)' area neat end clean. Check for sailed cases and rotalion system. Cleaning praducta stared leparately from faad and .s '_ c ,_ packaging. _ -"'" _~ : i 23, FIah St_ .~, . , , 26. '0. 26. W_Rec:epleclea .",. . ':i~f.:!'i." . ~. ~-~~ 1.4..:'c.. "~... ~_ ~L..: -B_ ~- ~- ~- EXHIBIT i'H" '_._-", ,'." :." . ..... :'Y','". ~t1.".' ',.', e'" . I';I?! (;' ",~ciPttOUSE(cont.l: .'. I" '; , " , .' '",,"''li~;,' I". .,.' t .' ..... \' t-,\,. ..' ,.,1',' ~ .,"rt-". . of. ~:~'!i~"'~ ..g WIIIIft'loon '.:. ',:\t.. . No...........bulcNparillllne.M....CertMl..chock...- . '-vi., ' '$'. .. "r' t'..,.y, NI*"-;;:;'-~lo~-. L' rda,,-,,~ ,... ~moi!~ ~f,. .....' ~., . If " ,I . ~""~I '"'~ COf'1'*I,I.l".I.I~ .-.u~ ---.' ~. :j1D,:,4'~,~~ . ~~cIrI~f_.....",=~.:-~~~_~1 - ''''''~i'~cr.:~~''";.,~~~~~&[ffi~ ~ . ~>f\ " rlMUl_ 00YefS ,"-" ~, or . ....- ..... ~J ....-,?Y.~.r ~~ ",. toler.,. ... .. .... .. ", ~ ,'. .' ., .,..,.,. .... ..... "":''l' '''~'''oS~I/,jl'' I ~h~t~ Ma ".. ~1... c:hIppedF ~f"'ood" Iunooll _~cIrI'u"""':- ~~ ' " ,.' '&;" 1.~.Of\ilil~ '~l: '~l5:. .'1i'~ J: .or" . .' ...~...), ,.. VI anu. I~"IN. JUr.~ ., I..,. '!' - ~R1" ..., .' ".' d....,.. '.,...,..,.. 'II: ""'-"~""""":!.!...'P'/((jjJ~I'iJitrt!.o' ,', :~..~. ~~~~, "... of aolI buildup. In ~ repM. Chock bIIde~. . . ( _Iiic:h ':":~'" ~~~ " ,Ii. ~.....,~" ""','. . .".1," eIwp), ~ ~_ ,...~ flllian. :~, 'r,J .~. li'~'d"~~;~;l~lt~flli' ,\'" ~..MopSlnI</Ilucklll '.~', MillcloenMllOMlly. ,"'~;dnllnnotclop,l.lIlI)!I~ - not. .:~~~J~ ..:.:.J!!J..~"'._'~ .,:........Mcpe.; .. ,': IIllll*frMoIodorMllIlorldOlA,olthe....ywhenid.!nllM, ~~~~.~~">;.~(. i" ,. .H' ,~, "or.., . .,. ,. ,. , . 1l'!~11tt: ' ~~; "'~~t..o.I':":'.", ''''.1.\ ,., "'SaNtc... t"M ~?N: I ~~~.. WIndow WuhIng '" CIIon, r..ulor1I rubber Dl11q~.. BrUah In goOct.....,.llIIon:.~- Of .. ".. ~. I"'.'r!f,,.....'. '\"''.5',7.~.'''~~ . ..;.:.r.Eq\ipmInl . ~. llhouIdbelY"'bl"'_K~US:i~~.~;' ~"t~I"~,:'iI('}$'" """".5'-1' c:'~':~'~\'7i '115.W--.R...-.......... ~~-_.---' "~II"--~'" ,...~--~.,' ',' riI:~"""" -'~-:':;"" !. ~~... ,~I-.ulIlijVYWI"',UUA ~l . !.IM,.._....., ','~ H.~.n\'~~..... . ,'............,. ./ "ie." 'Hd WIIlIr Heat_ ...I' s.it~:Unlt lii'iIocid'worIdng ; Iq'~" ... vakVe~~.-!'')r(/,.':t;r;~~~ t!1ia!..::;.tt\ ~-;: i@)~ ..... , . . I ,('"" ':'.,'..... ....l.._.....r" 'If'i r,l:'j..' J~ ,~. .' '.~, "''l'~. . \1,,' . ,. ''ill,.'t~d~' 1 .7, FnExllngulaherSyalll1l Muotbelnapected.........,.,Ulny(with!-Gal-io,vInglMl~datall'lQ.' Itc."''''' Employ- :';;.;, .,,:," . ""~'Yf:'" ~, D"'L.-t I~ ' mull be trained In proper 11M. ;~ I . . ";:'. ,~,'ititij1t.,~. j ...,S;J~!,'f' t.,.'..."."'.. . -;1....,... '~~k: ~'i. ,', '....'....I<t" l' ",' .', ':.-'-:':'~'" J,':.:/ . ',<''\ "~::.,!~';K~r.. TALOF.SECTI9N(D) ,,[ tdl'l J[iII.U.lL :~~:. .,,'" e.lJ:f'. .... '-...... _0' !t...... ......!....,.. ..... .'~ ..........'. .............. X..... M;-' ..,,' III::) Rt:8 ",COMB lmellure...., n "tmploYHI onIY'I, . ',', .....fl i,~,'I~"J' f?j~~~'" q' '... #'~'. .,' ..~~. \ ,i' . ..I..') <',.. ~.I".t.i..~ ~"""". , .'. " ' ,I ,.",,:""":\~1~.i"';,rn'..:'I"'..';"';"':":". ~'..." H'.:;."", ',,'!';'l.'(').. ;1, Ctlllng/WaIIII .' . No product atIIno, grat!KI or,aepool buildup. Includei~,"'.T~o.-*, .mer.1Ink lIIoDl and . ,,{.::: j '.'. .: t::\:~jr? .::. . FlllDtlll.lghta beInt doofI. No holeI, cr,cked btokon er Ihopwom ~ FIocit MIl 'M!-11lUIl be In good ..".w, '.. , .... :'. "'j.,';:. :\~,'\' No chipped point, IIlI1IIl:ched or fadlng colen. AlIighII ~ MIl In pa.ce, FbcItnIIrUd MIl ..,.. .~, ,. , _..IIolIAI. FlxtumlllmP "'""" COYllfI not feded, or ~";;'" ".': ,:, '.,,". SI_..:5J-i:.':; .:, . ,/"" ...,. ....,i$...J'"1.'..., " . '.,' . "',' , . "t', ;,.2. . ExhIuotIOdor . Novlllblt dirt orJnM:cll preYIIent. Floe of foul odor. Nocklllor ~Dl1..........., ExIwUII.:': ,Ie' ': ,,- c,. ''',~,.:'''':' ;" " fanopetlllly..nd~IrUd.'" .,' ," ;""!~"~;:i<?;fii$o1t~~):l'!;:;'i:".""~c:,:,t;..;J-'--'.;.~),:. {~)TailltlUrInolISlnk ' Clunedlllloaotdllly.Noooll,amudgeaorlDllpfilml>uilduP,.Floe"",!, ,ruot,olD,~UIlbe_IIllooIAI", :" ': '..-.'.:', fc~i"'i':' ,>. IIId 1n1lDCld.. No 1Iakage, NIl, chlplor crocks. ToiIIIl pef*: -'Rly Il1<I'JIMd with ,<:,' : :,":,")1 ~. " l. '..........-6nanlr .....,..':. . ~',';tI,..~LJ'l ..!'lla....~...,~fr\(.. "."~ ,'. ..' :n)s..;mlnollT.....;1 ;:;~~.~~~t~offi;~,~~.;;.;';:~.,~ ~~~\~:~~ :.-::--:-:,::h4~~; 1.,../ OllplnMllHend Blaftrl IIn.u"9''''''' no unpIIaIanI odorI. Ftoe 01 cIrt blildup and . ", No 1nMctI. A paper or . ' .; ....'".1,#",-.;:..... , . Wnte Roceptacle ocrilnuoua clalhtowel dllpen.... or hand blower muot be ~.:~.~.AlfixIuteI muilbe,-:.~ ' ' ,"" ~<)f.": '(, .', -..rely mounted. Soap and ta.vel ~hlInd blowerm~ be 1r1'~~.,M!,"".mUII be, ;;. :51 ' . . 1/"": (9 1IYIiIIble. Nocrockl or chlpl. Sink and toilet Kema adequately itOckod. ""(t;." :,,~'T,.1-\o'.. '-- -~ , ' .'" ....'..i'l~:lrf'"':\~. ~.'~ ~I I'"'' ., >.';. ,", ..1'....' .. . 5. Door/DDDrSlgn oINo~~~"!'I=::"Dl1M.~:~='-~~J:r~R-:~" ,~. .~. "h,';';".i.:1.:;.'.',: ..... ..-R,Ier8""...or.....,.~." UMUW..-' _JUI""fV . ...,...", ,"..'., ..~~;~....~~''-'-.... ',:0 '.' . 'Mon'IIIlCI'"Nomon'liIg""mountedDl1doof1(~'Employ-OI>!t).l:fandpalnl~lcl1!"r1cer , ;:.::. ...<,;ii")~:,: .': signl not ecceptable. ..' .,.'. 1,1;.:lr....~I' '''..J.,r\''''~,:~';('..'';'':~' .,~- -:.- ~..:> ',r.,.~" .... ' :'. . ,. . ;l,~'I,.~;;f{ ':'}TDTALOFSECroN(E) '[~' "J[')I[~"'IJ;. .1,. . j, ". 1-1 '.~ f ".:-n r 6 ~I -.... :.:... . . ... . ..... . .. . . . . .! . . . . .. ., . . .... . . .. .'.,~..",.;; .~;. .,. .... ~..'~.~,. . ...~. ....... .. f':.: c.(F)CUSTCMER8ERVlCE. ..," .".. ,'.. . "",""-Y:.~N~,li~~~'}i,..;'",.",,'.;;;,":.' .,';" .00000TtONS.:;:~k;' ~~,. 1, count. Etlquett. . AI emplo)'Hf -'<Ing CUl\omor counter ... mUlllAO countll' otiqUotta tachniq.... :To 1t1cludo: ,'." ,. ': t;c:." ..?f,\''-mi:~PJ.'-i:.':': ~,""',: ' .1miIe, eye contact, Initial greeting, customer asaistance ~ fmal thank you. . f~:r';~f1r,i.;;~.>~~.;~....:tP~~'~':"~~ .2. CuoIomet Alopent....ndemployeel-'<lnglnthecuo\DmeraeMceareemuolLllClorllandCUllDmll'crder .,.... ." ~.:',',~~::l." Responolyenesl queIlIons end iii ordotI promptly and correctly, with a sense of 1JtllOIlC)', Stall ahouId be pepared ....',.;, ::".5, ,'~.}';'~'.f,"', totak.cust~orderwhenthecuslomerilready. " ~ ..;:0,,".>':. .' .--.:;;;'0,:"/-$/ AI opaIIIDtlII and omployeea worldng cUllorner aeMce 11I88 mUlt hive communication and 1angUIge". ".,,; .'. - d;',:I,:'~!~ ~ r... lkill..ulIIelent to oraIlympond In an apptopriata mannerloCUl\Dl~~and any questlonathey . : ...":'.$i .."~,,,t'. ~'1lS:. may hive. (SeeSyalem BUllelln'293.) . ~'." ~. .--;.~.' '.,'.<',''' AI employeea wor1dng customer counter 11I88 must use suggestlvuelling technIqueS. To Include: S' . '.:~ ' ."" product a1ze options MIl ptoduct IWIretlllll. f ' '.. . , -'- '.' , .' i ; , . Appropriato numbel of uff wor1dng 10 handle custDl11ell within aervIce tine paramIIl'n:" ,; ~ ~;,. '" .:t:, Maximum of2 mlnut.. or leal (peak) or 3 mlnut.. or \ell (non.pelk) from the llmeCUl\...... ordotI c/_ ," ./. until pulchased ptoducll 010 locolved. Goallhould be 1 mlnuto during peak periodI. ~. . c;<,. Mulmum of 3 mlnut.. or IeII (peak) and 4 mlnut.. ..leal (non-peak) from polnt of order lIvough t>J A- '.,~ picl<up point. Goal ahould be 1 1/2 minutes or less during peak period.. --1_ Avg. limo ( I Employeea must be ltalned snd yelled in their ...ponsibil~ies. Setvice lyalem Ind equipmont need to be Otgsnized to reduco employee CDIlfualon ond unneceIIIry stopa. }J employaes must hlye thotough ptoduct knowtedge. Including pteparatlon and prien of IlII menu lema snd knowledgo of currenl sales and ptomotiona. }J employees must be trained 10 effectively 1O$Dlve customet complaints. Comploint. Ihould be resolved Immedialely and documented for evaluation. NI. ~ems readily accessibla neat point of ",eparation. Packaging and Ingredientl well slocked and neat. Inventory at front countat can withstand peak period. Per ptoduct preparation charts and operations manual. 3, Communlcallon and/or :'. . , ,--,,- SkUll '0:'..;,,1 ...."'-... ',' " 4. Suggosllve SelI1ng1 UpoeIlng 5. Staffing Level / 6. Speed of Sorvk:eIInalde Ayg. T1mo ( I 7, Drive- Tlvu Sorvice Speed .. " B. Orgonizallon of Employees In Store 9. Ptoduct Knowledge " 10. Complaint Resolution o @ Organization of Inye".. tory al Front Counter Producta Packaged and SllfYed ProperlY ... ~.' 2_ -51_ .:. ..' EXHIBIT "H" TOTALOFSECnON(F) ._- -- All .U' x 3 51_ (;71 '"--'--- .. 1 I).,.... IIov:2 ( II .: 'c,n-,.. f"," ~,~tk"lt\)r.. ":.. ,1. ""to '~jt 'l,,;'.\.~ I ", ~ .~t;~'''; ~j~:l SJ . t.;~,h,,/"J;~lf'V:'~":"~' ,10 _I. '!,'. ',t'~l~\'" \I~."...~: \&l.. :"--':.\~~I~~'t"~' ~>.\. ~.., 1'1" . I'f.' , "t. I ~,'-'" 'ri."''',., \ ,'. j \ .~... ' ,.n .r Aol.'i ~ -'''' """ I ':-! >: ~,~, ,.: ~~;'i:'i,.~iJo' "" ,I, .... ; t.:.~:',k'~i;i(1;~ili''i-'~t~i~''~$.i,:: .g~~if'f& : .,t "V' ~EMPLOYEE8 ~ '.. '....t~,' .', . j L ~. \ ....A~~ YA,,^!~r.l..~~~'A ,:f;'. ,q, f{l~"~;',t':..' :,f"'.... ~;;;:~.~_... . ., '...., . 'J'" . ,~,. 1'!..}..jl'...,1oI.l.."..... T;!.t..."'J,,\,h'.\l(~".L<.'~,' \, 1l~,'~ Urifcxml . "'. Eniplo~ .,. to _ . clNn ~ lroIfonn (IncbIng ... bedQo) Il'lII om. . o,..cllled n . '_~ ~i';; :c.:J, ~,:tth.r.:r8holl 'to I." . ~ curent S~- Builtin. .~ '.. "'~' ,I~, ...~ 1..1'J,~"'t.~~..,'<("'f:,'\.j~'I....l.',;r:-~,~. ;'I\,,~J;~'. .'\. ':':'J.1:..t"'tl..>'j...\1 t 1"i'~\HYai-" ':.~ '1W-':H.:=bew..hod:mCOl11l.d.ln.~~e;..~~~~~a~ ;~~.b~':&;((~\1.~til:?' ':f'~ ,,!\.... \. . '." hM' II worn up aAlhart <<tied becknelltty f"~" ';>~"~'J'!' ,'t~~I...aA .'\..t.; (" , ,Il"', .,. 'j" '\ (,:~ , Wf "I, . , .".. ,",',;'~' ,'.:,,:'" ',.' . .'~ ',... '.,',.."o".;jj,;..~ I' . ';\lJ~'t\';f!4:.~~':;tl"lt ..'\). "I r"'~S,'l. '~r.ll'..' '.' ~.. .........HIl'lda.,.tobew.hed~-'itlnloiIIW . ~..,. . c:I1aM;' 'J(.\}' ..:..:. ,;,'~t~.: i':." , '. .;': '1, IflwlwlcIng any Ill-**' IIlIIl, MIl IIftIr ccu~~~~'II~~r!'!5~~lr,r.t.'t.:r,,;;.:,.i;;::'; i.l~< J~- . ~ '.' "'1,:,~ . .3.'~. .,ance :, ~MIlWf1lllc~*'""'lMprcfMlioMlllm.cllhe.DIij.Q~:l11Ill."......~ ~." '. (t. Sl':"!1 ~I-:.~'.' . . ...-::lhcuIdha'l..nNIM1lplNunl~.aand_doodorII..Nolln!'1I.:1 f-cl-.v.J-wWY,' .,...~1I'fjll .;.. )oi~!f.~.: " , Thelockcllhelllffohal*lpllllllCUql.r.typr~~~Mtole~~. .,..,,} "'.::':""~" ,f'....'~~ ...~{.;.,,~ ~.'~1< .., ' .' ;.:' .", ,'. . ..~~-)...:I.!.".:TOTALOFSEC110N(G) -' r,;v. .("1>.1 L1:: ....., . I' .~." '0"'" , . ' ',',' '",'~ii~Ni;:.~ I'.r; j . -, < . .i&i!I>.:; ~.@;!V!.~'!,r.. " ' '.~l:.:::"'/;::.:,,;~.'l ...t '. .' ,:;, "v """ :':'1:~~;.(.':f,,<<;,i~. ~./, :~\,.AI"ll"x3..:;:'~ ~::',,':-;l~!:,5{~l .. .. e.... . .... . . . .... . . . . . . . . . .... . . .. . ........ . ......... · · · · · · ..... · ..... ... e.. ,1 'l!'I. ~~O~UCT CONTRD,~.QU.~.ES (Employal IralMd In P~plI' u~.~ \, s.'~;},(;'~~(;~~~iil:~' . ..'~' .,;.' ).;. '.:, ict<!i~l ~'1 .~- B........ ".. "....._-,....~--.............'-" . "" ,.,,,,,,,,,,,,,,.1. .,.,.".. . ';1' "..,,:;>, """j 'f'.S'" t, ~I"I~ ...',.... ,....~_1I_1_.,. _""''''wa.... . . . ..e.:. 'I.. Ir~'~"I';' ..-1 ." ~ .' .." " -- ...~"." th~2..""~~Tl";':" :'~rS/ <I'~'l~~:::'.,~'~' 'k,\:'1'~":"".)'.,'. .\"~' "';"'~l:~~" :/.,~ /," . . l~.:' "'~~'>Y. :;. t<:~,i!~i:~')~(.':/;'t~~~t~~~"'\~I':"~' .- :-'-. ,. ,f\ 1,'~",'1;" "15~~:'f!~':-!h'~,.:1 "",;t-,~/,,;_,,II' .. .1",.4",/":.1: . j'~". /},.- I>. ....':'.,...,.~'~..:..I,.,',\ ,.';.:-:....;,.:.....\.':!..-~.., . .... ~....,~.....' .... ..,':Tf.>~.,l.~.~J, roe. .: HlghTompon\ur1I .,' SIoreI muat"''IIto h/ghIIt lomperalln neodod;prcporIy ClIIiIIfIIed (""1lnIzIer" one! .,. . . ,..':: ,"~.r"_'Them_,,, ',.':.:. ''au''- lteret). '" '" ','~~ "'.;I.:f4""?~:" " .,::.:.'.'.',.,..",l..~.~, :;, ;:';;' i..cw T.....roiur. .". AI alorIe inuat hIMt to IclvMt tom;....u. no.d.d-pr.p.;ty ~. . ., ..- . iy,-,;"-n.errr1lOl1'lltel " , ' t " ',., ~ . . '.~ "'~:"i MTl_dlOlllUr , :, .AiUoylllm.B;...__muathlMt.tolhehighlll~poni.;,.noedod. .-~ ,..$.; ii' ".,;..' ;<,' 'v' .,.~7,{,":; '- ' ' '. . ' ,....,'" ,',. TOTALOFSECTION(H)' I-'J v.1: ~~':<.1'~~;,~-:;;~ ;'" .>. ~:~',r~.:~"'~' ,':~ \ ,~..:~,,'" '~'/:it. .,' ,;:.. .',',' '0'\', ~:. ':, . ............................................'.......................... (II PERATURECHECKUllTINDEGRESBF\ORINCDMPUANCEWlTHBTATEANDLOCALREQUIREMENTSI .. .', ,.", ". ',' ....,:."." . .,.;.\..... "RlOulred Vlrilncef+cr,\ .:',....:',.,'.:t'.K..T.m,;.'.'ur. " ,.DDI,.tioni>", <~~';;"FWg.W-<")' 'd., 140 5. . , ..r,,/ ~: :'. 1 134 1_'/f."". ,: ':'1;;2," D1pWIIIl1II(I)" ., 100 '5 ., ,,:... '.;',. '2 ISO 2_'~" ':0' ~?:i't NowIyDlpWormw 120 5 . '..-;'" :,'::".' 3 '~"1 '. . 3_' ~ '. :. ~. 'OO'Prallct 1B 1 ' ' ,. .4 Islll,"7/ 1$/ 4~.1J-. ...r ,. "1' ,j '- ff(S.'SNk.Procu:i '. ." " :l7,28 '.. ;~,,~:;,' ""..:::: ,5 r- /} .5..f:)!..!l:.., .,' ''', ~jl.,' ,.,',v;......""-'-;..; ".:; ", :, 17 . 1 ': ~ '.':'i, 6 H8 S I ''', ,..', :;' . ~rr.lr...'~' rllliJlAA'l .' . '.. . '. :., " . - . -- ,I~." f.~:}::....r.~.~C.~b ~ rl<jn+- 33-38'. ,. ,7 i./ I: ,;. 7-,!I.CCf-:Z. ~,'," ,'-l~ 1.". """ , 33-38 ", "''''''''. :.6 ~<I ., :", B~ "<~..::.. ~;~e:"'c-...R~Cnl::"k~.... 33-38 '.9 30 ,5:'9..J!b.~"~' tiG:<.DIIi*-:.;':','" '. 33-38 ' .' .10 /oJ/II :10 IJI A::.1'ii;;; ..."',""i~k'O"" . . .,Aj,:.. ;. ..1'.... .'... ..r. . ~......'.h..... ,',' .'ScftDrlnks ." '.,' . 38 4 ....".11 jJ{ ..'1~",,"'''"'jj..;.:: "1':oJ.',,.~> , ,~,"",'I ..... .' -- :>~ -...... '{12,'. 'W*~CocIer ..,.' , . . 33-38 12 3 ~ 12 oS I~.' , ,:' : "A3- CooratArleF_<.10 131.-< 13N,n- '~llIl, !:"14-"WiII-lnFr--r ~10 14 n 14~1A-':,' ::'1i'lklvIIi~Oilpllyc...., Rr'1.1- ;10 15 -0(' 15~1&,.. .'.< {;,:'1s." FIah F_ <.10 16 -10 . 16~'-~...'/(t,.., ~:17.; Pua-1Iw . 150 5 17 H /1, '(7..s.J.JL:.;.. 18 '-J'fI 1S^1/L '1" W_ 0_ 150 5 19 1l/'1 . 19 IJUl- . 1&- SlllmTIblo 150 5 20 .1/1'1 20 M' /I.' .. .2Q. HeIlIdHoIdlng,PIIIl) ::145 21 ,II" 21-;:i"J 21, ChiIlWII/lIlIl' 150 5 22 ,ITIl 22 All fJ- . ,22, BBQWIIIl1Il' 150 5 23 ,) /.: 23' "/II 2J. GlIvy WII11W 150 5 -- 24- Hili \..Imp 145 5 24 J' In 24.J1..J /I-- 25- ~ F 365 5 25 " h 25..EJL P rylll 26 I' II' 26 nJ, 11 : 26- Griddle. 350-375 27 "" " 27 ~I/ ,I- ..:l7, . ChlrGril . 550-575 28 111/1 28 ," /1, 28, IntemalHlIIlburger ::160 -- PaIIy Tltnpelltur. 29, Fried Chlcl<en Pltty T.mperature 3Q. 'Brazier' Sandwich Cond'unen\S 31- (',\ Vr I ,'" .l'~ll (lJ1 '11'1,.,..r; .>.,,~,) 29 AJ In 2!l..1!.'-.e.. 150 5 33-38 30 I,} In 30 /oJ I It- -...- h':. EXHIBIT "H" -l'" 2-1:- 'l~'1/~.!....t'Jl.~;4f"~-\ :mL.~'7, ~. l ,...... j' ....~' .. J r"-l'..H'.; "'Po" '~":.''',ll'r 'l/i. r.-'lllr':"'~?,"rrJ':'t ~.fj~ ,~...:i~,r~ ,"~l2-~\i:.n\"...:'" "', \' .. :~ , .. t..:."':~~. (,. ..t{:) .:'~~~...,~.\ \l~ ':t. \l". ~',{ j~".'L ~~.~. \':'f:"i . ,,;mj1EMPERAlURECHEClCUST{COtlL)t .. ~I ...' .1.... ,t', +,(.;~~i...:."'t\ :,;1\) ;.:r,..t~"'l.. ..,.;~. :(I~"o;"",' :~'iJ.- .. "''&t.",:\r i ~",;...,,, I': ,..,f'Y""" , '.',,, ," . '.' '/ .; '; ,,',;t-o, '1.'';:'1.'''