(d) should Master not have cured the default within the time frame and terms of
the plan, but is diligently working to satisfy the obligation in good faith, then Global may allow Master
an additional extension of a period it determines is adequate,
(e) if Master has cured the default at the end of the extension period (if any) then
Master shall be considered to have cured the default,
(f) if Master does not meet the terms of the plan, Global may terminate this
Agreement and treat the default as not cured.
If Master is able to provide reasonable evidence that the delay in opening Franchises (but not
granting) is not due to its fault, then it shall be entitled to an additional extension for that period of 90
days, otherwise if Master does not meet any of the scheduled periods above Global shall have the right
to do any or all of the following: (a) reduce the development Area to a size that Global determines in its
sole discretion, will be adequate to complete the sales of those Franchises which Global believes it can
achieve, (b) terminate the exclusivity of the Development Area so anyone designated by Global,
including a different master Licensee, who can grant franchises in the Development Area.
All decisions by Global in this provision are at its total discretion.
1.5 No Responsibility of Global to Verify Compliance with Certain Laws. Global shall have no
responsibility to verify that Master has complied with any and all laws, regulations, rules or similar
governmental requirements (“Laws”), which it or its Franchises are subject to, including all franchising,
licensing and registration laws. Master is also required to determine which Laws it and its Franchises
must comply with.
1.6 Closures, Replacements and Transfers of Units. If, during the Term, Master or a
Franchisee ceases to operate any Franchised Business which has been developed and Opened under this
Agreement, for any reason, Master or the Franchisee must develop a replacement Franchised Business
to fulfill Master’s obligation to have Open and in operation the required number of Unit Franchises
according to the Development Schedule. The replacement Business must be Opened within twelve (12)
months after the closing of the Business being replaced. If, during the Term, a Franchisee, in accordance
with the terms of the Unit Franchise Agreement, transfers its interests in a Franchised Business, the
transferred Business shall continue to be included in the count to determine if Master has complied with
the Development Schedule, so long as the transferred Business continues to be operated under the
Master Franchise System. If a transferred Business should cease to be operated as a Franchised
Business, that Business will not be included in the count to fulfill Master Licensee’s obligation to have
Open and in operation the required number of Units under the Development Schedule unless it meets
the substitution provision in the first two lines of this Section.
1.7 Signing Franchise Agreements with Franchisees. Notwithstanding any other provision in
this agreement, Master agrees that until notified otherwise, Global will execute all Franchise
Agreements with franchisees in the Development Area. This arrangement will in no way change or affect
your obligations under this Agreement and further you are obligated to perform all of the requirements