STANDARD FORM APPLEBEE'S NEIGHBORHOOD GRILL & BAR FRANCHISE AGREEMENT

                                                                    EXHIBIT 10.2












                                  STANDARD FORM

                       APPLEBEE'S NEIGHBORHOOD GRILL & BAR

                               FRANCHISE AGREEMENT





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                               (Location Address)


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                                (Franchisee Name)


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                                     (Date)



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                                TABLE OF CONTENTS
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<S>     <C>   <C>                                                                                                 <C>
RECITALS      ..........................................................................................          F-3

         1.   FRANCHISE GRANT AND TERM..................................................................          F-4
         2.   UNIFORM STANDARDS.........................................................................          F-5
         3.   COMPLIANCE WITH THE SYSTEM................................................................          F-6
         4.   GENERAL SERVICES OF FRANCHISOR............................................................          F-6
         5.   RESTAURANT SYSTEM AND PROCEDURES..........................................................          F-7
         6.   TRAINING..................................................................................         F-10
         7.   RESTAURANT MAINTENANCE....................................................................         F-10
         8.   ADVERTISING...............................................................................         F-11
         9.   FEES......................................................................................         F-13
        10.   RECORD  KEEPING...........................................................................         F-15
        11.   FRANCHISEE ORGANIZATION, AUTHORITY,
              FINANCIAL CONDITION AND SHAREHOLDERS......................................................         F-15
        12.   TRANSFER..................................................................................         F-18
        13.   CONFIDENTIALITY; RESTRICTIONS.............................................................         F-22
        14.   INSPECTIONS...............................................................................         F-23
        15.   RELATIONSHIP OF PARTIES AND INDEMNIFICATION...............................................         F-25
        16.   INSURANCE.................................................................................         F-27
        17.   DEBTS AND TAXES...........................................................................         F-28
        18.   TRADE NAMES, SERVICE MARKS AND TRADEMARKS.................................................         F-28
        19.   EXPIRATION AND TERMINATION; OPTION TO
              PURCHASE RESTAURANT; ATTORNEYS' FEES......................................................         F-30
        20.   NO WAIVER OF DEFAULT......................................................................         F-35
        21.   CONSTRUCTION, SEVERABILITY,
              GOVERNING LAW AND JURISDICTION............................................................         F-36
        22.   INTERFERENCE WITH EMPLOYMENT RELATIONS....................................................         F-37
        23.   LIQUOR LICENSE............................................................................         F-37
        24.   FORCE MAJEURE.............................................................................         F-37
        25.   MISCELLANEOUS.............................................................................         F-38
        26.   ACKNOWLEDGMENTS...........................................................................         F-39


EXHIBIT 1:              ROYALTY FEE.....................................................................         F-41

APPENDIX A:             STATEMENT OF OWNERSHIP INTERESTS................................................         F-42

APPENDIX B:             REVIEW AND CONSENT WITH
                        RESPECT TO TRANSFERS............................................................         F-43

APPENDIX C:             CONFIDENTIALITY AGREEMENT.......................................................         F-44
</TABLE>

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                       APPLEBEE'S NEIGHBORHOOD GRILL & BAR
                               FRANCHISE AGREEMENT

This Agreement is made this ________ day of _____________________,  20______, by
and   between   APPLEBEE'S   INTERNATIONAL,   INC.,   a   Delaware   corporation
("FRANCHISOR"),         _____________________________________________,         a
(_______________ corporation, sole proprietorship,  _______________ partnership,
_______________    limited   partnership   [strike   inappropriate    language])
("FRANCHISEE")            and             ______________________________________
______________________________  (collectively, the "PRINCIPAL SHAREHOLDERS" and,
individually,  a "PRINCIPAL  SHAREHOLDER"  of  Franchisee  if a  corporation  or
general  partner if  Franchisee is a limited  partnership  having as its general
partner                   a                   corporation)                   and
______________________________________________________________________________
("GENERAL PARTNER" of Franchisee if Franchisee is a limited partnership).*

    *    (If Franchisee is not a  corporation  or a sole  proprietorship,  or if
Franchisee is a limited liability company,  the parties hereto hereby agree that
an Addendum  shall be attached to this  Agreement  so as properly to reflect the
responsibilities of the partners of any general partnership, the general partner
of any limited partnership and the shareholders of any corporate general partner
of any partnership, or the members of any limited liability company.)


