Which article in the Anago Subfranchise Agreement outlines the franchisee's obligations regarding fees?

• 1. Unless otherwise indicated, payments are not refundable. Neither we nor any of our agents or affiliates offers direct or indirect financing.
• 1. See Item 5 for a description of Initial Fee / Subfranchise Fee.
• 1. We require that all Subfranchisors be a business entity utilizing a name containing a combination of numbers or letters totaling four characters. Once you are incorporated, a registration of a fictitious name, e.g., JKCA, Inc. d/b/a Anago of (your city name) will be required. Under no circumstances do we allow you to use any of the Proprietary Marks, including Anago, as part of your business entity name. These fees may vary from state to state depending on each state's laws and the prevailing rate of attorneys' fees. These costs are paid to attorneys, newspapers and governmental agencies, and are not refundable and usually incurred before beginning business. You will be responsible for the development of your Franchise Disclosure Document (FDD) and, if required, state registration. We will assist you by giving you a current template. As part

of your FDD development, you are required to provide audited financials on an annual basis, the cost of which is included in this estimate.

• 1. This estimate is for an initial supply of marketing brochures, business cards, and other materials for marketing to prospective franchises and client accounts, as well as advertising for prospective franchises. It includes estimates for expenses related to your website, pay-per-click advertising, telemarketing, social media advertising, and salary of sales personnel during your first 6 months of operation.
• 1. Some costs of training that you may bear are transportation, lodging, compensation and meals. The estimate is for items that are non-discretionary in nature. Generally, these costs will vary widely as a function of the distance traveled, number of attendees, the accommodations selected, the restaurants patronized, the distance between the hotel and the training center and the transportation selected.
• 1. We recommend that you lease office space in a commercial building centrally located within the Area. It should consist of approximately 1,000 to 1,500 square feet. Rental costs can vary dramatically in different markets and could be lower if an executive suite is utilized. If you choose to purchase real estate or construct the building containing your office your cost will be significantly higher. The lease deposit estimate assumes one month's rent will be required upon signing lease. Rent estimate assumes first 6 months of rent. Utility deposits are for office space utilities, internet, and telephone service.
• 1. Fixtures and office equipment consist of, but are not be limited to, a copy machine/fax, telephone system, office furniture, fixtures, and signage. Payment for leased items will be paid directly or indirectly to the lessor. You will need office furniture and fixtures to facilitate the initial number of working personnel. The computers and printers supplied by local vendors must be installed and operating at least 30 days before your actual date of opening. This allows ample time for training relative to their use as a tool in generating leads as well as operational control and the ability to generate statements for your Unit Franchisees. The NBDS software license is included in this estimate (See Exhibit D).
• 1. We will only allow office supplies that support the image and positioning of the System in the marketplace. You agree to the importance of image and positioning to the Anago System and agree to use only the supplies we specify or otherwise approve. The term "supplies" refers to brochures, flyers, forms, proposal folders, 3-ring binders, presentation materials, whether electronic or otherwise, and other miscellaneous items.
• 1. Each salesperson, brand manager, as well as the Subfranchisor, will be required to furnish transportation in order to facilitate the bidding and estimating along with the coordination of the matching of the Unit Franchisee with the account, once the sale has been consummated. You, as the Subfranchisor should, as a practical matter, require your sales and operating personnel to furnish their own transportation. Amount reflects our estimates for gas, oil and insurance per automobile you supply. This is a rough estimate because of the size of the franchise territory, location of the office relative to the territory and the driving habits of the individual can vary considerably.
• 1. The estimate in the table is a 6-month premium for general liability, umbrella liability, crime, casualty, and workers' compensation (depending on state requirements) coverage you must purchase for your business. Insurance premiums vary by state and various other factors in your area. You are required to be covered under the Anago National Insurance program for the entire Term (See Item 8).
• 1. In every business start-up, there are numerous unanticipated costs, for example, licenses and permits, professional fees for accountants or additional fees for attorneys, or utility deposits. Amount reflects our estimate for the initial 6 months of start-up.
• 1. You should have adequate working capital before beginning operation of your Anago Subfranchise Rights Business. The estimate in the table for additional funds is a 6-month period and should be sufficient to keep the business in operation after commencing operation of your Anago Subfranchise Rights Business, and capable of covering the excess of expenses over cash flow covering employee wages and taxes, insurance premiums, rent, and other normal expenses that are associated with your day-to-day business operation. You must be able to meet operating expenses from pre-opening, including hiring and training expenses, until the business develops sufficient cash flow to cover all costs. These figures do not include any revenue that your Anago Subfranchise Rights Business may generate during the start-up period. You are encouraged to fill out a personal/family cash flow budget and determine if there is sufficient revenue on the personal level to provide for your family through the start-up period. You must have additional sums available, whether in cash or through unsecured credit lines, or have other assets that you may liquidate, or that you may borrow against, to cover your personal living expenses and any operating costs during and after the initial phase.
• 1. Your actual investment will depend on local conditions in your geographic area, the real property and equipment purchased (new or used), number and quantity of personnel employed, the location and size of the Area, the charges for legal and accounting services incurred by you including preparation of your Franchise Disclosure Document as well as applications and registrations for the offer and sale of franchises. If you own an existing business, you will probably already have the necessary office furniture, office equipment supplies, insurance, business office and employees. You will not need to purchase these items again nor incur additional costs and therefore your total investment may be significantly less than the amounts estimated. Furthermore, the figures listed in the chart are only estimates based on our and our principals' experience in the commercial cleaning business and we cannot guarantee that you will not have additional expenses starting the business. Additional factors affecting your costs will be how well you follow our methods and procedures, your management skill, experience and business acumen, your local economic conditions, the local market for our services, the current wage rate, competition and the sales level reached during your first year of operation. Further, the Subfranchisor is not required to operate a Unit Franchise nor is it permitted to do so without executing a separate Unit Franchise Agreement; accordingly, these total costs relate only to the estimated initial investment to begin operating a Master Franchise, not a Unit Franchise. We urge you to retain the services of an experienced accountant or financial advisor in order to develop a business plan and financial projections for your Anago Subfranchise Rights Business.

