If Franchisee has three or more locations in operation, the Company shall have the right to require Franchisee to recruit, hire and employ a Key Operator. The Key Operator will devote full time and best efforts exclusively to the supervision and conduct of the Franchise restaurants and business. Among other things, the Key Operator shall have prior multi-unit restaurant supervisory experience, must assume a supervisory role, and may not have daily shift management responsibilities for a Franchise Restaurant. The hiring action steps for this role must follow those of a General Manager Level as described below.

Minimum score required on the Restaurant Evaluation to stay in operation is 80%

In order to facilitate strong working relationships between both the Company and Franchisees, and Franchisee-to-Franchisee, and to promote Fazoli’s core values of Trust, Respect, and Commitment to Excellence, the following policy will apply as of May 1, 2005 to the recruitment and/or hiring of management personnel employed by Fazoli’s Restaurants, LLC, its subsidiaries, affiliates, or related entities (for purposes of this policy, individually and collectively, the “Company”) or any franchise organization of Fazoli’s Franchising Systems, LLC, its subsidiaries, affiliates or related entities (for the purposes of this policy, individually and collectively, the “Franchisee”).

Given the significant time and expense associated with management recruitment, training, and retention in today’s business climate, it is reasonable to understand the competitive nature involved with the recruitment of qualified and capable management personnel. For these purposes, Fazoli’s expressly prohibits any form of recruitment of management personnel currently listed on an active roster of the Franchisee or the Company. While this policy does provide a means by which management personnel may move between organizations, the act of openly recruiting or "pirating” away managers/trainers violates Fazoli’s core values of Trust and Respect. Such actions will be deemed to be a violation of the Operations Manual and, as such, grounds for issuance of a Notice of Default under the Franchise Agreement.

Approved Management Recruiting and Hiring Process

From time to time, a Fazoli’s manager may be required to or choose to relocate to another geographic area for reasons outside the scope of his or her Fazoli’s job responsibilities. In these instances, it will be acceptable and even desirable to take reasonable measures to retain this manager within the Fazoli’s system of restaurants. Relevant relocations include when a manager a) leaves the Company for employment with a franchise organization, b) leaves a franchise organization for employment with the Company, or c) leaves one franchise organization for employment with another franchise organization. 

When a manager first learns that he will need to tender his Notice of Resignation, he should contact his immediate supervisor. Contact between restaurant organizations to discuss employment opportunities must be initiated at the supervisory level or above in order to be eligible for approval.  If the manager has the desire to remain within the Fazoli’s system of restaurants, then the following lists the appropriate action steps:

Restaurant Manager Level

(Includes management positions Restaurant Manager, Assistant Manager, Associate Manager, or comparable operations positions)

Company Restaurant Manager notifies his/her Company General Manager; Company General Manager notifies his/her Company Area Supervisor; Company Area Supervisor contacts the Director of Operations.

Franchise Restaurant Manager notifies his/her Franchise General Manager; Franchise General Manager notifies his/her Franchise Key Operator or Owner; Franchise Key Operator or Owner contacts his/her Franchise Business Consultant; Franchise Business Consultant contacts the Director of Operations.

General Manager Level

(Includes management positions General Manager, Market Manager, Area Supervisor, Key Operator, Area Trainer, higher supervisory operations positions, and comparable training positions)

Company General Manager contacts his/her Company Area Supervisor; Company Area Supervisor contacts his/her Director of Operations.

Franchise General Manager contacts his/her Franchise Key Operator or Owner; Franchise Key Operator contacts his/her Franchise Business Consultant; Franchise Business Consultant contacts the Director of Operations.

In addition to requests arising from a desire to relocate, there will inevitably be reasons for which a management level employee may seek employment opportunities outside of his/her current situation. In all cases, all parties involved will be required to follow the same procedures outlined above and communicate immediately and openly with all concerned parties.

Approval of Transfer

There may be instances where, to the benefit of all parties, the Company, or the entity first employing the manager, may approve the transfer of management personnel. These instances will be reviewed and decisions made on a case-by-case basis. To qualify for consideration for approval, communications with supervisory personnel, including company Directors of Operation, franchise Key Operators, and franchise Owners must precede any contact with restaurant management personnel. Documentation of such discussions will be required as part of this review.

• Approval of Transfer Form

Franchise Royalty Reporting for Crunchtime

Royalty reporting has been revamped to make it easier to report Royalty and Ad Fee $ to Fazoli’s accounting. The website also stores historic submissions.

Submit a Monthly Royalty Report

1. Go To: https://royadv.fazolis.com using a web browser.

   • 
     

2. Enter your Email for username,  your Password and click Log In (if prompted).

3. The franchise group(s) for which you have access will appear. Select the Franchise Group you are reporting for. If your account is assigned to one group it will automatically be selected.

4. Choose a Reporting Starting Date and Reporting Ending Date.  These dates are typically auto selected on the franchise’s fiscal calendar.

5. Review the Reported Crunchtime Net Sales. If incorrect, they can be adjusted by entering another amount in the Adjusted Net Sales column.