WITNESSETH:

                                    RECITALS

    A.   Franchisor owns the rights to develop  and  operate a unique  system of
restaurants which specialize in the sale of high quality, moderately priced food
and  alcoholic  beverages  in an  attractive,  casual  setting,  which  includes
proprietary   rights  in  certain  valuable  trade  names,   service  marks  and
trademarks,  including the service mark Applebee's  Neighborhood Grill & Bar and
variations  of such  mark,  designs,  decor and  color  schemes  for  restaurant
premises,  signs,  equipment,  procedures  and formulae for  preparing  food and
beverage  products,  specifications  for  certain  food and  beverage  products,
inventory  methods,  operating  methods,  financial control  concepts,  training
facilities and teaching techniques ("the System").

    B.   Franchisor established, through its own development and operation,  and
through the granting of franchises,  a chain of Applebee's  Neighborhood Grill &
Bar restaurants which are distinctive;  which are similar in appearance,  design
and decor; and which are uniform in operation and product consistency.

    C.   The value of Franchisor's trade names,  service marks and trademarks is
based upon: (1) the maintenance of uniform high quality  standards in connection
with the preparation and sale of Franchisor-approved food and beverage products,
(2) the uniform high standards of appearance of the individual  restaurant units
in the System, (3) the use of distinctive  trademarks,  service marks,  building
designs and advertising  signs  representing a uniformly high quality of product
and services,  and (4) the assumption by Franchisor  and its  franchisees of the

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obligation  to maintain and enhance the goodwill  and public  acceptance  of the
System (and of Franchisor's trade names, service marks and trademarks) by strict
adherence to the high standards required by Franchisor.

    D.   Franchisor, Franchisee and the Principal Shareholders have entered into
a Development Agreement   dated    __________________,    20____   ("Development
Agreement"),   relating  to  the   development   by   Franchisee  of  Applebee's
Neighborhood Grill & Bar restaurants.

    E.   Franchisee desires  to use the System in  connection with the operation
of an Applebee's Neighborhood Grill & Bar  restaurant  at the location  which is
specified in Subsection 1.1 of this Agreement, pursuant to the terms, conditions
and provisions hereinafter set forth.

NOW, THEREFORE,  in consideration of the mutual obligations contained herein, it
is hereby agreed as follows:


1.  FRANCHISE GRANT AND TERM

    1.1  Franchisor  grants  Franchisee,  for the term stated below,  the right,
license and privilege:

         (a)  to use the  System  incident  to the  operation  of an  Applebee's
    Neighborhood Grill & Bar restaurant at  ____________________________________
    (the "Restaurant");

         (b)  to use  the  trade  names,  service  marks  and  trademarks  which
    Franchisor shall from time to time designate as part of the System, but only
    in  connection  with the sale at the  Restaurant  of  those  products  which
    Franchisor has designated and approved; and

         (c)  to hold itself out to the public as a Franchisee of Franchisor.

    1.2  The term of the franchise  shall commence as of the  Commencement Date,
as hereinafter defined, and shall end twenty (20) years thereafter,  unless this
Agreement is terminated  prior to that date in accordance  with its  provisions.
"Commencement  Date,"  as used  herein,  shall  mean the  date  upon  which  the
Restaurant  opens for business.  The parties agree to affix to this Agreement an
addendum  expressly setting forth the Commencement Date, which, when so affixed,
shall become a part of this Agreement.

    1.3  At the  expiration of the  term hereof, Franchisee shall have an option
to operate  the Restaurant for  four (4)  successive  terms  of  five (5)  years
(unless the franchise agreement with respect to that additional term  is  sooner
terminated in accordance with its provisions),  provided that immediately  prior
to each such five (5) year term (a) Franchisee  satisfies the requirements which
Franchisor  then-imposes on its new franchisees,  (b) all other restaurant units
within the System which Franchisee  then-operates  substantially  comply, in the
opinion of Franchisor, with Franchisor's then-current standards, specifications,
requirements and instructions, and (c) Franchisee executes the form of franchise
agreement which Franchisor is then using with respect to new restaurants  within

