(e) The franchisee acknowledges that the quality control of the products used or sold by the franchisees of the franchisee is both appropriate and essential to the operation of the franchisor system and to the protection of the franchisee`s trade name, trademarks and service marks and that the provisions of this paragraph relating to the approval of products and suppliers for the purpose of maintaining quality control are respected. That is the case. this additional service fee must be paid the following year on the fifth day of each month. If this contract begins on a date other than the first day of the month, the service fee for the first month is prorated for the first month. During the term of this Agreement and in the event of termination of this Agreement for any reason and for a period of five (5) years thereafter, neither the franchisees, nor its senior officers, nor the procuring entities (including shareholders, licensees, joint ventures or partners) may exercise the same directly or indirectly through participation in shares or in any other way (i.e. own, B. operation or supply of manicure, pedicure or associated spa services) within or within a radius of (10) miles of the franchise that has been the subject of this Agreement or within a ten (10) mile radius of a premise operated by the franchisee or franchisee of the franchisee, and in no event may the franchisee, at all times, except for compliance with the terms of this Agreement, use the name «Happy Nails» or «Happy Nails and Spa» or the general appearance of happy nails and spa lounges, including, but not limited to, the colour scheme used by Happy Nails and Spa-Salons. The Franchisee may also not use or use techniques or processes obtained or learned as a result of the conclusion of this Agreement or the provision of a service under this Agreement. However, in the event that a court of competent jurisdiction considers that this paragraph is not applicable under the laws of a State other than that in which the approved premises are located, this paragraph shall be valid and fully applicable in the State in which the approved premises are located. The Franchisee acknowledges that the purpose of the foregoing restriction is to protect the franchisee`s trademarks, service marks, trade secrets and operating procedures, as well as the general reputation and image of the franchisee and franchisee, and that it is in the mutual interest of the franchisee, franchisee and other franchisees of the franchisee, and that any attempt by the franchisee: to transfer its rights or interests under this Agreement without the written consent of the Franchisee, which constitutes a mater in the event of a breach of this Agreement, the Franchisee has the right to terminate the Franchisee`s rights under this Agreement, upon written notice to the Franchisee. (e) where the franchisee violates any law, regulation, rule or provision of a governmental authority in connection with the operation of franchise rooms and fails to rectify such situation after notification, unless there is a dispute in good faith about the violation or legality of such laws, regulations, rules or regulations, and that the franchisee immediately applies to the courts or bodies of the jurisdiction concerned; to challenge such a violation or legality.. .