Principal Operator. You shall designate an individual to serve as your "Principal Operator." The Principal Operator shall meet the following qualifications: (a) The Principal Operator shall own at least a 5% equity interest in you; provided that you shall not be in default of this requirement if the Principal Operator is entitled to a bonus of not less than 5% of the net profits of the Restaurant, payable after the end of each Period (as defined in the Franchise Agreement), and also has the right to acquire not less than 5% equity interest in you within 12 months of his or her hire date, which rights shall be evidenced by a written agreement between the Principal Operator and you. You shall provide us with a copy of any such agreement upon request. Once the Principal Operator has acquired an equity interest in you, he or she must continue to own that interest (or a greater interest) during the entire period he or she serves as the Principal Operator and must comply with Section 6 of this Agreement. (b) The Principal Operator shall devote full time and best efforts to the supervision and conduct of the development and operation of the Restaurants contemplated under this Agreement and shall agree to be bound by the confidentiality and non-competition provisions of the Owner Agreement. At such time as the Principal Operator becomes an owner of an interest in you, he or she must agree to be bound by all provisions of the Owner Agreement. (c) The Principal Operator shall be a person we reasonably approve who shall successfully complete our initial training requirements and who shall participate in and successfully complete all additional training as we may reasonably designate. If, at any time or for any reason, the Principal Operator no longer qualifies to act as such, you shall promptly designate another Principal Operator subject to the same qualifications listed above. You shall immediately notify us of the termination of the Principal Operator's employment with you, whether voluntary or involuntary.
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Principal Operator. You shall designate an individual to serve as your "Principal Operator." The Principal Operator shall meet the following qualifications:
(a) The Principal Operator shall own at least a 5% equity interest in you; provided that you shall not be in default of this requirement if the Principal Operator is entitled to a bonus of not less than 5% of the net profits of the Restaurant, payable after the end of each Period (as defined in the Franchise Agreement), and also has the right to acquire not less than 5% equity interest in you within 12 months of his or her hire date, which rights shall be evidenced by a written agreement between the Principal Operator and you. You shall provide us with a copy of any such agreement upon request. Once the Principal Operator has acquired an equity interest in you, he or she must continue to own that interest (or a greater interest) during the entire period he or she serves as the Principal Operator and must comply with Section 6 of this Agreement.
(b) The Principal Operator shall devote full time and best efforts to the supervision and conduct of the development and operation of the Restaurants contemplated under this Agreement and shall agree to be bound by the confidentiality and non-competition provisions of the Owner Agreement. At such time as the Principal Operator becomes an owner of an interest in you, he or she must agree to be bound by all provisions of the Owner Agreement.
(c) The Principal Operator shall be a person we reasonably approve who shall successfully complete our initial training requirements and who shall participate in and successfully complete all additional training as we may reasonably designate. If, at any time or for any reason, the Principal Operator no longer qualifies to act as such, you shall promptly designate another Principal Operator subject to the same qualifications listed above. You shall immediately notify us of the termination of the Principal Operator's employment with you, whether voluntary or involuntary.
Appears in 1 contract
Principal Operator. You shall designate an individual to serve as your "Principal Operator." The Principal Operator shall meet the following qualifications:
(a) The Principal Operator shall own at least a 5% equity interest in you; provided that you shall not be in default of this requirement if the Principal Operator is entitled to a bonus of not less than 5% of the net profits of the Restaurant, payable after the end of each Period (as defined in the Franchise Agreement), and also has the right to acquire not less than 5% equity interest in you within 12 months of his or her hire date, which rights shall be evidenced by a written agreement between the Principal Operator and you. You shall provide us with a copy of any such agreement upon request. Once the Principal Operator has acquired an equity interest in you, he or she must continue to own that interest (or a greater interest) during the entire period he or she serves as the Principal Operator and must comply with Section 6 6.(e) of this Agreement.
(b) The Principal Operator shall devote full time and best efforts to the supervision and conduct of the development and operation of the Restaurants contemplated comtemplated under this Agreement and shall agree to be bound by the confidentiality and non-competition provisions of the Owner Agreement. At such time as the Principal Operator becomes an owner of an interest in you, he or she must agree to be bound by all provisions of the Owner Agreement.
(c) The Principal Operator shall be a person we reasonably approve who shall successfully complete our initial training requirements and who shall participate in and successfully complete all additional training as we may reasonably designate. If, at any time or for any reason, the Principal Operator no longer qualifies to act as such, you shall promptly designate another Principal Operator subject to the same qualifications listed above. You shall immediately notify us of the termination of the Principal Operator's employment with you, whether voluntary or involuntary.
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