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the System, with the amount of royalty and advertising fees payable at the rates
then-prevailing  under the franchise  agreements  which Franchisor is then using
for new  restaurants  within the System,  and Franchisee  pays to Franchisor for
each of said five (5) year periods a franchise fee equal to ten percent (10%) of
the prevailing franchise fee paid by new franchisees at that time. Any franchise
agreement which  Franchisee  executes for such additional term will also contain
options to obtain an assignment of Franchisee's  lease with a third party and/or
to purchase  certain  property or to purchase or lease the  Restaurant  premises
exercisable by Franchisor upon termination  thereof and an option to purchase or
lease the Restaurant  premises  exercisable by Franchisor upon expiration of the
renewal term (subject to any then-existing  renewal rights of Franchisee).  Such
options will  contain  provisions  substantially  similar to the  provisions  of
Franchisor's options described in Subsection 19.4 hereof.  Franchisee shall give
Franchisor  written  notice of its desire to exercise  its option to operate the
Restaurant  for an  additional  term no earlier than twelve (12) months,  and no
later than  seven (7)  months,  prior to  expiration  of the  initial  term.  If
Franchisee gives that notice,  Franchisor,  in its sole  discretion,  reasonably
exercised,  shall  determine  whether  Franchisee  has  satisfied  the foregoing
requirements.  Within  forty-five  (45) days of receiving  the notice  described
above,  Franchisor shall notify  Franchisee in writing whether or not Franchisee
is eligible to exercise the option described in this Subsection.

    1.4  During the period from the date of this Agreement to the  expiration or
earlier  termination  of  this  Agreement,  Franchisor  shall  not  establish  a
restaurant unit utilizing the System, or license another franchisee to establish
a restaurant  unit utilizing the System,  at any location within the lesser of a
three (3) mile radius of the  Restaurant or a radius from the  Restaurant  which
includes either a daytime or residential  population of forty thousand  (40,000)
or more  people.  Notwithstanding  the  foregoing,  Franchisor  may  establish a
restaurant  unit or may license a  restaurant  unit to a third party  within the
geographic  area set forth in the  preceding  sentence,  provided  that (i) such
restaurant  is located  within an  airport  (serviced  by one or more  public or
charter carrier), arena, stadium, state or national park, or military fort, post
or base,  (ii) is  located  across an  international  border,  or (iii) does not
utilize the System or utilize the  Applebee's  Neighborhood  Grill & Bar service
mark.

    1.5  Franchisee, in consideration of the benefits and privileges provided to
it by this  Agreement,  agrees to operate the Restaurant and perform as required
hereunder for the full term of this Agreement.

    1.6  This Agreement is entered into pursuant to and subject to the terms and
conditions which are set forth in the Development Agreement.


2.  UNIFORM STANDARDS

    2.1  The System is a comprehensive  restaurant  system for the  retailing of
certain  uniform and quality food and  beverage  products  (including  alcoholic
beverages),  emphasizing a varied menu of high quality,  moderately  priced food
products  (including  appetizers,   creative  sandwiches,   dinner  entrees  and
desserts),  a  selection  of  alcoholic  and other  beverages,  and  prompt  and
courteous service in a clean,  wholesome,  casual atmosphere.  The foundation of
the System is the establishment and maintenance of a reputation among the public
for the operation of high quality restaurant units. A fundamental requirement of

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the System,  this Franchise Agreement and franchises which Franchisor will grant
to others is adherence by all franchisees to Franchisor's standards and policies
providing for the uniform  operation of all restaurant  units within the System,
including,  but not limited to, (a) selling only those products which Franchisor
has designated and approved,  (b) using only  Franchisor's  prescribed  building
layout and  designs,  equipment,  signs,  interior  and  exterior  decor  items,
fixtures and furnishings,  (c) adhering  strictly to Franchisor's  standards and
specifications  relating  to  the  selection,  purchase,  storage,  preparation,
packaging,  service and sale of all food and beverage products being sold at the
Restaurant,  and (d)  satisfying  all of  Franchisor's  prescribed  standards of
quality,  service  and  cleanliness.  Compliance  by all  franchisees  with  the
foregoing  standards and policies in  conjunction  with the use of  Franchisor's
trade names, service marks and trademarks provides the basis for the wide public
acceptance  of  the  System  and  its  valuable  goodwill.  Accordingly,  strict
adherence  by all  franchisees  to all  aspects of the System is required at all
times.

    2.2  The provisions of the Agreement  shall be interpreted to give effect to
the intent of the parties  stated in this  Section 2 to assure  that  Franchisee
shall  operate the  Restaurant  in conformity  with the System,  through  strict
adherence to  Franchisor's  standards and policies as they now exist and as they
may be modified from time to time.