~'!;,U''; 1;-'11\, "1' ;'...'J ' ,~.." 1tt,;~tl".l:~":l\!'~"""" 1,:..;:.{i.,.:t;:r'\r IR--.:i........J .,. 'V-.J-'~-l '\I'\:"'I':""";~~'~'" "JI\j.\t:t~..,~l' ,~,.?t~ti-~-M-' . 7f"~,,,..,,>.t...';,.lh',~. '1o..f '_!!!!!!!!! ".~,..ar'_ ,..;..,;......!.lemD_" ..'.'.r~.."."ojl.',_~n.. e~'" P1\t,~ "J\ \', .''-c,L-tl.c..' .' ~,.. . ~. ...... '*' .; .:c-.\.q ...".....r:<lht",.~':.4J~ 't$ft"/l':':}-'~ ~~j "~ '.~'1~~~,..t, 'l,~J:a;." '33."'fMl;:~k",ilill- ",-i;~~'~i:l:it.:, t:~ - : t, .,:. '1"<',~:,'~~,\NJ't."'!.; :,~~'~'Md:j.:"';i''''''''~ .,.f"~" ~.~., l ~ '.I.'''~~':>\~_ '.-:::. ..1." '. ,-t, ~",'r'l..."fl"'l"''I: I. L 't~, ~ ""Cl,~U;"t\I\-'" '".... '" ,.' .' '. .', ," .' '. "',d'tof"-'f.L '. '..' ~l"" ,',,;,," . ~J' .. I~" V w.... r.....-- ),..' t~ " '. 1\' " ..~ ? 'r' ,.,./':,~ I') ,,' j,.,..~..". '~(.",::" ,,,:~;)ft"'.;.,":"',~'t...;.". " ~.,;,I~", ,.'~ 't,..... ~.,':.. 'f . ~ j,~. ....~~,TOT OF.seCTlON(1) '.llt,. .._~ ~ 'l. , \,.rt~.. \ q ....:..>~" .... ,'.0. ,.,...}. I . ." ~.)., ..,. 1'.1: '?~,,~,,~_~~-:l'L' .''''1 \ 1" . .fII\~.~ ,.,.'l$/oI ;t",.~.:",~'r.';'W',1i '.~:'f'::.",<I.tP ~l"" .,'".. '.'.,' ..~^':,' ., '<"""."pt.. .It\';.Wril.',~~(I'fII'I,;^,,,,~I1.i;''1 ;q, ",,..~I.",,,~~:~'.'/OI'" 7, ...........................................~.....~.~..................... ~!,App~,~~~ and PICUgIIlll CheckUI1 :;;'1'~ ,,(,: ;':";'. .,\I~~.;..',:~{t;j(~~\1i1,~~~!fJ..~~:}\. """';'I"{ ~0PERA11ONS' ; 5,"hr--..i-.....-. . .,..\~JI v,'/'f"tf 'II, ,., ....',....,. ,"1-.. .,.... .l,",~, 'T,\<,.,....~..,(~'~ll:...rl;;!'i;."'r..\,..;r'.l.' ~,...J,\.. '.... .. .(-' ",'" .....,...',.'" I '. 1.'~':.!:!!!!~ ,.,.~_v..."..,.l';.. ""..._..11"..... .I'.......'..r'.~.. ~..t...:,..~"....:..j.' ...,...."....,.....,!!." >r.''''~~.), _ ....Y :..."r"'..,'-.I~I.j:l..;.,. ,.'-. .:\~"""c"" '..-,.<',';..l.:;t~..';,...';."1I';'..'~,..., t:iJ~"',,~ '.'I~. 1..'<.,....,.:1' ~.,;; '; '1, . NIx (T..... SwMI) .,'..~::'DQ. Product muot be ~ frDm frecet apIgat MIl be..- 1ilolIn;.~-.;,,,.',:,.::>:~.,.....{,", " .;~"" ~- :'/....i "(9" .. ;,.... ~ "t,t."1 '.."... '.'" ,; . ,... .'.'/-4",''''" . <,,::,, . f'1<1~... .,. l~"'^: . '~.' ,... 2 /r, 1~-J,ttit'.. .. t'- , Cor*l ClwmI'I ;'c".I."DQ'~.IhakI~".yogurt-s5".lOthvw\ll'lceaf~p..'..ntlObeutlsfactory.., '" '",," -~'t 'i,' 't~:' i..,..'J.".'DQ"~"~." ~..." y~.. .....-C.C....",:.. "';' '; :p'...\\c.,;/ll::;.':..;l.~';;t'; 'i,),;;..~lo,. ,:.~ .' . '. :;~':"~.'l' '~~ ,I.'" .... 1.. '" . ~~.~~ .,.. .' ....o<!l.. __"'-~," ..' ,,,, 1.iJ'';':!.-,''''''''' .,.,."....., ','.IL..' . ,. '.. '. ..., '~ ..~,.I'., . .! }.~ ;Appe .;" -C, ...-...lobeal18ped..IM_......,.uond..lldIIllMd.cwlonlql"...~ MUll!; '':i, , ;;. "-:!:H":l>" '. <,';-:'c PiacedlnelPorllol1l,' . o"'IV..~em 8JlIllOYed portIon... caIed fot on pnxIucl.._.lIIon chIItI and~ MWgemenl '.. ~ .". 't \' .~' 8f$' ~.:::' ~.~...;;.f.cf,.BImrll~..lO OI-.IIM1l1u11' ~doeI~~lM,UM!"~(t.1Il'lyhellll1.....~illoUlMU. . "~3~ .,"':""', ' 1;.' ~>"t1.lt .'.I;....~. .:.,.' . :: ..,;"j"!.' _...t....) ,..... r ,(',r.,.'" . '. . .-J:.- ";-'~''''''. ",,'.: ,~."""\' l: ,;;.)^,.~t~;.,..t~~ J..l\"~1'-rI.;~' ,','j :'-" .......i!.-_ "~'.;' i' ~ :'hl]; .:t..,..)~~:f,.~..;~C:~)~....,... .~.-~~ ~.. " . .~.l., ."_ ",~-,~.,\ ,,"~i'J'/r\"- : I ':\'~:'''''}''} ("r!'-' -t;; ,,"V :~\'7'.,:'.':T.:~" C / :':''''.j ',,, . "-".\)":~"~ 1 .' '''lr.,.',~ It;~ ~,~4, 'Jock.,wcCol1ll::'..~:'.qCCll'MmJltbejlcl<llld..cfOdObot'.1,1994"....',\...'.h ',"I"~;:""'l.;~.':::t': '. .:, c' ;',J...--"-' :"'~';''f:W: 1/"": ","":' wriIM...UiPacto""""". "'." ";'. ~<~,:":"';;:.i":'!\.:."'''''.' ,..... .' .' '~'!';'~:"') :(S).Topplng .... " Self4lqlllnllotY. Pit SyslIm BuIIelInIlOO4ml'113. P.,stcret-t..;.g.",.mOpltllIonlMlllual . 5--1 U- . "<i:,~.' ,:"_,;,,.-"\"t'.' ,.~,'IJIideIn"." .: ." ..,';l":,.,<'.t.~.,\".i:.,;"'" eSI 1<.. - '8.'t.1t,MlIIy" ... -- . r"". NcW.Iy WIighII Col'IIcI 7...!.:!::...- ~\... i', \. <...-8 .:eani-...ileqIhCI. ,,c. . ,,8~.r ,;.: 'Iff ~g';~;;:.:,:..,.';;.f:" ) "". . 1IJ-::":';~.l'.' ~~~_,_ ,~.. ~~..........:~"... '~_';':-:;"'~.' 9_ . .",' "\'lD.'UMpproYed .., ..~ .. H '.'" . .' :" ., '''--1) .,~..:"... .' 'Pi'l 10";' 0-:.' ~:..:_.~::_I"'. . " -. --t.':';-:~,~ ;;:l;/Y,;:::"'PItiy" .:. w~ory, p~SysllmB~IOOi~.i13.'PIt'S~~'.l:i... Mlllual .11 , t,~,~::.j. "~'_', .'.... . .., guldellnll.. . .._...... " .;. ".: ',.. rr:7". .:;.1 '--t.L ":.. ll!12. ..Hclt~' . ">" ' ",' .."" ...',. . 12--1-:... :, ':", "- : ~ii3:"~~HcieogSluce"';"':": ";~':"t'i."": '. h 13,' . .'.;.;: I ,,1... '\' " . ,',.j' .:.' .'. . ' ,~. ~ '" .. . ,k.,~~..l,...~,_...~..=-. ..,.. '. ;......~.i.;'l'...'...::;.,.~..'.:r=-:;.r..:.., ..',-,:,.'. ",:,,:"' '. .. . \ \A ," ;. ':,; , . ' ,H ~! j ',:..,:~".,'~,'...;,.I,:..:" '."....'18. '.~u.L-.' '.~' ~ '. c_. -. . .: '~... ."' .,./-...;t'J ":';'~\.".~'~",:.':~;'.~~'r:'.l'.~' ':'. ......:1 . I :.~~t..t..,' ~I ."<,n;,~~.l"';.: . \ .- ,.. '''1 '".t7;"fGtilldctticln. .:""~."'" .,.' . .... ',..' . to).'..:: ',.:' ~.1 "__~';--::";"'::'''':'' ~~~::~,~,.<.c'.-..; ... >- ':'-' ':1e/-:-:f~:,:.; ~',18. .FrIeI ' '. .." 1'9 '-"'~;"-:"5.'i 1'.OZl: OnIonRingI ., ...' '20 ,.)' .1. ,...., "~" CIl'l'ieIAlRaquindItelnlSelf~.PIlSyslImBuIIetinI '\13. . ". :..' 21-",,;.:.....:;' ,'22. P_ThNHoldirlgTmal PIl.SloteMIl1IgII1W'IlOpll1lIlocIlMan~guIde,",*, .... '22" I~" ,,"23: HciidinsPIlIPrOcedura HoldIn8 pan and ~pltty cooking ~uremusl folowguldelinllln Syatem BulIeIi1 dated 23.-1.:..-'.:,.'..;'" . ;",'" '.. .... 1012ll194fromBIIZ........ ~ ....". ".....,:....'..',.:;:. . '~"~~............_I ~................... 2L!~,':. . '25. A(lproYed PockIging pockI8ing1\lnapprovedlOptionaI: P Syatem B~ 1004 end '113. 25--1_"';;:, ., '26. un.PPfOVed26_'- 1tem(1) '. "ll. optional 1lem '"28. Optional Item '29. Optional Item '30. optional Item '31. Optional Item 27--1_ 28--1_ 29_'_ EXHIBIT "Hn ---- ~, 30_'_ 31--1_ I '.v.__..._~.'''_' ijff' /~;It~~'.<<t':;-.....~~.....\." '," -) ':1' '\"""1,. J. ',' ~ ,)". .... . w.; '.;~' J'~'~~~~'#~\P~~i'~'1:,~~~{'r I~ ~ lAPPRDVEDPltJDUCT8ANDPACKAoINGCHECKUST(cont.)'. W ':.' ,\~..~~. . '-~ri'{;fr~ ~.t.h:.,l'~l'"' v; /'-'''+~~l;''''' . . . .... '."J." ." ,,'.... ,. , . ' ','I.\"~, . I . ;"')' , l.,' ,", . ""'.' "'-f". io..~.l;"J'I",~..,'" 1\'.:.-,..1 ',",' 1'1,0' I" /.-1.,\-;t:.M1~'';'K'''1.' t.'~" 'A'I _,.."..~.~ . ""0'''::''-1.:. ....:...:::e~., ,.. '. . .' . ,,' I' , , 0\ H~J.:i'''.~.."...'I-'''~\J .. ~'.' . '.'. ~~ ,"."" ~1.1.~;:"i':t':.'''' .......1. ~"t ~~'" ",..,:~ ~ 1\ . ...,n..~~.,;.~,o).:-\,,\t"1'it.t'~""I.~I1-' '1it""1.:l,\~ .,1 "t~Y'~~" 32. ,ppW.., Sociope. , W.. muot '- running Wlter. MUll be Clelned MIl IIIlIlzed dolly. ~ Iind.pilile muol '- ". '" -." ':'if ". ,Ijl,t~,liind Sponge" "emooIh olwp edgea f... d nIdca MIl'~uId not be pitted. "':-:~~"" '~:'f~~!'J:"" .... ,.'. "it'323 . ~""J" ,I, ." " .....t~-l. '1:"'\ i'P.M::.411" ~ 1~~,... '" . 33 "A___C,.'" 'p .ft.-..C...........M ,,~, "', " " ".'." ,.,~ ..,.,.~..,,,.. ,'. .' '. 33? ' " .~~ ., ..~' I~ Anu.. '~.~. . ;/f, j'r.,'l'.t~.. llfo~I~, \ . ,_ -,.1 'I P~'__ I~ i ._ . .' ~. . ;,. ." '....~ .: ;"..'.'._;" ll~~~~, '..",' :: _ .. . ,''\ '" ",. '"" \. " (.1.';'" ,l. .1. ,.",::/",.: :', ,'PI \"34. ProductQuaAty ,',' 'P.,.Q~"Choice.Manual. ':'~J ' , . ""J', ....~tl~.~.€...'lt~,t.-'..., :.~-,' . " ' l ,h'w;"(~~,~"..,J~~. ~,.,..' MIl,. Product RotaIJon). '; .,~..l :'..; ..',';, ";'.: (t)\...' . ':fti.t:1,,~, '~~Jt.wdWJ:..r,' '.' .. .; '';'', '. ,..... ,"I,.. p..:L:...'i.:':r;;.:7,~,\" . POI s- B...~.... --. '0'-'1 Cholce' -'nUII ,"','0';'; ,., J;l.,"'l~,:.J~r.\,.,1:~lo"" "I",.. 35_",,\i~! ,,';~. ,I'W -......"', ,l"; l' '," ,--.. wttUUI'''N _I 11_. '0"\:-., ,~:.....:" ~l'i? ",\,: .,.....', . '_.' r,r,.I ...:..:..M_......._ ra___ ", .',..' - '.' ','. "','IO..T., I' .",,". \"'.., ....,.'. "'., "':-:'." ,....,.... ngt........,r..YUI.,. '. ~.,". . ,., \.. . .\o.-I~'~l.' I';'~"j:"""",~.'" ,- r ~.".. ' -r:"'f'i,":MdMenurtemaA_.... .,", ~"'.' ,t. . ..:.qr.'.'f..::.~:<...~~~t')""('r" . <:'/.1 ;"-.;~; . '..'" #,..,....u..~.. r ,5.,.,.'~...',:...'\:,it.~,,-;.,..- "-".:..,'M'o ;' '.,"00' F~ Clk... Loound Pies ':' ." . .. ;..:d'.~..;-.i",.'..~'::,: V , 036,', ':s;'.~';~~, ...l,.o ;'3B,. ProduclO!'!lity ,.,:,.,. .PIt,IhoFrazenCoko./nInUII.-:.. ' . .':'1'.' :),.: r.. ' ~I'~~~'.I ."',_I",'(Appearanc..lIIridard,' '~'-'I" .... .,',~ ~,';~~ ';"".'i -"0.: l~fl",:,:.'1."'1 ,..}4. . ......,.,'.~..~~~~tU ',.:....', -...I" .._.... d ".,. I '~". '. " ..,'; '" }..~""';I,,...~q.:;t.'1 . .'.,' ,:>..,r~..'fw ..1... f!;.....;'.prOCIlN~,,_NI!' '. '''''''' " '" '" ,.:~:~ .. t, ~ \ '~"l,"'j-:~~~',.:',.;(,.:,.~:,~:......I"" .. '.:-'~~r/';1~"~'ijjfl.~7t;) .~ ~.,:::':r~,)' ~ ~ttd In SyallmBuUot;n "8J.A~ Mo~u Ileml ~\~'~~~ 'ci:kO~~I." :l1 st'~\i:~~;~'1 t.~. MdM ttemaApproved , . i'I."" -' ._:;,..' ;....'- .. ,". ,.::~ \'t"~'~~~:~g;t~~l t;) Kopika"&~' K.;pyrll;, "'. Mno:....i Ionl cloan. N~dlrt or ~~ucl ~Ildup on ;" u~';;~. ~~(~~bl:;;~I:;lpI. rlngs: . 3a2JL:r::~~~> . ProJoctor'!l~lllwlrlll panI. WInIilI) Itored properly and IInUlled aner ItCh use.' 39 oS (/~' ,.; "~:; ~.: '39. FInlthed Cokeo . . SeIf~ory. Rofer 10 Clka monual for guldelintl. c :.... -:- -:- ":,,,:,1, ' Mon:handlsad Properly. ";:", ." .... DiIplIy C8I8 weD olockad. ~. . 1 ~ '1 :'.'ii;:. . . ", ':'-.' 'I '. . "TOTAL OF SECTION (J) U(lv.~ ",':'i,;:: . . .' AII'U'x2 V [ 'I :'~" ::. . ~ ,j . ~ ~'-' ........................................................................... . ." . . t, '.". ,.: ";.,~";'';'-t (K)SANITATIONPROCEDU~S (Includts.. oqulpmont, omallwares and utensils) per U" com.~~~ InS~om BUI~n,I266." '. 'i,~;4\T y: .1.Proper....'ofWaIh. In thrllloCOmparu,;..,1 link. Obsetvo and dlscu.. with ~.;. ;;i.k. ~';,.,;'~ Is' Included. ~,~,~)~;:; .- RInu. SrilzeMIthod . .. :' f..:;,l:;? .:-. ,~" ; ~.t. _ :.;,:::. af Dlahwaohlng "''', .' " , ~ >." '.~;. . '2. Proper Dilly S.nutIon Per ADO guldeJlntI. Uti of laundry bIeor.h does not follow _eelu"'" ouldelines. - ..,. .- .r<'j ~< fi::~: "ofSotlSaMlEqulpmont.. . '.~:.".." f{:,....~....,. . . ".$,' ;t.....~.."'i..(.. . . .,.,.., ,'- ...'" I, 't", .....,,, '. . " '3, Approved CIunlng and Rat.. 10 IIIlltotIon manuala for proper agonla. All cIoanlng and IInllallolllgontl Ilottd on Iowtr - -. ..' ., . SInbtIon ~ ~:\ 1hetveI, .mlnmumof~ above the tIool.. '" '::~~.,'~:~".- ':".ft,:' ': <'. I .~'.;: \.-"'.' c... ' ..,.^ ,,", J . . . ,O:''J',,' i:C;} =;' ContIcl .;.: Fr~ af allnaacts and IIllmlla (fIln, ",.Ia, rodenll. ale.). MUll '7'.~ H~::~~lIm. .', \' \ :S"i":~;~f4~~; .c '5. Sonitaliooi MIl ChemlcII SalfoGplanalory, l . ".: .,:; ~'.:, :.... , -"""",,",,' '. .,; ~,",.,.;:AgentProcedUre.' . - \ / ...,;',~.....,.,':.<:.~ . ,'r' ..-......::.~'~r. ,; '. Polled for Staff Raferonca ' ""': "".: , I r" ; !..;;,~.t.~t . TOTAlFORSECTION(K) . [ '1)II I I :it",-;, ~I~. ~.~ ,;: .......................0................................................. '- .' .1.7;(~~~~:. NOTE: The standards ofperfonnance are guidelines to assist in the proper grading of a store evalu~tion ~~poi1~,~y. ..: for QVSC (Quality, Value, Service and Cleanliness). Realize that it is impossible to clarify every item because ':;"l~"!", of extenuating circumstances in each store. However, these standards should aid in making judgment t/::". decisions,lffurtherclarification is needed, please consult International Dairy Queen's regional office, :,'. .:,,~;:..;::;;. . '. " ....'..,~ - -~,,:.'ir~i.' ;'.<" . EXHIBIT "H" (, .,' '., A- ",' C 0 S-- E ' " p- G- H I J- K otal All Sections [1] 'Cf71.51 -. Ii1IJ '~"p'::J . \;~,(~.~~, - ..'~;.'; , .~ ,', : ~ tl i ;~~'.~~\"'~/' "~" ,::' .'.~. "~:"~:'~ :,,; i;:~ r;f1 @:ii(1//1 i. " :', I',~';I;" 1t~t,:,":;::D, ':." l.9?,~ : ,~~t~~~~,~'\""{~ "r, ",~ '," ...... :. ':''''>I~'(. II "\:,",, " :" '. ',~ l ,~', " , , GRADE: N/A = NotApplicable S = Salisfactoty U = Uf1salisfactoty ..,....,;.~JifI'4 '"'' . [2J51I.~~li !~i:.\5~j,lb [4J . (1J (2J [3J (4J " . \ , I ! COMMENTS: ',~' ".- 1 I . .t.. ".., , " , :.", . :~~~:" . ..' RecommendatIon of Evaluator: If store has award: Retained I Removed (Circle One) "Quality-purity" Award (90% orabove) Satisfactory Rating (90% or above) Satisfactory Rating (80-89%) Failure (beloW80%) ", .~ , . t r , I '1" ~'.:', ',I, \i-;'_ 'I,:, , , \ I : i , 'J' : Owner/ManagerSlgnature (All - Items must be satisfactory) (Number of. items marked .U. Section Failure Score: Section(s) Failed: I .... .', ."./,.',. ;.:... '''-. ,:'/",/';7 Date Date Evaluator Signature -' l j',: EXHIBIT "H" -~--I " " '0' .f,~: /:~ r' " (Y'~-~"!' ' i<:, '(:' . ,>i;. ~. , ,"( :-; .... t;:'".' ' .:}.. t;~.", ~'I"I":'" ' .. ",' h. .: ,.','" 'f) ~ ~\(: ;:. .:'; '0' 4: ~/"=f .;., /I.".:",;' L\". 5',,,, ' I) ~ . ,r1 . " " .... ~,.i' , ;..t,t' , .~ll'"1' f">:'" ~:~1' ',;; 1:{; .~; ~; ~' 14'i': ,,, .~~ :I.~. . ",' ,4, . ~. ... . .. "DAIRY:QUEEN"'~~DAIR Y'd6:E~rz~~t~~~~~~!:,?~;::".tIlt,~~~~~,~~ ,,- , '~,,- ~""t... ~!,I"'t(l.I,,~g.n'lt"'~,.11I''''., 'A."~"'''~,' , .1'.....11:,..., .I':;"1~~~"~,~, " STORE E' \/ALU" 'A-rI'ON" ,.J;/.l~.(t7l'~ ,\.;-~<.:I,.'.i"-""-"7.'''; ....,oJ},:: '~I ~,j, , " " Y'"', '"' ,I; ", ':':~':', \A,"~;1, ", ";:,:";,,,1,, " ":,~~ 'i f~1.';~:' " . .J.'.', 'j',',,'-~~:i'~''f!iJ)'')J~,'''::.).~~'' f...'.;,..,Jo:.....' , "''':'''1'',' t.,1., ,<"..~~~~;;\, . r"l'., ..,.'r,:".~, '.~' 'r"~':"'.,'J 'v .,'.....,." . ,~t.l,I';.l,. ~~ r,;. ';14 t\~ LIST OF DEFICIENCIES*...; I,~':;jl;t:.:),~:'\,,;:;'" ,." :"';""~':I.1i'6;;.. ~;Jfji\\'; " ' ". ." ."...,'.\r;:.."J.....';~,~~,.}, ",' '... ". " " .''i.",'' .)'~, 1': 'i ',' .: " , .' .; ",:,..1,:;1:' '''I~~rti-~.~~~~.~~+:':''~','t'(~A".t^,;c~':!ll''':4' \.:....'V/1 71t~,;I~'./I~. ' - ' .' ,-,... ", '"...-(. ,'J -, ,.." -', '," .. .'('"~i:d1i;'t:~d, Franchisee'sNa";;~'..:.n..;, ;,.., " ,,' i ',~",",,);ii ::':~';~~';~~~~/,,;: 's't6f~f(>14~i..i ,~\;:;\:,;t.J:';tt:,::: , .,..", "..,',. \,'1-'" 't. '.. ~:--':~,~,'::J,.r~ CORRECTIVE ACTION RECOMMENDED ' ,',~;/ \ ;. .' jl":":r;',t';'1tr-'!: ,:'",." . .c, -,- . .':. .,' ; '.. . .' ::':~~,..'~.~.51 ~"~l .'\.', ....."r".:I:,;..:.-~..~.: :~, ~4"~;!'n..~ ',. .,' ~',': ", " ~. . .", ;"":-J' t ..' :.~'''. . ..."..... .i . .j~, :.... 4 ' " ',T., , '~~ ,f;", .'. " '. ,'(. ,..:~\.~ OEFICIENCY ~' . . (Number eachdeficlency and explain) ITEM # , , EXPLANAT.ION A 2.. A~ , ""~"""\'4"~'~'." ,/(~'I":I:.'\', -. - ,..,.1" ~,..~~t'~'::'1"1.'it-,~~"..,.,.: .r.";,"..,..... ',,1...-' . .' ,,' ~_ ~~- ,:l',f}: '. ,:~~,~I,,".' ' . "..' " "",,,,', <,;' ACTION .~ ,j: '\:",';:-~:~ ;,.... ~ ",,1~,~ f' ""~ S',ilt' "r,..l~'\ .. .':- "'i?\\'., .' '_. ".. t '~\~ "':j.c-~It' ~'".:~ , , ... +10 r,~.s.JtC....L Ul".. ~ , "" ,k, rL ,.,r. ..1, .f.... ,. ~f ~ ../.. '. ,," \ '" " ," ~~~!:." .: .- PI " " n- ,. ". " . '- .- C l:.. r" ~ . , ", 'M " . ;$,,( I h. "" 1."1 ,....o,..t '.-,',"""' '. I'': ',.,,;{ i , .s., ., ",. ~ ~"" \--".., '" '....., ~ .... ,r, ,I ...1.. .., ):;~'-:' ,.' , " I- ClM.>us' b.,/I, '~" < ,:~ :r.. . '~I.