System Restaurants, Express Outlets and other distribution outlets (including, but not limited to, authorized trailers, mobile kitchens, kiosks and satellite locations) must comply with all PHLLC required food safety programs and processes. PHLLC’s current food safety Standards are found in the Food Safety Compliance Check (“FSCC”) Manual. .Here is the current FSCC Manual. The scope and timing of the audits may vary depending upon the asset/outlet type.

PHLLC will grant Approved Supplier status only to a person or company that meets the then current criteria. PHLLC may revoke approval at its discretion.

If a Franchisee or Licensee wishes to utilize supplies, materials, equipment or services from any person or company (including, without limitation, any distributor) other than the current Approved Suppliers, the Franchisee or Licensee must follow the procedures outlined in the Franchise Agreement or License Agreement and must comply with the following additional/supplemental procedures:

1.The Franchisee or Licensee shall provide PHLLC with appropriate samples from any proposed supplier and written information about the proposed supplier including the offered terms and conditions of sale.

2.The Franchisee or Licensee, or the proposed supplier, must bear the cost of any tests required by PHLLC to determine whether the samples and facilities meets PHLLC’s requirements, both initially and ongoing.

3.The Franchisee or Licensee shall provide PHLLC with details of the distribution chain followed by any proposed distributor, including written information about the distributor and offered terms and conditions of sale.

4.PHLLC may require, as a condition of granting or maintaining Approved Supplier status, that PHLLC be granted the right to inspect and audit the supplier and all facilities at which any supplies, materials or equipment are manufactured, prepared, received, held, stored and transported and/or review on-going quality control documentation. The supplier shall participate in such inspection and audits.

5.PHLLC will notify the Franchisee or Licensee of its decision whether or not to grant Approved Supplier status after PHLLC has analyzed the samples, facilities, test results and information.

6.Supplier must participate in any supplier audit programs mandated by PHLLC.

7.To ensure that the trade secrets of the proprietary items manufactured for PHLLC are kept in absolute confidence, PHLLC shall not be obligated to review or approve any request for a new supplier for such proprietary items. PHLLC will not have any obligation to review or approve any request for approval of any supplier that is owned or controlled by a direct competitor of PHLLC, or its affiliates, within the food service industry.

To ensure compliance with all aspects of the Approved Supplier system, PHLLC reserves the right, at its option, to re-inspect the facilities and to retest the product of any Approved Supplier, their capacity and facilities, and shall have the right to monitor the production, use and ultimate disposition of all items bearing the Marks, from time to time, and to revoke approval of any Approved Supplier upon failure to continue to meet any of PHLLC’s criteria as then in effect. PHLLC may consequently remove an Approved Supplier from the list of approved sources. In such event PHLLC shall advise the Franchisee or Licensee and the Approved Supplier of such action.

Immediately upon receipt of written notice from PHLLC that the Approved Supplier status of a person or company has been revoked by PHLLC, the Franchisee or Licensee shall:

• Cease ordering and taking supply from the person or company
• If instructed by PHLLC, cancel any outstanding orders from the person or company
• If instructed by PHLLC, discard any supplies or materials already supplied by the person or company to their System Restaurants or Express Outlets.

System Restaurants and Express Outlets may only use the services, systems, procedures and methods approved by PHLLC to ensure adequate quality and food safety control of the products.

All ingredients must be sourced from approved distributors who obtain such ingredients from Approved Suppliers. These ingredients may be used only in the preparation of Approved Products and not for other purposes.

All Approved Products offered for sale in System Restaurants and Express Outlets shall be offered in the packaging and trade dress designated by PHLLC. PHLLC may from time to time designate new required and optional approved products, or make products available on a seasonal or local basis only, or as a limited time offer.

System Restaurants and Express Outlets must keep all ingredients/items for the preparation of Approved Products at an appropriate stock level onsite in order to ensure satisfaction of customer demand. This includes all “Ready-for Revenue” items such as, but not limited to, a restaurant-appropriate amount of pizza dough (all sizes), wings, and fries according to a given System Restaurant’s sales history and/or forecasting. Moreover, a System Restaurant may not designate or represent any Approved Product as “out of stock” unless that System Restaurant verifiably is out of stock or cannot safely prepare such Approved Product.

System Restaurants must offer for sale all Approved Products that PHLLC designates as National Brand Standard Menu items, unless PHLLC agrees otherwise in writing. PHLLC’s National Brand Standard Menu and Approved Optional Menu are PHLLC’s approved menus. Brand “Optional” Menu items are approved for sale by Franchisees in System Restaurants and do not require advance approval. Licensee’s menus are controlled by their License Agreements.

In the event a Franchisee desires to develop and/or offer any products other than Approved Products in a System Restaurant, or to otherwise vary from any of PHLLC’s Standards, the Franchisee must follow PHLLC’s Menu Addition Request (M.A.R.) application procedures and obtain PHLLC’s prior written approval. Non-standard ingredients for these items must meet the supplier and distributor requirements.  Effective immediately, as a part of the F.A.S.T. (Focused And Strategic Transformation) initiative, the M.A.R. Committee will not be accepting any new M.A.R. submissions.  In addition, any outstanding submissions that have not been fully processed will not be supported.

From time to time, PHLLC may approve additional menu items for testing purposes. Testing may be in the form of a full advertised market test or a limited store alpha/operations test, or other form as determined by PHLLC. Before test items are offered in any System Restaurants or Express Outlets, the items must be approved in advance in writing by PHLLC’s Chief Brand Officer or their authorized representative. Ingredients and products are approved only for the duration of the test and then must follow the M.A.R. Process.