6. Click Submit.

7. A confirmation summary will appear, click Confirm.

8. Accounting will be notified of the submission and you will receive an electronic receipt via email. 

View Royalty Submission History

1. Go To: https://royadv.fazolis.com using a web browser.

2. Enter your Email for username,  your Password and click Log In (if prompted).

3. Click on the History link in the top navbar.

4. The franchise group(s) for which you have access will appear. Select the Franchise Group to view submission reports for.

5. Historical royalty submissions will appear on the page below. To view details of a royalty submission, download a CSV or PDF.

Troubleshooting

• Royalty Fee % or Ad Fee % is Incorrect - email franchiseaccounting@fazolis.com.

• Lost Email/Username - Email franchiseaccounting@fazolis.com.

• Lost Password - User “Forgot your password” link on the login page and follow the prompts.  If you continue having issues, please email franchiseaccounting@fazolis.com. 

• Can’t get to https://royadv.fazolis.com/ - 1st ensure you are connected to the internet.  If you are still having issues email the helpdesk@fazolis.com.

• Random error message on website - Email franchiseaccounting@fazolis.com and helpdesk@fazolis.com. 

• General Questions - Email franchiseaccounting@fazolis.com. 

Reporting for NON-Crunchtime Locations

All franchisees should complete a copy of the Monthly Volume Reporting form at the end of each month. Once completed, fax a copy to Fazoli’s Systems, Inc., by the 10th of the following month. Then mail the original, with the check for the Royalty and Advertising fees, to the address on the form. Checks not postmarked by 12:00 p.m. on the 10th of the month are considered to be past due. A 1½% per month interest charge will be assessed on fees past due.

Monthly Volume Reporting Form for NON-Crunchtime Locations

Franchisees are required to maintain all menu boards in compliance with the then currently approved menu, and maintain all point-of-purchase materials (POP) in accordance with the then current company standards.

Note: Through out the year, we offer different Limit Time Offers. Please contact your Franchisee Business Consultant for further information on the current LTOs.

Fazoli’s requires that all restaurants retain certain documents for the following periods of time:

Cash Register Journal - 60 days

Nightly Close Reports, Deletes, Coupons, and Discount Supports - 60 days

Restaurant Evaluations - 6 months

Applications (non-hires) - 1 year

Cost/Purchase Journal - 1 year

Schedules - 1 year

Profit & Loss Statements - 1 year

Personnel File (from date of separation) - 5 years

Worker's Compensation (loss notice) - 7 years

General Liability (loss notice) - 7 years

OSHA Logs - 30 years

MSDS - Maintain on premises at all times (even if product changes)

Franchisees shall at all times maintain and preserve, during the term of the Franchise Agreement and for at least five (5) years, or such longer period of time as may be required by law or regulation, after the termination or expiration of the Franchise Agreement, full, complete and accurate books, records and accounts in accordance with generally accepted accounting principles, of such kind and in the form and manner prescribed by the Company from time to time. 

In order to protect the system name “Fazoli’s” and other proprietary marks of Fazoli’s, and in order to identify the franchisees’ relationship with the Company, franchisees may use the Fazoli’s trademarks and service marks, provided, however, franchisee shall first obtain consent from the Fazoli's Legal Department prior to any such uses. Such uses include, but are not limited to stationery, checks, and business forms, and local marketing activities. 

For currently registered Trademarks/Logos, please contact Amanda Smith in the Fazoli's legal department. 

In the event a Fazoli's Franchise would like to, or intends to, use any Fazoli's federally registered mark(s) outside of the use as prescribed in the Franchise Agreement (restaurant services), then, pursuant to the Franchise Agreement, Franchisee is required to first obtain Fazoli's consent.

An example of using a Fazoli's mark outside of the scope of the Franchise Agreement would be a sponsorship.   If a Franchisee would like to sponsor a local event, a sports team or any other type of sponsorship, for any period of time, Franchisee must first obtain consent by Franchisor in order to do so.

Following is the process to request such consent for Franchisee to use any Fazoli's registered mark(s) other than as prescribed in the Franchise Agreement:

1. Complete the Google Form -  REQUEST FOR CONSENT - FAZOLI'S TRADEMARK(S) - Linked below

2. The Google form asks the following questions: 

•  Explain the purpose for which Franchisee would like to use the mark(s); 

•  Which mark(s) Franchisee intends to use; and 

•  The period of time the mark(s) will be used.

3. You will receive a response from Fazoli's Legal Department within 2 business days of submitting the form.

4. If approved, Franchisee will be advised how the mark should be displayed and any other information that should be included with the mark, for example - "[Fazoli's

tomato logo] by ABC, LLC, a proud Franchisee of Fazoli's ®".

5. If rejected, Franchisee will be advised of the reason for any potential rejection.

Please contact Amanda Smith of Fazoli’s Legal Services, with any questions. amanda.smith@fazolis.com 

Resturants must be open for business between the hours of 10:30 am & 10:00 pm, 7 days per week. These hours may be modified under certain circumstances, provided you receive prior written consent from your FBC.

Restaurants can choose to follow the Company holiday schedule and close for Thanksgiving & Christmas.