~".. Z. . '" ," I , ~ .. " , . ,I 1..,11":. ~ '. in... ~ '~t " ',' , ~; , "I ....,4-1 ... :"\1, ...._ h. ", , ;., l ... ", ..C r r.',.."... . ". ,"'.; '.'; A ; '/ .' . I~ .I'~",~", ,...-, .. ~....' r. ". :.,.J.- I "... ",. , _... I" " "" ~ .... '-t",-h- , 1\. .~(h ""Ur_r .,~ "I' Ih'l _' t?\, r '- A J..I 4....\,', ' c., ,f "'.... " ." 1- il",(I; I .'\,l\ 0,,", ~l/((.J ,~, "'l \" ." " I " [ h) ,f--l...... l.............. ,., h.." f\, . . ,eo~ " ~, nu,J.)I(1 f,. C"I rat t"'r"\ro,. , I t '"'f I" ;.~. no'\ ~...".. I ',. . .., .. I, ,~I'\ t , ,'., to '7't.I~( r"l' ,...., ,t;' '''.....( k'.'h /,,,~ '""'''''' , , - ,:" .1- :'\.,^ I ., ~T') . "( T;;S'. "." Initials of Owner /Manager Date Signature of Evaluator Date .The facility deficiencies outlined below are the minimum facility upgrades that would have to be completed If the storelfranchlse wes transferred as ofthe date_oHhls evaluation. EXHIBIT "H" ),1"1, " 1.,.,-. j. I htt, ,~ II.~./ '1J . . I ." 1""""1' ~.")(\( tOol.. ,-:-!.~:t... 11:'.r:'h::.;. /: /1 . / ~.... . , 'f~'{" . 'J~~"'I'''' , " ..' ..:~ ~ ';';."'~.: ~':'i; '1j~i~~;;''f'~:;,,'':.''':'.:t~..;t'. $,t::' I.' a'~' ,~~mle;~;;a!~'~BBi~~'!U~~ii, ei,ll I;-i~, ':,: ~ ~ ~ ~ "r..... ~ ; g ! e e e a ~ ~Hi ! I!l , ' j:!J j:!1 i I~ iii ~ fiI )1 :4 r~ '" '.}. , 1'1'" ..... ,. B II m a !:I ;, .,: j:! ,I t...:..-: " /CI ~ Ia ...\ :, " , , \ (,,' , "'j:,l' , "'I' ". 1--''''' i i 1-:' " ',',., 1) ;~ is ,~ ;i o"~:t;I:k;" ; . .. 11 .... ..... ' . ,'... "': " ;,,1; " ,Ij '" ,~ a :., \!It ~..' '" r-...... ","',),;.,~\','~'<,:(~r """"'1'~";I";'~"! ~;~ Iii... e:ott:N"'~W"'C;t:Ir;:"'~~i::l:,.'i,::I'.~", ',""; "~r;<,I': :~, I ,I... ...-:-....., ,\, . ...~... I" 'd.;; ,/ PI Pi~~..{~ ,:, l.-- r--r-- 8 ;*1,;;.', ',., 1--1--' : 1--...... " ;"'~,...~ ;*r I--' ... ... , . ,,:' , . ' ,.......~ . ~:;' ~ ;:i 1--1-- " '.. ~~...' "~'l . '- i'" ," '_, 1 .,.r '=; ~ II ~ i ~ ~ i ~ ~!! 1.1 j ~ i 1I ~ 1I fill; ~ ~ ~ 1I f ~ i ~ 1I f ~ ~"1I f ~! 1*1 " , ~l~ : ! E ~ ~ ~ ! !,' ~ ~ ~ a ~ ~ ~ ~ ~ ~ ~ i ~ i ~ II ~ j III ~ ~ ~ ~ II :.~ .I.. -I- ~,,;J 1-,... IS K.; - - ,_. _ _ _ ':-I~~ ~ '. ' ,.:..~' tri"l, p ~ :;-~....., :t ~5&p~ ,rjj~Dj~g-~6~~ ! .i'~j\~"';' ' I.. Iii W w c; r;: I;!] l!! g: . ~ ~ e: t: e: -, e: '" J:. e: u, I:l G ..!;; ;;: ~ - c; I, 1;: ~ ~ eO; Iii S S "i ::'i'.' u II~' ", "~ ~ == 'f' : I ">;:' , , I _I...::, ,.. ~?- ... M,t", j. ; ; r" .c .t: ; ';'\I, ", '" I .'~ u" '8 /.,.. , '.),~' ,~, ~~f ,'. ,.,-'. "1', :::, UEUW:ljwumwu. rHmmpW;~li~~I~ t"",." " , 7' t: ' '1: r; I,l -l!i' ':' ~ IS(, > r'll] , '. \ / ,': Ci n,', ::,> -" 7 ~ '" ,; \. c :'. :.>.:1>,.. '~~~IU '~.i:-~I~ "1.;~'fI:1fJi!S.7;:" 1\ r,; 1/, ~;:;';:<j; \.;.'~li.0J ~~;!: I ~ !l" '" - ~ '"' ' . ,.(~'i:, U '. l!! r;; III '" - c; ~ ~ ~ ~ i:i bt ~ .. c: ... ~ ~ po - - r;: '" l!! ~ '!I I!I a l!I IS I'l I .' '"roo, ' .:;, {i'"":~ i . too' '-, ,,"' '8 ,;\}>.. i ~I:? i, - 1/1\ 'Pi ~;'" i ,,,, ~: L', , , l'J!" I ..1 ..:i" I) (1\ ',8 :~\,:.' : ~ 1/ '".d,; I \J 1\ "f~ ': 1 1/ "'v 1 , .;.~.:~" I ..-:~,w,-:-;~t. I :.' . Ii f: " :,. ~ ~ ill :I: :1l Rl !!l '" fi ?5 i!; z c: ,',. i!; ill ~ liilll~lliilli ~I~;!!il~ ~~~ ~~~~ .. '~. ~ ~I ~n ,,~ c =; '" EXHIBIT "H" '" =; '" - ,. h:_~_.,,,:,,:,;:;~, " I .. .,' " " il! Ii If i f ~- "I' .'~~~. t &1 a- 1[' '~'.. .. ~'fil:l ~, 1 ! ~ f ,Z,' '_ i I [" ~ i:f. : liB i , ~ I a ri.l I :t .' ,': .;.J- S " .\', L... . . STORE': ItD ,qo LOCATION: (lh.........b~boJ ~ ' Ih~ S\- , DATE: 41.d.1 If., SCORE: ("S.'-I% Quality Value Service Cleanliness Q.V.S.C. STORE EVALUATION brazie~ Revl.eeI 10194 EXHIBIT "H" t'::I1;'~'(:'O:\\"':',;;:,::"" :.i, ,"....,.' ,.;, :,_.",:y'~;"fi,'l!'34};~,::'tI!ir~~t.,;',,~~I~lf:t~~;;l:~:~~!~~): ',l, ~"!7.~~';,'{,:'~,'::'r"',,;', t. ,'. ""'1~" ': ,.,. :" ',",':' " .; '" ," "'..",':; ~.\-,-!:jt~!lf,tiU~~W,\'t1:i~'j"lt."~~:~J/'\""':':'~:\i~" , 't- fi,,~i'Pf\,I,RY. Q, UEE~,:~:~~DAI~Y QI!, ,E;,~N', 'I"BRAZIERII,S'tO~t;i,E~~~Y~TIP, ~f,:~,!,.~~1!::~:::::,:~, ;~~f{{' !~~::"",,; SIO!~.llIll( Ic.. '.~ ~ """, ' Eval~aUo~Oala: %" I q~ ll,1'~lmaln:~ "..J.>"'T1~a,9ul: " '30".. ":.':4~'.: SloraAddrtlss:,.. 'I, .5..1U\ ,((\.. ,,' ~ .."(, r, ',; " ',,' ';.r:!';.I.{~"(~Mt~;i"~'~~~,,~, "', '"~''''''''' ,"", "",." " CIty;.;"~(;I"l::;;:b',,",,\, j~ ','" ;>'. "", Slala: '1'4-' ~" ','I'!"'ITYPlf~~Slore:~""~~ r\ ,'( . ,'.', ',.:"w,:'~ ~A~, F 'chis '.-.- . '" I , 'L' , ,.."oJ. "'1otJ~"" " ", , "' , , ' : ';",',' , ran 88: ....,"""t ~"'. "'1'1. , 'assea:', ","':" .,' "','" ,',' ..',,,,, '. , h " " ,:. Evaiuadcinperformedby:(I~II"1 ,1:1..,<. (kt.,~ 'D"'<<h.~.uL~\ ,...'...v...'.''':'.'~FCill:''.''''..., '"" ,.' ParsOn In :charge ohlora al Ulna or avalu!lUon and theIr capacity: S~(I,-i,,,",.s;;.~ '..,,,;'.;~y ..".( ....f\n..." " "",r.. \ . , , ...,',;,.."" ;'~"'''. " ", ," '."',,',:......'.'...,".', ,", ~r~:u~~~S~o:c~~: ~\~:'J. '~o~~e~. '~.llltl.' :'. ;.O,~i:;:~}fJJ~~~~!!1~it~:~',"~ ",' ' :,:';:';~?;;:' --'------------ ----------------'-,-'------ --- ------ ',," "'.'" ' "', -, " '."",' ',',~',.\,;;'...c.c,,"~,,','.,,-", " ,".'. ','..,',.".. .Indlcale -S..SaUsracloryrU..UnsatisfacloryrNA..Nol Applicable ...:'i:.lI'~;'-:~'.'J.'4i,~;'~"~'>":" :....,.,', , . c? '" ..:: . ," :".:;\ " ',. .Ifany l!sterisked nem Is marked unsaUsfaclory, opeiaUim Is dlsquallfled from'receMng'the 'Quality-Purity" award. ",' :'..., " ,. . In flnal scoring (sae recap page), the 'U'lolals In double-aslerlsked SecUons A, B, and J are doubled, and". the 'U'lolals In IIfple-astarisked SecUons F and G are IIfpled so QVSC problems mosl.obvlous I~ c,ustomers are emphasized. "(A)FACIUrv ',-: '<:~, ~. i~ . ',. ~. ....'.:Ext.rlor , ~'1. Roof '2. BUldilg' ,~. 3. Slgnage ,. '04. SlgnagoJApproved .~~~.;..v~'~,~. ".' .. . ;,; 5, "WlndllWl/Solarium ;\,6. Doora (frorMllck) " t... ~ \ .... '.' 7,' Ughla & FbcIut8a a, W..te Receplacl.. 9. W.1ca 10, Plridng fInJa 1" PIridng LoI Striping 12. Landacaplng 13, Trull D/apoaal Ar.. 104, Back of Building 15, Drive-thru Window Menu Syslom '16, Drlve-lhru System! Approved 17, Pleyground/ Outdoor Se.Ung , '~~I'-!,"~'~. ..'...."."" ;"';-:' ,.'.....:;.,.~..t:;-l1.'i,"'.. ";'_~T;"1~~-:f~~Ilt~I~';"i . ,~"'., ';' I'", ,.,.,'.','~"y;' ~'\'I.~.,~ " ,,!f,,', ,'III:'~, 'i';l/~I;jT',~r'i'>~il'~~,'""~,, ",,<;.or.,., VSC-QU1(LlliY/VAlIJElSERtl. ~~.tESNlLINESS%~", " ," .,"';,.',' ", STANDARDS ,>S:>. ;,i;;;'N,:1 ' Root IhouId not have buill up groale/dirt, Roof /I-.....In.c..;;;~'~ ~IMOring dopartmom lI"P'U -, MlnNldroofl_ be red IhIngIe or codotlhalul, F.....on "till Iopa. 10 be rod, blue, yellow MIl WhIle, .M25" Ioolc hu e peflpe\ walln llItutory bronze with' 8fllllDYid banding, No 1IBIna, fldod, ripped ohInglea, Chipped pelnI, unmotched colota and flding..... LmItiofectory,. ' ' GenItal cIeonlng,lIlIInlenonce of building. Inctudoa aOtr. ~ ~ boX: Tolnclude cOlor. ~~ite, boIgo, or brick. No gralrltl. c:h/pped.broken brick, block; Iiding or gluo, Chipped paint, unmotched colota hl f8ding ItO unaetlaflClory, , : ' ' ' . , . , . -'1 . ~ No v!IIblo aul ar lUll prevalent. Broken penoIl, chlppod or.,feded Paint; end rUsted pylon conatitute WlIItiaflClory grode, Le\t0fl for reader board matching, Reeder boord hu CUfrOn\ IIlOIIago. All bulbs or tubea In ~ ordot, IncludOllll1Y roof IIgnsllottOfl, ' S:'.:r.",,;",~ ~::-:,: ':':':, ' Approved by Amerlcen Dllry' Queen Corporallon or Territor}. 'Operator. /illl1dpalnted slgnl are unUtlaflctOry . .' '. ."",. i';':~'\~IV"",' ...j,..'J,\....~r: .:;t;~... .'. . . ".',", ~ '. ~ ". . ,~,":"~"'..j,:'\;I1::""'.t).',.:.:t)...:.."~,.:......,,.. . No\ streaked, I/I1Udged, or rtlmed, No hoIoa, 'seratchea, ole. To 1nc:lUde'lMndOw framoa,' IncIudea fronI and bock doota, NoI streaked, l/I1udged, or~. To ~ IlaInrm' oieol frame and Iht..hold " ';.' ";'4;"";'._,::.-.:.".J~~....,....\.,.:..._:.,., . " ". .. "," '. ....,................".:,..).\.:..... . No v!IIblo dirt or InleC\a provolenl, No dam.ged or rusted roctur.., MUll be no brOken ormlulng elements, AlI/ght. mUll be ~ng, Must not be soverely scral~hod, denied, fodod, chipped, or lUlled. MUll UIO plastic Ilnera and have no unple.sanl odora, MUll be no doposIC buildup or atlcklne.., Free of Insect.. Mus! have aelf-clooing lid., Emplied prior to re..hing 75% cepacity, To be awepl and washed II needed, No gum or foreign objectl lIt.ched 10 IUrI...., No broken or cracked (lerge) mortar, No grasa or weed. prevalent. Hosed down on · regular Ichedule, Minimum of once per day litter collection, Including are.. edjlCOl1l 10 properly line, No prodUC\ spiilege prevalent. No chuckhol.., gre.... dopoaita, gal apillege, ole, prevalent. Striping mUll be clearly vilible at night, dis!inct lines, cleariy defined, Al1ractive, WoII-pllnned and maintained, Must be Iocaied away from building, Must have ellhot an encloaure or dumpater with lid. SUITOUnding If 01 clean, Rendering barrel mus! have a lid, MUll have enclosure for.lI equipment and.lI lIoms stoted on e regular basia to be soU.flClory, No visible dirt slreaks or smudge. on face of can, No lape, Unfform lettering and numbera, No handwritten sign.. All light. ~ng, spe.ker .y.tem inlacl Ind operallonal. Be/I CO<d operational, extended .nd free of Ice, snow, .nd other debri., Paint mus! not be faded, Transparencloa not faded, pano/s .nd lettaring not warped or faded; menu slripa In track, no IIghlleako, Current menu stripa and transparencl.. In uso, layout shlWil clarity, not clutter, Ap",oved by American D.iry Queen Corporation or Territory Oper.lor. Handpainled IIgn. unsau.ractory, ~ CONDITION '.\~ " "".. J;."" .~ ~-~~ " , oS ,_ oS ,_ ~'- ;$J.....:. ' '-Si~ '~_'S'::"":" .:i.'_ 1~.-'.2;" .,;;,.,:. . ,.5'_ - ~,_ oS ,_ @t~ ..5 ,_ ..s ,_ , oS ,_ oS '_ .s , ~U:!. /EJ_ '~~- ~- @:fL. .:5'_ No apillage, stain., product buildup or litter on and .round equipment .nd/or so.Ung, All equipment must ba properiy .nd sarely m.int.ined, Musl not be scratched, chipped, d.nted or rusled, To Include bike rack (ff .v.il.ble), _'LJ... -1.1k. ~- _,A) /A ,_ EXHIBIT "H" "~.... 1.' ... -, , ,""'."" -...~' ".' '-'I'I~~I'<""'l"""'I'~-'!'.'~''''~'~ ",1IiMJl\-..~ J' ' . 'f' ... ~.;. ': ..', l.;" ~. ,- . I.f' . ':.jJ~'.. ... l.ft ~ ~..iW~i~":,"'~ ~'....c ~ ~"~<:t"'" , '(:-:!t"'\..W, o,:!li.-~tCi!EA.Nflto . '*'~; . ~'l! .' ,10 . ,'. I 1'\': : 1" '~:J:~' t.... I' <,'.).1.. 1."'-".' I .. I . ... .. . "",' ~, ", \. ... "'...:. !l. . Q". ' , ,-,.. , , ~..t-....' , ,,:~..',' ~. . \ ...\_ '~....l ".,~"' :,1 1...-" ~l', .,.1'.'1-:,.....-..~(:./1j<,... . ,;,y"''1..f.".''...,....-Hr.1, ,......~~ , e.. ..~ MIl FbdtnI "', No 'AIlble dirt ar inMctI prwalont, MlIghtl -wna.MIl!n pU, Fbdine lractll."':~~"" <,:JSr:'~>.:!:I'" . ~~: ~'L'i . ;, '. ..' , ..' I~ ~ not feded, dIIcolor~, or ~ked, M~~ Ih,~ -,~~. ;:r'1"': . -:-::" ,"- ~~~ ~~~~l;~' ",' ," , ~"~.~~:~~~~~' NO~~;.~,t~~:\.,~~~:m~ ~~,~~~" ':"~~;" )~.t; :.~, .vlldollon~ :,!?.{N:"\/IIIble~dIrt.or~~,NOlUllorJlHlin!l~, :,~:~':",~":~i ,.: ;..,i.,d2'\ 5, ::;"','.:Sl.J.".:..,,\' f.t'!'.C46:'lIF", /.,'".,,\=,,\.... '.."."'. '..:~~-::'f:.~., . ',.I ~..',h!'$'J';.;ii\.l:'."~~t,-...,',.:'J#~~'~lt:1!... '\/:1;,. ~::",. ~4I1. '.Tempenturw " ,.,~.';.Comfortllble (To oonfonnwlh ~ guidell.-,) flO1uitomer.Ga. .....r~ ~~{i1:.~^;I'~:-:"'; ,,-:-~,,':' (...', H..\.. . . ,I \~... . .;.,...... ! .... \"-~~~~':;t"''' .......t... l .,..,~." ~~.. \.,tr,~l v' '.. '"~''' 1~",~" ,.. . ',"j M....certalnlochockCOllWl,IlaaIxlarM,undet~..... Nomopilreeb~1lIInI ",i!'.': "....l~:, ".. Wi"' ',', :.'" ,,"'~, F...aftllllh, Nobrak8nMdlormlulngtlel,lfpolnled, "1llIInot~Ihopwom.~. .t, <.," . ,.'/'/, ' O/.':~".~': j~-.Nocr8Ckat...grW. to, 1 ~l ~~1~' .,...... 'J".., ..,~..'~Utt~~).\(f,,~J..i'"..~~lt~,,~':~ )"(~---: _-1.6.,.... V." ....... '. . .' ~I .,' ..' ., Il....' '\ ;',:- " :1,....., ,,'" \.. .oV'/.'f..,' ....; . .. :,23" Will 'Noproduclorllllnl,make<*lalnIOcheckbehlndoq.;lpmenI.ncuorboolhl:'Nodoj>olltiiUl/duPor'" ,',' I '. .' " ", ' , 1IIlddneaa, No chipped pM1I, unrNIched colora or fading, No tani Or IociM WI"'owrinll, MUll be In ,.,'.. ' '.,:, ',i .. -~.f.i'i:.." '. ','" . ~ ",good ~. . "1'.7~ ... .1'.... . '1'(,;.. ~~'4.f I\,~". .. '"':'J: l.,~ <'1'/' 1,...:;.t....j~~J:t: .,.C7.~\'.''1t''',\.:: . ~/- ..;.S.I-.-::. :~j" "I",' ,...,. " ",'. .,'. ,l~ "'," '~""")'L"""";""_"j'l'i",_,""'~'~;"'~',t.\,.~\."\..-:.ct,...; ....... . '.j.,.....,..'.,! "'24, Willa Receploclea MUll u.. pIulIc Un.rund hav. no ~plel..nt odor. 'Muoi be no'd8pO.l buiduPli;'IIIIckIrieu, F... ' '" ,':' , , '", ., '.. ' ,. , ' af inMctI, MUll not be -.Iy ICIIlched, denied, loded, chipped, or lUlled, MUll hive loIf-dollng , " . '" . , ~,'.~";"'~': ,,~,,'Id.. ' "'Y.~I':"""~'~"'" ~,;",,,~,,';i._.-., '..:;i#\,.:,.,.-..~~..t~....~,e~~lf.i.l.j;:O"'~-~"':1'~~ ....1, . "..-J., ~/1J.- ~- .' ,. ',',' , ''-'. '.' i' '. ,'" '. . -'. ~. -, i . ,v.;;-.';-;~'.'.". ,,'"' ."1 '. ','" '. ':.. " .. :. .,.;' , ,." , . o,:zs' "'hlraYI llolfolllplanllCXY, MUll '* ol.ndanl uhlray or "DO" l/vowIWIya. No rMkllhltlllemlllich .'JIt :> ;":';','~';:;: :: :: ,;, ' cov.a, moIII CIlIa, ole, MUll hive on'"" lablea In amoIdng ,It.., (Non-arnokIng '.... dellgnalad If ' " ; .., I... , , , , ' , raqulrod by Ulolcounlylclly IMa,) " '''' ,::' ,;' " - -L- I-D" - .. MUll be no dopoIilbulldup oratic:ldnoll.., IUrface and~, 1.1.;.. be' i~ af debria (gum) ..,'1IVIfII aldo of table, including boolh bocka, Iogl, and dIvIdeII, No lllltllrlpaln padcIng, PodeIWIlIbIeI do not wobble, MUll not be ICIIlched, chipped, or dentad, If booIh pacQgo, mull be llICUIIIy flltonad 10 lIoor, , ' .;c;: "~'(," ' '; '_:5/_ ..:51_, "Onoor theolhor mull be owIIable K Ilora hll dining' room':Fr.. af dlIiiond~, Trau . :-- ',": ," ", dun and COVIlf~ with pIulIc WIlIp, MUlt be In good repoir, ~ ' .. , . ' _1.1.J... _i)};/":' MY anciIlIry or COIlIIIlIc l1utmenIIlhould be hung properly and MIl mairUIned, Includea Will ' '. hongupa, broil, guobo, plentI, Iottlcewotk and IItwo(k. ,,:,:', ',', ' ....9_-:i"';:'" ',' 29, WIndow Treetmenll MUll not be dirty, amudged or Ilalned. MUlt not be feded or Wlrpod, MUll be In good wor1<Ing repllr, ,.5/....:... "':..-' ~"30. \) n. ~ "',~_' /4,Jrnbnll n..~""'- ' ':~f,:~,' _/JJ.", ~/k ~, ' 1 - , , . 'NOTE:u..lI3OlpIlCIlomeuura.MCUritygat.;KIlOf.huono~,e"malllocallon) ", -. '" r :,,' ~ ' " " , ' ." ',' TOTALOFSECTlON(A) I\gv 'J....., ' to ~..... ~.. ..'~'. ~.~................ ~.... ~;~f"~:;~~~:':~... ~'~ ~ .~;U;~~ udiO}. .~'! l~]. >E1:;F=~ ~.=~:,i'~=d~.:== ~~ ...2';::': .\'" 3. Fraezer (1011 ierve) Ihould be well ventiJated and kepi cleat of combuaUbIea, Check ~ c:oncWon ~,e" racoYIIY ~/-" ~i~7.,.' ,,' ~..., FrMDr " ""~ time during UIe, no mbc loa -' I1IIt ,,"I, lir valve and oplgoI), To Include the folowlng; , .;2j ,.!t'- ',':.' .' 5, Freezer (lhIke) ,..