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1. Brief introduction to brand of Grand Mansion (Beijing) Restaurant Management Co., Ltd

Grand official mansion and palace, the brand of Grand Mansion is created by Grand Mansion (Beijing) Restaurant Management Co., Ltd for the purpose of advocating traditional Chinese cuisine culture, which is characterized by traditional decorations and performances. It is a restaurant brand characterized by Peking, federal official and Guangdong dishes with integration of architecture, performances and delicious food. Its name is originated from grand mansion as verified by experts on Chinese traditional culture. As “Grand Mansion” is an exact manifestation of connotations of Chinese traditional mansions, the company formally changed its name to Grand Mansion in January, 2009. Grand Mansion (Beijing) Restaurant Management Co.,Ltd manages to create federal official cuisine culture of one thousand history through promotion of the brand of Grand Mansion, and thereby bring Chinese cuisine to other countries in the world.

Grand Mansion (Beijing) Restaurant Management Co., Ltd has established 6 “Grand Mansions” and 3 “Grand Mansion Restaurants” distributed in Beijing and Shanghai since the establishment of its first restaurant in Beijing in 2000. Owing to concerns from foreign and domestic customers and overseas friends, architectural culture, stage arts and exquisite dishes of Grand Mansion have won wide appraises from people in the industry. It is our permanent belief that what are of the national are also of the world. With passing times, Grand Mansion (Beijing) Restaurant Management Co., Ltd will make continuous innovation and expansion based on the restaurant brand of “Grand Mansions” and “Grand Mansion Restaurants”. Its business development is mainly represented by internal investment, commissioned management, authorized business operations and cooperative business operations.

【Grand Mansion】 will jointly create splendid achievements with you based on the tenet of “joint development, win-win, development and expansion”.

2. Concept of Franchise League

Restaurant brand of Grand Mansion belongs to Grand Mansion (Beijing) Restaurant Management Co., Ltd. To ensure accelerated development and promotion of Chinese traditional cuisine culture, our company is willing to share the restaurant brand of “Grand Mansions” and “Grand Mansion Restaurants” with any partner dedicating to the promotion of Chinese traditional cuisine culture. For this purpose, we hereby prepare Franchise League Manual for reference by investors.

I. Any league enterprise shall enjoy the following rights once it obtains authorization for franchised business operations:

1. Right to use of 【Grand Mansion】brand and registered trademark;
2. Instructions on 【Grand Mansion】VI system and façade design proposal;
3. Marketing benefits from uniform promotion of【Grand Mansion】brand;
4. New results of series products of uniform standard and quality of chained system;
5. Manual for 【Grand Mansion】brand management operation mode;
6. Trainings and instructions on【Grand Mansion】brand management service;
7. Trainings and instructions on marketing services of 【Grand Mansion】brand;
8. Trainings and instructions on financial management operations of 【Grand Mansion】 brand;
9. Share of resources of designated suppliers for【Grand Mansion】restaurants;
10. Site selection and planning services for【Grand Mansion】restaurants;
11. Instructions on preparations for opening of 【Grand Mansion】restaurants.

II. Principles for franchise league

1. The investor is willing to join the【Grand Mansion】 chain system, and agrees to sign league agreement.
2. The investor is willing to proceed with decoration and reconstruction according to 【Grand Mansion】style.
3. The investor agrees to proceed with business management in 【Grand Mansion】 brand mode.
4. The investor is willing to purchase kitchen equipments and food materials according to specified standards of 【Grand Mansion】.
5. The investor agrees to accept authorized management by Grand Mansion (Beijing) Restaurant Management Co., Ltd.

III. Food pricing:

1. The league restaurant shall abide by the principle of 【Grand Mansion】 for food pricing, and shall not interfere market standard and price of 【Grand Mansion】 restaurant.
2. 【Grand Mansion】 shall issue a 20-day written notice to the supervisor of the league restaurant in case of seasonal promotion. Each league restaurant shall coordinate with and support such promotion activities.

IV. Determination of restaurants ites and decorations:

1. The investor shall provide description of site of league restaurant for confirmation by Grand Mansion (Beijing) Restaurant Management Co., Ltd.
2. The investor shall provide the following information:
Location of restaurant site
Structural diagram for the interior space of the restaurant
Description of peripheral visitors flow and Environment
Color photo of peripheral Environment
Photo of parking Environment outside the restaurant
Photo of internal structure
Lease contract or certificate of title
3. The investor shall proceed with design and decoration according to standard of 【Grand Mansion】 brand.