3.  COMPLIANCE WITH THE SYSTEM

    Franchisee  acknowledges  that every component of the System is important to
Franchisor, to all franchisees and to the operation of the Restaurant, including
the  requirements  (a) that only those  products  designated and approved by the
Franchisor are sold at the Restaurant,  and (b) that there is uniformity of food
and beverage specifications,  preparation methods, quality, appearance, building
and interior design, color and decor, landscaping,  facilities and service among
all restaurant units in the System. Accordingly,  Franchisee agrees to and shall
comply  with  all  aspects  of the  System  (as it now  exists  and as it may be
modified from time to time).  Franchisee  recognizes and agrees that  Franchisor
may  prohibit  the use of the System and its trade  names,  notwithstanding  the
granting of this Agreement, if Franchisee fails to design,  construct,  equip or
furnish its  Restaurant  in  compliance  with the  specifications  designated by
Franchisor, unless prior written approval has been received from Franchisor.


4.  GENERAL SERVICES OF FRANCHISOR

    4.1  Franchisor  shall advise and consult with  Franchisee  periodically  in
connection with the operation of the Restaurant,  and at other  reasonable times
upon  Franchisee's  request.  Franchisor  will provide to Franchisee such of its
know-how,  new developments,  techniques and improvements in areas of restaurant
design, management,  food and beverage preparation,  sales promotion and service
concepts as may be pertinent to the construction and operation of the Restaurant
under the  System.  Franchisor  may  provide the  foregoing  information  (a) by
sending  representatives  to visit the Restaurant,  (b) by providing  written or
other  material,  (c) at meetings or seminars,  and (d) at training  sessions at
Franchisor's training facility and/or such other locations as may be selected by
Franchisor from time to time. Franchisor also shall make available to Franchisee
all additional  services,  facilities,  rights and privileges  which  Franchisor
makes available from time to time to its franchisees of the System generally.

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    4.2  For approximately eight (8) days prior to the opening of the Restaurant
and the first six (6) days that the Restaurant is open for business,  Franchisor
shall provide Franchisee,  at Franchisor's expense, with the services of up to a
maximum of six (6) of  Franchisor's  training  personnel  to  facilitate  proper
operation  of the  kitchen,  bar and dining room areas during that period and to
assist in correcting any operational problems which may arise.  Franchisee shall
reimburse Franchisor for any additional training support required or requested.

    4.3  From time to time during the term of this  Agreement,  Franchisor  will
develop and test new menu items. The menu consists of approved national food and
beverage  selections.  Franchisee  shall  comply  with  all menu  changes  which
generally  occur every six (6) months.  The menu may be modified to reflect food
and beverage items peculiar to Franchisee's  local area, subject to Franchisor's
testing and approval.


5.  RESTAURANT SYSTEM AND PROCEDURES

    5.1  Franchisor  shall  furnish  Franchisee  with advice and  assistance  in
managing and operating the Restaurant,  and  Franchisor's  representatives  will
visit  the  Restaurant  periodically.   Franchisor  will  assist  Franchisee  in
coordinating  the  Restaurant's  pre-opening  activities,   and  as  noted  more
particularly  in  Subsection  4.2  hereof,  shall  provide  Franchisee  with the
services of certain of Franchisor's  personnel to facilitate proper operation of
the Restaurant when it opens for business.

    5.2  Franchisee   shall   designate  an  employee  who  will  supervise  the
Restaurant,  and devote his or her full time, best efforts and constant personal
attention to the day-to-day operation of the Restaurant (the "General Manager").
Franchisee  also shall  designate an employee who will  supervise the Restaurant
kitchen,  and devote his or her full time,  best efforts and  constant  personal
attention to the day-to-day  operation of the  Restaurant  kitchen (the "Kitchen
Manager").

    5.3  Franchisee shall require that the General  Manager, the Kitchen Manager
and each of Franchisee's  employees who serve as Restaurant managers to maintain
his or her principal  personal residence within a usual driving time of not more
than  approximately  one (1) hour from the Restaurant.  Franchisor  reserves the
right to require  that,  as a condition  of his or her  employment,  the General
Manager  must  successfully  complete  Franchisor's   interview  process  and  a
psychological  profile  test in a manner  which  satisfies  a  uniform  standard
established by Franchisor. The test shall be administered by Franchisor, or by a
testing agency designated by Franchisor, at Franchisee's expense.

