Is Angry Chickz required to provide any assistance to franchisees before opening their business?

EM 11**

FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING

Except as listed below, we are not required to provide you with any assistance.

Pre-Opening Obligations

Before you open your business, we will:

Site Review. Upon receiving the information regarding a proposed site, we will review the information and either accept or reject the proposed site under our then-current standards for site acceptance and rejection. If we do not accept your proposed site within 30 days after your submission (or 15 days after you provide any supplemental information we request), the site will be deemed rejected. (Franchise Agreement, § 5.1) You may not enter into a lease or purchase agreement for a site unless and until the site has been accepted. We may impose a fee of $500 per each Site Review Kit if we reasonably determine that you have submitted more than 3 Site Review Kits.

Your Restaurant location will be purchased or leased by you from independent third parties. We do not generally own the premises and lease it to you.

Site Selection Assistance. We do not locate sites for you. However, we may, without obligation, assist you in locating or evaluating a site. Factors that we consider in determining the size of your Protected Area include among others, the demographics, population size, neighboring and adjacent retail tenants, visibility, and proximity to other businesses and our then-current standards for sites and territories will apply. (Franchise Agreement, § 5.1)

Standards for Restaurant. We will provide a copy of our basic specifications for the design and layout of your Restaurant. We will provide a copy of our Standards (which includes the names of approved suppliers) for the design and layout of a typical Restaurant and mandatory and suggested equipment, furnishings and fixtures. (Franchise Agreement, § 5.3.1) We do not provide equipment, signs, fixtures, opening inventory or supplies, but provide you with specifications only. We do not deliver or install these items.

Training. We provide an initial training program described below. (Franchise Agreement § 6.1)

Operating Principal. We will accept or reject your Operating Principal. (Franchise Agreement §§ 1.1.4 and 7.2.1)

Manuals. The Table of Contents of Our Manual(s) (currently, a total of 151 pages) is attached as Exhibit I. Our manual(s), bulletins, electronic communications and/or other directives will describe our mandatory and recommended Standards and procedures. The Manual(s) may be in one or more volumes or chapters or segments. The Manual(s) may be delivered to you in any media utilized by us for delivery of the Manual(s). We will have the right to update the Manual(s) and change the elements of our System as we deem appropriate. We will loan (or provide access to the Manual(s) via electronic interface) to you one copy of our confidential Manuals to use during the term of the Franchise Agreement. The Manual(s)

contain our standard operational procedures, policies, rules and regulations with which you must comply. (Franchise Agreement § 7.4)

Grand Opening Support

You must pay us a $20,000 lump sum grand opening support fee at least 90 days before the scheduled opening date of your Restaurant. We will design a pre-opening marketing campaign with your input based on highlighting our food and your local community. We will conduct a social media campaign, principally focused on Instagram and Facebook media but may include other platforms, and utilizing local influencers. The campaign is also intended to garner mentions in local media channels, foster ties with the local chamber of commerce, and a ribbon-cutting event designed to capture the excitement and enthusiasm surrounding your Restaurant's opening. We will utilize professional videography and photography to capture the essence of the day, and we will use the products of those endeavors for subsequent use across social media platforms. Our grand opening support campaign typically begins 60 days prior to your grand opening and continues for 15 days following the opening. (Franchise Agreement § 4.4 and 6.6)

Time to Open

We estimate the typical length of time between signing a Franchise Agreement and opening a Restaurant is approximately 10 months assuming that a location can be obtained and leased within 3 months after you sign the Franchise Agreement. If there are unforeseen delays, it could take considerably longer for you to open your Restaurant. Factors that may affect the length of time it takes you to open your Restaurant include the process of negotiating a lease, construction delays, drafting architectural plans, obtaining permits, weather conditions, shortages, and delayed installation of equipment, fixtures and signs.

Obligations After Opening.

During the operation of the franchise business, we will:

• 1. provide up to 5 days of on-site training commencing shortly before and ending shortly after your Restaurant opens to the public (Franchise Agreement § 6.2);
• 1. provide training courses, programs and conventions that we choose to provide. (Franchise Agreement § 6.4).

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–33)