V. Schedule for work and rest and confirmation

1. The league restaurant shall abide by the schedule for work and rest as prescribed by 【Grand Mansion】.
2. Alteration to schedule of work and rest in specific cities shall be under the written permission of Grand Mansion (Beijing) Restaurant Management Co., Ltd.

3. Concept of Commissioned business management

i. Opening preparation support

1. Engineering management preparation support
2. Financial management preparation support
3. Human resources preparation support
4. Marketing promotion preparation support
5. Comprehensive management preparation support
6. Cooking standard preparation support

ii. Business management after opening

1. Dish delivery management
2. Floor service standard management
3. Promotion, planning and marketing management
4. Comprehensive services for members and customers
5. Management of comprehensive financial instructions
6. Human resources training management
7. Equipment maintenance management
8. Comprehensive service quality management

iii. Relevant expenses for commissioned management:

1. Consultation fee for opening support of RMB; (to be determined as per project scale and preparation duration)
2. Expenditures for commissioned operations and management: Turnover, gross business profits (to be paid on monthly basis)

iv. Computation of gross business profits:

Gross business profits refer to gross business revenues with deduction of all operation costs, which do not include the following expenses:
1. Depreciation
2. Land and building rental
3. Bank loan interest
4. Housing property duty
5. Expense allocation before opening
6. Equipment renewal expenses
7. Checked figures, legal and other professional fees
8. Insurance fees
9. Other non-business expenditures
10. Overhead expenses
11. Expenses of Board of Directors

v. Commissioned managerial posts:

1. General manager of franchised restaurant
2. Floor manager, 1-2 persons
3. Formal and deputy executive chef
4. HR manager
5. Consultant of financial manager
6. Marketing manager

4. Confidential principles for franchised cooperation

(1). The following documents and information as provided by Grand Mansion (Beijing) Restaurant Management Co., Ltd for franchised restaurants are for lease during cooperation. Any franchised store is not allowed to transfer or hand over duplicates of the following documents and information to the third party not associated with the cooperation without the permission of Grand Mansion (Beijing) Restaurant Management Co., Ltd
1. Contract
2. Training Manual
3. Decoration Manual
4. Equipment Manual
5. Food Manual
6.Advertisement Manual
(2). Other relevant confidential documents
(3). Any franchised restaurant shall make a promise that it will not disclose any confidential information, know-how and business approach as obtained by it to the third person within the contract term or within three years upon expiration of the contract.
(4). The franchised investor shall promise that it will not reproduce decoration style and management mode of 【Grand Mansion】 brand during cooperation or within three years upon expiration of cooperation.

5. Alteration to league of Grand Mansion brand

1. Any investor of franchised restaurant shall issue a written notice to the brand management corporation three months in advance if it prefers to change the restaurant site.
2. Any investor of franchised restaurant shall provide all information on the new restaurant site (including such documents as literal description of land plot, construction plan, lease contract) if it prefers to change the original restaurant site.
3. Decoration of franchised restaurant on new site shall be reserved with original style of 【Grand Mansion】 brand.
4. Franchised restaurant on new site shall be deemed as the new restaurant as run by the investor, of which, league fee, preparation consultation fee and expenditures for operations and management shall be paid according to criteria for new restaurants.
5. The investor shall issue a written notice to the management corporation 6 months in advance if it prefers to transfer franchised restaurant under 【Grand Mansion】 during cooperation.
6. Assignee of franchised restaurant under 【Grand Mansion】 shall accept all aforesaid contractual requirements, and shall conclude league and commissioned management contract with brand management corporation.
7. In the event that franchised restaurant is transferred upon expiration of the contract, the assignee shall pay corresponding league fee and overhead expenses.

6. Termination of use of 【Grand Mansion】 brand

1. Upon expiration of franchised cooperation with 【Grand Mansion】, franchised restaurant shall return all technical information on brand to the brand management company within 10 days upon substantial expiration of cooperation.
2. Upon expiration of cooperation, Grand Mansion (Beijing) Restaurant Management Co., Ltd shall take back franchise right of【Grand Mansion】 brand for public release through media.

Your inquiry is highly appreciated. We will sincerely provide comprehensive services.

Contact: Zhang Jianyi / Mobile phone: 18601389887
Tel: 010-88356995 / E-mail: zjy@bjdzm.com