    5.4  Unless   Franchisor  shall  have  given  its  prior  written  approval,
Franchisee  shall keep the  Restaurant  open for business  only during the hours
which are specified by Franchisor in the Franchise  Operations Manual or in such
other  materials  or  manuals  provided  or  made  available  by  Franchisor  to
Franchisee  (collectively  the  "Manuals"),  provided  that  such  hours  do not
conflict with state laws or local  ordinances  relating to the sale of alcoholic
beverages or governing the hours during which restaurant  establishments  may be
open for business. In addition, Franchisee expressly agrees to:

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         (a)  operate  the  Restaurant  in a  clean,  safe and  orderly  manner,
    providing courteous, first-class service to the public;

         (b)  diligently  promote and  make every  reasonable effort to increase
    the business of the Restaurant;

         (c)  advertise  the  business  of  the  Restaurant  by  the  use of the
    Franchisor's  trade  names,  service  marks and  trademarks  and such  other
    insignia,   slogans,   emblems,   symbols,  designs  and  other  identifying
    characteristics  as may be  developed  or  established  from time to time by
    Franchisor  and  included  in the  Manuals,  subject to the  limitations  of
    Subsections 8.4 and 8.5 hereof;

         (d)  prohibit and, to the best of Franchisee's ability, prevent the use
    of the  Restaurant  for any  immoral  or illegal  purpose,  or for any other
    purpose,   business  activity,  use  of  function  which  is  not  expressly
    authorized hereunder or in the Manuals; and

         (e)  comply fully with all applicable laws and  regulations, including,
    but not limited to, those relating to building construction, maintenance and
    safety,  environmental,  fire prevention, food safety, public access and the
    sale of alcoholic beverages.

    5.5  Franchisee  hereby  acknowledges  receipt  and  loan of a  copy of  the
Manuals  heretofore  or  hereinafter  furnished  to  Franchisee, and  agrees  to
faithfully, completely and continuously perform, fulfill, observe and follow all
instructions,  requirements,  standards, specifications,  systems and procedures
contained  therein,  including (a) those relating to the  construction,  design,
decor,  building and  equipping  of the  Restaurant,  (b) those  relating to the
selection,  purchase, storage,  preparation,  packaging, service and sale of all
products being sold at the Restaurant, (c) those relating to the maintenance and
repair of Restaurant building,  grounds, equipment, signs, interior and exterior
decor  items,  fixtures  and  furnishings,  and (d) those  relating  to employee
uniforms  and  dress,  accounting,  bookkeeping,  record  retention,  and  other
business systems, procedures and operations. The Manuals are incorporated herein
by reference and hereby made part of this Agreement. Franchisee acknowledges and
agrees that the materials  contained in the Manuals are integral,  necessary and
material elements of the System.

    5.6  Franchisee  understands, acknowledges and agrees that strict conformity
with the System, including the standards,  specifications,  systems, procedures,
requirements and instructions contained in this Agreement and in the Manuals, is
vitally important, not only to the success of Franchisor,  but to the collective
success of all of  Franchisor's  other  franchisees,  by reason of the  benefits
which  Franchisor  and all of its  franchisees  will derive from  uniformity  in
products sold, identity, quality,  appearance,  facilities and service among all
restaurant  units which are part of the System.  Without limiting the generality
of the  foregoing  provisions,  Franchisee  agrees  to  adhere  strictly  to the
requirements in the Manuals  relating (a) to the  construction,  design,  decor,
building and equipping of the Restaurant,  (b) to the maximum  permissible ratio
of sales of alcoholic  beverages to sales of food at the Restaurant,  and (c) to
the  limitations  on the number of video games or similar  devices  which may be
placed on the  Restaurant  premises.  Any  failure  to adhere to the  standards,
specifications,   systems,   requirements  or  instructions  contained  in  this
Agreement  or in  the  Manuals  shall  constitute  a  material  breach  of  this
Agreement.

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    5.7  Franchisor shall have the right,  at any time and from time to time, in
the good faith exercise of its reasonable business judgment, consistent with the
overall  best  interests  of the  System  generally,  having  due regard for the
financial  burden which may be placed upon its  franchisees,  to revise,  amend,
delete from and add to the System and the  material  contained  in the  Manuals.
Franchisee  expressly  agrees to  comply  with all such  revisions,  amendments,
deletions and additions.