<., On older modellOllaerve freezetl, drive Ihalllnd coupling at rear of berTeI to be pflllected by a --,-'...1::1 'llJ-..;..' ' IIfely gulrd, , ' Empty between 1/3 and 1/2 iuD, Wash and sanaize each lime pan II emplled, Botton, Inlllt In good condlllon, No food ...1 In cracI<IIcrevices atound splash area, Proper handle on oplgol, No evidence of leakege, No mix buildup 1nIIdeIoutIide; Includ... clampl.lnlulatad per Syllem Bu!IeIIn 11264, No diocoIarIIion, crocka, lea"", hardening II connection or awelling, , No vlllbIe aoll on pump body, brick"', hoIea, Ind frttingl, No milling or damaged pa/tI, No electrical wit_ expoaed; I,e" cordi, prlllure swachea, .. " No vlllbIe lOll or mix buildup, crICks/Clevie..., denis, rust, or chipped paint, Chock underIlde of crown, All oplndlel mull be operaIionII. No wir... exposed. No villbIe ooil or mix buildup In cracks/ crevlclI 01 Iplndle Ihln and agitalor, Also, no o0?I buildup on !he undlllllde of craNll, outer IUrfacel and Iplash guardl, Fr.. of excesaive belt and beating noise, OnlOlf switch and speed control (on "Blizzard' MlChlne) oparallonal, "Blizzard' Machine placed v.t>ere a hal proper venmalion, Splash guards not cracked or broken, Check apindle lhall for weat around agitatOf collar, "Blizzard' decal In good condalon Of removed, No IOllad contllnerl, NSF epproved, No crackl or chlpl. No food ooilllilm. Cln clean; paper removed, Odor fr.., Check pump and underIide of lid for dried fudge, Proper water level, Spacer In bottom. Conlrall operate. No diall mlsalng, Pump In WOtilIng condillon. No foodlsoilllilm, Stock level rotated and flesh, Una maintained properly and Is funcllonlng, 2&, SeallnglTablol ":iI,. HIghChaIraI 1 , Boooler s-. 28, Decor ' DrlpPII\ SpIgoUFront Head ",6, MIxHOII 7" Mix PumpI 8, MuItl-MIxer(I) 9, "Blizzard" Machino(l) (Of other IUitabIe approved mixer) 10, MaM Diopenser 11, Fudge Wanner(s) 12, CrunchWMeU Container 13. Dip Wa"""(I) ,"' No visible ooilln cracks/crevices/screw heads. Drip tray clean 01 spillage and Interior free of lpillage, Papar removed Irom cans, Conlrols operate properly; no diall milling, 14. Milk Diopenser/Conlalner Gallketl and Ialch..ln good condaion, Capable of mainlalnlng proper lemparatule and In good repair, EXHIBIT "H" ,.':'.' .1'. " .' ~" ~.. ,: " , ,.- .~ ---1JJ- -1...1.J.':.: ---1...11- -1.J.!:- ,,';.. /. .<,... ---1-A1 '.J1J~ U:;',-'1 II'" m'Iu'lI1<., , " ..: ~/- ..:2.1_ ~- ..sJ_ ./ ~L:, ~..JJ..-' _L~ Il.J:..:./_ _":/_ -:..J~ ---1.LL- -1..LA.- ",,,,,.. ~... ~I'i ""1.1-1 i'J~ m.ll .l: .' "W", ..... .-\....~~,-.I).~,.."j.:,1........'tlj...."~ 'lj""-,>~""",,~,~,,,~ ." . 'f, "... I ...,;J..'..... 'JI-,. ,.' '~,' '~i""~t''''';l:~!:'''''J;''~'''''k'',':''' _"#~",~",!if,.~~-~~.I,"}(~, ~ol,.-t..Tc": " ;~,I . l':~ Jr.:',f;,'" ' . :.~.\~.. -IJ. . )SAlES 8ERVlCItAREA(cont) .' __t.',. ..~... -\l~~r'.'l:'j.o:' ..:.....\~ ".;~ :,~,-,,,,~~t;: 4,;:." j.~:l""~'1'r;~"rl" <i:,,' 1 ~':. ~'''','''''''' ",,"., "",' ,.,,' ',' .":,'/ , .' ~.,.",'l' . ,~,,;I,", ,A';\:, .d",~.."~" ",rg.:t: .!.U!lo.\~'" ~"f',Lo.:';"'''~.''j'jo\.t'''''':'' ''1''/'"'':'1''''' ,~.,....... .... "..(1- './,. ,- ',/ ",' .'. -.-\ '~"".~. '.' ...... ...."'Pl....*'. -r..~~:' .(.~,tL), I'~, ...~':'\l ," ,1!I.',~ eon. Rock(.) ..' :...'F...ofcUliloadaolll_Inalde~. Free of(linorillcIrt,lIpe, _, BIfllIlitllrld, "~.lf::",,,~, t ~., .:n', :)I::"",'. " " . ...'., No eCnlch., donla,llc. !'r"I*tY hung or IIlKhId to "-""':!"'~f~ ,I' .'V'.;"'4."':.f~-='...-.' '1,/Y ~18',:,~~~:~'~I) '~, " :~ ..'eon. R.....(.15 oIlclW(,:~" "',';:~Y~'~1~:t\"::?~~1.1~I\, ,'. ttfii"l~~i:.f)~~~ ,..,::.;.,,<.;:'~f,'/ i17 :Wh/p'podToppIng 'NozzIoMllholelObec:loonodandlll'lklzeddally ClIIl'lbolonceof.yoIoI'nwhon ..-llIId. ngOod ."h"", ,::'" "Pr-...." 'I'.,',;"nlo_,.. , ,,' , '-........1'IpIIr If CIl'lIlId............ dun and kepi In cocllocallan. '...'". ".',~~,\1it:',~~:~\~',~''', ':..',~:s.:J....,.;."'" _".'~' ~\'8~' ;.;;,gcibln.i ,,'::,,~ ;;~...:~;;;,...~a:.....,~ m.;;~~F~'-=~"lMf'~:,.'./ ~:,:;j;3l:i~i::;q, ' '.....' ,,,,,,,,,,, ,," ......._-C~~-........n....w......;...(..:.....,....;;;:..........')""""-"o.;;I,..'':.........:J....__.,.;,,'~,'.'~ ";';";'{"., , ';\,"':'.'~": ;y~...":' . "., ~I. 1~~'T"'_n.....,.NWI_. "',,-- --'-,l~~ WIIlIIII!II".!:.7.."'W-MllIUI!'--'" ,1--_ \--;~;,~":'~.:...T~')';. ,Ji.\,:,..,'.~ ""'~:" ".: ',":, ,IOnIII(knIfI,ahak8co1or,IIe,),Clultlt'fromutlnlill MIlc:irililiwi...rnInInKIii,NOdonlaIacndchoa,.." ":", ;:. ;,'r-:, ..';,:: ' , ,~,;,\ ".., ,I, AbIlilytoholdpropor............, Froezlt'doorg.ol<oIIIntoc:lMllholdtighloeo/:C:hocklillcon..eoI "':'C::: ,;",;",','/"'.' ':"'..'l}- '.' 'I.,.. ., " (ede) bItwHn t.-I- raI and cabinet top. ,:~-:,1\~, ::f.'.',;!"'~of!...~J.i.'~~ ,~,;:;].i;l',~}~;'~, ~1~,\1~';_~" '~i.' :':,::~_ ~~..'. f.. . ..'J'! , . ,MIt't""'W. ,~~.-: '. "...., '/'. .'"4'.: ,1flL'" "~/"~-l-.r;f. :t:i",,,~, .'\.:,. '/ ",,,, ,,';19, FlIvor DiIpIoy , ' Free of food 001 or Illcky buildup of product, DIspI.y podcoll he of cnanbe and bioken produc1l, ',. c, '" ' , ',; ,Dllpo""',llIoponannolcrw:bdorbtokan,Productcoverad,Naed!"'lbelUChModfrom,lDQbulIlIYallamole ',c' ,'_ i", t:", ..., .;, , , , ,,' dotIgn muol ........."'Y cIIpIoY . well. jlroperly IlCllll)""........1-'I.........:,t).,,,'"'v,;:!Q'.' !:' :', .~:~_ ..~~, ' '20,' ToppIngWIh Free of food 001, meld, ollcky~, clIWct'ti8fllf8"iotiIini'iir"'iieJi;;i1~~~~i:~ t~ "':, " '!c.,',,;',.' .~"'. '.. MIluncMralde of.. MIl WIlla, Pumpowortdng Inchdjullod """*!Y., ~~~,~_cl, Nogopa . ,~,' " .s,!, '~~'::.l '<":"".' InweleC....pt8Ient). NoWlhaeverety.Cf8Ckedor~. .,/.\~:.~,,:..'?...,:t.1':"~-1't;r:"'t:~,,~,.. ."!... . .:--.,.-~; ....." .. J' ::". , ~ ' " :. "..... ,. ,.,.:,...'.....,. '..'.."\~.".._~ .._~..,,",',...,.... ~ :,21, Topping ConaIIloncy , Teat IlIdle topping In woI for IIllClClIh futI.bodIad conlilloncy" ObaeMt CUIlomer onion: Iopp/ng Ihould "~, ,".' . neIlhor blob nor run 011 when .. prop;" timplllture and'conOlIloncy, C~ Jll'Cli>Orly II nolad on CClI'IlaIrw IaboI (when uIIng IlOIHUdy to UIe produc1l only), . 22. D/pSIInd/SInk, F... of cIrt, product, amudgn, 1tIIno, No WItit' doposlta viIibIe, :: " , 23, W1pe.up CIcIha CIIIl'l and he of 1lIIna, UN of lII1lIlzer lOlutlon,', ' , 24, ' Syrup TIl'lIcaIBaG-In-Box No food ICliIIItJcky aurfllC8l on hole Ilnea and contalneri, Stcroge... nut end clean, Slorage lie. ..~",.. \' , .... "..' . out of pubic view. Boxes atacked to proper height. . . . . " . '.' . . . ." .. . .. .~., '.;'.. " 1(, , '. '.:)".' .. ~. "25, .. C1rbon11lora1Bog.ln,BClll SoIf-explan.tory, "" '" :;;. ~~\;',f\IrlI -... '" ' .".~. ,.'. , :28, CO,TllIk. .",' Ch.lned.ndNf",y.lorod. ,,':' ''''''::' ':';';;'~",~,,:::": ,....:' ''ZT. 'DrInk ~ Hilda Drfnk dIspenoerhaedacleaned dally, Novillble IOlVIUcicy ~,Acluoloi; ~clean, Brbc lev"' .pproprilte. . , ", " ':'. ... ~~ .,.,;,. . '_f~.. Ice ahouId be only hm In bin (nol milk, whipped lopping, ole,), No -1iuiduP or aplIl product; no rull. Ice II o:c>YIt'ad, Ice ICOOp lVIilable and nolllCltad In bin (. requinId by Ioc:oI heollh department), No product llIInaIslicldne~my IUlIIIC8I or aIg.1 growth, In good 1IpIir. ," :::,:, , , ". ," - ,', ':1 .. '-, . No vIIible 001 In ~ held., ole, No filmy, Ilicky owfocea. Covw,'~, flee plale, MIl Ipigol dun, No 1CtItchn, donta, mIulng pill., MIl i>aneIa. Chock comprlllor condition; I.e" r.co\Iely Iinl dl.ffng UN, No oplgot Ie.k.ge .nd/or drip pill 1eolc8ge. )lllnlalna proper product :5,_ <'_" conOlIloncy IUIornatIcoDy. To Include !he following: ': ,. ";" "'", '..' ".,',..;..',' ",' , ~, . . ..... c ';:.~..._ ....:~.,.~.....<l...,k$j..~~; . ..... Free' of food 001; product nol cloudy; free of vlaible minenII depoob, Chock for )'8111 odor, AI.o ~'" ,.:::, '.' ' .. check~ltcngetank.,,' '..: ,.,~~;>,.' .":~~:',,~_;,::.: ",:"".:\';~' d.... " DiIpenMr ahouId be~, clean .nd free of Illcky apIaItft. Check holder .. well', Produc1l ahouId _' ' '. . . ',' ' be clean MIl he offllllllnlllJon foam; no product on punp top, ", '. ;,7j<,~,.. .',:'.,~, ' ,.", _" 'Co .; , No productlll.lllll, alic:ldneaa or filmy surfacea on pol(I), wenner or ,--, In good'r8PaJr, no crackad . j;, i" i ":$,_ or chIppad coffoe poll, filler IlnIlner, , Where .pp11cobJe (IIlcfjng windowa In walk-up), nol streakad, smudged, or filmed, N~ aka or hoJea; _' '_N ' ~ ,'_' " In goOd 18pIIIr, No hoJea or tears In aersenl, I, Opllflllonal; Ilea and regilter componenll c1e.n end free of food end aoiI. No chlpa, IncJudea video .. c' ' ICIHI1I and rewrite print...., Journal recelpllape In regilt...., , .:.=J_ Free of food IOlVdirt, Check paint conditlon fClt exposed wood. Inventory neat, lU1CIutterad, hendy to ~ I I' :5;' MIl free ofaoll, '. __ '_"',,.-- ..... :..... .;;..: . Surface, adgea and front face III free of lClillatickinesalgum. Free of chipped adgea and burillpola, Palnt " c. nolworn through design or discolored (Wmet.I, free ofdenla), Under count.... Ilea~, he of clutter, , . -=::1_ S,_ Flee of aolI,lncJuding dtaln. and under equlpmenl. Mop boardI clean and undamaged. No btokan and/ '/:::::' , or mIulng blas, Ifpaintad, mUll nol be shopworn, discolored, No c:rackIln grout, , "'~~' ~_' No product or alaina, No deposit buildup or stlckin.... M.kl certaJn to checlc behind equipment and/or :s l '" 5 " boolha, MUll be In good repair; no cracka or hol.... __ __ Free of aoiI, food, dirt and slain., No dam.gad tiles, role color and IUlIIICeI malch uch oIher, '.. :.S '-..:. . oS ,_ No vlalble dirt or Insects prevalent. All Ughts working .nd In place, Fixture inIact end operallonal, Fixture covers nol faded, discolored, or cracked, Must be shielded II code lequitaa, ' , Slide window operational; shelves, counters, floor and waUs lU1CIuttl!t'ed, clean, and In good repalr, Must u.. plastic lilll!t'l end have no unpl....nt odClt. Must be no deposit, buildup or .tIcldnesa, Free of Insecta. Must nol be sev.l.ly scratched, d.nted, f.ded, chipped or rusted, Box UIlllUlfaclory, No wat.r stains, dirt/gr.... buildup, Fixtures cl..n, No dent. (W met.l) or chlpa (W porcelaln), Fbdul'el nol rusty or pittad, Soap .nd cl..n paper lewels .v.i1able .t .11 times, In compliance with IocaJ heanh _,_AI 1_(1. ,_ .t.nd.rd., 28, Ice Bin :29, T.. 0...... ':30,. "MIstY'F_ ...~. t:.". . " ".. " .t:.;,~.'..: Hopper" . ~~. ':~, ;.~ . . ',' . . ,,.,.., " FlIvor Iloltlea i,~:".. - 31, CoIIoe llispenoer(l) , 32- S..... Guard and/or Window 33, Cuh RegiIlera 34, Shelvelllnventory '" _1.." 35, Servinsj Counter I; 35, Floor ~, W.II 38, CellingNenla 39, LIght. end FIxtures ,40, Driv... Thru Are. 41, W.ste RocepIacles \ , 42. Hand SlnkJSoapITewels ::, r, "'~' .:~ , ;', ><::, ..~- -1....1:> 111:./_ .s,_ ~-:.. , '.l.':' , u.. ----. '~. '. . --:.J /...I- '~'=- ':-IJd:: -<: S,' ...', ....:::..I_--~_., L(~:'>' ,,' ,1.L iu.., ::-,~ la, ,-;- , I.-:.-~_, ~ F":'" s, " ~-:::::- 5!__ ":"-'~- . , S, ..2.;_ __ ,t.oo -'..:.!::- -1...1& '- EXHIBIT "H" " ;t";'.'J~".._",.,.." "'" ,r;:";\i"'::.l'~;,'i1~~i ,to"1.~.' '~~i:1'Il" "..'J, (ill~~,i..,.' 'SE~CEA.a(~~)":" ,:,~~:.: '~:i ":",',i~,';,!.'ii(!.~'~.h~2~wr~, '..,:i~I,::~E~,!:~, ,!,) !::<:'......', ~"".',,' ,: ","'" ',,"',' ,:'~ ::"':",,,,,,,,, ':""",,(";a"~:~:'i'.;t; ""I'."~'fi=",",>6Ii", ,f; ;',;'l:j ,''',."~.:",,, ',~' '., (';:;)....\. " "..,. ',' " '..', ,.,... ,x,;; "~:,,,,,, ~, . "".', ""'~' t ,043, M.nu&c.rda ",No VIoibIe dirt; ittaka, "'lIlludgn on face af moW '*"A1,'" ',MIl. (-:., ,,)~, ' \ '" ';"'~>'i:'~';"" '. : ~........Unlfcrm~8ldIlrfpe'No"~:Iilgn8;''''''~~~denlI,,\.:,,~~.~,!.;l,;:~' ' ,~", ~'>"'J"'~'>-""';'-" " icnduo,brokenf_ponela...IightIuka,AlIYmaIllld"IIIladMll~"r_ "Iio,_io.d ""'~'iiL;j~'?~:", \ '.,,:~, :,;,:' ;.: ;',,:' ";''''" ',. (cUtr VI. clIrily),"IIizzwd' menu Included, CUI7Wil mIiniJ~.., a~..l.:M lr\'UIe. :(,:.,... ~"., ' , :,h" '..' "".",,' .. " '" ,.. ".""......."".t,l~'~~,~._' "'Ti".'...:.'..' ,', '1"'~'..'..I"'.... ,~44, ,MIl'lIi IloelIfaIApproved Approved by Am.lc:IlI Daiy Q..., ClllJlCQtJon... TIl'll!orY~, ' 't"i!ll' ,;~';1r:-',' :,<If',;;';t:e.:r~ '.f";' K:"\}~" ''', ':> '~"'-,:.":':.:'~"....._:.....::L:.::~:,..,;,':': ,...1:2>,,~ "~~.tt~,l)~..~" 4'~:~~~' <:":'::,';':'::~"~;:~~"~{:' . f..40,~ . .., .....................-'lI----....Glaafree'" ,IIftidgM';No . .. ,',.... ,.."f.,.... "~~ It'.:! " DIIpIy c.. ,',' ,,' ~ free ~ buIdup, NaI denied, chipped, ar '1Cl1IIdiiCI!~1d muiihliiik, f!'ioIy, MUll " ' ' ,':, -., ;:.Z:.,W .V!: ~'~::;""";:'.';'" ,; be lIdequolely Iloclced MIl properly ,""n:hondiMd,'aVoIcInii'cIUlt.r.~.nWch""''' properly ':t" "':"llu"" J{'lt . ","'" ',~~ L.--~ .,'. ""';'~III""'l':'r,o..:~1:'1.."",~, ''ic'~'(,..u.''Ho(:t. .BJ..I. i' I ,-. ",,>'""',." '...' '" ,', -.....--..........., "'1''''''',''l'f ":,.....,:,:~I~~...ll',;t,:.'!'1'1.1.n:'... ",' ,==...1_ --'_,.',.',' ;~, "0...,'1 ChoIce' InIerlotmualbe dofroeledandclNnodMeldy, FnlIllxti.pnolto.:-t 1,..., CIlI~clMned ':;,' ,:.."..; ':~" ::' /, DIpplngc.tnt "Oat daly, ExI8rlot ~ af dirt MIl ~: AI,.~~~~~;}:;.!,;i.:,:~~ !Ii~t '. " _L!i I !1....L';,;...... ~47. S1Il'lchlOnstgn" F"'aflMldue.omudgea,tIm,dirtbullcfUP.Abletoolllld"""~bMi,AI~_,,, , , .~ " , ",.,..., '..'.,.." ''', " " ShiUdnolptMll'lt.hlIDnfto_aaf....',)""';,:~"~I"'~<~l"'''......\~.,,,.. , ' 'N I!..;j,"'.:.'>,c ,,'...., '-:':i,' " ". ',,', '-:I...(,..,~t':;",..,q.51,:~..;lIrof(r.:~:'.f.I,., ,~,;'~q,~~',., :"" _~.. 7":',' ',. .~, PoInI.af.s.r. ~0Ved Approved MIl 1Ilraai,1Iy dlapIayed, frImlid, nol ahopwoin,lom, ... feded, No materiaI,.:f; "s" '; .., ~;'I, ':,;'. " ' InclucIeaclka'cbnmy:dlapIaYbannero, moIlondlaplay, HICcablneilllh,"C:el,Ioo.1dI. CUIIW1lyer. :...,. ."'. ,. ,,/,., ", " ..'".:.. '.' maIIrIII '" , ' . ". ':',. :.~ ..".' ': '!:"," '"" ":~"';t\,','.J.''''", ' ~ \!~'., .,,,., "', ;.'..,'. . ","",.', ',' "",1'" \' .m,,' "....,'l(~:li.,::.ll;:.~""~"r<I;M115~."'T..,~":' , ,~,", ,.411, 'NaplcN/S1mw No dopoa/t buIdup. MUll nol be"",*,*, chipped, lUlled,'" dented, MUll be Un/fonri In Cclor. MUll " 'i"~~ i,.' ' : ."CorUInnIAvalllble ..... napIdna MIl IlrIwa available f... eu.lom.,..If-MlVfce In 110181 wIIh Iobbloo... dining roomo, ': ' ., ': \ ' " , SlraMmualbeln_""-'...lnoncloaod"'~_ '.. ..";.',',.,..,,, "..: .:':<'_...:i! . ,.,..,... ',' ',,~""" .oI.y::;';~:'~"J:!_\::"',;.'f';':' ,,"<.,~.,;' ~ No vIIIbIo cIrt ar IIl1Ildgoa over Il'llfnl ~ocIo, Including V8nl. Free ~ gum ... lniah, MUll be "'. NIP. ',..." '. ' ClpIl.u....., No Ioolcago, lUll ... COIIOIlon.buIIdup, Pon ahould nol be -., ... poo/''''lI, -1_ -1_ Pwnpa MIl PI/lImual be cloon inci dl:Cll1lalneta filled. Chock __Iiinoa dolly, Free af apiIla, '. , : .!, l.,. oticlclnou, Cooling chlca In UIe whore requited, .., ,;." i/ ".: ,;....: '"",,": .... '.-5 , ~" . ..' "','!. '~.':";:;':",,,,,.,,.,.",,,~, -'I ~-" "', ' ,~, r .:,. : ,':.;;...,\.'TClTALO~~~CnON(B) D-' v.l? ~~" .. , . ... :':"':::';:." ':-'..;. A.,'U"X2 ~(Jb);, r:z.lo) ~....~...............................................................~~.. IC)"BRAZlER"FOOD,EQUIPMENTANDPRDDUCTIONAREA, .,'., ',.. l,;'-,~\? >': .' "'i,:),;r;", ' , t \_ : 1, F1MGriddIo Surf_tObefrooofQrlallbulldup(lIpocialtyoullldoedgoa), Greuem.volrclolllldll'noodod, oS ,_ :5,_ ",'2. CharGril If QnIloao\'ock. chock f...MIpIgI and breakage, rocb doiri, he of iIoiIbuIIduP.