ITEM 8 - RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Required Purchases

We require you to purchase or lease the computer equipment in accordance with our specifications, from us or our designee, which specifications are subject to change throughout the term of your Subfranchise Rights Agreement. We currently require you to use certain hardware and software systems designated by us, pursuant to that certain NBDS License Agreement (in the form attached as Exhibit D to the Disclosure Document) which you and we will enter into.

We have the right to supplement, improve and otherwise change the System at any time and for any reason, and you must comply with all such requirements, including offering and selling new or different products or services specified by us and discontinuing the offer and sale of products and services we no longer approve.

Specifications; Required and Approved Suppliers

To help retain the uniform and high standards necessary to maintain and enhance the goodwill of the System and acceptance in your market, we provide specifications and/or required suppliers for the purchase or lease of certain items, which each Subfranchisor currently is required to retain to provide support services in connection with certain software. We are the only approved supplier for the NBDS System. Specifications may include standards for enhancing the System's image and minimum standards for safety, appearance and other factors. We also currently require that you use our designated internet vendors in connection with the creation and maintenance of your website, and email/webhosting. We will communicate specifications for required or permitted products and services in the Manuals or otherwise in writing.

For any products or services for which we do not then have an approved or designated vendor, you may use any vendor that meets our specifications, as set forth in the Manuals. However, we reserve the right to require you and your Unit Franchisees to purchase or lease computers and all other products or services used or required to be used in your respective businesses only from manufacturers, contractors, distributors, and other suppliers (collectively, "vendors") that we approve or designate and about whom we notify you in the Manuals or otherwise in writing. We may also determine the terms under which vendors provide products or services to your Anago Subfranchise Rights Business and to Anago Unit Franchisees, and the distribution methods for any goods or services provided to or used by vendors of products or services. For any product or service for which we have approved or designated a vendor, you must purchase and require your Unit Franchisees to purchase all such goods and services only from the approved or designated vendor for that product or service, under terms, in the manner, and from the source we designate. In our discretion, there may be only one approved or designated vendor for any particular product or service, and we and our affiliates may be a, or the only, vendor and derive revenue from your and your Units Franchisee's purchases. We and our affiliates may use any such revenue as we or they determine, without restriction. We and our affiliates are not currently approved vendors for any particular product or service, but we do act as the intermediary between you and the designated insurance carrier with respect to the purchase of the required insurance.

In approving suppliers for the System, we typically, but are not required to, require that the

supplier be nationally or regionally recognized, and we may take into any factors that we believe to be relevant, including, for example, the price and quality of the products or services, the vendor's frequency of delivery, the vendor's standards of service and reputation in the community, and the reliability of the supplier. We may concentrate purchases with 1 or more suppliers to obtain, but we do not necessarily guarantee, the lowest prices and/or the best advertising support and/or services for any group of Anago Subfranchisors, Anago Unit Franchisees or company/affiliateowned units within the System. Approval of a supplier may be temporary, pending our additional evaluation of the supplier. If we later disapprove a supplier, we will timely notify you in writing of the disapproval. You must cease purchasing from that supplier within a reasonable time (but in any event, within 30 days) after your receipt of our notice of disapproval.