    5.8  Franchisee shall offer for sale from the Restaurant,  at all times when
the  Restaurant  is open for  business,  only the products  which are  expressly
designated in the Manuals, except, as noted more particularly in Subsection 4.3,
to the extent that Franchisee has obtained Franchisor's prior written consent to
a modification  of that  requirement.  No product shall be offered or sold at or
from the Restaurant  under, or in connection with, any trademark or service mark
other  than  Franchisor's   designated  trademarks  and  service  marks  without
Franchisor's prior written consent.

    5.9  Franchisee  shall  obtain all food and beverage  products,  equipments,
signs, interior and exterior decor items, fixtures,  furnishings,  supplies, and
other  products  and  materials  required  for the  operation  of or sold at the
Restaurant  solely from suppliers  (including  manufacturers,  distributors  and
other  sources)  who   demonstrate,   to  Franchisor's   continuing   reasonable
satisfaction,  the  ability  to meet  Franchisor's  then-current  standards  and
specifications  for such  items;  who  possess  adequate  quality  controls  and
capacity to supply  Franchisee's needs promptly and reliably;  and who have been
approved in writing by Franchisor  and not thereafter  disapproved.  The Manuals
contain a list of approved  suppliers.  If  Franchisee  desires to purchase  any
items from an  unapproved  supplier,  Franchisee  shall  submit to  Franchisor a
written  request for such approval,  which  approval  shall not be  unreasonably
withheld,  or shall request the supplier itself to do so.  Franchisor shall have
the right to inspect the supplier's facilities, and to require that samples from
the supplier be delivered, at Franchisor's option, either to Franchisor or to an
independent,   certified  laboratory   designated  by  Franchisor  for  testing.
Franchisee  or the  supplier  shall pay the costs of any such  test.  Franchisor
shall notify  Franchisee in writing within sixty (60) days of receiving any such
request whether it disapproves the supplier.  Failure by Franchisor to so notify
Franchisee  within  that  period  shall be  deemed  to  constitute  Franchisor's
approval of such  supplier.  Franchisor  reserves the right,  at its option,  to
reinspect the  facilities and retest  products of any such approved  supplier at
any time and to revoke its approval upon the  supplier's  failure to continue to
meet any of Franchisor's criteria.  Notwithstanding the foregoing,  any supplier
of goods having any trademark, trade name, service mark, logo or symbol owned by
Franchisor  shall not be  approved  to supply  Franchisee  such goods until such
supplier  has  entered  a  written  agreement  with  Franchisor   regarding  the
production, use and sale of such goods.

    5.10 No food or beverage  product,  interior or exterior  decor item,  sign,
item of  equipment,  fixtures,  furnishings  or  supplies,  or other  product or
material  required  for the  operation  of the  Restaurant,  which  bears any of
Franchisor's trade names, service marks or trademarks,  shall be used or sold in
or upon the Restaurant  premises unless the same shall have been first submitted
to and approved in writing by Franchisor.

    5.11 The Manuals and all related material furnished to Franchisee  hereunder
are and shall  remain  the  property  of  Franchisor,  and must be  returned  to
Franchisor, along with any copies made thereof, immediately upon request or upon
the expiration or earlier termination of this Agreement.


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6.  TRAINING

    6.1  Franchisor shall make its operations  training course  available to the
General Manager,  the Kitchen Manager,  and Franchisee's  Assistant Managers and
other Restaurant managers.

    6.2  Before the Restaurant opens for business, and thereafter as replacement
personnel are employed by Franchisee,  the General Manager,  the Kitchen Manager
and  each  Assistant  Manager  shall  attend  Franchisor's  operations  training
facility for such period of time as Franchisor shall deem reasonably  necessary,
and  shall  successfully   complete  that  course  to  Franchisor's   reasonable
satisfaction.  If the General Manager,  Kitchen Manager or an Assistant  Manager
fails  to  successfully  complete   Franchisor's   operations  training  course,
Franchisor may require designation of a new General Manager,  Kitchen Manager or
Assistant  Manager,  as the case may be, and  Franchisee  shall  designate a new
General Manager,  Kitchen Manager or Assistant Manager, who shall be required to
successfully complete such training course.

    6.3  The General Manager,  the Kitchen  Manager and each  Assistant  Manager
shall,  from time to time as  reasonably  required  by  Franchisor,  attend  and
successfully    complete   to    Franchisor's    reasonable    satisfaction    a
Franchisor-provided refresher course in restaurant operations.