~~'~ Inner " , ',., IhoI f... cloonhu. If lonlI, free af C8Ibon buildup. Roe.to III WIIIdy. IlIr1w ahOuId """"'* 10ft blue, Lnfonn ho/ghl fIamo, YoIow Indlcatll plugged crifIcn' Or !mpll'pei. n. odjuIlmont. ElcIIllcr' 'I 1nI........_~........om....-J--.~buml -'". "~""'~if;t ,,',,' ..,..,., _'''N _II ;._ _lIliIr _N ""'" 11_ VI MIll _AI ., 41 ..-~. . :.:~t.~:,/'-",';.,:!~'r:":~~~~';':*.~<~4f":i.;(\:i; Chock Innorloulot ahoI, PIllY foodor, and moot CItch lniy f... ~ Make" 11ft c:NIn(l) .. ", " free af soil bullcfup, Eldoriorl1nlorfor and Iland frll of lOll MIl txmt.... gro8ao. ChoCk f1n1ahod pnxfuct to malco IIIrlI broior olomonto ~ IVIn/y and ~lino,," ~".i~';/1:,\::~?~,- ' MUll be healed to 145'F ond be properly COVIrId. Talnc:ludolrivwl Tobe free ofar-buIldup, PIOplr , procedU/W falJoMd per 10120I94 SyII.m BulletJn from Bill Zucco regarding E. CaIIOI57:H7, ' ",",,-, No pnxfuct "'Ilalna, Mike cortain to chock behind equlpmonl. No dopoU buJld.up "'1llcIdnou. MUll be In good repair. 'j;;,,': ' , Mak. cortain 10 chock COIIlIrI, boIobaard., under baaIha, and equfpment. No mop'oirliak. oriWna oIowed, FJoor I'IlI1I cloon, No brolcl/1 ondlot milling tin, If pointed, mull nol be ahopwam, dIacaIored, No ctlIClca In grout, Floor mall in IlliaflClory canditian, Free of d, food and stain.. No damaged 0( missing tiles. .&. .... ,;'", . No viIibIo crill ... inIIelI prlVllont, AU light. ~ and In P'-, Fbdurn Intaeii.nd """'.Ilu,..., FbcIuro COYelS nol faded, diacaIored, ... craclced, MUll be IhJolded II codo roqulrn,. .'; ..'. , No IlCCIII troll; chock galkol condition. AU .utfacealnakfo and out mUll be cloon' 8nd he of NIl. Chock fonilh f... ICtatchos, chlpa, ole, AllUtflCH Inllde and out mull be clean and free of rull. Chock condition of fonlah f... 1CIIIchII, chlpa, ole, Check ..all and sholvll, Produc1s to be lIored in covered canlIinota, Same '" Cot,"ler Freezer abov. (.... IS), Includ.. proper food handling, kitchen ut.nlil. prnent .nd WOI1dng, Tonga... diapoubIo glovn . mUll be plllenl f... handling mo'l panill, Frll affood aolI Md III food covorod. Candlmonll properly COIlled, Free of aolI; nolllreaked. Hoal elem.ntl and switch.. WOI1dng, Frll of donll and ICl'Itchn. No vioible lIOil in CflCkl, crovlcea, screw h.adl, .le. No tilmy lUcky .urf..... Int.rior of ClIO and wheoIa cIaan, Frll of burnt"", IOU. Chock balket conditJon, All counler tap fryell mUll be ~ S ,_ 5. ,_ mounted to .turdy, olabla caunlerlap, labIa "'oland, 15, Shortening/Finered Daily TISI for clarity by balk.t dip m.thod, No Imake/faamlng, Should be Ildmmed to r.mov. bulk of /ooae llaating parliclII, Quostian aperetar .. to tlm. end regularity of finoring, bail out and changing of shortening, Opelltor should be familiar with operations manUll guideli_ on procedutll. Finlring machines, gloves and aorans must ba In aood condition and readilv available, _/ .s ,_ 2-'_ EXHIBIT "H" . . " . ~ j . . . liD, OrInkIngFIUllo/n ',,51, eo.",_.ear ... .~~'" ;.. ,',..... ;:52. ";.t," -. .. . ,:C 3. chIii eioIor " i ~ ,., , ;~l:;, ",~' ", .. . ':~, , HoolodHoldingpon --, . . - ' . ,:,5; Will 6, Floor 7. CIingNIn\I 6, I../ghlI MIl F'DdUlll 9. CoUnt... Freezor 10, Count... R.frigll'llor 11. SpaI Metchandlaer 12. Condimonl Ar.aI Smlllwar.. 13, '14. P.... Thru Ooep Fry"" Fry Baak... ~':. ~ -ILL. ::5,_ ~- -Ilk- " -I u... $i" .':~ C'iL (i;t ..' .../ ',' -:.J.IJ..,. -I~ _L.t.JI!L'_ ~ '- -Ilk -1.!!...lll-1~ , I ,I!-,,'''' ;,; ;', :' r- ,1"';, '- ""'" ';. " , " :, '~'h~(;~m"~i,i~'t"~;;'" ~~~~"~:bH:~.,;.it.,,7'~':{i~,j ..,,,,,.;,; J . ct', o.ECUPMENTANDPRODUCTIONAREA(cont)". '.:f'~V;#l, ~ C:~.. ~"\1.,f~~'..... (Y.;. 'l.~,,\'{.r ' ;:u,~',i. ,.., :' " ,,~', "\,::~" "'i\:',)'\~'f',,:"':' ....:.".:,.',...,'~,..,.," '{t1l:M~.....,,:, ''f~~':'''~''~.''', .,",....':..,;. ,'.'1' . '~'.,I-,~~., :i..J~~~!~'~J'i~J1'<f,,!(l.J,'~1i\;O.,;.ii" h~"\~ '18, DumpSlMdPIlI&lMnp F...ofaollMllbumt....grMM,lngoodrapalr, "i' :"~,~t-!l:w',. \'~.\~,.. "~'i "'1 It 4~,;s'!.,-.:.'.: ~'~'., .t 17:,: Bun 'T..... ", F... of ool1IcrurnbWImt.... 1IliI... ......, EloctrtcaIy lIOUiict; NO~ pW. Muil ~'~', ::i~~x-;:v~,~:;.......r.'?",: ; !~.l..1i. ,::,', ;" "'/' -.1_, no foil, ." ". J'~~~:...:!'!r":~.:jl'.\:,.;.>",~l,,," /:";\;":~:'~ ,!,f;I'i:!C~:j';~:; ;.18, 'Prwpntlan Tobie No vlllble 101 In erocklleravie.., acrawhaed.. IIc, No fI~,,1IicJcy -.1_."UnIIaIned ftnllh. -,' ..r;.\.,';f,tffl'1.~',ki"'" . ('4;"~ " .....,...' " ;~~~ 1UIf~~t..hocklf ~~~~.~~~'oI~J':.~~ ~.: ' '/l;,;:.;T';: '\d'f,: ", i...~ ~ ~ 'i .. I, " . VI~__,_"" to...., .....,..-.u. .,..,.-..~,~........ .Cloud.kIf. '" _~ """""NUll }"~S, 'I.. -':):'<5,' ~'ltl-' I . ~'~ ~\"~' fl., : )... IWftch.. ' ."t_ . '(., (ol). 111,h.~~.l'1: dtiA., ""ld"'1 . __' _ 1 It': .'.,,\,.'.,....t , ,,' >..,\"...',. '..' 'i-,~, lO:;lUI""i"~.rn'1-~'.\j,!"!.;r,...;,,:.,.. , ""-""'*',1.';.", ~;,19""ElchaUlt.Syllom ' 0II1llnina byqueaticn8laopnlcrMllvlauallnapecticn.M ,,_..cleonad"rlll~,~a,,": ~:r; ,d.:,' .",,/" , ",' . mlnlmumoflwotlmaaparyur(lVIlyobrmcnth.),TolOclude,tliii '>,"1'\""';" '. ro . ,.,.~.. ,.., ~"."":, "...._:.:..McI;;.. ,Runi-,....u'novlbr1.lIona 1laIIa......' ,', ...,',.'<i~~,....... ~...-.1~~'.r\'t-::.,~:..I..'.;;.'~~J;.. ,:~,'.. :~", ~ "'~';';"""') .i", '-I; .~~ ~UftI\I", "W'A. ..., ....f~<.,""". ..J"~"~'~'~,:~'/"" ,_~':.'. . .' :j1!,' ". ':. I ~:1: ': ElchaUIt Fill... Free of butT.t?l o0?I, Chock f...1unecHJut meoti, rmui"p' ~.~,.::...}IiIY:~;: ;":'" ,'~ ,;".! '~:':. ~,;'." ElchaIIlHcod Freeofooll,grMM.MIlVlmlohbulldup,RaqUI"'vlIuoJandllllllliol~~.~ur-elrough .'"., r., , , :'<:', ~i',:"".. '\ '. . MIl prnpar IlghClng.tght ohlaldo, Chock thai axhaUII moJc~ iI....ed ~:'BaIanca ~ed by,.., : /. ''l- ,,0: :~~:, : ~;'~::':~;~m;Z:~'-~" :'%~=~:';~~7~5:L=:~=hood :' 'S~'l~~~' ';;'21'.' WIlIIMIr 0-. ' Free of o0?I MIl alalna, Clean t.....'uncler rock f... mOl.iuF.:'1i ~,o.;.;. ~ MIl i:loa. froaly, ' '-11/n.J '-:. ' '22. HclDogRoIlotGrill Rcllor free of o0?I buildup, Drip pin c/eaned dally, Ext.rior cJeai" RciJe.a turn froeIy wilhcullXCelliv. ::;" ::-i~cheI functJcn properly, Rol,"," heat 1NIlll1y:,~~~~, Grill never lei en -I~~_ No product o0?I. filmy ...lIIcky lUll...., Cleaned daily InaIde and out, Wit.. IlIIeMl/r ii1d It....m hc/ea , . ~,"r,.:u:~:.~ good repair, p'r~I'II~~'~~~'~'b.oltionwith Itumed ..: -I1i.~:-3.1 No fcod o0?I0( film, Elementl and IWitcMe -'<lng, Freeof.denta Wxi aCn.tch8a, ,-I.J:) I~_ Eldorior free of viIIble dUll, gra.....1IliI buildup, GIa.. cl...i:'In\';';';~ Of c8rt>on depoIIta 1I1clfcod ,;1 l ~/~') '. patliclH. RackI clean, Fan and hell llemenll-'<lng picpel1y, EVlll1 heal dillributicn 1Videnced, Check ..-I' C' '," :~ far broken gIau, Proper ".Iing II door and ul.rior denlllacratd1eo, ."., ....i2!_ ~ 2&, Willa R~ CIHn and cowrlId, Box II unSltisflclllly, Must haVe ,me;a: :.:,,~;, " , ..:5...'_ -I..JL. . . '. " ~:.\ '... .~ '-, . . I I <. "ZT. ____ '2&, _,_, _,_ 1?~", , :' ,""'/, ;;", -1_ -1_ :,' ' ':,',\": TOTAlDFSECTION(C) [/z.JI[ tj [1iJI[ ~J ..............................................,..'..................~~...... ,(D) STDREROOMIREAR OF HOUSE (Includ," remotutor.ga .rall) '. ',,::,,,'\~,~r;;,:\ ,;;~;;..::.:.':", ; '; . ., ", ,'. . ~,' ......, ". . AlIlUrllCftlnald. and out free of dirt and IICflItChaa. Compr.a.o;. IIIld c:c>ndenaer free of dust Ind dirt MIl well Vlll1IiIated, Doer gllkellln good cond~Ion, Inner doors latch and clooe properly, ..,....,.."'.\. ;.. -.' .' . Unit II ..nltary, hal door to keep Ice awered, No rust en InteriOr i*ta, Method oflrlnlferring Ice to front ' bin II ..n"ary (NSF pla.tlc bucket ... ltalnless steel bucket), Scoop It...ed out of holding bin, To include: Floor, shelvea, walls, "",ling, compressor/cond.nser, Inventllly neat. All ourllCft inalde and out II. clean, Check cond~1on of finish; I,." no scratch.., chlpa, etc, Froot nollo uceed "4". Check guket cond"1on Ind lltchal, Compressor and condon..r to be free of dUll and dirt, WIll ventilated, and kepi clea, of combustlbl... All products to be stored cff floor In orderly manner, UghlI -'<lng Ind properly ohlekfed, , InaIde and out clean .nd free of meld, mildew and fcod lOll, To Include the follcwing: Free of foodldlrllsolLWater, No rust condition, hol.s, or I..re In metal. 23, FIaah Steamor Fcod Wanner Ccnvac:tion Oven :1'''1, Cak. FIaah F...... .'.-. r ~ .i ( :' 2. IceMac:hIne , ,3: Walk,ln, Chell, Upright Fr_1II '4, Wllk,ln Cooler Floor, Willa, Colling. Doora Shalvel Ughtl CcntainItI Covered InIIde Odor Condition Ccmpr...or/ CCndan.er 5. Mile Stcraga Tank Free of fcod IOiVdlrVru.t. Nll/Hbsotbent IUlfac., Working and properly ohl.lded. All fcod lluff covered and ...Ied, No unpl....nt odora, Free of dust and dlrllprcperiy ventilated, Water now unr.stricted, Abl. to hold proper tamperature, no pIIlI ml.llng 0( damaged. Fan, evaporator coils and pan free of 1Oil, W.ter line drein clear, Insid. and cut cleln and In gOod r.pair, No splllag. or buildup on container... Iplgot. Check _and mile wands, Tcp of tank Is ncllc be used for slcrag. and must be cleer, Tank regularly lIIlitlzed, 6, Three Compartment Sink! Must be three compartm.nt., Free of dant. and d.fectiv. draln""auceta, No fcod o0?I In c:nockoIcravIces Cleaning IV.I I/'CUnd splaoh .r..; no m.lal discolorallon ... minerai buildup, 7, Dry Racks Free cf ru.l, dirt, grime and In gcod repair, AI/OWl for a~-drying of equipment and llI1lIllwar.., 8, Sh.'v.aI1nventory Uncluttered and mat.riall slored offflocr (minimum required by ltat. coda"Inventory 1111 neat Ind clean, Check for lOlled cases and rctatlon sysl.m, Cteanlng preductl stored ..parataly from fcod and packaging, EXHIBIT "H" '- . . '.;..... . -Jk. ~_ , ","",W,"'.. ",,6"!" , .-- - "tlj....;; , II ---~ II ,;, (5),_ r's)_ ~,_ oS ,~ bfll'l~ . 5.'_ .s,_ c:. / .5, -..:- .-- S,_ -I(~ ~ \.... f~ I . ~. f\ "~""I" .\..,~,..,~.... " . ~ -, ' " ..: " 'I', ...~.. ,-,....'~' >l.i?'j',"I!9h ,;:c;.'~ t..J.'l)Il. (.14.' '.. ':..~ I', ',' t .., ~~ltQU...., ,..Il\~: .~. .. '. "I.' ~ , " ~, '. 'Ii "I/;'l~' .....l....yl,.... #f&"'~" j~ ' f loll,."....,... ':t'~ (I""" J~lol~. , OF II!(--""" " '(," ".'" , ,,'-If' ,'....,. rio",.'....' . '. ,'N ' , "1 ...... t _,_,' .... 'I, J"',"" II..... \,1 ""'J"''''''''\~'l..l~~ll'!i.''' !It-t" ,D.r'jw~ " ,~,,: ::', , Nci..:.....~liuIcklpiw...:',.b.Io~~~"",dlo'~.... "M.:;.j't:'" H :'r:.:~:;'~:'~', . ~"l.f( \~.:", ,';' I.,. :~_cerlJIIntochock comnbc'- blMllde,MIl...~NOr!qi__'ii__..~'{,!i;) ~~ . ~'~r.l" .: '/."l" I', .. ., .. ,..,,' ," 'In:':a.,---,,~,,,, Iit.....-..:. I' ....\,~L ~'\" '.." -'s. ~.,..1..'" 'iA'~"'" yO;:..CIIlng/\lenlIIlIghIa.. :,~~dIrlO4'nol~~JI~~M,....~In...,.~~~,_~A;rJt":t(t;,;;gr'~~:" ' . :,,'f.1;' , . ..,' '.. ' " ., .' ruu... ~ ,........ ~~ or cr~. UM ~ ihieIdiCI_ ,~_-:-: ,'I , . ".,,' - :~, ,. ~',,-, _.'.,." .,' ". , . 't. -''''li::l''I'-a:~- "','" .'Ir"'~"'IJ~~41" .'.,.~r~..'.h,"~,~."!"....,..~ ~"~' 11, ~P,_.A., Ma, 1 \. F... of chipped edgea, bum opaII, IIlCC8IIive _ 04' ~1IICll1 ,- ~, he 01_ MIl, . 'ii!",w... 1', ~1~";':"'';';'" :'i "!.",';' ,".,' ,; '.,~' :1crIIchH),F...oIfoodaollMlldlrl.Unclutlnd.Chockpu{.......;'forIlllPO..'hiooIC.:','\"~,,:':!!iL_'~'~ "..' " 1\-i..",,' :-." ....,. ,!.l't-.,....." . . :....-..-.J.. .' .. . ... i~~"'''' ~.J'" '1'''l''-'''''<'t'.3:'''..~...,.... 'j .." ,.'~,!"I .:.,:. .( ~'f."{~iOJlene!/S~, ~ of) ~ :In'?'.....:.~,'~*~'.\: I~.=.~~~/' ,",.~i~ ',~, ;';.:5; ~ri.:,~l~:: ..,".:!_'\:.~ .I.;>~,,,,,,,':'~i~I,,.: ,..,--' ......JI.'.....f'f'", !.Ih:!.\t\,~1~~.)."'f,i.'..,ff4'':.~..,..-., ~"..>..,'.( ,13. MopSlnlclBuckat ' "., Ma II clMn and -'Y 1(: I ,olble: chln nol clogged, SInk - doea nolleok. Buckat liild . 'fJ.';'/ItI' .:S,' .',;,\',..' " . ,:..,,:~. Mope . .' .: _ ":'-': .' mope frM of odor Ind Itcnd out of the Wly'Mwn"at In'UM:''':~~J)',:,r,:;a,,! .";';.7':': ;~f:.1":'ki(f..'~':' ~'-:"'~'-~r'l..,. .,., I I ......1:. . ...... \0 '" ....~.....'.-....":. '^....lI;}:'.r..r. )...,,-"~"",.1;'. /. . ~ - ';.. ~ 104. ,WindowWaahIng , , CIMn,,.......Mboranoq.-gM, BNIh Inlioodcond"IIori, U..Df......clMl*1g ooUIon, ",',,,. "., , ':S"\~\" ~,';~,~ . ,; ,!, Should be w.lI.bl......n K lIor.... outside cleaning MIVIce,' ,\' ','t"~,"!I, " " '.' ";' :,,;u_ -- l~ '. , ,~l f... . '4' . ~"f ,." ,.1..," . \, . ' I LA--- 1'tJ.-. "5. WrttAe R.....,"'.., '.. CIMnMllClClWl8d. IlolCIIUl1IIliIfeclcri.MUlthwe'IinorI,", ,I!~>C."'\~;i~,I;.."... I~ ,~\';"" "., ~- -"""'-::' ~6;'~HcIW_HeoIler':::'" s.K~, U"1n iIOod WOrIciiii'iiond1iJan;.~.;:.<<i{~.lYr,~~, 'd~' ',,;', ' "~-' ,S,.:..::.. ,'. ,_ , ....'..... ." I' .',... . .," . ,.. ,. .17. FIre EldInguIohor Syatem MIlIl be InIpected lMTi-eMuIIIy (with leg ahowlng Iut -w:. dati MIl filly.. : I ......., Employ"" ......;..} 'k:. ~f,f~~"';;,~~~J;,;:,: ,~~~..In..~.~.<:;~~".,.~',.,' '.,', :,f'~:~';~4;:;,;:~:~;'~~~~~'~~~;d)': 'i~,'4JI.'1l1l ~J .L...~'~.~.,........,~.....~~............................................. '''/ 11I:8 ROOMS ,moa.ure even If .~ployM' 011111 ,WC'lI,o).!. OUI 01-)0 It Of 1-- 00 "l'J .,..... "EuflUJIl-r10rJ blo:J ; ", ,1. CeiilngfWaIIf 'No pradld lIeInI,grdill or depod buUdup.lncludH~. boItlb,.,<II, undor link atocl and mUJI$ O~L..y. ' . FloorIILighIl bohInd dooro, No holoo, crocked Illoken 04' ohopwom \IIeI, FJoor'MIl well ~ be In good ,.,Ir, . ' No chipped peInI, lnIlIlched er fodlng c:clors, Allighll ~ MIl In ploce. FbIuree ,1nlIlct MIl oporelIonIl, Flx\InI.1Imp ahede cavera nol foded, diIcoIored ar croclcod. ,:. . , ' ' , :' No vIIIble dirt 04' InucIo ~, Free of foul odor. No dUll 04' lint bUildup on '."...,i cavera, ElChIuIl fllloperatlveandlrihUct. ' ' '.<',:':,',.::\~:::..' ,'~, ' '',(,'-' Clalnedlllauldoiy, No aolI,lmudgeaorlOlP r~m builclup, FreetrOrri dirt, NIl,"', MUllbeutA' 11Ioo III ., c MIl In good repair, No Ieokage, NIl, chlplor creek., Toilel popor~1ecInIy mounted with .6'_ '. y MJPPIy of peper. . ~'. ;:.:.~:~\~~~.;~W:,.~.~:::;.~'t.. -..~'. . .', ,,' 04, SoopIMltrorfTowol Soop~ andmJrrorto be free of film, amudgeaand bUadup. Treah ,......'~ IallUlllM pIoIIlc DlapenMrlHond Blowor' IInorI and hive no...p.uant odorI. Fr.. of dirt buildup 1l'liI.olUdo_. No 1nIecla. A peper 04' Wille ReceptecIe , contlnuouo cIcIh tllWOl diIponIer 04' hand bIOwef mUll be cMilIbl8, tlc! 1Pfl'ItI, Al fbcIureI mUll be =,':""~s:~,=:r.==.::;-...;~~~:repW,Mmr~be, ~_ -1"'-. . . _:. ' . . ..: ., ...M...' ., ..... . ~." . . .I. ',' No dirt, amudgn, ""ffltl 04' IIaII1I an doat, trim or a1gn., Doar mUll be In good repair. No diIcolcnIlon of point, ocraIcheI or ohopwom, MUll be Mlf-clollng and hav..,pntivo 1ockI, RoIInlom a1gn and '" ,;' 'I "~ :",1 " , ,.MIl1.MIl'Womon.lIIgnamountedondooro(unleu'Emplo~~~(1,~~~Ic~ " .5,' ,:'/iA... ,_ :..' ' . '1lP.y , lign. nol ecceplable, , ' ,'.'; ~I""i~tr-,..." "",,,', '.,.'" ---- ~:"~c...."" c.d,~- (,eilo.'>""''''> "".fO'YOll" ' , " .."~<:~,~/";,,,;~.TDTALpFSECTION(E) '1t!]