We may, at our option, arrange with certain vendors to collect or have our affiliates collect costs and expenses associated with products and services they provide to you and, in turn, pay the vendor, on your behalf, for such products or services. If we choose to do so, you must allow us or our designated affiliates to auto debit your escrow account for such amounts in the same manner and using the same authorization that you grant us with respect to payment of Royalty and other fees. We currently act as collection agent for the website creation and maintenance vendor and the designated insurance companies.

Currently, none of our officers owns an interest in any supplier to the Anago System.

Insurance

You are required to be covered under the Anago National Insurance program for the entire Term. The insurance fee will be paid to us or our designee, which we will pay to the insurance company. Premiums for any such insurance plans may vary in different states and may change from year to year. The plans may be subject to change, modification, and/or cancellation. Future changes in premiums, types of coverage and other changes will be set forth in writing.

Currently, our policy or policies are written by a licensed insurance company and include commercial general casualty insurance and general liability insurance, including products liability, property damage, owned and non-owned motor vehicle coverage, and personal injury coverage with a combined single limit of $1,000,000, with an umbrella policy of $2,000,000, an "Errors and Omissions" policy with $1,000,000 coverage, as well as workers' compensation insurance. You must separately obtain and maintain any other insurance that may be required by applicable law, your landlord, lender or otherwise.

If the Unit Franchisees in your Area do not elect to purchase insurance coverage through you, you must require them to maintain insurance in the amounts and limits as we require, at their sole cost and expense. The policies must be written by an insurance company, reasonably satisfactory to us, with a Best rating of "A" or better.

Approval of New/Alternative Suppliers

If you propose to purchase or lease any equipment, supplies, advertising materials, or other products or services from an unapproved supplier, you must first submit to us a written request for approval, or request the supplier to do so itself. We have the right to require, as a condition of our approval that our representatives be permitted to inspect the supplier's facilities, and that samples

from the supplier be delivered, at our option, either to us or to an independent, certified laboratory we designate for testing. We will not be liable for damage to any sample that may result from the testing process. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing. We may also require as a condition to our approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting us, our subfranchisors and Unit Franchisees from all claims from the use of the item within the System. We reserve the right, at our option, to re-inspect the facilities and products of any approved supplier and continue to sample the products at the supplier's expense and to revoke approval upon the supplier's failure to continue to meet our standards and specifications. We will notify you in writing within 30 days of the approval or disapproval of the supplier. Our criteria for supplier approval are not available to you or proposed suppliers, as we and our predecessors and affiliates have developed these criteria through the expenditure of extensive work and time and the criteria are considered confidential information.

Revenue from Approved Supplies and Suppliers

We may derive income, consideration and other benefits from your purchase or lease of any products, services, supplies or other items. This income may be derived as a rebate from various suppliers based on the quantity of System franchisee and Subfranchisor purchases. Currently, we receive a 5% to 20% rebate from franchisee purchase of branded items such as apparel and stationery. During AFI's fiscal year ended December 31, 2023 it derived $280,409.29 or 2.98% of its total revenue of $9,418,968 from required Franchisee purchases. No revenue was earned from a third-party supplier. None of our Affiliates derived revenue from these purchases.

Except as disclosed in this Item, neither we, nor any of our affiliates are the only approved supplier of products or services to Unit Franchisees or Subfranchisors. As of the issuance date of this Disclosure Document, neither we, nor any of our officers or principal stockholders owns any interest in any approved supplier of products or services to Anago franchisees. Our affiliates receive no benefits from us as approved suppliers.

We estimate that the required purchases or leases described in the above paragraphs are approximately 3% - 5% of the cost to establish your Anago Subfranchise Rights Business and approximately 0.5% - 1% of your total annual operating expenses.

Cooperatives

There are currently no purchasing or distribution cooperatives that you must or may participate in; however, we may negotiate with some suppliers for you, at your request. We reserve the right to establish national or regional purchasing programs in the future. If a national or regional purchasing program is established for the region where your Subfranchise Rights Business is located, you must participate in the program.

Negotiated Prices

From time to time, we may negotiate purchase arrangements (including pricing and payment terms) with our approved or designated suppliers.

Material Benefits

We do not provide any material benefits to you if you buy from sources we approve.

ITEM 9 FRANCHISEE'S OBLIGATIONS

This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.

| Obligation | Section In Agreement* | Disclosure Document It

Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 26–27)