In addition to the termination provisions in the Franchise Agreement described in Section 7.1, 7.2 and 7.3, regional team manager will be in default of this Agreement and this Agreement will terminate if five (5) or more franchisees transfer or fail in the regional team member’s exclusive territory within a twelve (12) month period.

This Agreement will remain in force until Franchisor and the regional team manager mutually agree to terminate this Agreement as long as the regional team manager is in good standing and has not violated their The Company Franchise Agreement in any way. Regional team manager will be in violation of this Agreement if they are sixty (60) days or more in arrears with any monies owed Franchisor.

If a franchisee from the regional team member’s exclusive territory contacts The Company with service problems from the regional team manager, The Company will contact the regional team manager to help solve the problem. If The Company has to service the franchisee, the regional team manager will be billed for the service to their franchisee from The Company.

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Perhaps this might give you your own ideas of how best to rapidly expand your system without getting into the problems of master franchising. Of course I am not a professional parasite attorney so you will have to go pay one $300 per hour to look at such a scenario for you if you think this might be a potential expansion idea for you like it was us and so consider this in 2006.