/(I1l0Jll ~ ......................................................................... ~(F)CU8TDMERllERVICE " ,,' ':","~",,:>-...,' .. . , OPERATIONS . ~ ' '.. '., ...." '. '".' . . .. ,. '. 1, CowllorEllquottI AI omploy_ ~ cuIIomor countor orll mUIIllM coUntot etiquolle technIquOa. To Include, ,:'" S, "': ' '.. ' "amiJe. eye contact. initial greeting. customer aulatance and fnaI think you. ,," ,.' '.' . ~.' - '. - - ~~~. ~ . AD openllOll and omploy_ worIclng In the CUllomer MIVIce 11II mull undorIIand cuIIomor order , quostJonI and fill ordorI promptly and correctly, with . ...,.. of 1Il1l"l1CY. StI1IlhouIcI be propored to tiki cuIIomora erder when the cuIIomor I. reedy. ' AI openllllll and employ_ Wlll1clng cu.tomor..rvIce are. mUll hive convnuilIcation and IanguIge Iklllllufllclentto OIIiIy rnpond In lI1.ppropriate mannor 10 cullomor ordorI and any quoIIionI they , ' S i L." ' '- ' may hive, (See Syllem Bullotin 1293.) , ,'.' '; AD employ_ wcrl<Ing CUllomor counter are. must use .uggeativl oelf'"ll lochnIqun, To Include:' ~ product IIze optianI and product IWIrOllOll, . , ,,' , , " ~ . ApproprIaIe number of IIafl war1dng to handle cuslamell within aorvIce tine pe""'!"'..., r',',' ..,~."; f""_,,, " Mlllimum of 2 minutes or leu (pellk) or 3 minutes or I... (""""",.k) from the time cuIIomor ordero until pulchalod products are received, Gaallhauld be 1 minute during peak poriada, ".,.... " " Mlllimum of 3 minutes or leu (peak) and 04 minutes or leu (~) from paInI of order llYough pickup palnt. GaalIhouIcl be 1 1/2 m"nutes or Ie.. during pe.k poriada. Avg, TIme I I Employ... must be traIned and versed In their responsibilaiel. SeIVice syllem and equ"pment Mod to be org.nlzed to reduce employ.. conluoion .nd unnec8lllry lIepl, All employ... must have thorough product knowledge, including preparation and priceI of III menu kem. and kncMIedge of cutrent ISles .nd promoUons. All employ... must be trained to effectively resolve customer complaints, Complalnll Ihoulcl be roaolved Immediately end documented for evaluation, All aem. re.dily accessible near palnt 01 plepalaUon. Peckaging and ingledienta weIlllacked and neet. Invenlory al lront counler can w1Ihsland peak period. Per product preparation charts and operations manual. :2. EllhauIIfCIdar ".' ~ 3, TcillWrinoIISilk " 5. ;Doar/DocrSIgn , 2.' CuIIomer .. Rnponllvll1n. 3, Communicltlan ondIcr ~ SkiIlI SuggeIIIve Selling( UpoeIIng ,5. StIfling Level 6, Speed of SorvIce/Inalde Avg,TIITIII( I " , 7, Drive- TIvu SeIVice Speed, . 1 , 04, 8, O,ganization of Employ... In Store g, Product KtwMedge 10, ComplaintResolulion 11, Organization of Inven. tory al Front Counter 12. Product. Packaged and Served Plapet!y EXHIBIT "H" TOTALOFSECTION(F) AJI.U.)( 3 ;..JJJ.- -1.JJ- '-.l~ . ,'. l,,;j}'.,, --1'(" , " -' ; ; Lr,;"" .", S,_ . J9, A ",,:m~ 1J,~ "'....If S,_ ....5J_ .5'_ ~'- -1.Jk. 1'1]/-":. I~J L, > ,....' " " ",t · ~';"'., ,v' -",l.l:''''I". ~ " "\i~b:\I"'.meJi'i'~"\\;I~~"v"~\'Jr~ff t' I ~ '':11"' 1 ....:h,.: , .' " '- ,,".. r~..~:.~(!lhV.~".',.,I:/.~~r~ 1;;'"~! '~"""."~1Y.6:..~t"\~'~~'f~~i(I' '~ ,,'{ . ," ,I ... ,"" , '"l. > :..! \ ""..., . :(:,..' .;~\.' ..l.,'" \'.~' ,,~..!'(f. ".' . ~!""i." 'I ~ .tI':, "I,:" ,;.... '.'" ; . . . ,\. ~.' . . '."..' . ;'...;;'.' :)j-;"~';;'i.',~' ,i~ f;1t"\\t;~~ "'-I ~:~~ J r- \t .~o;: ..l::;;;o.' , '.? "^'." "', ," " '.', " ,,.. I . *,'. ,...., I~,..,I ...,~.,tI' '''11:'1.1;/;>;,..., ' I:I>'~; !..... ,", -mEMPI.OYEES .'..", ,"..' '.i'....",:iJ.,\'l"tI..''l,. "'"'")#~':"",'.,,: "'I';. '.,"',;:..;::;t,. '~.I .'......,~ " .." '. ,', ',J.. '.... :r.,.l" \f.ri.'.li' :.I", ~. "!Sl:i!~" "'~" -'S, , I:.... "'1. '.Apptuyed Unlfonn/ " Et.",,"y.. nlo -. cINn Ipp1lV8d un/farm (1ncbIIng".,. ~'I MIl MlJ-iIIed lit .\:" ,.'._ ':', :. ,r: 6hou '''''"." "curm 6yUm 1IuIelIn' . ";~""'" '..\ i " ' " r 'h't'., ~~Yt""'1-.1,;.,!. ,M,': "".i,c' '" :It; ">"':'r.i"~~ ,",' f"1 ~' , . ,."',.' " ..;..,"~f.,,":" ". \"~ i"~U>,:...A'.;,:"I"."I\,\'l ~}..:;/'.;.."~t.,>."I',',",'< :.';2., HygIeM '" .' .;; , HIIr'H"lllUIlbeWMhedMllcambedon.~~, Eppl<./~~)'WMihlllr !""'''':b....... "~'~:'. J~:;it.~++. , -.':I.:.' ',:. '\'" :, 'I ,I,> hlllrlaWon;"". ~~ll!~ ~-Uy;"~'l;t:JJ:~fr.l~";ti~~(!~~'\',~~;~~~';:2.:!r,";~,>",,, ,,;::>'i;,"~~.~I:. ' ;.: ';,' . ' . '. :"Ii ' .' " HIl'ld8. HIl'ld8 nlo be MIhed 1halOughly.ell lIm8llfte1r (efttng ,............ iIlw i:Ilcri8. r,', ~.; . ~loi'.!\"j, ' , "1:;'.1" .' .:):; I" \": ' ""1wllIr1g lIlY WlCllOIced I1IIlll, MIl IIflIt ixioghI......-4.U....elo.~,'<I' ~".~~ti\;!i..,.*~'.:J tl(;;t'f., f~Y . " ~" .L"~!i'.~.~~~-n....~: ' '" " . '.. .. , . ,.. . ~,,"r~~ "'J, ,~, ,',., I" .:s "',', ,....3. ApP.II'nc. .M..........MIl.rnPI,,'-I8fIedlh8profMllonollml:lflh8:DllrYa~.~ ~iea' ',' /L_I..":,-',:',:,,..;., . , 8houId "-..... MIl pl...."hpp_..'c..nd _ doOdo...Il..No~ _ of I8rg8 j8walry, ,',., . ",.., i"" ' '. .' ,..:: ': n.loclcallh8""ohauIdpnllnol.qu8/iIy,~~~IW:.:' 'o,.!!"IIImoophore. ':~"""';"';' ...'..., :,. ;,...,....~:'.. ";' .', .' . ',', :", ';'.''''':..' {SY~\'\"'~i"~TOTALOFSECnON(G) :', [3 J1~ " \...' ;'" ',. "~:;,,, ""0.' " ",',',f',',4.\~"ii.,f.cr'o"i>j'.J;"':N.:,'" ....',l.,_:, '(0""'''... '"", II ," "" " :.:..\;. ., ., ' ),..; ":';'" ,', ,.,'I,i';I;II:r.,,~t;;..iiry~'l~X"'t~':~'.',,~i;~Y'X3 ;,' ,; J".. ......................................................................... (H) PRODUCT CONTROL OUAOE8 (Employ.e.tr8lned In pro,.r un) , ' i l~;,c'''ll''.;'' '. :; ;i:\i:Y\:'''',;';, .' ':;, ,i~" .-, '.~;': -':~..I '~""_'''':'It--.t- .:- -I"~ .....-...__L..-_'..w.v'"r-~_lIt. __, ',.'- ::;'l';{\l,\.,~.t(!~- ....(-Y:t~r~'l-!l:..".<..:,'......., ~.' "~~'~",' ....... ,v,.,,,,_ . ,..""_....._..... ,-.-'11..... ... ".,,', '.'.^...". __... ''/''.. ....,'......'f"'" ,,' ,.'"..'.. "..........RI';{'.;::...'.."".:qJ.....,',,..~.",.., . It. :./ '" OJ ",'2. Th.uu...""'!,.: .,.~,\...' '".,~." ',.., ',...,;,'..,\,~~,.<."...):'.,:,",.:,':,',\,;'''''...,.;;,',..,:'" ". , '. ' 'High T8l1!flI/8lur8 6lonla musl "- 10 hlgheat 'ompntulll needed; proj,e,fy cdlnted iil 'BI1IZler' and Unlled .. Thorn_.IIl.... 'BIIZlIl" II.....), " :,",' "'..:. '., :'", '" " ' , Low TllIlp8ralw. "N ...... muat "- 10 Iownl ~ ~; Jlf'DPel!y ~:"" ' l'INnnornu , " .." ';. i'- , , , GIll h,,_nelw "i '. . ~ . -, . N full .yIIom 'Brazill" IloraI muat "- 10 lh8 h/ghnllompllllltn needed, _, : , .' ,.. . ....,:. , .;::..> TOTALOFSECTION(H) ... ~. ',' . ......................................................................... ,CIlTEMPE~TURECHECKUITINDEGRESSF(DRINCOMPLlANCEWlTH8!A~EANO'~~L~~tlU1REMENT6) ", " '~.~; .' ..." ' " ' Roouhd, Vwnco (+ ... ;1 ,.",. ,'': ''', ..:: ~,T.mo.r.tur. OD.r.lloM. ,": "1"F~W8mWc')' 140 5'.':,' "...1-..1.J....L., 1_'l.l..'" ,2, ,DIpWIIIMf(.) 100 '5 ' ..,.., ,,"' ' 2 ~ 2:' ,_ ' ,>'. ' ':J. NowIyDlpW_ 120 5 . '''. 3 /oJ/A 3 NIl!:- " 4- 'DQ'~ . 18 1 ,,' 4 ,~ 4_'~ '~',5- ~PrOcb:t 27,28 ',;~:F ., ',,~,i,..5 !JIll 5 AJ,..a:. ,'; ,: :5-'YOg..t Procl.ct ,. 17 "1 '. ,. ,,"<;; 6 1J1(1 II AJ, I} ", '.. 7., ,M!ri'ri e;ni:Rtl".<,l,(l\>CA, 33-38 ....~' 7 {" ,;'. 7_' "'=t:.",~ I".." ',..'-1'""'1' ", , , , ,.~ 8 , , le5- ,Tllflping8,":,.," " '..' 33-38 '. ,,'..';., '...'ti',:;,8 <>- L-~'- ,\I'IJ.'..CouniirR~. "~. "...,I:.11:93~.j. B~"-'-..;_:,/,,, .!2:,~ ,Mik~ i,; 33-38 '",~ ,,1,,', t;:,.10:~'''102!.J~,.{,. r'U:,SoftDrinlc"':'::":"';;38 ", "4 ^'I"...,~'\'" J(~'11 3q .11..s,-:::.:",,, . "12; W..:.iCoo/ar' ( 33-38 "..' .: '12' 41~ 12_I.JL "13.'~ArMF_ '<'10" 13-,{') 13~/_ 14-' WoIIc.j,j F_ 1;'10 14 ~ ("l 14_'~ Is.. NowIy~Dlap/lIyc_vp" '" \';10 15 l~ 15-'M:: ,15- FJai\ F_ <'10 16 _/ 'l: ~6 S '-:... 17- P lh -lSO 5 1,7 oJ I 11 17..A1!.A.. ..... IV ,18 ruin ,18..ll1J1;.. 15- W_ 0_ 1SO 5 19 f\l , '" 1'9 AJ1.tL IS. SlumTIbIe ISO 5 20 I\l'~ '20 AIlfL.. ' 2Q. HlIIled Holding p." ~145 21 M / (l " ;21 N, tJ.. 21. ChiIlW_ 1SO 5 22 14 " :22~ , 22, BBQWarmer 1SO 5 23 ,~~ 23 <: I ,,' 23- Gravy Warmer ISO 5 I ___ 24- Hootl8mp 145 5 24 I....n 24_~-'_ 25 31-.1 2551 25- Deep FryOll 365 5 rI,,\ ,,".. "tv'- "-- 26 '" 1(+ 26...&/4 2fl. Grlddllt 350-375 II,." "",~C. c,. 271J 1,\. 27 ru'L ,'Z!, Char GriI 550-575 2B 2 1.0 28 .s , 2fl. IntemalHamburgor ~160 __ PatfyTemperature U'..l l.1'. ~.... . 29- FriedChlcko" pony ISO 5 '., ,', Tomporalulll JO. 'BIIZl'" Sandwich Condiments 29 .!I~ 29$ ,_ 33-38 30 5? 30_1.!!...,. 1 ", <?i_. 31, 0,,,,,.,,... I 'F' if-,! LI....:.., EXHIBIT "H" :' '8."Mf, Mloly" i:.J, .: NoveIy ~~ Corrocl (, 'II." 'c:.iilea' II ReqUnd , ' .', ...,. ~; '9. "Apprawd Plclt.ailli 1'. .. .... . : '10. 'UMpproyed ,-; ,,:bm(.) , '" 'Ilru... ", '11. ~P.ay '; .... . 1:",'" :.':,'"... . :~~'2.!ialDog " , At 'n __ . ."1. .... :",'13. ~HctDogs.uc. t,/:, '14' 'llhallIni1g '. : " ..',. .~~ -: fiIh '01 ....t.: ';;:';',':'~~l.:-' -' , . .... . _.. '. - ....... ~"1I1.'Chlcken" , ~ '. . (',"17, '''OrilIedChlc:k.n " " " !'.~111.:;C~Slrfpe ..: ~~..,~. FrieS . 1''20. ''OnIon R(lga ",,' ':'21, ClIIlinAlRIlqUbdn.m.SeIf-ellplanalcxy, p., Syal"" BuIlelinaJ113, " I ''! '22. "-u-TlwHoldingTinea Per SIonI MIMgemOnt Operationa Manual guldeliMa, , " ;~ '23. HOIdli.g Pan Procedure 'Hdding PIlI ~ ~ patty cooking procec!URl mull follow guideinea In Syal"" Bulletin dated t' '.. 1lli2O.'94 frcm BilZucco. t: '2~" . Corrocl PCIftiana, ,J '- PlOducta .... to follow prepIIItIcn charta and Slare Management Operatio". Manual guIdeINa, I, Corrocl Welghta, '_", , " ", ' ;.. ' ' FJrahed Appear8noe , ", , , , " ' ' Awroved PI8pIIa~ ,~ ,; ( . Procedures r'l. ,.. ~ ,'. Apprawd Pockaglng PockaginglUnapprovedlOpIJonal: p., Syal"" BulJetinlllll104 and ",3. ", ' I ". . Unlpproved J 1tem(1) :: "0, Opllonal Item Opllonal IIam '29, Opllonal Item '30, Optlonal Item '31, Optional ,Item ~;. ",:(,l,' <~, I , 1 I,' , ,. ":"1~~" ;Z~~!.'~'~1iM',7'iR'f7!i+,'~;", \ ~"'" '-,) ~ . I ~ If ~ ". . r 1 c"f:r, .' ,; ~'S;;~'t': .l-- "'rfh ::.~~. ",t~ . ~ ,.. (l)'TEMPERA RECHECKUIT(cont.) ",' ". , . , "''''':1'1' .:' "~"."'~ :?'.~ ~""lj,f.:-'~:j,'fl";:':t'~ . ~'h, ~' .' .'''' I ' .. , ... . . .. ',,~, .. ',J". \'" '" . ~ . . '0. '0' , I ,. '1.1........ tu t, . :y{,. '} ""'., , .:- (.'~,~~:'k~ d.~'p~ ,., Raoulred,'; ~'riance..(+or'l , ,>;~ ~~~%;~1~~~~,~~'.,~\~,.2::J:JA,;. !':3i-, i\",,, He., f.."h.., _' , ","(K~~~ ~;'r!:"'~~~~1:~~~rf:~~~'f~'{\:!~""'" '1. ,~t d,... ... , , . '1.1 ',.......,.' .,J. Ill.," ,IJ "'" 'I' l j Ii" ."', " '" 'I ~"'<" ,..,' .,\0' ,,~' , ,.., , " " . """f" ~",!.,~,",\,." '1'1" .' "., ~ ""I'~ "I, ~i' /,{,~ """" '," I, , ' ," ',., ",;:,:,'; ,', ~';I' 'TALOFSECTlON(Ij t{. [I) JI[,', < '), 'v::l~~~~':,~,.(, ;"":: ::\,~,t, .,': .,' \i.~:;'~~' :",,' ;; ","'.,.' j'11-1.: " ... ,1~!~Il\iJN"~;'; ~l, '.' -;';'f':~-*lr '.rtJ ..........................................~..~ .~...~,................. ~ ::-,(JI ApproVed'Productl end P..:kaglng CheckU',1 :>~'., " ,; ";'')'~~~;., "'~",'l"',)("", ;;.1",;'.',.-:,.,.., " OPERAnoNs'\~''''l'' ~ f]o/',' < ." .' . . '__' .,." .... ?,' .... .,!r', '. ,",(}..,,,,,.-~.,., \, ..,_,' ".___ ~_~"I .....0'''' "DIIrv~" '.' "'., , : "'," " ." '. ' ': ',.., '."lIl" . .,," 'i"l':~,""'" , " " " " '-........, 'lI.,~l ~, t~'t:':'M;(r.~) ': -Do: P~ ~ i,.; _ ~ tr-: ~ .;:../ bo;~~.~.1liJ~~f,~t;EJ:%.!;!:r,..':: L~'" .,.1.s'i;:':f6~i8.,~~:~ ;: '2.j'Con.ct Clvemm ' , '00'-40%, ~", yopta55", wllh V8IWlC:e,Dt!5:':'.,~'!il~~~;orY. ,.' ,: '" '.: ~::.-'~',R; ;~~!. ~'......,.'".,.DQ.Jl.!:..." SO" " y~" Shake " '..., ...~;;,o.;o~~~,0~'R~~'"r,^.;t:'..\,,,,,,,., ' "..,,":; .,..'...1, ~',,": t..',. '<11', ", ---~- V. ..,..:-z--. ~ . ...,..', -. .. .r.., "'I~l!!V .,~,\\fJ\.'" ....~h'f.lIfn..l1 I~" "", '~,'i~" 1\ '.,':.t,1/t.'~'~I-..... ,,'3, Appa.,.,..,.""" ' 'Procb:la_tob..hlplCllblheproductpreperetionchar1L Belerid~, ..!?t'lop""'mUal Mull :-;': d,::..;:;'''!\o<;~i;,:', ,> ":',Proc:edlnliPortlona : ....v..yalemapfllOVed po,t1on..lcaledforcnproductPf'P.flllcWIC:'ieltiindS\ontMI".""".nt .', "0: ,';:'t,;:./ ' ~~/"/' t, of,llIrzerd FIaYon t'1 OpentlIonaMIIlUII, ADQdoea~c:cncb1e,lhe UUof~.,(Many~~:n"~cUlIwtlia ..', ... '~,'9i';;ft,,;, -."". ~ -.'j . ,.. ~I...) 'i"~/ 'j. '-.~. ,..' '.- ....... .-'.; .,'0,' .,....,.~....ff:1':l"'f'::~t.#\\-!k1~(. '...~, .' ',I, 3.-:. I l).',i-J." 'f:" 'J,,::,,;"o, ,,'. ,,' ',:...,' ..-, '.'..,'~,,' N.'", :;,c. '" "'''''1.:,,' :.'.,:.:J~:~,:;t\.'r'Ii" I";O;;I,o!..,:'...', ;,'" : ..'I,~.s ,~~.i'fl;'t: ,'..'4, Jaclcetedecna. ' 'AlOClCMISmuslbltjackeledaof0d0b0r1,1ll94.' ,':':','> ,,'.,:,;..;,~~g...,,!...;~..;,; ,'" '..,' ,.... ~.: ,':',' ' ' Pm.IooctlMenulP~' ','''';''!::,::?~m<f":'''''' ,;,"!;' ' .,..5,. .ToppIng SeIf-explanatcxy. P"Syalem Bullallna IlOO4 and 1113, PwSlore ~ 0peralI0ria Manual ,5--1j,~..... :": '" sPdeIn.. .' .- .l.,t~.(.';:"~~,.'-ii'r-" ...:....., . . '. ' .'l'....:~ ". '..,.., '. , 6 ~ , .!', ,,'" , .,,~ ~- ....:'.. ,;J';..~;~:K:;I: ' ' . : ~;. ,,2f~tii~ , . , ," .. ". ' " 9_'..ti:~'~I: . .?~~.tJi"S};:;, ~oS ~:,. ' t,~~~;,:: ~'"7" '1 "". .... ... :I.""" .... I II . ~ . ~ ';""t'J:f.~i. SeIf-ap/ana1cxy. Pw Syal"" BuIleli1a IlIl104 MIl '113, p., Slare'Managament Operationl Manuel :..,. 1'..2J..:....", , -:iT...::,... guideIin... . t. n ....... .. (.:; . . ." , ' _. (..~\,:.t~ ':. ;, .~~~I.i~:.~f'f:' :~v~. '.91\:'\" r.:... ~,i 1......:.125/~'.~f.~i1,~':' , -. \ ," I .. "l13 1 :',:,:':-7~~::/~. - ,'~" >,."..,\,.~, :,.~,',~_',:,:~,:--,.,,:!:.,'._.. ..~~,' i~,'> \: ~ . ," . _ -':'-:.~I'o/'yY/: . , , 14 <. ,,~'f',', ....n.I...I.~ '." ~_.' .(.., . ........._\.~~".. "., ,:- ~"~'~''':'''' ,';';. '< ' .. .....,'5, ,.., '_"':~,.~~::..ill.~~,',l ,'li-":':"tt:.4";:r'~' ,.,oj:.:)...... ' ......... _.~ '~~~.'~:," ":'\,:'V"", '~~~':, ','" ';'6...s...1"';~'., ~~itl;" :.;;,:::)~D{,> ~';::, :." ,~:~ ~ ':~~~~~: ...",' 19 ", I', ,t."f''':-:-f:;'~. j - j".., ,: ~, ~-, ....'r.~~," 20~_"'i> ',:: 21 "', ,"';1::', ~--!~ ',;',"'~" 22 Al,," 11,.;",:,'.. '23 -;ji~4;&,:{:.. . ~"~I:":'.;,~"'''-': ',24~' '. .._, , , '~, ~,,::,};:(YQ: , . J. ('. .J I~ ... ( , If. '" 25_ ,_ : , 26_'_ , ' , ,(', ? . " '25 ; , :: '26. \.,: /, 27~i=- 28_'_'; , ~.,,~. ' 29_'_ 30_'_ " ...) ',' EXHIBIT "H" ;'.... 31_'_ ''"'''''I' ''';' .~. . v~, \', -..... . ",' .,...... ,., "\,,, ~""''.<..~"~".,,...,~~~,,> ~"''''''''nl'; _r",,~;a~~~r.t,':'1'r/.>>'4''liG. ,. I ' ,~..", ", '..' "."" ..,' '>',..' "',. ",'h' -"iii, ,~ " "....... "~'~"'''''''...,,'''' . '" .~' PRDDllCTaANDPACKAGINOCHEClWlITlcont.l~.," , .' .',";',io :':;::!'i\;~'. "',: 'II: '" :' . _, ':" ,"',,'lit.;'';~~ . . '. , .... "., , .. .~ "-J~'.:."II:,~ ~~. 0$",- \r, +~~.'I.:" J . ~." ",~..;.. i\ '""'IL, .. V'. , .., .. /', "'f., ",' '," ~'"i ""~'.\'i>,,:~,;a.~,:'" 1....(. ;'J<~ ""~"\~I,f.;,:"";"'d',"" I~' "',of:-, 'Q~"C~ . ::,,:. i.. ~ , ..,,' '.; i,,', . '~"";:'~"i,lI'.~Mi~: '\::f}t.y,,!, F4....t,>l',. t(f~lf.:i",~>!;,~, ~"\ '__32, "OIpporW".8coopo, W..muat.......nm/ngMI."M beclelllld Mlzed'd8IlY,~and"muIlhMi '/'\'~':' ~'\ '.~ t, ,t I 'f.:~' ;',,:8pIidi. MIl Sponge" ,. IlIlOOlh Ii1Itp odgoa free of nIcb ohouId plttoCt.: ~'i.M:l",~.1.I,{I~ ".