Common use of Development Rights in Territory Clause in Contracts

Development Rights in Territory. 1.1 Franchisor hereby grants to Developer, subject to the terms and conditions of this Agreement (if 2.8 applicable add “, and specifically Section 2.8 hereof,”) and as long as Developer shall not be in default of this Agreement or any other development, franchise or other agreement between Developer and Franchisor, non-exclusive/exclusive development rights to obtain franchises to establish and operate franchised restaurants, and to use the El Pollo Loco System solely in connection therewith, at specific locations to be designated in separate franchise agreements (the “Franchise Agreements”). (If exclusive agreement add “Developer expressly acknowledges that the exclusive rights granted herein apply only to the right to develop new restaurants in the Territory, and no exclusive territory or radius protection for the term of any franchise agreement is granted herein.”) The Franchise Agreements executed in accordance with this Agreement shall be in the form currently in use by Franchisor at the time of approval of the specific restaurant site by Franchisor. 1.2 Within thirty (30) days of the date of execution of this Agreement, Developer shall meet with Franchisor’s development representatives and begin preparation of a market development plan for the Territory (identifying specific key areas, key intersections and trade areas in the Territory) and all development pursuant to this Agreement shall be in accordance with this plan (the “Market Plan”). The Market Plan shall include proposed radii of areas where sites are to located, ranking and prioritization of site locations and other information customarily used by market planners in the restaurant industry. Developer shall propose the Market Plan and Franchisor shall approve or disapprove the Market Plan in its reasonable discretion within thirty (30) days thereafter. If Franchisor disapproves the Market Plan, it shall provide written comments to Developer to enable it to amend the Market Plan. In any event, the initial Market Plan shall be completed and approved by Franchisor and Developer no later than one hundred and twenty (120) days from the date of execution of this Agreement (the “Initial Planning Phase”). Developer acknowledges that no extensions of time on the Development Schedule (as defined below) shall be granted by Franchisor to Developer as a result of Developer’s failure to complete a satisfactory Market Plan with the Initial Planning Phase. 1.3 The parties hereto recognize that demographics, market economics, real estate values, competition and other conditions may change in the Territory over the term of this Agreement and that such changes may impact the Market Plan. Therefore, the parties agree that it is in their respective best interests to review the Market Plan periodically throughout the term of this Agreement. On the first anniversary of the approval of the initial Market Plan and at least once annually thereafter, Developer and Franchisor shall review the Market Plan and make such revisions as are required to maximize the successful development of the El Pollo Loco System in the Territory.

Development Rights in Territory. 1.1 Franchisor hereby grants to Developer, subject to the terms and conditions of this Agreement (if 2.8 applicable add “, and specifically Section 2.8 2.20 hereof,”) , and as long as Developer shall not be in default of this Agreement or any other development, franchise or other agreement between Developer and Franchisor, non-exclusive/exclusive development rights to obtain franchises to establish and operate twelve (12) franchised restaurants, and to use the El Pollo Loco Loco® System solely in connection therewith, at specific locations to be designated in separate franchise agreements Franchise Agreement(s) (the “Franchise Agreements”). (If exclusive agreement add “Developer expressly acknowledges that the exclusive rights granted herein apply only to the right to develop new restaurants in the Territory, and no exclusive territory or radius protection for the term of any franchise agreement Franchise Agreement is granted herein.”) . The Franchise Agreements (and all ancillary documents attached as Exhibits to the Franchise Agreement, including the Personal Guarantee) executed in accordance with this Agreement shall be in the form currently in use by Franchisor at the time of approval execution of the specific restaurant site Franchise Agreement and shall be executed individually by Franchisoreach person, partner, member or shareholder. 1.2 Within thirty (30) days of Prior to or concurrent with the date of execution of this Agreement, Developer shall meet with Franchisor’s development representatives and begin preparation of prepare a market development plan for the units to be constructed and opened by Developer in the Territory (identifying specific key areas, key intersections and trade areas in the Territory) and all development pursuant to this Agreement shall be in accordance with this plan (the “Market Plan”). The Market Plan shall include proposed radii of areas where sites are to may be located, ranking and prioritization of site locations and other information customarily used by market planners in the restaurant industry. Developer shall propose the Market Plan and Franchisor shall jointly approve or disapprove the Market Plan in its reasonable discretion within thirty (30) days thereafter. If Franchisor disapproves the Market Plan, it shall provide written comments to Developer to enable it to amend the Market Plan. In any event, the initial Market Plan shall be completed and approved by Franchisor and Developer no later than one hundred and twenty (120) days from the date of execution of this Agreement (the “Initial Planning Phase”). Developer acknowledges that no extensions of time on the Development Schedule (as defined below) shall be granted by Franchisor to Developer as a result of Developer’s failure to complete a satisfactory Market Plan with the Initial Planning Phase. 1.3 The parties hereto recognize that demographics, market economics, real estate values, competition and other conditions may change in the Territory over the term of this Agreement and that such changes may impact the Market Plan. Therefore, the parties agree that it is in their respective best interests to review the Market Plan periodically throughout the term of this Agreement. On the first anniversary of the approval of the initial Market Plan and at least once annually thereafter, Developer and Franchisor shall review the Market Plan and make such revisions as are required to maximize the successful development of the El Pollo Loco System in the Territory.

