What are the 7 Brew franchisee's obligations regarding pre-opening purchases/leases (Item 9) and how do these relate to the franchisor's requirements for inventory management (Item 8)?

Pre-Opening Assistance

Before you begin operating the Store:

1. We will review potential Store sites that you identify within the development territory. You must locate, evaluate, select, and secure the Store's site. We will not search for or select the site for you. (DRR—Section 6(a)) We first must accept each new site you propose for each new 7 BREW Store. Our then-current standards for sites will apply.

We will give you our then-current criteria for Traditional 7 BREW Store sites (including population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, ingress and egress, size, and other physical and commercial characteristics) to help in the site-selection process. We will review potential Traditional 7 BREW Store sites that you identify within the development territory but have no obligation to visit the territory to inspect physically the sites you propose for your potential

Stores. We have the right to condition our acceptance of a proposed site, or a proposed site visit, on your first sending us complete site reports and other materials (including photographs and digital recordings) we request. You must give us all information and materials we request to assess each proposed Traditional 7 BREW Store site. (DRR— Section 6(b))

We will use reasonable efforts to review and accept or reject each site you propose within 30 days after we receive all requested information and materials. If we do not accept the site in writing within 30 days, the site is deemed rejected. We will not unreasonably withhold our acceptance of a site if, in our and our affiliates' experience and based on the factors outlined above, the proposed site is not inconsistent with sites that we and our affiliates regard as favorable or that otherwise have been successful sites in the past for Traditional 7 BREW Stores. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you prefer is accepted but not recommended due to its incompatibility with certain factors bearing on a site's suitability as a location for a Traditional 7 BREW Store. After we accept and you secure a proposed site, we will identify that site as the Store's address in the Franchise Agreement. (DRR—Section 6(b)) We do not own locations for lease to franchisees.

If we accept a proposed site but you (or your Approved Affiliate) have not yet signed a franchise agreement for that 7 BREW Store, the DRR requires you—concurrently with signing the lease for or otherwise securing the right to possess the site—to sign (or have your Approved Affiliate sign) a separate franchise agreement (and related documents) for that Store. Nevertheless, we might allow you to sign the Franchise Agreement later at or closer to the Store's opening—if you are diligently working on the Store's development. If you (or your Approved Affiliate) cannot obtain lawful possession of the acceptable proposed site within the time period we designate, we have the right to withdraw our acceptance of the proposed site (we have that same right if you fail to sign the Franchise Agreement when required). After you and your owners (or your Approved Affiliate and its owners) sign the franchise agreement (and related documents, including Guaranty and Assumption of Obligations), its terms and conditions will control the construction, development, and operation of the 7 BREW Store (except that the required opening date is governed exclusively by the DRR's development schedule). (DRR—Section 6(c))

If you do not find and secure acceptable Store sites so that you can open the required Stores by the opening deadlines in the DRR, we have the right to terminate the DRR.

• 1. We will not be involved in reviewing, negotiating, approving, or accepting any lease you sign for the Traditional 7 BREW Stores you construct and develop under the DRR. You alone are exclusively responsible for all lease matters.