~~'\I':',:'\'.::' 'Il! i(1~:~1;~:\3~ ",r~ "~t J~ ,.'''\;.;.!..:..~, " ',-,-_u ' "";;;'",r'l';.,,1t"',,''',.J,\..j....'....,'.;.,.,~I.'''33'','. 1 .., '-'33"..._""""F'I/', 'PW'Q~"C......'mlllllll, . "I',!1.I".,~ ",.,,/,,1. . ,".'. ..,." ." :',' ?r.:.~i.t~',proceclJ...... ~ .JII..'.I,', '..",'.., \"'\'~.'i:"L"','.\':,~.','''4'', '",.,,:.; "J\',~,~~ . ;~~. ~~~,.~".... ,','-,' , , . "'<I" !>,\'l't,..,.., '" ...', '3 fl ,Jtl ~~,"Prlldui:cQuMlty '. ;,""'Quioen'lCholce'M.nuoJ, . , ',,' "";\'\.", \" "~I' ". , ',:, ." , ",.'. ,,!,I',~,,\..;(Portfana, TIlII"""'" MIlPtoductRoQUon) '.;, ", ,',:' ::,' ';':1",,1. , ~"~,'Ii'~~~:,\"..~~~,;,, ,..~~.I".i',~"",. '''''.f~ ....;oll, I t't'!"'~' .....,.. , ,1'" " , "'", ,_ ~"';""': , .,":/f'j.'.. '. I ~"'''''' I ',i"/ J" . ""1" i~~','AIlP"''''''''' ',. ""PwSyalIlllBulI.ti'lInd'Quoen Cholce'manua/"\.I',!6,' ".,,"1",,"".' ,'", ,"" ;"''''35' i'" I (~, :,.\ - --":;,-~ '" .' .. ' , " ' ,", " ',",< ",~,,:,"":', ,".';, ' ',: :,' :----: 'J , ro-\.I,,~.bllll""'l!.,r~vuo.., ...;,..', ",..;. ' "",."",,~ '''''', ." ,... '; ! "",\", IndMenuIternl4~....;...a \~' ",. '. . '.',.) '1'iK";~~"\ ,.', " ",IJ.. ,~,. .' ... =. I ,""~l/~l. r>t't"UYWU" I. I, .,. J . J' ',J"', 'I!-~ ,~~iYi{!tf.t',.., I,': . 1;1. "., .......'(.,.:0.. .', , . ---' , '" .. '" .' "', i .' , '. " . ';,i'."'1''OQ'F_C.k".~Il'ldPIoa , '" -!-'I~>lf.:,,;'N.., " '.""'" '.,' ",~(. ,.,'.'. '"', .' I . . , r".,... ~ e'I:J' .. . '. 36 1" ,; .'~'38,Produc:tQUlIIilV '..,,;, PWlhoFrozonClkomanua, ' " ','j '.\i':"i'~" " , _~ ~;',i ((Appoarance.r.i1da.d. :':"'i.".;:'"", ;,,::.'~.. ""~'r."'ol":l"~(~~~I'I"";' '.,',' ,:':.l..,.......,...:.r./.~. No...... .' ,'t -..I II..... d' -,., "~l'.t., . .-,' .. . > .' l, . ...Ji'v."'"".,.ot....~. f' ";.~ ..., . . H,:,"'..proc....... ...or, ""~',\". ""',,,;" " "'~:'~"".~hti":i'.(q, " """ . ,',,".':, '" ,.... porllon. 'pProved) ," ,..... ',' ' , ", ",L',c',. """"',' " . !'" ' .., . '!, . I ,'.... " "..', .. 'Ie'.:',':;; ..".,.." , " .{...':J7, " p~. Ingradlonta Aa lilted In Syalom BuIIotIn .1llJ.A and M.nu lI.m. ApPR>Y8d pot' Frozen Cak. manual. i~<;?ilndMonuIlomeApproved '';:'>': ";-:<>, .;': .:' ,:,:":::~'i(":n~(",::{,~;t';J Xl',' ',' ." '...'. ,:;' 38, 'KopvJ<ak.... KopVrif.' , Mimlr and Iona cIe.n, No dirt Of product bUildup on Of unCi., baM, Sm.'Iwo," (includoa baga.lipo. ring., " " Projocto'lSm",~.ro. """, utenlllo) """ed properiy and lII1i11zed .fter each UIO, ",: ': ' ''39, FlniohodCIkoa SoIf-explanatOf}'. R.fer to C.k. manual fOf guldellnea, 'eo ,..,.' M~ ProporIV. ' , " " , Oloplay .... WOIJ Ilocked, ":1. 2- '..:',;, ' ,;" , , , , .'.. :" ,TOTA;LOFSECTION(J) 140 V. lot , ...' , ' , ", I' ,'," . Aa'U'x2. 110 ,..,. ~.....~...............~~...................~..~..............~.....~..~. " , , , '.' '. .",.,..'.. ' , ,.,..,., .~ (K)SAN~ATlON~ROCEDURES (IncIudea an equipment. amaJlwo,.. and utensllo) pot'!he ~~ln!~yaIom BWJetjn 1266, _ ';.:.~'~i( , " '". , , ,'..,-"''",''1.... , S, ",'''.", ','1, ProPor UIO of Wllh. In I/v..:complltmont link. ObseMt and discuu with ~Of; Make cer1aIn can opener 10 Included. _ --, . ; , 'RInao, SaniIIzo Mothod '; , " ':".' ",..,:'? " of O......-..'-n ,"\ , _m-.n. . ,..5 '-", , ' ''2. Proper DIi}I s..;a.Uon Per AOQ guide"nea, Use of I.undrv bleeeh does no! follow m.nuflCtu..... "ddelines, ~:':,/ofSoflSorvo~..,.. "', " :,.':';i'>..'.~:i'..:,lt';,;. ",', '. ' '..' ~~. '3. '~Cloanfncj Il'ld R.f.,'lo III1itatJon manuala fOf proper ,;gonta, All cleanlnil ind lII1itatJon lara lloied on Iowor ":.., "SlInbtionAgonto '1ho/voa,lmlniml.rnof6'lbovolhoftoor, .,'",..;';,/.;..:,:>;,!.';;,,': '.'_ ' (~;~4,,'niliciJpOll Control "',Free of..1naoc1a and,anImaio (ftIoa, ont., radonl., ole,): MuOi~ i*t c:onlnlIprngram. .Po"', ~~'. t(.,j',,' ,M'!IIlhI , ," , " '", ',,,:..; >'!';"., ',,: ' . ,)::s: 'Sanbtion and ChomlcI/ SoIf....pllll.tOf}', ,..".... ",,' , I~I,:: Agent Pnx:edUtol , 1:"'" 'Poalod fer SIllY Rof_ . :~t. 37'S,..;, .: , ,--), ~-' ,'r.' /'"1''' '3S So '-::../' ' r.::"l_;:;. 1$,- .. 39__ .... :;..~' :,-- 1 . 'Ji...>~. ,.- . ",", . ~ ........ . < .;S, \:.~.':,.... .(._~.~:\.~.. ': ~, " " ',: -'.~- e......................................................................... ..' ", , , .. ,.. , TOTAlFORSECTION(K) : -~l,i. '. 1 LiJl/n ' , 'NOTE: The standards of performance are guidelines to assist in the proper grading of a store evaluation report ' fDrQVSC (Quality, Value. Service and Cleanliness), Realize that it is impossible to clarify every item because of extenuating circumstances in each store, However, these standards should aid in making judgment d~cisions, Iffurtherclarification is needed. please consult Intemational Dairy Queen's region~1 ~ffjce. ' , ~' ....~ ..,'<. EXHIBIT "H" '--' '.. :;:,~;', . I ;'.-j '.' ,. ~t..~I. .... ., . ','-", . ;.:' ,:.' '. """:. ~". " '1 A** C "" , D , , B**, E" F***, G***, H I J- K ", . , ~ -f otal All Sections [1] /ilf '.1.57 ,'. '...;' . ." "'-'.'.f J ,,-: ~"''''-, ."," " ,. ... . ':4~~~:': . ~~,.:L": ~\.\,~"...,,; ,.-.,' .,.~:':fl", '. ' , " [2] 7# tot):} [31/O?:r1 71 '.'. ' '_~" '....' ., .", ".0" '.' . Formul~: ", TOlai Sati~aCtorv(s) = Percentage ' '. :To(al ~osslble (S&U) , I, ,. ; ; i'" :J:'.'" . : ..... , ,'. ":' . .;.;::i ,~[3] CLEAN AND CONDITION [1].cLEAN/OPERATIONS [2] CONDITION ' ,~.:':7".. ':,~'<(QVSC SCORE) . It.:.:, 1rJ.:Lin2;,~% 1!L-drJ1L=sq'~<:~':'S~'@";P~/o&\:4 ~.. ;~'", " :. ". " ',,' ..'..,"'~~r"".!.{:.,' ;,', '.. ' ,;,. [1] CLEAN/OPERATIONS represents the overall cleanliness !ind~da!lYope':atlon of the st(J.r~:: ' '.', ,,' , (2] ,CONDITION represents the physical condition that the store is in, Is the landlord orfranchfsee ',; maintaining the proper maintenance, I.e., bUilding maintenance (Inside/outside)?" .,., ./ [3] CLEAN/CONDITION represents the total overall QVSC score on the'stor e,. . " (4) Failure of any Independently scored section (A,C, 8, E, F, and G) constitutes a failure of the evaluation, ': ,:. ' [4 GRADE: N/A = Not Applicable S =' Satisfactol}' , U = Unsalisfactol}' " " . COMMENTS: ,"' . Recommendation of Evaluator: Ifstore has award: Retained / Removed (Circle One) "Quality.purity" Award (90% orabove) Satlsfactol}' Rating (90% orabove) Satisfactory Rating (80-89%) Failure (below80%) n ' /. I,. Owner/ManagerSignature (All. items must be satisfactol}') (Numberof. items marked .U. Section Failure Score: Section(s) Failed: ) )F .-, ,~' .' .-? / . ,..." _/_-,-- '._~. EvaluatorSignature C/ .::/. ,19..., Date Date I i " r EXHIBIT "H" " ,',', t.. ',.. .... ':,fl"\ 'f.-,,' , \\ ,'.: j.',', ", ,,. .".. "'f'- '\ ,...\. '_~' .~ _, rJ." ,. ., >r;:'::._:~ " ~,. '....' f,. . ~;~':.J " r . . ., I ., -,-: ','~ I ""~~l,,#l';l....:.~t!.~..j{" ',', .-II:1i.-, . .~ , ~ .'~/"!j'ii' ~ ". ..\ ' . ,_L.'i\,}~t,"~ ~,/,;}/, .~''':;''~.\~i,~Jt~'.'tL~: '~~\ ~J~f~!:~~~~:r;.f~:~ '~~~~~I"j",'J'''f'~ ' 0', r~, .,' , " .'1\:\..,-. fh~,f.A~ ~ :'("" '~r.f:,.:,.",..,...." '/. ., 'f . "DA'IRYQUEEN'~~f'D' 'AI'RY' QI'IE'E."" ," " .E~'~~:j,;,,;."~',:: . " ~,~ '". ',.I ~ 1Wi' , . ~",'..,.; "::r' ':.P.'~-~ . " ":'," 'S'rO'''Rd'"E' 'E\I;':L'U'~~-\11"O""""'N'~''..' ,tJ.':;:;':~",;tBx;' ,:;::')',"~ . '.; '. '; ,y,", All, ,"A''i' _ "\)'~l:,' 1':1i~;'-t,._...;"'.:':"/;';':' ,'~:t ,"1 4-,:l 'I.., ,otl (,':'..' I >/'I~:'\I:\'.:~ t,t;~'fl~:_~\~(~~~~.'~',~~~,~",}~ \~''.~{F:':;.':~~'~:.i:'f,' .. ,," , " LIST OF DEFJ.CIENCIES~*,~f,::lt~ ~fJ'::.'''''~':' , ,:.. :,.': ':'\J '" ..:'~.~(l'j.~~'..... '..,\.'J 'r ,"1."'~"j.\ T~.(,..~7-.-;'J.~".~~);r:f. 1~~1,''''I,... ,:",'~;"\'''1: ' ' "',1, ".....-{..~ " .,: .... ", j,( ;,7. .~ ~, l.. 't''1f, V\f..~. o''!I.; '\:7!"~,'t!~..", .. \tO~ftl~~\t ~ 'j' I ''\: l'_,. tf:'''~ ,J . I, l . " ,.i\,,", .,',.....,",.,...{.<F.... ". ':-:.,."'.,~'\...~t~J,\:~.:~~'JjJ~,:.~rr.,~~.\l7;:~.~....~''. \....,~ .I,....t~l,'-, 'j.~~~~.~.",' ,~, Franchisee's Name "',":'" ," ,..'.<.,j""lf.,i~'",,',...~'store#';' ,:,'..f ;::,'~",,, t,r'" """,'~ '",\, "4~ "~~'~1t~~J CO~~EcnVE AC;I~N RECOMMENDED:~J1{j;";~ :,' ".':':;"1',..,l!"":i'~,"i"";":"~:';";",::" '. :,~~,.. \1'.. I~ ,~~..\.~ "~;:~~':"'I:;: ;, '-r:',,~":,~:';, .,:,":./ ',. "~f " :~",~I ..,.t.,.~, ":\""11; Y..i~.'t:'Ji"t"""~.. "",,'o-"~ . ...... I't ~. C1t5:,~ 'f ':"~.":.>,,',.,r.:t;'.,!."~~""':'~"I":': ':".'r"~,:~.;.;:'". :' ,,'.b~~~f;~,~~j.ACTlON ' , , t'" ~'l..i';;! j. ..,'tv ~"'1il;":;\ " .' .- ;~.\~ ~L~hf~r'{ '\l'!"~~' f~t: Jo .:\ .. .... ~ :181 ^' '-~Il . 1~"~~1,~i n, ~ , ,j ~N'(\(. ".!*'~.l!,;:;;'j .oj ""11.1-, ~>:~j~~i firfi\~ ,~~~1':'; " :\::f,"fl .~ .';-; q.. .) _I' ~.. f.1 . "t ,,~'l ".r.-:. t.."'_ . :O;:"'it. \' '!~ ''; "'1;1'-"'~' .'~'_r f ' ~': ('~'. ~;:. ,;~ '::~f ~.;[~' '~; . .::-I':"~4f.;; T\Jt. "~'i] :. ,,',' ,::',': ::,:'^'~^' "::.::' "~;?~~: '!. " ~ . . '. ~. ''-'' DEFICIENCY;"','" ~.,~'.; "':;~'i-":'" \ '.ll " . . .' -. , . ,..~.,." (Number each deficiency and explain) ITEM# .. EXPLANATION,>:,::." . ., ,'~' I...., I', '." ' , 7'.:c",:.,'.,\",,;. '... i riP, In C" r vi t .:~,.' .,).W. (,/ul i' t.lf ~ lo" n , , '''.;.,. '. :~ "! . , , , ../., ... t.' ,.' n ( L .. .. ,~ , .., ., .1.,1,.-. .: ~ot. ' ..... . '^' F#O . t tlH r I, "":'.' r I c~........ " ~ , \, I , , .. ,. .., .' ...' '.' '.C"..c. I' .': I:,. :~ ~ttrl.:, ,. ':~;..~" .1, '~'lt . '''' ,..OO L ~ ~l' .I~'.. , ,..... '1, , , oo-. '1 ( !, .~ .'/'1t,i"H. . . .' ,~ ' "~ I "'- . ,..'" , ':'0:., ,'" ,;'. ~1"\ .s.h'~d' ". '.' "'I{~'." U '':1,1 ,{ r......o/n) , ~ I' i ,. r\,.\. .". "... (l'I'\I"\."'V. T?, ,~ ., ....... v' r I .- ",,. .;........ t. .." ~.~ .r.: " ('" ,., (""'.". o. ~,I'". _.,. {"". 10, ,\ 'NC-, .,., r,. (. .. "..I,f, ~'. 1'.....,-1- 1111, ,. ,~ ., ,[ ,,, ~",.l~ I~ ,-...~ , ... . we. " ,,j '-;f" r. I . ~ " r, rf :A, , a2 II r"d to'. .'~ .1_\, I'l".r#' It cr,.,. 4, , t. ",.rr.. ,I. d) . ... " .y' . . ~ l, "~".fr..,,- " . ..~ .11 fO'" .", I I, . ..' _ f, p,~ .~, ',\,' ......r~ . Ii (" p~<' InitlalsofOwnerlManager Date Signature of Evaluator Date .The faCility deficiencies outlined below are the minimum facility upgrades that would have to be completed If the store'franchlse was transferred as of the date of this evaluation, EXHIBIT "H" I,., .\ ',\ ( f. "I' ,,/ 'n <' "'l;'. ,/ /' ....~ ........' '> ....."'.~ , -",r.' ~.~. ,< 'J '~ ~\::,j,-r;'~~,';,>;. ';., ,;",,;" ,':I~~'.f'. ""~~rA"Y,A",i;~(..t.lli~~~~:."~,ji,,~r':"'r.:~~t ~ ~;,:' '!2'mSllmOI' i;!.!.Ra!~I.~'~~'~,'~U~J'I'!I~I~i"i'if ~'l .,~ P iHi " jlj g i ~ g g i Ii i:I ih j'j Il ; 'I I ,',{ I' lit R 11 l:f f ~ iii m I i~?M '" Q )!l '" !l pO III '" ~ II ' ,.. ~ 'f.1"'1 ":,,. ra .,< " II ' 'J. 1"1 " pd 51 "(.' . 11 '1\. ',. "';" '. I. ir;: ..J ~~~... .~ - I,.,.. ...........,',..,J-[.,,/:I --I~I~,"I'til" ;<~. :;;1:1 IJ:- :11 v ~Ir: ~ J . .." ~ ~ ~Ip ~ "51~ 0 , ;f ~I~ ~/j/~HI, l f,}.: , I:' ,C:~ J> :i: ~ - -" '" \. l>i ..l 11I.1: . J() " . '\, i ~r. '"l .. ~ ~ t;: N '" ~ w '" e; t: ~ l!l ~.. ~ ~ 0: 6 ~:p tl ~ "'I~ ~ V' ~ l:. 19 ' ~ i "I I' ~~;: i{ I!' I~ ~ ~ :, ,l )I ~t" ~ ~ ~ "'/'\ JIji; '~"~(' ! 8 ,~I~n . ~o~' , , I' , ~,~ .. ~" 'i:~ " ., ;, ,; ~ '~\ i ,e I" ~ ~~1>', " .: ~ .:} " ~ '. ':1,,*1 .. :: ~ ,:t ,~:'~... ': 'tl ;', " .\ }tI.~" . 1. '"; ~ , jj.' . . ~I''''''' ;::1-:. !r -Ii"~ . r.' ", .' :"';.;' It. ~ ~ ~ ~ ~ i ! I ~ 5 ~ ~ i ~ ~ ~ J ~ , I ~ ; ~ ~ i ~ i i i ~ ~. · i ~ i ~ ! ' ~ ! ~ ~ · ~ ! ~ II 14: I ~t~~!!~ ~~!! ;~S !j!~mm~~~iqi ~~~j ill~ ~~~q ij.' I, ,,,", \l',I::l}v.~ "'1:- "'~\"l'l-tJ~"",.J_-I-r;W~", ~,,..i7' ..._.-;_~...._;::: ! :~" j,. rr~"\,, O~'W"':V "1-:: ...j.,J...j.,J..J-l..J!;,"';.~v,.""I.r:I"_i^ o."ooF'i,"'lA..<...j!\q ..\J'~ .' I " . -, ~r-" _".:.l ..>> ~ _" _"l ~ .. ' J..J''''' IVI ~ 0... ", " ..110 ~ .~:,.J': ~ 0.: '.. ~ ~ i G" :.. III w w c: ~ I:l /!! !;l - ~ ~ c: t:: c: ~ c: os ~ c: ~ u 6 '" bi " I;; ~ ~ e; t;: ~ ~ e; I!i S ~ "I !\}:, .,..., ~ . ~ I tr' "c-Ir ~.-' ~,~ ~ ~ ., , /, ' ,t'!: G=: 'I.lu.~, ~If, '~; I ~~~:j """ ~ ~ ~ 1_'," ,'r. . tt f "1'" ~"Yl j . ,'" ~I ~ ' " ~ "\ 0 N ~ ., t 0 iff' e\~~! . ~ . ~\ I~ : ~ i r \'" '. I I !r~:; '~~' ~i~I~~lliiiil!II~IIIII!!lil 1:~lilll~"rljli~~~iiGI t} ~t, ,,[jl~ t. ~~t: ~':J "~-l::;: ,'~~,:';:t~ ~ ~h~b~ iI ,;} '" ~ ...'l: ~..... 00 - '-, , " " .... _ _' I~!l :,',~,,'.': '" ~ 7" .:\' I....;" I':: '" ...r\... ' ." ~ : ;' V. :, I~ ~ ':: /!! c: bl '" ~ e; :,: "' ~ !:' S ~ ~ '" Cll5 60 ~ "i ~ - ~e .( ~ /!! C! O!l._, l!! to !t ai. "e I ",.. Viol - ~ l- ,... ~ 17.. , ' ~ :; '1\....'... ~ 1,1 '" !i ' . Co. ," II r:; 1\." ' ':~ IT , _ '.. ~I)' ~ ~ ,1-' ': -<:t-c W Io>~ ,... ~ .,.C.... ~"v.: 'V "~ - 1:5 , ' ," ..., \~ fij Ei n i:l :>: :a !n ,!!l '" '" ~ III 0 ~ Z , . i:l ~ i:l - ", ..- ~;~~!;!is~ile~ ~~I~~~~ii!~~~~ !ll!:l!llf1......~i;j~ \. ~!ll~l;li~~~ r'\:'l~ 1;I"'1/~ 1'\ 1/ " V ~ 1/ I\.., a R~ o "'!';j ~<i ./ ./ " ~ "i '" !':'l ; EXHIBIT "H" c ~ '" l...l... e .,::_ I ,i JI f ! t l!.l a- [ ~, f it l i ! ~ I I!!, i a I, 11: [ i' g. g, ~ {) 1 [ i,l 5 r-, a '" "' ~~ ill a _' R .. ~ _i :': :z: ~ ~- .'~ I\' ~ ~ .. "'" - .:.. '- -' ~ ..,; ~- r " - - ~ -' " - '.. D ~ ~ ~ - " r - i -- ~. -......' . . .-..- ..'"' June 10, 1997 ~ Mr, David Spealman "Dairy Queen'""Brazier" Store Walnut Bottom Road Shippensburg, PA 17257 Int.m.tlon.1 D.lry QUMn, Inc, 7505 Metro Boulevard p ,0. Bo. 39288 Minneapolis, MN 55439-0288 Telephone: (812) 83Q.0200 Dear Mr, Spealman: Harrisburg, PA # 17623 Chambersburg, PA # 16190 Shippenshurg, PA # 18994 Thank you for the time and courtesy you extended us during our visit of your stores to conduct the audits of the above locations, As a result of our visit, I hope that you have become aware of areas in your business that could potentially yield additional profits to you, There is great room for improvement. The audit workpapers have been reviewed a second time and no changes were made. The audit !Ii!! ru!t include the infonnation you provided for 1997. Below is a recap outlining the audit results, Because of extensive transfers between stores, the extensions were combined for all stores. Tne results are as follows: 1994 Sales (Combined) Dairy Queen Yogurt Brazier Drinks Total Sales Audited $ 620,497,94 35,859,21 82,560,78 42.180.48 $ 781,098.41 Variance $ (-38,753.30) 35,859,21 2,882,38 42,180.48 $ 42,168,77 5,71 % Reported $ 659,251.24 0,00 79,678,40 0,00 $ 738,929,64 1994 Yields & COGS Dairy Queen Dairy Queen wlDrink Brazier Brazier wlDrink Yogurt COGS .. !., if i , f: , , , \, ! , i I I I $ 28,81 $ 30,77 $ 19.70 $ 29,76 $ 24.77 29,04 % $ 30,61 $ 30,61 $ 19.01 $ 19.01 $ 0.00 30,7% EXHIBIT "I" EXHIBIT "I" Mr, David Spealman June 10, 1997 Page 3 The combined sales variance for the three years calculates to $ 193,782,56, Applying the centractual royalty rate of 4 % to the sales variance would result in an audit billing on 7,751.30, If this were an ADQ direct-licensed store, the contractual Royalty and Advertising rates would be applied to the sales variance and payable immediately, Cheryl Dmochowski - Ziegler has made the decision that the $ 7,751,30 is to be paid in full, Below is a list of suggestions and recommendations which will help improve your store's operations and financial strength. I. Financial Statements: A. Generate a monthly profit and loss statement, Why wait until year end to find out how your business is doing? Make sure you get infonnation to your accountant on a timely basis and review each P&L upon its completion. B. You should never be more than one month behind in financial infonnation. You need this data to gauge the success of your operation, n. Cost of Goods Sold (COGS): A, B, III. Yields: A. B. This store should be able to operate with a 28-32% COGS. Make sure the amounts are inventory adjusted each month so that your COGS is accurate. Regular inventory of major items deters theft (i. e. daily or weekly counts on meat, fries, hot dogs, cheese, etc.) Yields should be calculated on a daily basis. This allows you to monitor your store's performance on a regular basis and to take action as warranted, When examining yields on a regular basis, look to see if there are things which correlate with changes in yields. Several factors which will influence yields are portion control, waste, incorrect oveITWl, suggestive selling, sales and promotions and theft. The yields will also reflect your overall effectiveness at inventory control and proper stock rotation in relation to sales, IV, Inventory Control: A. Inventory control is a critical responsibility in the store's overall operation, At the end of each reporting period, a careful accurate accounting of the containers, ingredients, and accessories that went over the counter (COGS) during the period must be made, The inventory must be accurate in actual measurement and in calculation because the resuhing cost of sales and its percentage is placed on the EXHIBIT "I" Mr. David Spealman June 10. 