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Franchisor Albert owns the trade name and business model-related IP for a fast food business.

Franchisee burt enters into an agreement giving it exclusive rights to operate the franchise business in a specified location for 5 years, renewable at Burt’s option. Franchisee Burt pays an initial franchise tee, continuing royalties of 5% of revenues, and fees for advertising and other services. Franchisee Burt is entitled to all residual profits after paying these fees. Under the terms of the agreement: – Franchisor Albert sets the selling price for core products, determines branding requirements and determincs a list of approved suppliers for key food supplies and negotiates related prices Franchise but is responsible for ail other aspects of the operation including: – Financing the franchise – Fit-out (subject to Albert’s approval of the design for brand compliance), equipement purchasing and negotiating the lease for premises – Hiring management and employees and negotiating wages and other en,ployment terms – Determining detailed operating procedures – Local advertising and promotion – Renewing the franchise