Development Rights in Territory. 1.1 Franchisor hereby grants to Developer, subject to the terms and conditions of this Agreement (if 2.8 applicable add “, and specifically Section 2.8 hereof,”) and as long as Developer shall not be in default of this Agreement or any other development, franchise or other agreement between Developer and Franchisor, non-exclusive/exclusive development rights to obtain franchises to establish and operate twenty-five (25) franchised restaurants, and to use the El Pollo Loco Loco® System solely in connection therewith, at specific locations to be designated in separate franchise agreements (the “Franchise Agreements”). (If exclusive agreement add “Developer expressly acknowledges that the exclusive rights granted herein are subject to Franchisor’s reserved rights in Section 2.6 below, apply only to the right to develop new restaurants in the Territory, and no exclusive territory or radius protection for the term of any franchise agreement Franchise Agreement is granted herein.”) . The Franchise Agreements executed in accordance with this Agreement for each restaurant to be developed under this Agreement shall be in the form currently in use by Franchisor at the time of final RESAC (defined in Section 2.4 below) approval of the each specific restaurant site by Franchisor. An Amendment to the Franchise Agreement in the form attached hereto as Exhibit “C” shall be executed concurrently with each such Franchise Agreement executed hereunder; provided, however, that the Section references in brackets (“[]”) shall be amended, as necessary, to refer to the Sections in the then-current forms of Franchise Agreement to be entered into pursuant to this Agreement. Provided that Developer is and has at all times been in compliance with the terms of this Agreement, Developer shall have the option to develop an additional twenty-five (25) franchised restaurants in the Territory (the “Option”). The development schedule for the restaurants that are subject to the Option is set forth in Exhibit “B” hereto. Developer may exercise the Option by providing Franchisor on or before December 31, 2009 with: (a) written notice of Developer’s intent to exercise the Option; and (b) a payment in the amount of Two Hundred Fifty Thousand Dollars ($250,000) ($10,000 for each restaurant). The Option will not be considered exercised until Franchisor has received full payment from Developer therefor. If and when the Option is exercised, the Development Schedule under this Agreement shall be deemed to incorporate the additional restaurants subject to the Option. 1.2 Within After the third year of this Agreement, Developer shall be entitled to relocate up to ten percent (10%) of the restaurants then operated in the Territory (rounded down to the nearest whole number) and to move those restaurants to a new location, provided: (a) Developer is and has during the term of this Agreement been in compliance with the terms of this Agreement; (b) Developer has opened and is operating at least sixteen (16) franchised restaurants in the Territory; (c) the combined average sales of all of Developer’s restaurants in the Territory are at or above the most recently published El Pollo Loco franchise restaurant chain average AUV’s (as measured by the six (6) month period preceding Developer’s decision to relocate); and (d) that each restaurant to be relocated is replaced with a new restaurant that is located in the same trade area within the time period set forth in this Section. Each unit that Developer chooses to relocate in the Territory must have been open and operating for at least three (3) years prior to Developer’s relocation decision. Developer shall give Franchisor at least six (6) months advance written notice of its intent to exercise this relocation right, and Developer shall open each relocated restaurant