1997 Page 4 monthly profrt and loss statement. This directly affects the profit picture of the store. When the inventory count or calculation is inaccurate, conclusions are drawn and inappropriate actions may follow, B, Control deliveries from suppliers: I. Do not okay completed delivery by counting boxes, 'Check off on your order record the products as they come through the back door. 2, Periodically take the temperature of mix and weigh it, if a scale is available ( 147 oz net weight per gallon), 3, Spot check meat boxes for quality as well as poundage. 4. Continually keep an eye out for damaged merchandise or containers, C, Control storage of inventory: I, Date and rotate all stock, Use the first in first out method, D, Control mistakes of inventory purchased: 1. Arrange for a return authorization from the billing department or supplier on aU returns, 2, Double check the accuracy of invoices versus the final billing. V, Waste: A, Acceptable waste is I % or less of net sales, B. The waste percentage is calculated by adding the cost ( the cost to you not the selling price) of containers, ingredients and accessories that are thrown way, Divide this amount by the net sales for the same period of lime. C, Maintain and post daily waste sheets, This will make employees accountable for the product in their stations, VI, Theft: . , ! A, Make your employees aware that you are monitoring the flow of cash and product in and out of your store. The employees are to be accountable for the use of all ingredients and the handling of cash within the store, EXHIBIT "I" Mr, David Spealman June 10, 1997 Page S B, Theft by employees of raw product: I, Check the trash and boxes before they are taken to the dumpster areas, Use of clear trash bags may stop product from walking out the back door. 2, Notice all stock items that are not in their proper places, Keep storage areas well organized and locked at all times. Organization makes it easy to notice shortages, 3. Be aware of the employees' friends loitering before, during or at the end of the work shift. This could be a team ellort. 4. Notice employees behind counters or in the kitchen that are not there to work a scheduled shift. S, Watch for large purchases, duffel bags and back packs, C. Theft by employees of finished product: I. Watch for partially eaten products or used product wrappers in places they do not belong, 2, Watch to see if employees are making mistake products minutes before they or another employee goes on break, 3, Watch for employees paying for one item but taking or making a more expensive item, 4. Watch for employees not ringing purchases or giving away products to family, friends or other employees. S, Watch for employees giving special discounts to family, mends or other employees, D, Theft by employees of cash: I, Watch for an employee working a cash drawer they are not assigned, 2. Watch an employee with a regular cash shortage or overage on his/her drawer, 3. Watch for an employee short changing customers, Sometimes this happens to purposefully bank cash in the drawer. EXHIBIT "I" Mr, David Spealman Juno 10, 1997 Pago 6 4, Watch for signs of tracking or counting around or in a register. Tic marks, scraps of paper, coins in the wrong area of the drawer, addition or subtraction figures, bills put in tho wrong way, etc, arc indications that the drawer is being loaded, 5, Watch for an employee with numerous voids, When a customer gives the correct change and before the purchase has been totaled, the order can be voided on the register and the money easily pocketed, 6, Watch for employees undercharging customers, An employee charges the customer the full price for his/her order, but rings in lower priced items, The difference could be pocketed by the employee, I encourage you to try these suggestions. Please feel free to give me a call if you have questions at any time, Thank you! Sincerely, AMERICAN DAIRY QUEEN, INC. ~4 ~6_~&c- Monty Lerbakken Senior Auditor (612) 830.0422 co: Cheryl Dmochowski . Ziegler Mike Cuff Steve Rapuano Royal Prevost File EXHIBIT "I" h DQ MOE, INC. 184 Golf Lane Grantville, PA 17028 August 18, 1997 C, David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 VIA: First Class Mail certified Mail No, P 206 994 191 Federal Express Re: Notice of Default operating Agreements re: Shippensburg Shopping Center Walnut Bottom Rd., Shippensburg, PA 920 South Main st., Chambersburg, PA 3890 Jonestown Rd., Harrisburg, PA Dear Mr, and Mrs. Spealman: I write you in my capacity as President of DQ MOE, Inc., the assignee-licensor of the Dairy Queen Operating Agreements with regard to the three "Dairy Queen" stores identified in the caption above which you operate as licensees. This notice is made pursuant to the above referenced operating Agreements. As mentioned and requested many times in the past, you are required to provide me regularly with (a) monthly profit and loss statements, (bl daily log books to include reports of cash over and short and to indicate daily deposit amounts, (cl yields calculated on a daily basis and (dl records of employee and family meals. You have failed to comply with this requirement which constitutes a violation of Section 9.4 of the operating Agreements. The recent audit of your operations for the years 1994, 1995 and 1996 reflects yoar poor business practices, including the under-reporting of sales resulting in a short-fall in payments due DQ MOE, Inc. It is noted that a similar audit was conducted in 1994 for the years 1991, 1992 and 1993, which also revealed deficiencies, The recent audit confirms violations of section 9.1 of the Operating Agreements. As you were previously advised, your stores did not comply with Quality, Value, Service and Cleanliness ("QVSC") inspections in violation of section 6,5 of the Operating Agreements. You received copies of detailed reports on May 16, 1997 and again on July 18 and 19, 1997. The latter reports show continuing deficiencies, EXHIBIT "J" C, David Spealman Louise M. Spealman August 18, 1997 Page 2 Recent examination of public records in Dauphin, Cumberland and Franklin Counties reveal various claims and judgments indicating your continuing refusal to employ sound financial management practices in contravention of Section 9,5 and obvious failure to pay taxes and other obligations in violation of Section 9.6 of the operating Agreements. We have evidence from which to conclude that you are using/ selling hamburger meat from unapproved sources. This is also a violation of the Operating Agreements. Of very significant importance is your continuing dilution/ alteration of the mix product used in your sales to the public. Samples of products offered for sale were taken in the Spring of 1997 and tested through Dairy Queen channels. You were notified via letter on May 16, 1997, of the product problem. On the same date, you met with Dairy Queen auditors and me, at which time you admitted the alteration of mix and promised to desist from further occurrences. I have just been advised by Dairy Queen that tests of products obtained on July 18, 1997, confirm your continued dilution/alteration of the mix ingredient. This is in violation of Section 6.3 of the Operating Agreements, We consider this as a very serious violation of the Agreements which cannot be tolerated. Accordingly, and for all the reasons set forth above, we are declaring you in default of the Operating Agreements. Unless an agreement is reached on resolution of all of the foregoing matters within seven (7) calendar days from the date of this notice, we will exercise the Licensor's termination rights under Section 11 of the Operating Agreements. If you wish to avoid these consequences, you should contact me immediately to arrange for an orderly resolution of the matters on terms satiSfactory to DQ Moe, Inc. You will receive no further notice or warning. Three counterparts of this notice are being sent to you as follows: (11 first class United states Mail, (2) certified United States Mail, return receipt requested, and (3) Federal Express. Very truly yours, DQ MOE, INC, By President EXHIBIT "J" , ~ DQ MOE, INC. 184 Golf Lane Grantville, PA 17028 November 24, 1997 VIA:~st Class Mail Certified Mail No, Federal Express C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Termination and Cancellation operating Agreements re: ' Shippensburg Shopping Center Walnut Bottom Rd., Shippensburg, PA 920 South Main st., Chambersburg, PA 3890 Jonestown Rd" Harrisburg, PA P 206 994 317 Dear Mr. and Mrs. Spealman: I write you in my capacity as President of DQ MOE, Inc., the assignee-licensor of the Dairy Queen Operating Agreements with regard to the three "Dairy Queen" stores identified in the caption above which you operate as licensees. This notice is made pursuant to the above referenced Operating Agreements. Despite my several prior notices, particularly the one dated August 18, 1997, and despite your various promises, you have failed to cure prior defaults and continue to violate the terms of the Operating Agreements. Therefore, you are hereby notified pursuant to Section 10 and 11 of the Operating Agreements that the three (3) agreemen~s are hereby cancelled and terminated. You have no further righ~ to operate the above referenced stores and you should cease, desist and refrain from using the trademarks and trade names associated with "Dairy Queen", You are advised to cease all operations immediately and contact me to effect an orderly disposition of equipment and sUpplies. Very truly yours, DQ MOE, INC. /~ ~ - '/ ----- '- ,'.. c..._ ..._' By (.../ ;., ~_ -..' _ ."'_ . President ~ !; ~ i ,,'/ 'i i; : , EXHIBIT "K" . J , DQ HOE, INC. 184 Golf Lane Grantville, PA 17028 November 24, 1997 C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 Re: Notice of Termination and Cancellation operating Agreements re: Shippensburg Shopping Center Walnut Bottom Rd" Shippensburg, PA 920 South Main st., Chambersburg, PA 3890 30nestown Rd., Harrisburg, PA VIA: F~t Class Mail ~~tified Mail No. P 206 994 317 Federal Express Dear Mr, and Mrs. Spealman: I write you in my capacity as President of DQ MOE, Inc., the assignee-licensor of the Dairy Queen Operating Agreements with regard to the three "Dairy Queen" stores identified in the caption above which you operate as licensees. This notice is made pursuant to the above referenced Operating Agreements. Despite my several prior notices, particularly the one dated August 18, 1997, and despite your various promises, you have failed to cure prior defaults and continue to violate the terms of the Operating Agreements. Therefore, you are hereby notified pursuant to section 10 and 11 of the Operating Agreements that the three (3) agreements are hereby cancelled and terminated. You have no further right to operate the above referenced stores and you should cease, desist and refrain from using the trademarks and trade names associated with "Dairy Queen". You are advised to cease all operations immediately and contact me to effect an orderly disposition of equipment and supplies. Very truly yours, DQ MOE, INC, By /f:" ~ .. ",.. /' ,,/ .-;.' -. h ~.. ,-.f: .-:.~- - .' President '-;--- , EXHIBIT "K" DQ MOE, INC. 184 Golf Lane Grantville, PA 17028 November 24, 1997 C. David Spealman Louise M. Spealman 158 Kline Road Shippensburg, PA 17257 VIA: First Class Mail ~tified Mail No, vP'ederal Express (' P 206 994 317 Re: Notice of Termination and Cancellation operating Agreements re: Shippensburg Shopping Center Walnut Bottom Rd., Shippensburg, PA 920 South Main st., Chambersburg, PA 3890 Jonestown Rd., Harrisburg, PA Dear Mr. and Mrs. Spealman: I write you in my capacity as president of DQ MOE, Inc" the assignee-licensor of the Dairy Queen operating Agreements with regard to the three "Dairy Queen" stores identified in the caption above which you operate as licensees. This notice is made pursuant to the above referenced Operating Agreements. Despite my several prior notices, particularly the one dated August 18, 1997, and despite your various promises, you have failed to cure prior defaults and continue to violate the terms of the Operating Agreements. Therefore, you are hereby notified pursuant to Section 10 and 11 of the Operating Agreements that the three (31 agreements are hereby cancelled and terminated. You have no further right to operate the above referenced stores and you should cease, desist and refrain from using the trademarks and trade names associated with "Dairy Queen". You are advised to cease all operations immediately and contact me to effect an orderly disposition of equipment and supplies, Very truly yours, DQ MOE, INC. By ~'" /', P / / /.~ _ " -:?h ~ ~<.. . '--- .'. Presiden~ EXHIBIT "K" ('l ...0 CJ C' ~';J .n ..' C'J .. r: ' , :') .:!J l -< , ',- i I .;rl " , ,;.:) ,I 0 , , , . ~~ --'i CJ " , ""'t., 'r.: '.1', , (:' i'):!J :,f': ) , , , -.'1''1 .;.., " "~ U :=! :..:.~\ :::> :i:! -< (,,) ", .' ...-.... . ,'~ '1'..