    6.4  Franchisee  shall be responsible  for the  Restaurant's compliance with
the operating standards, methods, techniques and material taught at Franchisor's
operations  training course,  and shall cause the employees of the Restaurant to
be trained in such  standards,  methods and  techniques  as are  relevant to the
performance of their respective duties.

    6.5  Attendance  of the  General  Manager,  the  Kitchen  Manager  and  each
Assistant Manager at any of Franchisor's training courses shall be tuition-free.
Franchisee shall pay all other costs and expenses  relating to the attendance of
Franchisee's  personnel  at any of  Franchisor's  training  courses,  including,
without limitation,  the cost of travel,  lodging,  meals, and other related and
incidental expenses.


7.  RESTAURANT MAINTENANCE

    7.1  Franchisee  shall, at Franchisee's  sole cost and expense, maintain the
Restaurant in conformity with the standards,  specifications and requirements of
the  System,  as the same may be  designated  by  Franchisor  from time to time.
Franchisee  specifically  agrees to repair or replace,  at Franchisee's cost and
expense,   equipment,  signs,  interior  and  exterior  decor  items,  fixtures,
furnishings,  supplies,  and  other  products  and  materials  required  for the
operation  of the  Restaurant  as  necessary  or  desirable,  and to obtain,  at
Franchisee's cost and expense, any new or additional equipment,  signs, interior
and exterior decor items,  fixtures,  furnishings,  supplies, and other products

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and materials which may be reasonably required by Franchisor for new products or
procedures.  Except as may be expressly provided in the Manuals,  no alterations
or improvements, or changes of any kind in design, equipment, signs, interior or
exterior  decor  items,  fixtures or  furnishings  shall be made in or about the
Restaurant  or  Restaurant  premises  without  the  prior  written  approval  of
Franchisor in each instance.

    7.2  In order to assure the continued  success of the Restaurant, Franchisee
shall, at any time from time to time after ________________,  _________,  (i.e.,
six [6] years  after  the date of this  Agreement)  as  reasonably  required  by
Franchisor (taking into  consideration the cost and then-remaining  term of this
Agreement),  modernize the Restaurant premises,  equipment,  signs, interior and
exterior decor items,  fixtures,  furnishings,  supplies, and other products and
materials  required  for  the  operation  of  the  Restaurant,  to  Franchisor's
then-current standards and specifications,  provided that at the time Franchisor
requires Franchisee to so modernize the Restaurant premises at least twenty-five
percent (25%) of Franchisor-owned  and operated  Restaurants meet such standards
and  specifications.  Franchisee's  obligations  under  this  Subsection  are in
addition to, and shall not relieve Franchisee from, any of its other obligations
under this Agreement, including those contained in the Manuals.

    7.3  If Franchisee  is or  becomes  a  lessee  of the  Restaurant  premises,
Franchisee shall have included in the lease provisions expressly permitting both
Franchisee and Franchisor to take all actions and make all alterations  referred
to under Subsections 7.1 and 7.2 hereof, requiring the lessor thereunder to give
Franchisor reasonable notice of any contemplated termination, and providing that
Franchisee has the unrestricted  right to assign the lease to Franchisor without
the lessor having any right to impose conditions on such assignment or to obtain
any payment in connection  therewith.  Franchisee  shall not,  without the prior
written  consent  of  Franchisor,  execute  any lease or other  agreement  which
imposes,  or purports to impose,  any  limitations  on the ability of Franchisee
and/or  of  Franchisor  to  operate  additional  restaurants  at any  particular
location  beyond the geographic  limitation set forth in Section 1.4 hereof,  or
any lease the term of which is shorter than the term of this Agreement.


8.  ADVERTISING

    8.1  Franchisor shall develop and administer  advertising,  public relations
and sales  promotion  programs  designed to promote  and enhance the  collective
success of all  restaurant  units in the  System.  It is  expressly  understood,
acknowledged  and agreed that in all phases of such  advertising  and promotion,
including,  without limitation,  type, quantity, timing, placement and choice of
media and medium, market areas, advertising agencies and public relations firms,
Franchisor's  decisions  shall be final and binding.  Franchisee  shall have the
right to  participate  actively in all such  advertising,  public  relations and
sales  promotion  programs,  but only in full and complete  accordance with such
terms and conditions as may be established by Franchisor for each such program.