no later than thirty (30) days after closing the restaurant to be relocated. All sites for restaurants in the Territory, whether a new restaurant or a restaurant to be relocated pursuant to this Section, shall be subject to the RESAC approval process set forth in Section 2.4 below. Developer shall be entitled to transfer the franchise fee paid for the original restaurant to the relocated unit provided the decision to relocate the restaurant occurs prior to the tenth (10th) anniversary of the date of this Agreement. In addition to Developer’s right to relocate a restaurant as described above, and provided Developer is exceeding its restaurant development obligations under the Development Schedule (e.g., has opened a greater number of restaurants at or before the scheduled opening date than is required under the Development Schedule), Developer shall have the right to request Franchisor’s consent to close one or more of Developer’s restaurants, which consent shall not be unreasonably withheld. Developer shall not have the right to request the closure of a restaurant(s) if Developer is not in compliance with the Development Schedule, or if the requested restaurant(s) closures, if such restaurants are closed, would cause Developer to not be in compliance with the Development Schedule. Developer shall not be entitled to close any restaurant in the Territory without the prior written consent of Franchisor. If Franchisor grants Developer the right to close a restaurant (without the intent to relocate that restaurant pursuant to this Section 1.2), such restaurant closure shall not diminish Developer’s right in this Section 1.2 to close and relocate up to ten percent (10%) of the restaurants it operates in the Territory. 1.3 Prior to or concurrent with the execution of this Agreement, Developer shall meet with Franchisor’s development representatives and begin preparation of prepare a market development plan for the units to be constructed and opened by Developer in the Territory (identifying specific key areas, key intersections and trade areas in the Territory) and all development pursuant to this Agreement shall be in accordance with this plan (the “Market Plan”). The Market Plan shall include proposed radii of areas where sites are to located, ranking and prioritization of site locations and other information customarily used by market planners in the restaurant industry. Developer shall propose the Market Plan and Franchisor shall jointly approve or disapprove the Market Plan in its reasonable discretion within thirty (30) days thereafter. If Franchisor disapproves the Market Plan, it shall provide written comments to Developer to enable it to amend the Market Plan. In any event, the initial Market Plan shall be completed and approved by Franchisor and Developer no later than one hundred and twenty (120) days from the date of execution of this Agreement (the “Initial Planning Phase”). Developer acknowledges that no extensions of time on the Development Schedule (as defined below) shall be granted by Franchisor to Developer as a result of Developer’s failure to complete a satisfactory Market Plan with the Initial Planning Phase. 1.3 1.4 The parties hereto recognize that demographics, market economics, real estate values, competition and other conditions may change in the Territory over the term of this Agreement and that such changes may impact the Market Plan. Therefore, the parties agree that it is in their respective best interests to review the Market Plan periodically throughout the term of this Agreement. On the first anniversary of the approval of the initial Market Plan and at least once annually thereafter, Developer and Franchisor shall review the Market Plan and make such revisions as are required to maximize the successful development of the El Pollo Loco Loco® System in the Territory.

