Please read through the information below and then analyze the contract language based on the information and instructions. As with the last analysis assignment, you may omit spelling/grammar suggestions; focus only on the substance of the provisions.

Fact Pattern: Big Top Restaurants (BTR) is a fast-food company that offers franchises to independent businesses. You have been hired by BTR to review a proposed franchise agreement they have prepared. Here are some of BTRs primary concerns:

First and foremost, BTR wants to ensure that there arent any illegal provisions in their agreement

BTR wants to ensure it is making the greatest financial profit it can, including all routinely used payment provisions for a franchise agreement.

BTR also wants to maintain the greatest level of control it can, but it is extremely firm on the fact that it wants to remain legally protected from any debts or other obligations of its franchisees.

Either highlight or use red text to show me any revisions you propose.

Contract language:

Payment.

Initial Fee. Franchisee shall be obligated to pay, contemporaneously with execution of this Agreement, a fee of $10,000.00 to Franchisor.

Percentage Payments. On an annual basis, no later than January 31 of each calendar year, Franchisee also must pay to Franchisor a sum equivalent to 8% of Franchisees gross annual sales from the prior calendar year. Franchisee shall submit financial statements evidencing such gross annual sales upon request of Franchisor.

Supplies and Resale.

Purchase of Supplies. Franchisee shall obtain the supplies listed on the attached Exhibit A only from Franchisor at the prices listed on said Exhibit. Said prices are subject to change on an annual basis.

Resale. Franchisee agrees that in order to ensure consistency throughout all Big Top Restaurants, all menu prices at Franchisees business shall be set in accordance with the amounts listed on the attached Exhibit B.

Operations.

Franchisee shall operate its business in all respects consistently with the Operations Manual provided by Franchisor. This shall include (though shall not be limited to) compliance with provisions regarding hours of operation, employee wages, scheduled employee duties, food preparation methods and appearance, and signage.

Franchisor shall have the option to inspect the business on a weekly basis, at its discretion.