     8.2 Franchisee  shall pay Franchisor,  in the manner described in Section 9
hereof, a minimum dollar amount equal to two and seventy-five hundredths percent
(2.75%) of Franchisee's  gross sales, as defined in Subsection 9.3 hereof.  Such
funds shall become the sole and absolute property of Franchisor, to be allocated
to a separate "advertising account" established by Franchisor.  Franchisor shall
use such  funds  for  market  studies,  advertising  and  marketing  studies  or
services, production of commercials, advertising copy and layouts, traffic

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     costs, agency fees, marketing personnel, or any other costs associated with
the development,  marketing and testing of advertising,  and for the purchase of
advertising time, space or materials in national,  regional or other advertising
media, in a manner  determined by Franchisor in its sole discretion.  Within six
(6) months  following  the end of  Franchisor's  fiscal year,  Franchisor  shall
provide all franchisees with an accounting of all amounts received from them and
expended by Franchisor for the matters set forth above. In addition,  Franchisee
shall  expend a minimum  dollar  amount  equal to one and one percent  (1.0%) of
Franchisee's  gross  sales,  for local  promotional  activities,  subject to the
provisions of Subsections 8.4 and 8.5 hereof. Franchisor shall have the right at
all times to review Franchisee's books and records, and to require Franchisee to
produce evidence of its gross sales and local promotional activities,  to ensure
Franchisee's  compliance with this Section.  Any amount determined by said audit
to be due Franchisor as part of the  advertising  fee will be paid to Franchisor
by Franchisee  within ten (10) days  thereafter.  At any time after execution of
this Agreement,  Franchisor may in its sole discretion increase, to a maximum of
four percent (4%) of gross sales, the percentage of gross sales which Franchisee
shall be required to pay to Franchisor for allocation to a separate  advertising
account  pursuant to this  Subsection 8.2.  Franchisor  shall use the funds paid
pursuant to that  increased  percentage  requirement  solely for the purchase of
advertising time, space or materials in national,  regional or other advertising
media,  in a manner  determined by Franchisor in its sole  discretion,  provided
that in each  calendar  year (or other twelve [12] month period  established  by
Franchisor) in which Franchisor makes  expenditures for advertising from such an
advertising account, so long as Franchisee is in compliance with its obligations
hereunder,   Franchisor's   expenditures   for   advertising  in  the  Territory
encompassed by the Development Agreement (including expenditures for national or
regional  advertising in media which reach that  Territory)  shall be on a basis
which is roughly  proportional to Franchisee's  contribution to that advertising
account during that calendar year or other twelve (12) month period.  Franchisor
also may  increase  the  percentage  of gross  sales which  Franchisee  shall be
required to spend for local promotional activities, provided however, that in no
event shall Franchisee be required to make payments  pursuant to this Subsection
8.2 in a dollar amount in excess of five percent (5%) of gross sales.

    8.3  Franchisee  shall submit to Franchisor, for Franchisor's  approval,  an
advertising  campaign  plan  relating  to the  promotion  of the  opening of the
Restaurant  which is  sufficient  to meet the needs of the  market.  The Manuals
contain a Press  Release kit to assist  Franchisee  in this  regard.  Franchisee
shall conduct the approved  advertising  campaign and make all  expenditures for
advertising  to promote the opening of the  Restaurant  no later than sixty (60)
days after the Restaurant  opens for business.  Franchisor  will reimburse fifty
percent (50%) of Franchisee's  out-of-pocket opening advertising expenditures up
to a maximum of two thousand five hundred dollars ($2,500),  if Franchisee meets
the following criteria:

         (a)  Franchisee's  opening  advertising  expenditures  are  made within
    sixty (60) days after the opening of the Restaurant;

         (b)  Franchisee  submits to Franchisor  within one hundred twenty (120)
    days  after the  opening of the  Restaurant  documentation  for the  opening
    advertising  expenditures,  such as paid invoices from suppliers of goods or
    services evidencing expenditure on the opening advertising promotion; and

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         (c)  Franchisee's opening advertising expenditures are made pursuant to
    the approved  advertising  campaign  plan and in  accordance  with the Grand
    Opening Reimbursement Program Policy Guidelines set forth in the Manuals.

    8.4  Nothing  in the  foregoing  Subsections  shall be  deemed  to  prohibit
Franchisee from making additional expenditures for local promotional activities.
All of the  Franchisee's  local  promotional  activities  shall utilize approved
advertising media. "Approved advertising media" are limited to the following:

         (a)  Newspapers, magazines and other such periodicals;

         (b)  Radio and television;

         (c)  Outdoor advertising by signs displayed on billboards or buildings;
    and<