Development Rights in Territory. 1.1 Franchisor hereby grants to Developer, subject to the terms and conditions of this Agreement (if 2.8 applicable add “, and specifically Section 2.8 hereof,”) and as long as Developer shall not be in default of this Agreement or any other Territory: Date development, franchise or other agreement between Developer and Franchisor, non-exclusive/exclusive development rights to obtain franchises to establish and operate ____ franchised restaurants, and to use the El Pollo Loco Loco® System solely in connection therewith, at specific locations to be designated in separate franchise agreements (the “Franchise Agreements”). (If exclusive agreement add “Developer expressly acknowledges that the exclusive rights granted herein apply only to the right to develop new restaurants in the Territory, and no exclusive territory or radius protection for the term of any franchise agreement is granted herein.”) The Franchise Agreements executed in accordance with this Agreement shall be in the form currently in use by Franchisor at the time of approval of the specific restaurant site by Franchisor. 1.2 Within thirty (30) days of Prior to or concurrent with the date of execution of this Agreement, Developer shall meet with Franchisor’s development representatives and begin preparation of prepare a market development plan for the units to be constructed and opened by Developer in the Territory (identifying specific key areas, key intersections and trade areas in the Territory) and all development pursuant to this Agreement shall be in accordance with this plan (the “Market Plan”). The Market Plan shall include proposed radii of areas where sites are to located, ranking and prioritization of site locations and other information customarily used by market planners in the restaurant industry. Developer shall propose the Market Plan and Franchisor shall jointly approve or disapprove the Market Plan in its reasonable discretion within thirty (30) days thereafter. If Franchisor disapproves the Market Plan, it shall provide written comments to Developer to enable it to amend the Market Plan. In any event, the initial Market Plan shall be completed and approved by Franchisor and Developer no later than one hundred and twenty (120) days from the date of execution of this Agreement (the “Initial Planning Phase”). Developer acknowledges that no extensions of time on the Development Schedule (as defined below) shall be granted by Franchisor to Developer as a result of Developer’s failure to complete a satisfactory Market Plan with the Initial Planning Phase. 1.3 The parties hereto recognize that demographics, market economics, real estate values, competition and other conditions may change in the Territory over the term of this Agreement and that such changes may impact the Market Plan. Therefore, the parties agree that it is in their respective best interests to review the Market Plan periodically throughout the term of this Agreement. On the first anniversary of the approval of the initial Market Plan and at least once annually thereafter, Developer and Franchisor shall review the Market Plan and make such revisions as are required to maximize the successful development of the El Pollo Loco Loco® System in the Territory.

Development Rights in Territory. 1.1 Franchisor hereby grants to Developer, subject to the terms and conditions of this Agreement (if 2.8 2.20 applicable add “, and specifically Section 2.8 2.20 hereof,”) and as long as Developer shall not be in default of this Agreement or any other development, franchise or other agreement between Developer and Franchisor, (non-exclusive/exclusive exclusive) development rights to obtain franchises to establish and operate franchised restaurantsrestaurant(s), and to use the El Pollo Loco Loco® System solely in connection therewith, at specific locations to be designated in separate franchise agreements Franchise Agreement(s) (the “Franchise Agreements”). (If exclusive agreement agreement, add “Developer expressly acknowledges that the exclusive rights granted herein apply only to the right to develop new restaurants in the Territory, and no exclusive territory or radius protection for the term of any franchise agreement Franchise Agreement is granted herein.”) The Franchise Agreements (and all ancillary documents attached as Exhibits to the Franchise Agreement, including the Personal Guarantee) executed in accordance with this Agreement shall be in the form currently in use by Franchisor at the time of approval execution of the specific restaurant site Franchise Agreement and shall be executed individually by Franchisoreach person, partner, member or shareholder. 1.2 Within thirty (30) days of Only applies to multi-unit Development Agreement – delete if single-unit Development Agreement). Prior to or concurrent with the date of execution of this Agreement, Developer shall meet with Franchisor’s development representatives and begin preparation of prepare a market development plan for the units to be constructed and opened by Developer in the Territory (identifying specific key areas, key intersections and trade areas in the Territory) and all development pursuant to this Agreement shall be in accordance with this plan (the “Market Plan”). The Market Plan shall include proposed radii of areas where sites are to may be located, ranking and prioritization of site locations and other information customarily used by market planners in the restaurant industry. Developer shall propose the Market Plan and Franchisor shall jointly approve or disapprove the Market Plan in its reasonable discretion within thirty (30) days thereafter. If Franchisor disapproves the Market Plan, it shall provide written comments to Developer to enable it to amend the Market Plan. In any event, the initial Market Plan shall be completed and approved by Franchisor and Developer no later than one hundred and twenty (120) days from the date of execution of this Agreement (the “Initial Planning Phase”). Developer acknowledges that no extensions of time on the Development Schedule (as defined below) shall be granted by Franchisor to Developer as a result of Developer’s failure to complete a satisfactory Market Plan with the Initial Planning Phase. 1.3 The parties hereto recognize that demographics, market economics, real estate values, competition and other conditions may change in the Territory over the term of this Agreement and that such changes may impact the Market Plan. Therefore, the parties agree that it is in their respective best interests to review the Market Plan periodically throughout the term of this Agreement. On the first anniversary of the approval of the initial Market Plan and at least once annually thereafter, Developer and Franchisor shall review the Market Plan and make such revisions as are required to maximize the successful development of the El Pollo Loco System in the Territory.